Instructor Solution Manual For Business Driven Technology, 10th Edition Paige Baltzan

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 1

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL This guide provides many classroom activities, videos, and debates to accompany Business Driven Technology 10e. A few course suggestions: 

Create one or two test questions based on the classroom activity to help reward students who attend lectures.



Many professors have found that assigning an activity and then lecturing on the material helps students gain a deeper understanding of the core MIS concepts as they have already struggled with applying the material to a real-world situation.

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Asking a small group of students to explain their answer to the activity to the entire class after completion ensures students come to class prepared. I select a different group each activity to explain their answer and they do not want to look unprepared in front of their fellow classmates. It is a powerful motivator to get my students to read prior to class. After the activity and student’s presentations then I lecture—this keeps my students engaged and helps to achieve a higher level of learning outcomes as they are constantly tasked with applying the concepts during class.

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Create an Ask the Professor Discussion Board that runs the entire course where students can ask course- and content-related questions. I typically promise to respond within 24 hr, and I always encourage my students to check the discussion board before sending an email. Many times, if one student has a question so do other students.

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**Three Before Me Rule! This is something I have found that saves a great deal of time answering email. I state the Three Before Me Rule in my syllabus. Before a student comes to me with a question, they must provide three sources they used to answer the question themselves. This significantly cuts down on emails as many times students can find the answer to their questions, but it seems easier just to email the professor.

Sources can include the syllabus, the Ask the Professor Q&A Discussion Board, classmates, the textbook, and so on. If I ask the student for the three sources and they do not have them, I dock participation points. Works great on significantly cutting down my emails and helps to prepare my students for the real world!



The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material.

Enjoy your course and best of luck! Please feel free to email me directly if you have any questions, ideas, suggestions, or feedback! For additional course materials, content, and cases, visit www.baltzan.net or email me directly at pbaltzan@baltzan.net.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 2

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL UNIT ONE OVERVIEW Information is everywhere. Information is a strategic asset. Without information, an organization simply could not operate. This Unit introduces students to several core business strategies that focus on using information to gain a competitive advantage, including:             

Competitive advantages Porter’s Five Forces Model Porter’s three generic strategies Value chain Supply chain management Customer relationship management Business process reengineering Enterprise resource planning IT efficiency metrics IT effectiveness metrics Organizational structures Ethics Security

Many of these concepts and strategies will be new to your students. Be sure to explain to your students that this Unit offers an introduction to these concepts, and they will gain a solid understanding of the details of these concepts as they continue reading the text. For example, customer relationship management is introduced in Unit One and discussed in detail in several additional chapters and in the business plug-ins. The chapters in Unit One include:     

Chapter One—Business Driven Technology Chapter Two—Identifying Competitive Advantages Chapter Three—Strategic Initiatives for Implementing Competitive Advantages Chapter Four—Measuring the Success of Strategic Initiatives Chapter Five—Organizational Structures That Support Strategic Initiatives

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL CHAPTER 1 This chapter introduces students to several core business strategies that focus on using information to gain a competitive advantage, including:  Core Drivers of the Information Age  Data, Information, Business Intelligence, Knowledge  Big Data  Systems Thinking  Competitive Advantages © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 3

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Porter’s Five Forces Model Porter’s three generic strategies Value Chain Analysis

Many of these concepts and strategies will be new to your students. Be sure to explain to your students that this chapter offers an introduction to these concepts, and they will gain a solid understanding of the details of these concepts as they continue reading the text.

LEARNING OUTCOMES 1.1: Describe the information age and the differences between data, information, business intelligence, and knowledge.

We live in the information age, when infinite quantities of facts are widely available to anyone who can use a computer. The core drivers of the information age include data, information, business intelligence, and knowledge. Data are raw facts that describe the characteristics of an event or object. Information is data converted into a meaningful and useful context. Business intelligence (BI) is information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyzes patterns, trends, and relationships for strategic decision-making. Knowledge includes the skills, experience, and expertise, coupled with information and intelligence that creates a person’s intellectual resources. As you move from data to knowledge you include more and more variables for analysis resulting in better, more precise support for decision-making and problem-solving.

1.2: Explain systems thinking and how management information systems enable business communications.

A system is a collection of parts that link to achieve a common purpose. Systems thinking is a way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback on each part. Feedback is information that returns to its original transmitter (input, transform, or output) and modifies the transmitter’s actions. Feedback helps the system maintain stability. Management information systems (MIS) is a business function, like accounting and human resources, which moves information about people, products, and processes across the company to facilitate decision-making and problemsolving.

MIS incorporates systems thinking to help companies operate cross-functionally. For example, to fulfill product orders, an MIS for sales moves a single customer order across all functional areas including sales, order fulfillment, shipping, billing, and finally customer service. Although different functional areas handle different parts of the sale, thanks to MIS, to the customer the sale is one continuous process.

CORE MATERIAL The core chapter material is covered in detail in the PowerPoint slides. Each slide contains © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 4

detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material. You will find numerous classroom ideas to keep your course exciting and challenge your students to apply the material.

RUNNING CASE STUDY QUESTIONS 1. You have landed your dream job working for Steve Evert. Unfortunately, Steve does not understand the difference between data, information, business intelligence, and knowledge. Choose a product or service and provide examples of data, information, business intelligence, and knowledge to help Steve understand these important concepts.

Student data will include gender, weight, height, major, and age. Turning that data into information can provide insights into the entire group of students. Such things as top majors, average GPA, graduation rates, grades across class, grades by different teachers, and male to female ratio. Business intelligence would include outside information such as internship types, average starting salary, and graduate school choices, course grades across different schools, economy, and enrollment. Knowledge would include knowing that a professor is new and expecting course evaluations to be lower than average or that seniors wait until their last quarter to take the course because it is difficult or that 8 a.m. classes typically receive higher grades than 4 p.m. classes.

2. Steve does not understand why different departments across the company need to share data. Explain to Steve why it is important to share data across the accounting, marketing, sales, and operations management departments.

Businesses operate cross-functionally. Accounting must have data from every department to function and marketing needs to know what operations is doing to create great marketing campaigns. For example, if operations create a new generic product such as milk, then marketing will want to advertise the benefits of purchasing the product directly from the store to increase sales. If one store is selling more of a particular item, they would want to understand the different market segments for each store to ensure they have the right marketing campaigns for each area. A store would not want to sell ice cream in Alaska and hot chocolate in Hawaii.

3. Steve does not understand systems thinking or how the MIS department enables business success. Explain systems thinking and how MIS solves the issue with information silos.

Systems thinking is a way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback on each part. Feedback is information that returns to its original transmitter (input, transform, or output) and modifies the transmitter’s actions. Feedback helps the system maintain stability.

For example, a store continuously monitors the expiration dates on its frozen and fresh foods and a warning light will go on if all of the milk is about to expire notifying marketing to create a campaign to help reduce the price of milk to ensure it all sells before it expires.

Systems thinking provides an end-to-end view of how operations work together to create a product or service. Business students who understand systems thinking are valuable © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 5

resources because they can implement solutions that consider the entire process, not just a single component.

CHAPTER ONE CASE 1. Why do you believe data can be inaccurate?

There are numerous reasons why data is inaccurate. In fact, it is estimated that over 80% of spreadsheets have errors. Error upon entering data is a key issue and here are a few problems:  Errors in Inputting Data: Amongst the most typical data entry problems is inputting the incorrect data. An unintentional mistype can lead to short- or even long-term troubles. It may also result in incorrect records, wrong information, and disorganization. It is specifically prevalent in cases of human data entry processes.

Sadly, even the top-notch data entry specialists tend to make mistakes that can cost heavily to a business. Addition or subtraction of a number or putting in the decimal point at a wrong place is a small error that may cost your company a great deal of money.  Incorrect Data Formatting: Even the most advanced data entry software applications can create issues for a business. Inaccurate formatting is a typical concern, which can lead to correct data getting inputted in the wrong columns. Just imagine the date 2/5/2025. Depending on the country you are in, that could be February 2 or January 5.  Human Errors: Like data inputting concerns that are elaborated above, there exist a lot of issues that revolve around basic human errors. Issues concerning your employees like tiredness, the pace at which data is entered, emotional aspects, time management, and diversions can adversely impact the way in which the data is being entered. Likewise, people can misjudge data as they may preview one aspect of information in the wrong way as their brain interprets it.  Misspelling of Names or Other Important Information: ―Cheryl Steffan‖ instead of ―Cheryl Steffen.‖  Wrong Date Format While Entering Data in Excel.  Data Misinterpretation: Replacing the letter ―O‖ with the number zero.  Missing Values.  Entering Data in the Wrong Field.

2. What can a business do to ensure data is correct? What can be done to reduce these errors?  Stringent quality checks—Double-checking the data entered helps in reducing errors and eliminates the need for reentering the data. Regular checks will also help identify areas of improvement.  Train employees—Make sure to train them on the importance of the data they are handling and let them know the consequences of compromising any data. Ask them to focus more on accuracy than on speed.  Provide enough time and allow breaks—Even if your operators have good data entry skills and expertise, there are always chances of mistakes when they are loaded with a bunch of tasks. Provide a comfortable working environment and offer them regular breaks to refresh and reset before they return to work. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 6

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Update automated systems—If your firm relies on automated tools such as Intelligent Character Recognition (ICR) and Optical Character Recognition (OCR) technology for data collection or analysis, make sure to update those systems regularly. Also, protect automated systems against viruses and malware or it may result in errors.

Find the source of data inaccuracy—Check the data entry errors that occurred, statistics, and patterns to determine the primary internal and external sources of data inaccuracy. This helps to make necessary changes to the processes as well as management techniques.

Consider outsourcing—Outsourcing data entry and management tasks to an experienced data entry company will help businesses get the accurate data they are looking for, along with reduced operational costs, effective data management, and secured processing.

3. Explain how bad data will impact information, business intelligence, and knowledge.

If you are making decisions on bad data changes are good that you will make a bad decision.

Garbage In is Garbage Out is a classic statement in the MIS field. If the data being entered is incorrect, then it will be incorrect as it is turned into information, business intelligence, and knowledge. Managers are only as good as the data they must make decisions. Wrong data, wrong decision.

4. Have you ever made a decision on bad data? If so, be sure to share it with your peers and explain how you could have verified the data quality.

This is a great group activity as many students have personal examples. These examples will help students immediately see the value in this course as they learn how to navigate the data minefields laid all over organizations today.

5. Argue for or against the following statement: ―It is better to make a business decision with bad data than with no data.‖

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This question works perfect for an online discussion board debate. Students’ answers to this question will vary. Bad data can be much worse than no data at all. While the lack of data on a given subject can be troubling, it doesn’t carry with it the potential pitfalls that can accompany the accumulation of bad data.  Bad Data Means Bad Decisions  Bad Data Means Ruined Reputations  Bad Data Wastes Money

REVIEW QUESTIONS 1. What is data and why is it important to a business?

Data are raw facts that describe the characteristics of an event or object. Before the information age, managers manually collected and analyzed data, a time-consuming and complicated task without which they would have little insight into how to run their business.

2. How can a manager turn data into information?

Information is data converted into a meaningful and useful context. Having the right information at the right moment in time can be worth a fortune. Having the wrong information at the right moment or the right information at the wrong moment can be disastrous.

3. What is the relationship between data, information, business intelligence, and knowledge?

Data is converted into information, business intelligence, and knowledge. Using data, information, business intelligence, and knowledge to make decisions and solve problems is the key to finding success in business. These core drivers of the information age are the building blocks of business systems.

4. Why is it important for a company to operate cross-functionally?

Each department performs its own activities. Although each department has its own focus and data, none can work independently if the company is to operate as a whole. It is easy to see how a business decision made by one department can affect other departments.

Marketing needs to analyze production and sales data to come up with product promotions and advertising strategies. Production needs to understand sales forecasts to determine the company’s manufacturing needs. Sales needs to rely on information from operations to understand inventory, place orders, and forecast consumer demand. All departments need to understand the accounting and finance departments’ information for budgeting. For the firm to be successful, all departments must work together as a single unit sharing common information and not operate independently or in a silo.

5. What is MIS and what role does it play in an organization?

Management information systems (MIS) is a business function, like accounting and human resources, which moves information about people, products, and processes across the company to facilitate decision-making and problem-solving. MIS incorporates © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 8

systems thinking to help companies operate cross-functionally. For example, to fulfill product orders, an MIS for sales moves a single customer order across all functional areas including sales, order fulfillment, shipping, billing, and finally customer service.

Although different functional areas handle different parts of the sale, thanks to MIS, to the customer the sale is one continuous process. If one part of the company is experiencing problems, however, then, like the car without a steering wheel, the entire system fails. If order fulfillment packages the wrong product, it will not matter that shipping, billing, and customer service did their jobs right, since the customer will not be satisfied when they open the package.

6. Do you agree that MIS is essential for businesses operating in the information age?

MIS can be an important enabler of business success and innovation. This is not to say that MIS equals business success and innovation, or that MIS represents business success and innovation. MIS is a tool that is most valuable when it leverages the talents of people who know how to use and manage it effectively. To perform the MIS function effectively, almost all companies, particularly large and medium-sized ones, have an internal MIS department, often called information technology (IT), information systems (IS), or management information systems (MIS). For the purpose of this text, we will refer to it as MIS. 7. What type of career are you planning to pursue? How will your specific career use data, information, business intelligence, and knowledge?

MIS systems drive organizations, and all business students will be using MIS systems to perform their jobs. Without adequate knowledge of MIS, business students will be unprepared to compete in the information age. Answers to this question will vary depending on the career path the student has chosen.

8. How does systems thinking support business operations?

Systems thinking is a way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback on each part. Feedback is information that returns to its original transmitter (input, transform, or output) and modifies the transmitter’s actions. Feedback helps the system maintain stability. For example, a car’s system continuously monitors the fuel level and turns on a warning light if the gas level is too low. Systems thinking provides an end-to-end view of how operations work together to create a product or service.

Business students who understand systems thinking are valuable resources because they can implement solutions that consider the entire process, not just a single component.

9. What are the four types of analytics?

The four types of analytics include descriptive analytics, predictive analytics, prescriptive analytics, and diagnostic analytics. Descriptive analytics are techniques that describe past performance and history. Predictive analytics are techniques that extract information from data and uses it to predict future trends and identify behavioral patterns. Prescriptive analytics are techniques that create models indicating the best decision to make or course © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 9

of action to take. Diagnostic analytics examines data or content to answer the question ―Why did it happen.‖ 10. What is the difference between a knowledge facilitator and knowledge asset?

Knowledge assets, also called intellectual capital, are the human, structural, and recorded resources available to the organization. Knowledge assets reside within the minds of members, customers, and colleagues and include physical structures and recorded media.

Knowledge facilitators help harness the wealth of knowledge in the organization.

Knowledge facilitators help acquire and catalog the knowledge assets in an organization.

MAKING BUSINESS DECISIONS 1. VIEW FROM A FLAT WORLD This is a great discussion question for students to begin understanding the value of MIS in a Flat World. Is success defined by where you are born, how much money you have, or what type of education you received? With MOOCS, online learning, online education, and access to information around the globe why would a child in Nepal have a disadvantage over a child in Chicago? This makes for a great debate to get the course started.

2. IS TECHNOLOGY MAKING US DUMBER OR SMARTER? This is another great discussion to get your course started. If you can just Google any information you need, then why learn the material? How has the internet made us less dependent on learning? What happens when the information on the internet is inaccurate or incorrect and we depend on that information as our only source of knowledge? Get your students debating these issues and they will soon see the value of this course.

3. THE INTERNET OF EVERYTHING IS EVERYWHERE IoT technologies pose potential dangers to your internet safety. News reports have ranged from an IoT botnet taking down portions of the internet to hackers exploiting baby monitors.

That’s why it’s a good idea to protect your digital life by securing your IoT-connected devices. Here are 10 ways to do that. According to Norton there are nine security measures you can take to help secure your devices.  Install reputable internet security software on your computers, tablets, and smartphones. For instance, Norton Security Deluxe can provide real-time protection against existing and emerging malware, including ransomware and viruses.  Use strong and unique passwords for device accounts, Wi-Fi networks, and connected devices. Don’t use common words or passwords that are easy to guess, such as ―password‖ or ―123 456.‖  Be aware when it comes to apps. Always make sure you read the privacy policy of the apps you use to see how they plan on using your information and more.  Do your research before you buy. Devices become smart because they collect a lot of personal data. While collecting data isn’t necessarily a bad thing, you should know about what types of data these devices collect, how it’s stored and protected, if it is shared with third parties, and the policies or protections regarding data breaches. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 10

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Know what data the device or app wants to access on your phone. If it seems unnecessary for the app’s functionality or too risky, deny permission.

Use a VPN, like Norton Secure VPN, which helps to secure the data transmitted on your home or public Wi-Fi. Check the device manufacturer’s website regularly for firmware updates.

Use caution when using social sharing features with these apps. Social sharing features can expose information like your location and let people know when you’re not at home. Cybercriminals can use this to track your movements. That could lead to a potential cyberstalking issue or other real-world dangers.

Never leave your smartphone unattended if you’re using it in a public space. In crowded spaces, you should also consider turning off Wi-Fi or Bluetooth access if you don’t need them. Some smartphone brands allow automatic sharing with other users in proximity.

4. WORKING FOR THE BEST The goal of higher education is to arm our students with the types of skills required to start an amazing fulfilling career. Looking at current top companies can help students understand early the skills they require to be competitive. What skill will they receive from this course that they can put on their resume or LinkedIn account? This activity is a great eye-opener for students skeptical of taking this course.

5. GARBAGE IN IS GARBAGE OUT Students will have different views on which errors are easy to find and which are more difficult based on their experiences with data. The important part of this question is to get them thinking about data. As long as they support their order with the details of their experience and why they believe their answer is correct, then they are on the right path.

Always double-checking the results and testing the model with numbers they know are easy to track will help to ensure the model is correct. You can always build a small model with numbers like 100 and 50 to ensure the answers are correct. Then once the model is solid, they can insert the real data.

6. SYSTEMS THINKING This is a great activity to get your students thinking about business process and how IoT and M2M are going to digitize business. Depending on your school registration process the answers to this question will vary. This is typically a source of frustration for students and will be a great classroom exercise as they begin to design the course registration process of the future.   

Inputs would include the student’s name, number, course request name, course time, and course number.

Process would include checking the course requirements with the student’s past classes.

Output would be a class added for the student or telling the student they are not eligible for the class.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 11

7. CATEGORIZING ANALYTICS This is a great exercise to get your students thinking about the three primary types of analytics.  Which candidate will win the election? Predictive Analytics  What price for a product will maximize profit? Prescriptive Analytics  How much money do I need to save each year to have enough money for retirement?

Predictive Analytics  How many products were sold last year? Descriptive Analytics  What is the best route for the delivery person to drop off packages to minimize the time needed to deliver all the packages? Prescriptive Analytics  Why did the machine break? Diagnostic Analytics  How many Valentine’s Day cards should Hallmark print to maximize expected profit? Prescriptive Analytics  How will marketing affect the daily sales of a product? Predictive Analytics  Why did seven people in marketing quit? Diagnostic Analytics  How can a company minimize the cost of shipping products from plants to customers? Prescriptive Analytics  What team will win the Superbowl? Predictive Analytics  How can I schedule my workforce to minimize operating costs? Predictive Analytics  What was the average purchase price for new customers last year? Descriptive Analytics  How will the placement of a product in a store determine product sales? Prescriptive Analytics  How many customers do we have, and where are they located? Descriptive Analytics

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 12

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 13

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL This guide provides many classroom activities, videos, and debates to accompany Business Driven Technology 10e. A few course suggestions: 

Create one or two test questions based on the classroom activity to help reward students who attend lectures.



Many professors have found that assigning an activity and then lecturing on the material helps students gain a deeper understanding of the core MIS concepts as they have already struggled with applying the material to a real-world situation.



Asking a small group of students to explain their answer to the activity to the entire class after completion ensures students come to class prepared. I select a different group each activity to explain their answer and they do not want to look unprepared in front of their fellow classmates. It is a powerful motivator to get my students to read prior to class. After the activity and student’s presentations then I lecture—this keeps my students engaged and helps to achieve a higher level of learning outcomes as they are constantly tasked with applying the concepts during class.



Create an Ask the Professor Discussion Board that runs the entire course where students can ask course- and content-related questions. I typically promise to respond within 24 hr, and I always encourage my students to check the discussion board before sending an email. Many times, if one student has a question so do other students.



**Three Before Me Rule! This is something I have found that saves a great deal of time answering email. I state the Three Before Me Rule in my syllabus. Before a student comes to me with a question, they must provide three sources they used to answer the question themselves. This significantly cuts down on emails as many times students can find the answer to their questions, but it seems easier just to email the professor.

Sources can include the syllabus, the Ask the Professor Q&A Discussion Board, classmates, the textbook, and so on. If I ask the student for the three sources and they do not have them, I dock participation points. Works great on significantly cutting down my emails and helps to prepare my students for the real world!



The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material.

Enjoy your course and best of luck! Please feel free to email me directly if you have any questions, ideas, suggestions, or feedback! For additional course materials, content, and cases, visit www.baltzan.net or email me directly at pbaltzan@baltzan.net.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 14

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL UNIT ONE OVERVIEW Information is everywhere. Information is a strategic asset. Without information, an organization simply could not operate. This Unit introduces students to several core business strategies that focus on using information to gain a competitive advantage, including:  Competitive advantages  Porter’s Five Forces Model  Porter’s three generic strategies  Value chain  Supply chain management  Customer relationship management  Business process reengineering  Enterprise resource planning  IT efficiency metrics  IT effectiveness metrics  Organizational structures  Ethics  Security Many of these concepts and strategies will be new to your students. Be sure to explain to your students that this Unit offers an introduction to these concepts and they will gain a solid understanding of the details of these concepts as they continue reading the text. For example, customer relationship management is introduced in Unit One and discussed in detail in several additional chapters and in the business plug-ins. The chapters in Unit One include:  Chapter One—Business Driven Technology  Chapter Two—Identifying Competitive Advantages  Chapter Three—Strategic Initiatives for Implementing Competitive Advantages  Chapter Four—Measuring the Success of Strategic Initiatives  Chapter Five—Organizational Structures That Support Strategic Initiatives

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 15

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL CHAPTER 2 This section discusses how an organization can identify competitive advantages using tools such as Porter’s Five Forces, three generic strategies, and value chains. Gaining competitive advantages is critical for organizations. Organizations also must understand that competitive advantages are typically temporary since competitors are quick to copy competitive advantages.

For example:  United was the first airline to offer a competitive advantage with its frequent flyer mileage (this first-mover advantage was temporary).  Sony had a competitive advantage with its portable stereo systems (this first-mover advantage was temporary).  Microsoft had a competitive advantage with its unique Windows operating system.  Ask your students if Microsoft still has a competitive advantage with its Windows operating system. o Ans: Perhaps—primarily due to its first-mover advantage since it is difficult to switch operating systems and users face interoperability issues if they are using different operating systems at the same organization. o How many students in your class are currently using Windows? o What are the competitors to Windows? Ans: Linux and Macintosh. o Why are there only three primary competitors (Microsoft, Macintosh, and Linux) in this large operating system market?

LEARNING OUTCOMES 1.3: Explain why competitive advantages are temporary along with the four key areas of a SWOT analysis.

A competitive advantage is a feature of a product or service on which customers place a greater value than they do on similar offerings from competitors. Competitive advantages provide the same product or service either at a lower price or with additional value that can fetch premium prices. Unfortunately, competitive advantages are typically temporary because competitors often quickly seek ways to duplicate them. In turn, organizations must develop a strategy based on a new competitive advantage. Ways that companies duplicate competitive advantages include acquiring the new technology, copying business processes, and hiring away employees.

A SWOT analysis evaluates an organization’s strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies. Strengths and weaknesses originate inside an organization, or internally. Opportunities and threats originate outside an organization, or externally, and cannot always be anticipated or controlled.

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1.4: Describe Porter’s Five Forces Model and explain each of the five forces.

Porter’s Five Forces Model analyzes the competitive forces within the environment in which a company operates, to assess the potential for profitability in an industry.  Buyer power is the ability of buyers to affect the price they must pay for an item.  Supplier power is the suppliers’ ability to influence the prices they charge for supplies (including materials, labor, and services).  Threat of substitute products or services is high when there are many alternatives to a product or service and low when there are few alternatives from which to choose.  Threat of new entrants is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to entering a market.  Rivalry among existing competitors is high when competition is fierce in a market and low when competition is more complacent.

1.5: Compare Porter’s three generic strategies.

Organizations typically follow one of Porter’s three generic strategies when entering a new market: (1) broad cost leadership, (2) broad differentiation, and (3) focused strategy. Broad strategies reach a large market segment. Focused strategies target a niche market and concentrate on either cost leadership or differentiation.

1.6: Demonstrate how a company can add value by using Porter’s value chain analysis.

To identify competitive advantages, Michael Porter created value chain analysis, which views a firm as a series of business processes that each add value to the product or service. The goal of value chain analysis is to identify processes in which the firm can add value for the customer and create a competitive advantage for itself, with a cost advantage or product differentiation. The value chain groups a firm’s activities into two categories—primary value activities and support value activities. Primary value activities acquire raw materials and manufacture, deliver, market, sell, and provide after-sales services. Support value activities, along the top of the value chain in the figure, include firm infrastructure, human resource management, technology development, and procurement. Not surprisingly, these support the primary value activities.

CORE MATERIAL The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material. You will find numerous classroom ideas to keep your course exciting and challenge your students to apply the material.

RUNNING CASE STUDY QUESTIONS 8. You have landed your dream job working for Steve Evert. Unfortunately, Steve does not understand Porter’s Five Forces Model. Using an example of your choice, explain to Steve the five forces in the model. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 17

Using Costco as an example, the following will explain Porter’s Five Forces. Buyer power is high for Costco as they have many choices for competing stores such as Sam’s Club, WalMart, or generic brands at grocery stores. Supplier power is lower for Costco since the company competes on prices if the suppliers choose to increase prices Costco would just drop the product and since their warehouse is constantly changing products with no guarantees to any product, they have reduced supplier power.

9. Steve also does not understand why you can only choose one of the Porter’s generic strategies to follow. Explain to Steve why it would be difficult to operate in more than one area of Porter’s generic strategies.

Costco is following a cost leadership strategy. If you follow more than one of Porter’s generic strategies, you run the risk of confusing your customers. It would be a mistake to sell Tiffany’s rings at Costco. Sticking to one of Porter’s three generic strategies is a key to success. If you do want to operate in a different market, then you should change the brand name.

CHAPTER TWO CASE Throughout my career I have never heard anyone say—―My career was right on track until I learned about technology—I sure wish I had never learned technology it ruined my career.‖  Amazon is a book selling company—not a technology company.  Netflix is a video rental business—not a technology company.  eBay is a consumer trading business—not a technology company.

All of these businesses were started by businesspeople who understood the value of technology so well that they fundamentally changed the primary business processes of buying books, renting videos, and trading goods. Every businessperson should understand technology, without it they won't be able to spot the competitive advantages that are just waiting for the next brilliant entrepreneur to discover.

There are huge strides in third world countries. We now have internet carts that can drive around and provide remote villages in Neap and India and Africa with computers and access.

Some argue that the world between the haves and the have-nots is widening because of technology—I personally believe it is closing. With a computer, I can literally get a PhD from an online school no matter where I am located—a remote village in Antarctica or an island in the Pacific.

Here is a question for your students. Is the world flat for everyone? When I view Friedman and try to think of a job that isn't flat I actually tend to come up with blue-collar jobs. Whitecollar jobs are easily outsourced—CPAs are doing our taxes in China, legal work is done in Africa, architecture work is done in India, programming code is done in Ukraine, doctors are reading our X-rays in India, and so on. But can a nurse, garbage man, house painter, contractor, waitress, librarian, (service industry) jobs be outsourced? Now these jobs will be taken over by robots.

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Don't get me wrong—I completely agree that the best thing you can invest in is your education—but in a flat world I no longer agree that it means your skill set won't be outsourced or replaced by a robot. Spending time figuring out your personal career SWOT can help you learn how best to prepare for the future.

REVIEW QUESTIONS 10. What is the relationship between a business strategy and stakeholders?

Stakeholders must believe in and support the business strategy to ensure its success. If a company creates a business strategy that employees or shareholders do not value, it is doomed to failure. Having support of all stakeholders when setting goals and strategies for the business is crucial for survival.

11. Who are the top three most important stakeholders in a business?

The answer to this question varies depending on the stakeholder. Shareholders do not always care about employees and employees do not always care about shareholders. Of course, in an ideal environment every stakeholder would have the same goals, but this is rarely the case in business. Clearly employees are the number one stakeholder because without employees there is no business. Clearly customers are the number one stakeholder because without customers there is no business. Obviously, you can make this statement for every stakeholder—hence the dilemma with defining who are the three most important.

12. When would you use a SWOT analysis to help you make business decisions?

The question should be when you would not use a SWOT since this tool is amazingly simple to use for analyzing every aspect of business. I can’t think of time you would not want to gain the insight of a SWOT analysis in business.

13. What is the role Porter’s Five Forces Model plays in decision-making?

Formally defined, Porter’s Five Forces Model analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry. Its purpose is to combat these competitive forces by identifying opportunities, competitive advantages, and competitive intelligence. If the forces are strong, they increase competition; if the forces are weak, they decrease competition.

14. How could a company use loyalty programs to influence buyer power?

Companies can also reduce buyer power with loyalty programs, which reward customers based on their spending. The airline industry is famous for its frequent-flyer programs, for instance. Because of the rewards travelers receive (free airline tickets, upgrades, or hotel stays), they are more likely to be loyal to or give most of their business to a single company.

Keeping track of the activities and accounts of many thousands or millions of customers covered by loyalty programs is not practical without large-scale business systems, however.

Loyalty programs are thus a good example of using MIS to reduce buyer power.

15. How could a company use switching costs to lock in customers and suppliers?

One way to reduce buyer power is by manipulating switching costs, costs that make customers reluctant to switch to another product or service. Switching costs include financial as well as intangible values. The cost of switching doctors, for instance, includes the © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 19

powerful intangible components of having to build relationships with the new doctor and nurses, as well as transferring all your medical history. With MIS, however, patients can store their medical records on DVDs or thumb drives, allowing easy transferability. The internet also lets patients review websites for physician referrals, which takes some of the fear out of trying someone new.

16. What are Porter’s three generic strategies and why would a company want to follow only one?

Porter has identified three generic business strategies for entering a new market: (1) broad cost leadership, (2) broad differentiation, and (3) focused strategy. Broad strategies reach a large market segment, while focused strategies target a niche or unique market with either cost leadership or differentiation. Trying to be all things to all people is a recipe for disaster, since doing so makes it difficult to project a consistent image to the entire marketplace. For this reason, Porter suggests adopting only one of the three generic strategies.

17. How can a company use Porter’s value chain analysis to measure customer satisfaction?

To identify these competitive advantages, Michael Porter created value chain analysis, which views a firm as a series of business processes that each add value to the product or service.

Value chain analysis is a useful tool for determining how to create the greatest possible value for customers. The goal of value chain analysis is to identify processes in which the firm can add value for the customer and create a competitive advantage for itself, with a cost advantage or product differentiation. The value chain groups a firm’s activities into two categories, primary value activities and support value activities. When performing a value chain analysis, a firm could survey customers about the extent to which they believe each activity adds value to the product or service. This step generates responses the firm can measure to describe how each activity adds (or reduces) value. Then the competitive advantage decision for the firm is whether to (1) target high value-adding activities to further enhance their value, (2) target low value-adding activities to increase their value, or (3) perform some combination of the two.

MAKING BUSINESS DECISIONS 18. KEEPING SENSITIVE DATA SAFE WHEN IT’S NOT IN A SAFE Sensitive organizational data includes: - Human resource data - Competitive data - Strategic data - Pricing data - New product development data - Marketing data - Finance data - Employee salary data - Customer data Keeping sensitive data safe is a key priority for digital companies. Today one angry © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 20

employee can walk out the door with terabytes of corporate data. Policies for data sharing and data capture can help mitigate the issues of data security.

Top 10 Questions Managers Should Ask Regarding Information Security:  Does the board of directors recognize information security is a board-level issue that cannot be left to the IT department alone?  Is there clear accountability for information security in the organization?  Do the board members articulate an agreed-upon set of threats and critical assets?

How often do they review and update these?  How much is spent on information security and what is it being spent on?  What is the impact on the organization of a serious security incident?  Does the organization view information security as an enabler? For example, by implementing effective security, could the organization increase business over the internet?  What is the risk to the business of getting a reputation for low information security?  What steps have been taken to ensure that third parties will not compromise the security of the organization?  How does the organization obtain independent assurance that information security is managed effectively?  How does the organization measure the effectiveness of its information security activities?

The importance of educating employees on information security Adding to the complexity of information security is the fact that organizations must enable employees, customers, and partners to access information electronically to be successful in this electronic world. Doing business electronically automatically creates tremendous information security risks for organizations. Surprisingly, the biggest issue surrounding information security is not a technical issue, but a people issue.

The CSI/FBI Computer Crime and Security Survey reported that 38% of respondents indicated security incidents originated within the enterprise. Insiders are legitimate users who purposely or accidentally misuse their access to the environment and cause some kind of business-affecting incident. Most information security breaches result from people misusing an organization’s information either advertently or inadvertently. For example, many individuals freely give up their passwords or write them on sticky notes next to their computers, leaving the door wide open to intruders.

19. MARKET DISSECTION Organizations must formulate a strategy for entering new markets. An organization can follow Porter’s three generic strategies when entering a new market: (1) broad cost leadership, (2) broad differentiation, or (3) a focused strategy. Broad strategies reach a large market segment, while focused strategies target a niche market. A focused strategy concentrates on either cost leadership or differentiation. Trying to be all things to all people, © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 21

however, is a recipe for disaster, since it is difficult to project a consistent image to the entire marketplace. Porter suggests that an organization is wise to adopt only one of the three generic strategies.

To illustrate the use of the three generic strategies, consider Figure AYK.1. The matrix shown demonstrates the relationships among strategies (cost leadership versus differentiation) and market segmentation (broad vs. focused).  Hyundai is following a broad cost leadership strategy. Hyundai offers low-cost vehicles, in each particular model stratification, that appeal to a large audience.  Audi is pursuing a broad differentiation strategy with its Quattro models available at several price points. Audi’s differentiation is safety, and it prices its various Quattro models (higher than Hyundai) to reach a large, stratified audience.  Kia has a more focused cost leadership strategy. Kia mainly offers low-cost vehicles in the lower levels of model stratification.  Hummer offers the most focused differentiation strategy of any in the industry (including Mercedes-Benz). Student solutions to this project will vary. The most important part of their answer is their justification for each product placement.

20. COMPUTERS ARE EVERYWHERE There are so many products invented yearly that this list will continually change; iRobot vacuums, iWatches, virtual reality games, earbuds, and ChatGPT. When you think about the devices such as iPods, DVD players, pagers, digital cameras, or even fax machines (yes, many businesses still use them) it is amazing to think of products we depended on that are now obsolete. Ask your students to name a product they use daily that might not exist in 5 years.

21. DEATH OF A PRODUCT Answer to this question will vary. Be sure when the students present their models the other students perform the Q&A. This allows everyone to test their understanding of Porter’s Five Forces.

22. APPLYING THE THREE GENERIC STRATEGIES Organizations typically follow one of Porter’s three generic strategies when entering a new market: (1) broad cost leadership, (2) broad differentiation, and (3) focused strategy. Broad strategies reach a large market segment. Focused strategies target a niche market and concentrate on either cost leadership or differentiation. Student answers will vary depending on which industries they choose to research.

23. IOT TIME MANAGEMENT Answers to this question will vary. This works great as a group exercise. Give your students 20 min to perform their analysis and then ask them to present to the class. Ensure the other students are performing the analysis and asking questions. You will soon see any problem areas with the content and can address them to ensure a comprehensive understanding.

24. GLOBAL DATA © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 22

It is important to help your students understand that data is dirty and when you combine data from international sources you can make huge mistakes if you do not understand the nuances.

Example include date: 1/2/2026 could be January 2 in the United States and February 1 in Canada. Time in the United States could be 8 a.m. or 8 p.m. as we do not use a 24-hr clock.

Amounts will vary based on currency.

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© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 24

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL This guide provides many classroom activities, videos, and debates to accompany Business Driven Technology 10e. A few course suggestions: 

Create one or two test questions based on the classroom activity to help reward students who attend lectures.

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Many professors have found that assigning an activity and then lecturing on the material helps students gain a deeper understanding of the core MIS concepts as they have already struggled with applying the material to a real-world situation.

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Asking a small group of students to explain their answer to the activity to the entire class after completion ensures students come to class prepared. I select a different group each activity to explain their answer and they do not want to look unprepared in front of their fellow classmates. It is a powerful motivator to get my students to read prior to class. After the activity and student’s presentations then I lecture—this keeps my students engaged and helps to achieve a higher level of learning outcomes as they are constantly tasked with applying the concepts during class.

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Create an Ask the Professor Discussion Board that runs the entire course where students can ask course- and content-related questions. I typically promise to respond within 24 hr, and I always encourage my students to check the discussion board before sending an email. Many times, if one student has a question so do other students.

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**Three Before Me Rule! This is something I have found that saves a great deal of time answering email. I state the Three Before Me Rule in my syllabus. Before a student comes to me with a question, they must provide three sources they used to answer the question themselves. This significantly cuts down on emails as many times students can find the answer to their questions, but it seems easier just to email the professor.

Sources can include the syllabus, the Ask the Professor Q&A Discussion Board, classmates, the textbook, and so on. If I ask the student for the three sources and they do not have them, I dock participation points. Works great on significantly cutting down my emails and helps to prepare my students for the real world!



The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material.

Enjoy your course and best of luck! Please feel free to email me directly if you have any questions, ideas, suggestions, or feedback! For additional course materials, content, and cases, visit www.baltzan.net or email me directly at pbaltzan@baltzan.net.

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BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL UNIT ONE OVERVIEW Information is everywhere. Information is a strategic asset. Without information, an organization simply could not operate. This Unit introduces students to several core business strategies that focus on using information to gain a competitive advantage, including:             

Competitive advantages Porter’s Five Forces Model Porter’s three generic strategies Value chain Supply chain management Customer relationship management Business process reengineering Enterprise resource planning IT efficiency metrics IT effectiveness metrics Organizational structures Ethics Security

Many of these concepts and strategies will be new to your students. Be sure to explain to your students that this Unit offers an introduction to these concepts, and they will gain a solid understanding of the details of these concepts as they continue reading the text. For example, customer relationship management is introduced in Unit One and discussed in detail in several additional chapters and in the business plug-ins. The chapters in Unit One include:     

Chapter One—Business Driven Technology Chapter Two—Identifying Competitive Advantages Chapter Three—Strategic Initiatives for Implementing Competitive Advantages Chapter Four—Measuring the Success of Strategic Initiatives Chapter Five—Organizational Structures That Support Strategic Initiatives

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BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL CHAPTER 3 This chapter provides an overview of supply chain management (SCM), customer relationship management (CRM), business process reengineering (BPR), and enterprise resource planning (ERP). Explain to your students that this is simply an introduction to SCM, CRM, BPR, and ERP and that each of these strategic initiatives is discussed in detail throughout the text. There are also business plug-ins offering advanced material on SCM, CRM, BPR, and ERP.

LEARNING OUTCOMES 1.7Identify how an organization can use business process reengineering to improve its business.

The purpose of BPR is to make all your processes the best-in-class. Companies frequently strive to improve their business processes by performing tasks faster, cheaper, and better. Companies often follow the same indirect path for doing business, not realizing there might be a different, faster, and more direct way of doing business. BPR provides companies with a way to find the different, more direct way of doing business, such as Progressive Insurance.

If your students are unfamiliar with business processes, have them review plug-in B2—Business Processes for a detailed look at common business processes, business process modeling, continuous improvement, and business process reengineering.

1.8Explain supply chain management and its role in business.

Supply chain management integrates all of the partners, customers, distributors, and manufacturers in the supply chain to ensure the smooth delivery of goods and services. SCM’s core strategy is to manage all the resources required to meet customer demand for all products and services. Supply chain partners are the partners chosen to deliver finished products, raw materials, and services including pricing, delivery, and payment processes along with partner relationship monitoring metrics. Supply chain operations is the schedule for production activities including testing, packaging, and preparation for delivery. Supply chain logistics is the product delivery processes and elements including orders, warehouses, carriers, defective product returns, and invoicing.

1.9Explain customer relationship management systems and how they can help organizations understand their customers.

CRM is not just technology but a strategy, process, and business goal that an organization must embrace on an enterprisewide level. If an organization does not embrace CRM on an enterprisewide level, it will have a difficult time gaining a complete view of its customers. CRM can enable an organization to identify types of customers, design specific marketing campaigns tailored to each individual customer, and even understand and predict customer buying behaviors.

1.10Summarize the importance of enterprise resource planning systems. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 27

Enterprise resource planning systems provide organizations with consistency. Enterprise resource planning (ERP) integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so that employees can make decisions by viewing enterprisewide information on all business operations. An ERP system provides a method for effective planning and controlling of all the resources required to take, make, ship, and account for customer orders in a manufacturing, distribution, or service organization. The key word in enterprise resource planning is enterprise.

CORE MATERIAL The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material. You will find numerous classroom ideas to keep your course exciting and challenge your students to apply the material.

RUNNING CASE STUDY QUESTIONS 25. You have landed your dream job working for Steve Evert. Unfortunately, Steve does not understand the difference between a customer relationship management system, supply chain management system, and enterprise resource planning system. Using any example you choose, provide Steve with an overview of these important systems and how they add business value.

CRM System Example Using Costco Costco could gain significant business intelligence through the implementation of a CRM system (i.e., assuming they do not already have one). A CRM system could help Costco determine who is buying products in a store and then it could create custom website offers for this customer.

Costco could also offer cross-purchasing incentives such as free delivery when purchased in a store or pickup in a store if purchased online. Costco could also determine which customer discontinued membership and why to help them fight the competition. The business intelligence gained through a CRM system is limitless.

SCM System Example Using Apple Supply chain management (SCM) involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.

Dozens of steps are required to achieve and carry out the processes between each party in the supply chain. SCM software can enable an organization to generate efficiencies within these steps by automating and improving the information flows throughout and among the different supply chain components. Apple is involved in all steps in the supply chain from the sourcing of raw materials to build its iPods to selling downloadable music. Without a supply chain, Apple would find it extremely difficult to conduct business.

ERP System Example Using Costco Without continuously improving the efficiency and effectiveness of its operations Costco would not be moving in the right direction. Any company must continuously dissect its current operations to ensure it is performing at highest efficiently and effectiveness levels. Costco needs © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 28

to remain as a top innovation company and that means always looking for new innovative ways to perform business. An ERP system could help Costco understand its business processes across its entire organization and supply chain. Gaining this type of insight and knowledge is a true business advantage for Costco.

CHAPTER THREE CASE 26. It has been stated that future business leaders must be data literate to survive and thrive in the hypercompetitive business arena. Do you agree or disagree with this statement?

Data may hold tremendous amounts of potential value, but not an ounce of value can be created unless insights are uncovered and translated into actions or business outcomes. And with this flood of data comes a tidal wave of opportunity. Let’s think about data for a moment. Uber does not own a single car. Airbnb does not own a single hotel. Facebook, the world’s most visited media destination, does not create content.

Yet these companies are dominating the global business world in 2020. Why? They have learned to successfully create, manage, collect, and cleanse massive amounts of structured and unstructured data. Data-driven businesses are disrupting all industries implementing new technologies such as Blockchain, Internet-of-Things, Robotics, Artificial Intelligence, Neural Networks, Quantum Computing, Unstructured Data Mining, Analytics, Big Data, Cloud Computing, and so on. LinkedIn recently reported data analysis is one of the hottest skill categories over the past 2 years for recruiters, and it was the only category that consistently ranked in the top four across all the countries they analyzed.

27. If you are a marketing major, how will understanding inventory data help your career?

Knowing what is in your inventory will help guide you with ideas for marketing campaigns.

If a product is about to expire, then offer a BOGO (Buy One, Get One) deal to ensure the product sells out before its expiration. If a product is selling quickly, analyze the data to find out why. Why it is placed on a specific shelf in the store? Was it a cyclical product? Did a bad storm or something negative happen in the economy driving sales? Analyzing what sells and, more importantly, what does not sell is a great way to drive marketing campaigns.

28. If you are a finance major, how will analyzing employee data help your career?

Employees are one of the biggest expenses for any company. Salaries, health insurance, training, reviews, and turnover are all big costs for a company. Finance must ensure the company has enough cash to operate. Analyzing employee data can help the company understand when turnover is high—a huge expense to retrain new employees. Working with HR can help find ways to keep employees satisfied. Implementing unlimited vacation plans is expensive, but not as expensive as hiring and training new employees.

29. If you are a future business leader, how will analyzing competitor data help drive your business strategies?

Competitive analysis is always a great way to ensure your company has its antenna up and is actively watching the marketplace. Knowing what your competitor is doing can help you determine your best business strategy. Being a fast follower has its advantages as you can sidestep problems your competitors encountered. Knowing the new features of a competitor’s product can help with your marketing campaign stating why your product is better—with or © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 29

without the features. And if your competitor goes out of business you can glean a great amount of information on what not to do to ensure you do not follow in their footsteps.

30. Overall, how will this course help prepare you for your future career?

Learning how to analyze data, avoid common data mining traps, cleanse data, capture data, and everything else that goes into creating data-driven business intelligence is the key to success in business.

REVIEW QUESTIONS What is a business process and what role does it play in an organization?

A business process is a standardized set of activities that accomplish a specific task, such as processing a customer’s order. Business processes transform a set of inputs into a set of outputs—goods or services—for another person or process by using people and tools.

Understanding business processes helps a manager envision how the entire company operates.

31. Why do managers need to understand business processes? Can you make a correlation between systems thinking and business processes?

Some processes, such as a programming process, may be contained wholly within a single department. However, most, such as ordering a product, are cross-functional or crossdepartmental processes and span the entire organization. The process of ―order to delivery‖ focuses on the entire customer order process across functional departments. Another example is ―product realization,‖ which includes not only the way a product is developed but also the way it is marketed and serviced. Some other cross-functional business processes are taking a product from concept to market, acquiring customers, loan processing, providing post-sales service, claim processing, and reservation handling. Understanding cross-functional business process is the same as understanding systems thinking!

32. Explain the difference between customer-facing processes and business-facing processes. Which one is more important to an organization?

Customer-facing processes, also called front-office processes, result in a product or service received by an organization’s external customer. They include fulfilling orders, communicating with customers, and sending out bills and marketing information. Businessfacing processes, also called back-office processes, are invisible to the external customer but essential to the effective management of the business. They include goal setting, day-to-day planning, giving performance feedback and rewards, and allocating resources.

33. Explain how finding different ways to travel the same road relates to automation, streamlining, and business process reengineering.

Better, faster, cheaper is the path taken by automation, streamlining, and business process reengineering. Automation and streamlining are typically better, faster, and cheaper.

Business process reengineering can change the entire process in a way that changes the entire industry standards making everything better, faster, and cheaper.

34. What is supply chain management and why is it important to a company? © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 30

Supply chain management integrates all of the partners, customers, distributors, and manufacturers in the supply chain to ensure the smooth delivery of goods and services.

SCM’s core strategy is to manage all the resources required to meet customer demand for all products and services. Supply chain partners are the partners chosen to deliver finished products, raw materials, and services including pricing, delivery, and payment processes along with partner relationship monitoring metrics. Supply chain operations is the schedule for production activities including testing, packaging, and preparation for delivery. Supply chain logistics is the product delivery processes and elements including orders, warehouses, carriers, defective product returns, and invoicing.

35. What are the five primary activities in a supply chain?

Plan, source, make, deliver, and return are the primary activities in a supply chain.

36. What is a supply chain inventory visibility system?

This is a system that takes all of the players involved in the supply chain from producers to manufacturers to distributors and makes all of the steps and plans seamless in one system.

37. Why are customer relationships important to an organization? Do you agree that every business needs to focus on customers to survive in the information age?

Without customers, you will not have an organization. CRM is critical to ensure customers are happy and heard and attended to if they are upset or disgruntled.

38. What is an enterprise resource planning system?

Enterprise resource planning (ERP) integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so employees can make decisions by viewing enterprisewide information about all business operations.

MAKING BUSINESS DECISIONS COOL COLLEGE START-UPS Answers to this question will vary depending on the most up-to-date list your students discovered. Be sure that all students justify their answers on how the competitive advantage aligns with business process, customer relationships, supply chains, and enterprise resource planning. Data items could include:  Perks  Benefits  Location  Turnover  Profitability  Employee trust  Layoff history If the data analyzed by Fortune was inaccurate, the listing would be inaccurate, and readers and subscribers to Fortune would lose faith in the company and discontinue © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 31

reading the magazine. Students analyzing this list can gain insight into the types of companies they might want to work for upon graduation. Potential questions students can answer by analyzing this list include:      

Which industry has the greatest number of Fortune 100 top companies to work for?

Which industry has the least number of Fortune 100 top companies to work for?

What are the top five locations for Fortune 100 companies?

What are the bottom five locations for Fortune 100 companies?

What types of perks and benefits do top companies offer?

How many of the Fortune 100 companies are currently hiring?

39. MANAGING BAD CUSTOMER RELATIONSHIPS The power today is with the people or customer. A single customer can create an amazing amount of pain and public problems for a company. There are so many examples of customers fighting back—some ethical and some unethical. The trick here is to get students to think about the power of an angry customer and what they can do to mitigate that risk!

40. FIXING BROKEN SCHOOL PROCESSES This is such a great exercise to get students thinking as all of your students have been through this process and I am sure many have experience pain. Registering for a class that has a credential that is outdated or not relevant due to switching schools. The list is endless, and students really rally behind changing broken processes that personally impact their lives.

41. SCHOOL SUPPLY CHAINS There is so much waste in today’s society, and your active students will enjoy finding creative ways to help others with the waste from just one university. To take this exercise a step further think about recycled technology from the university and how it could help innercity schools.

42. BUTTERFLY EFFECTS Errors in data cause massive problems and one of the goals in this course is to get students thinking before they blindly trust data. Do you trust your data? That is the best question anyone can ask prior to making a business decision based on data.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 32

 

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Spelling Mistake: Spelling a customer’s last name wrong can lead to have the customer in the system multiple times or offending the customer when the marketing campaign has an incorrect name on it.

Inaccurate Customer Record: Having an address entered incorrectly will lead to shipping problems. Having a cell phone number entered incorrectly will lead to an inability to contact the customer directly or recognize the customer when they call.

Having a customer with two accounts will lead to a misunderstanding of the customer.

You might assume you have two medium-sized customers when you actually have one large customer.

Incomplete Purchasing History: Without knowing what products your customer bought you will be unable to perform correct analysis on purchasing habits or a market-based analysis.

Inaccurate Mailing Address: Impossible to ship products, invoices, or marketing campaigns.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 33

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 34

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL This guide provides many classroom activities, videos, and debates to accompany Business Driven Technology 10e. A few course suggestions: 

Create one or two test questions based on the classroom activity to help reward students who attend lectures.



Many professors have found that assigning an activity and then lecturing on the material helps students gain a deeper understanding of the core MIS concepts as they have already struggled with applying the material to a real-world situation.



Asking a small group of students to explain their answer to the activity to the entire class after completion ensures students come to class prepared. I select a different group each activity to explain their answer and they do not want to look unprepared in front of their fellow classmates. It is a powerful motivator to get my students to read prior to class. After the activity and student’s presentations then I lecture—this keeps my students engaged and helps to achieve a higher level of learning outcomes as they are constantly tasked with applying the concepts during class.



Create an Ask the Professor Discussion Board that runs the entire course where students can ask course- and content-related questions. I typically promise to respond within 24 hr, and I always encourage my students to check the discussion board before sending an email. Many times, if one student has a question so do other students.



**Three Before Me Rule! This is something I have found that saves a great deal of time answering email. I state the Three Before Me Rule in my syllabus. Before a student comes to me with a question, they must provide three sources they used to answer the question themselves. This significantly cuts down on emails as many times students can find the answer to their questions, but it seems easier just to email the professor.

Sources can include the syllabus, the Ask the Professor Q&A Discussion Board, classmates, the textbook, and so on. If I ask the student for the three sources and they do not have them, I dock participation points. Works great on significantly cutting down my emails and helps to prepare my students for the real world!



The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material.

Enjoy your course and best of luck! Please feel free to email me directly if you have any questions, ideas, suggestions, or feedback! For additional course materials, content, and cases, visit www.baltzan.net or email me directly at pbaltzan@baltzan.net.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 35

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL UNIT ONE OVERVIEW Information is everywhere. Information is a strategic asset. Without information, an organization simply could not operate. This Unit introduces students to several core business strategies that focus on using information to gain a competitive advantage, including:             

Competitive advantages Porter’s Five Forces Model Porter’s three generic strategies Value chain Supply chain management Customer relationship management Business process reengineering Enterprise resource planning IT efficiency metrics IT effectiveness metrics Organizational structures Ethics Security

Many of these concepts and strategies will be new to your students. Be sure to explain to your students that this Unit offers an introduction to these concepts, and they will gain a solid understanding of the details of these concepts as they continue reading the text. For example, customer relationship management is introduced in Unit One and discussed in detail in several additional chapters and in the business plug-ins. The chapters in Unit One include:     

Chapter One—Business Driven Technology Chapter Two—Identifying Competitive Advantages Chapter Three—Strategic Initiatives for Implementing Competitive Advantages Chapter Four—Measuring the Success of Strategic Initiatives Chapter Five—Organizational Structures That Support Strategic Initiatives

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 36

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL CHAPTER 4 This chapter discusses how to measure organizational performance. Efficiency focuses on the extent to which an organization is using its resources in an optimal way, ―doing things right.‖ Effectiveness focuses on how well an organization is achieving its goals and objectives, ―doing the right things.‖ It is important that your students understand the differences between efficiency and effectiveness if you are planning to cover the business plug-in for Supply Chain Management since it deals in detail with efficient and effective supply chains.

LEARNING OUTCOMES 1.11Define the primary MIS roles along with their associated responsibilities.

The chief information officer (CIO) is responsible for (1) overseeing all uses of information technology and (2) ensuring the strategic alignment of MIS with business goals and objectives. The chief data officer (CDO) is responsible for determining the types of information the enterprise will capture, retain, analyze, and share. The chief technology officer (CTO) is responsible for ensuring the throughput, speed, accuracy, availability, and reliability of an organization’s information technology. The chief security officer (CSO) is responsible for ensuring the security of MIS systems and developing strategies and MIS safeguards against attacks from hackers and viruses. The chief privacy officer (CPO) is responsible for ensuring the ethical and legal use of information within an organization. The chief knowledge officer (CKO) is responsible for collecting, maintaining, and distributing the organization’s knowledge.

1.12Define critical success factors (CSFs) and key performance indicators (KPIs), and explain how managers use them to measure the success of MIS projects.

Metrics are measurements that evaluate results to determine whether a project is meeting its goals. Two core metrics are critical success factors and key performance indicators. Critical success factors (CSFs) are the crucial steps companies perform to achieve their goals and objectives and implement their strategies. Key performance indicators (KPIs) are the quantifiable metrics a company uses to evaluate progress toward critical success factors.

KPIs are far more specific than CSFs. 1.13Explain why a business would use metrics to measure the success of strategic initiatives.

Business leaders want to monitor key metrics in real time to actively track the health of the business. Most business professionals are familiar with financial metrics. Different financial ratios are used to evaluate a company’s performance. Companies can gain additional insight into their performance by comparing financial ratios against other companies in their industry.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 37

CORE MATERIAL The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material. You will find numerous classroom ideas to keep your course exciting and challenge your students to apply the material.

RUNNING CASE STUDY QUESTIONS 43. You have landed your dream job working for Steve Evert. Unfortunately, Steve does not understand the difference between efficiency MIS metrics and effectiveness MIS metrics. Provide Steve with an overview of the importance of metrics and the difference between efficiency MIS metrics and effectiveness MIS metrics.

Efficiency MIS metrics measure the performance of MIS itself, such as throughput, transaction speed, and system availability. Effectiveness MIS metrics measure the impact MIS has on business processes and activities, including customer satisfaction and customer conversion rates. Efficiency focuses on the extent to which a firm is using its resources in an optimal way, while effectiveness focuses on how well a firm is achieving its goals and objectives. Peter Drucker offers a helpful distinction between efficiency and effectiveness: Doing things right addresses efficiency—getting the most from each resource. Doing the right things addresses effectiveness—setting the right goals and objectives and ensuring they are accomplished.

CHAPTER FOUR CASE          

What is the best route for dropping off products?

Should we change suppliers?

Should we reduce costs by buying lower-quality materials?

Should we sell products to a younger market?

Did we make our sales targets?

What was the turnover rate of employees?

What is the average customer spending?

How many new customers purchased products?

Did the amount of daily transactions increase?

Is there a better way to restructure a store to increase sales?

Efficiency Effectiveness Effectiveness Effectiveness Effectiveness Efficiency Effectiveness Effectiveness Efficiency Effectiveness

REVIEW QUESTIONS What are the responsibilities of a chief information officer? © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 38

The chief information officer (CIO) is responsible for (1) overseeing all uses of information technology and (2) ensuring the strategic alignment of MIS with business goals and objectives. The CIO often reports directly to the CEO. CIOs must possess a solid and detailed understanding of every aspect of an organization coupled with tremendous insight into the capability of MIS. Broad functions of a CIO include: 1. Manager—ensure the delivery of all MIS projects, on time and within budget.

2. Leader—ensure the strategic vision of MIS is in line with the strategic vision of the organization.

3. Communicator—advocate and communicate the MIS strategy by building and maintaining strong executive relationships.

44. What are the responsibilities of a chief privacy officer?

The chief privacy officer (CPO) is responsible for ensuring the ethical and legal use of information within an organization. CPOs are the newest senior executive position in MIS. Recently, 150 of the Fortune 500 companies added the CPO position to their list of senior executives. Many CPOs are lawyers by training, enabling them to understand the oftencomplex legal issues surrounding the use of information.

45. What are the responsibilities of a chief data officer?

The chief data officer (CDO) is responsible for determining the types of information the enterprise will capture, retain, analyze, and share. The difference between the CIO and CDO is that the CIO is responsible for the information systems through which data is stored and processed, while the CDO is responsible for the data, regardless of the information system.

46. Why would a company want to have a CIO, CPO, and CSO? A chief information officer is responsible for (1) overseeing all uses of MIS and (2) ensuring that MIS strategically aligns with business goals and objectives. A chief privacy officer is responsible for ensuring the ethical and legal use of information within a company. A chief security officer is responsible for ensuring the security of business systems and developing strategies and safeguards against attacks by hackers and viruses. Companies need to ensure they have all of the appropriate executives to ensure they are meeting the goals and needs of the business.

47. What is the MIS skills gap?

This gap indicates the difference between existing MIS workplace knowledge and the knowledge required to fulfill the business goals and strategies.

48. What is a project?

A project is a temporary activity a company undertakes to create a unique product, service, or result.

49. What is the difference between MIS efficiency metrics and MIS effectiveness metrics?

Efficiency MIS metrics measure the performance of MIS itself, such as throughput, transaction speed, and system availability. Effectiveness MIS metrics measure the impact MIS has on business processes and activities, including customer satisfaction and customer conversion rates. Efficiency focuses on the extent to which a firm is using its resources in an © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 39

optimal way, while effectiveness focuses on how well a firm is achieving its goals and objectives. Peter Drucker offers a helpful distinction between efficiency and effectiveness: Doing things right addresses efficiency—getting the most from each resource. Doing the right things addresses effectiveness—setting the right goals and objectives and ensuring they are accomplished.

KPIs that measure MIS projects include both efficiency and effectiveness metrics. Of course, these metrics are not as concrete as market share or ROI, but they do offer valuable insight into project performance.

50. What is the difference between CSFs and KPIs? Critical success factors (CSFs) are the crucial steps companies perform to achieve their goals and objectives and implement their strategies. Key performance indicators (KPIs) are the quantifiable metrics a company uses to evaluate progress toward critical success factors. KPIs are far more specific than CSFs. It is important to understand the relationship between critical success factors and key performance indicators. CSFs are elements crucial for a business strategy’s success. KPIs measure the progress of CSFs with quantifiable measurements, and one CSF can have several KPIs. Of course, both categories will vary by company and industry. Imagine improve graduation rates as a CSF for a college.

51. How can metrics be used to measure the success of supply chain management systems and CRM systems?

What is a metric? A metric is nothing more than a standard measure to assess performance in a particular area. Metrics are at the heart of a good, customer-focused management system and any program directed at continuous improvement. A focus on customers and performance standards shows up in the form of metrics that assess the ability to meet customers’ needs and business objectives. Business leaders want to monitor key metrics in real time to actively track the health of their business. Most business professionals are familiar with financial metrics. Different financial ratios are used to evaluate a company’s performance. Companies can gain additional insight into their performance by comparing financial ratios against other companies in their industry.

52. What are metrics and why are they important to measure?

Metrics are measurements that evaluate results to determine whether a project is meeting its goals. If you can’t measure it, you can’t manage it. Without metrics it would be impossible to determine the success or failure areas of a project.

MAKING BUSINESS DECISIONS WHO REALLY WON THE WINTER OLYMPICS? Student measurements should include specific ways they can measure classroom efficiency and effectiveness including KPIs. Key performance indicators (KPIs) are the measures that are tied to business drivers. Metrics are the detailed measures that feed those KPIs. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 40

Performance metrics fall into a nebulous area of business intelligence that is neither technology- nor business-centered, but this area requires input from both IT and business professionals to find success.

Efficiency and effectiveness metrics are two primary types of MIS metrics. Efficiency MIS metrics measure the performance of the MIS system itself including throughput, speed, and availability. Effectiveness MIS metrics measure the impact MIS has on business processes and activities including customer satisfaction, conversion rates, and sell-through increases.

Peter Drucker offers a helpful distinction between efficiency and effectiveness. Drucker states that managers ―Do things right‖ and/or ―Do the right things.‖ Doing things right addresses efficiency—getting the most from each resource. Doing the right things addresses effectiveness—setting the right goals and objectives and ensuring they are accomplished.

This is such a great example of identical data being deployed in different ways due to analysis. Who is right and who is wrong truly depends on how you look at the data—and more likely who you are when you are looking at the data. Your students will enjoy analyzing these two different reports from the exact same dataset.

53. STARTING YOUR OWN BUSINESS Students who are unfamiliar with MIS might not realize its power. Many start-ups today focus on technology or use technology to create competitive advantages. This is another great project that will show your students how MIS impacts business and by understanding the power of MIS they could start their own business—what a great incentive to become an MIS major! Everyone loves a start-up and students today are jumping into the start-up game quickly. As soon as you bring the value of this class to the students—starting their own business—they will be far more engaged with the material and what is in it for them!

54. SMART CARTING There are so much amazing insights into shopping patterns that can be gleaned from a shopping cart. Why was an item added? What items were added together? When was an item removed from the cart and why? This is a great exercise to start your students thinking about analytics for a shopper. Perhaps individuals shopping quickly add more to their cart than individuals that have lots of time to peruse the items—or perhaps the opposite. Ask your students to think about how they shop and what a company might find out about their purchasing habits if they monitored and tracked their shopping carts.

55. ROLES AND RESPONSIBILITIES The important part of this exercise is for your students to be able to differentiate between all of the different roles and responsibilities in an organization. Understanding how these roles work together is a key takeaway from this assignment.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 41

56. MEASURING EFFICIENCY AND EFFECTIVENESS Efficiency implies doing things right and effectiveness implies doing the right things.

Efficiency MIS metrics focus on technology and include throughput, which is the amount of information that can travel through a system at any point in time. Efficiency metrics include speed, availability, accuracy, web traffic, and response time. Effectiveness MIS metrics focus on an organization’s goals, strategies, and objectives and include usability, customer satisfaction, conversion rates, and financial metrics. Ideally, an organization wants to operate with significant increases in both efficiency and effectiveness.

57. UPWARD MANAGING YOUR BOSS Ensure your students presentations highlight what is important to their future career and data.

They should include everything from ethics and security to information and knowledge. The real question to ask is how do you manager your business without data?

58. PERSONAL CSFs AND KPIs This is a great exercise to help students realize the tremendous benefits of their college career. The important part of this exercise is to ensure they think about how frequently they measure their success metrics. College is about more than just grades.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 42

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 43

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL This guide provides many classroom activities, videos, and debates to accompany Business Driven Technology 10e. A few course suggestions: 

Create one or two test questions based on the classroom activity to help reward students who attend lectures.



Many professors have found that assigning an activity and then lecturing on the material helps students gain a deeper understanding of the core MIS concepts as they have already struggled with applying the material to a real-world situation.



Asking a small group of students to explain their answer to the activity to the entire class after completion ensures students come to class prepared. I select a different group each activity to explain their answer and they do not want to look unprepared in front of their fellow classmates. It is a powerful motivator to get my students to read prior to class. After the activity and student’s presentations then I lecture—this keeps my students engaged and helps to achieve a higher level of learning outcomes as they are constantly tasked with applying the concepts during class.



Create an Ask the Professor Discussion Board that runs the entire course where students can ask course- and content-related questions. I typically promise to respond within 24 hr, and I always encourage my students to check the discussion board before sending an email. Many times, if one student has a question so do other students.



**Three Before Me Rule! This is something I have found that saves a great deal of time answering email. I state the Three Before Me Rule in my syllabus. Before a student comes to me with a question, they must provide three sources they used to answer the question themselves. This significantly cuts down on emails as many times students can find the answer to their questions, but it seems easier just to email the professor.

Sources can include the syllabus, the Ask the Professor Q&A Discussion Board, classmates, the textbook, and so on. If I ask the student for the three sources and they do not have them, I dock participation points. Works great on significantly cutting down my emails and helps to prepare my students for the real world!



The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material.

Enjoy your course and best of luck! Please feel free to email me directly if you have any questions, ideas, suggestions, or feedback! For additional course materials, content, and cases, visit www.baltzan.net or pbaltzan@baltzan.net.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 44

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL UNIT ONE OVERVIEW Information is everywhere. Information is a strategic asset. Without information, an organization simply could not operate. This Unit introduces students to several core business strategies that focus on using information to gain a competitive advantage, including:             

Competitive advantages Porter’s Five Forces Model Porter’s three generic strategies Value chain Supply chain management Customer relationship management Business process reengineering Enterprise resource planning IT efficiency metrics IT effectiveness metrics Organizational structures Ethics Security

Many of these concepts and strategies will be new to your students. Be sure to explain to your students that this Unit offers an introduction to these concepts, and they will gain a solid understanding of the details of these concepts as they continue reading the text. For example, customer relationship management is introduced in Unit One and discussed in detail in several additional chapters and in the business plug-ins. The chapters in Unit One include:     

Chapter One—Business Driven Technology Chapter Two—Identifying Competitive Advantages Chapter Three—Strategic Initiatives for Implementing Competitive Advantages Chapter Four—Measuring the Success of Strategic Initiatives Chapter Five—Organizational Structures That Support Strategic Initiatives

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 45

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL CHAPTER 5 Organizational employees must work closely together to develop strategic initiatives that create competitive advantages. Ethics and security are two fundamental building blocks that organizations must base their businesses on to be successful. This chapter provides an overview of the different titles, roles, and responsibilities found in a typical organization. The gap between IT personnel and business personnel is highlighted. The role of ethics and security in an organization is also discussed.

LEARNING OUTCOMES 1.14Explain information ethics and its associated issues.

Information ethics govern the ethical and moral issues arising from the development and use of information technologies as well as the creation, collection, duplication, distribution, and processing of information itself (with or without the aid of computer technologies). Ethical dilemmas in this area usually arise not as simple, clear-cut situations but as clashes among competing goals, responsibilities, and loyalties. Inevitably, there will be more than one socially acceptable or correct decision.

1.15Describe information security and the difference between hackers and viruses.

Information security is a broad term encompassing the protection of information from accidental or intentional misuse by persons inside or outside an organization. Information security is perhaps the most fundamental and critical of all the technologies/disciplines an organization must have squarely in place to execute its business strategy. Without solid security processes and procedures, none of the other technologies can develop business advantages. Understanding how to secure information systems is critical to keeping downtime to a minimum and uptime to a maximum. Hackers and viruses are two of the hottest issues currently facing information security. Hackers are experts in technology who use their knowledge to break into computers and computer networks, either for profit or simply for the challenge. A virus is software written with malicious intent to cause annoyance or damage.

CORE MATERIAL The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material. You will find numerous classroom ideas to keep your course exciting and challenge your students to apply the material.

RUNNING CASE STUDY QUESTIONS 59. You have landed your dream job working for Steve Evert. Unfortunately, Steve does not understand the importance of ethics and security surrounding the data in your © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 46

organization. Explain to Steve the difference between information security and information ethics and why they are important to your company.

Information security means protecting our data from cybercriminals and other threats.

Information ethics ensures we follow all laws and use the data in only legal and ethical ways.

If we sacrifice either of these important measures, we will lose our customers’ trust and then our customers.

CHAPTER FIVE CASE There is no doubt that some companies’ data analysis practices feel more like stalking than strategic business moves. How would you feel if you received coupons indicating someone in your family or household was pregnant or sick?

This case is famous, and students will have differing opinions. Some students will think it is great business to start sending coupons for cribs and baby formula, while other students will be devastated by the privacy boundaries that are clearly disregarded. Perhaps a discussion on why to use cash to be anonymous might be great—however with facial recognition are we ever anonymous?

60. How does a company determine if its data analysis practices are crossing the data privacy line?

Rules and regulations and governing bodies are the best attempt to ensure you are not crossing privacy boundaries. Visa could sell my data to many customers who would love to know my shopping habits. However, I would probably not be a customer of Visa for long. It is a hard decision to understand where to land when facing privacy issues, especially GDPR and The Right to be Forgotten.

61. Do you agree it was a good idea for Target to mix coupons to help ensure customer privacy?

Yes, there is an easy way to send coupons based on shopping patterns and then add a few random coupons—perhaps cat food or dog food—knowing the customer never buys pet products. This can help keep the marketing material anonymous while doing their best to keep customers.

REVIEW QUESTIONS What are ethics and why are they important to a company?

As it becomes easier for people to copy everything from words and data to music and video, the ethical issues surrounding copyright infringement and the violation of intellectual property rights are consuming the ebusiness world. Technology poses new challenges for our ethics—the principles and standards that guide our behavior toward other people.

62. What is the correlation between privacy and confidentiality?

Privacy is the right to be left alone when you want to be, to have control over your personal possessions, and not to be observed without your consent. Privacy is related to © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 47

confidentiality, which is the assurance that messages and information remain available only to those authorized to view them. Each time employees decide about a privacy issue, the outcome could sink the company.

63. What is the difference between pirated software and counterfeit software?

Pirated software is the unauthorized use, duplication, distribution, or sale of copyrighted software. Counterfeit software is software that is manufactured to look like the real thing and sold as such.

64. What are the reasons a company experiences downtime?

Downtime can occur for many numbers of reasons from fires, floods, tornadoes, sinks overflowing, and mice easting the power wires.

65. What are the costs associated with downtime?

Costs from downtime include revenue losses, damaged reputation, and poor performance.

66. What is the relationship between adware and spyware?

Adware is software that, while purporting to serve some useful function and often fulfilling that function, also allows internet advertisers to display advertisements without the consent of the computer user. Spyware is a special class of adware that collects data about the user and transmits it over the internet without the user’s knowledge or permission.

67. Why are viruses considered a dangerous threat to a company?

One virus can take out entire systems or steal all of the corporate data. All employees need to be aware of virus and ensure they are always aware of potential threats—people first!!

68. What is the relationship between hackers and viruses?

Hackers are experts in technology who use their knowledge to break into computers and computer networks, either for profit or just motivated by the challenge. Hackers spread viruses.

MAKING BUSINESS DECISIONS INFORMATION ISSUES IN THE INFORMATION AGE Student data is everywhere, and many students are not checking their credit reports or following who has their data. A faculty member from 10 years ago could have your social security number and post it to a website causing you no end of problems. Be sure your students are aware of who has their information and how they are storing that information.

69. YES, I STARTED THE INTERNET This is a personal choice for the students.

70. WHAT HAPPENS ON YOUTUBE STAYS ON YOUTUBE FOREVER Understanding that viral information can live forever is crucial for your students. Just ask them to look up famous athletes and how old information has caused current problems. Or © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 48

search actors/actresses and determine how old news has hurt their reputations, costing them sponsors and future career opportunities.

71. FAKE NEWS This is such a hot topic these days. Do you trust Facebook? Do you trust Instagram or TikTok? There is so much misinformation circulating around the web that it is almost impossible to determine what is true and what is nonsense. This is a great debate to host during class—how do you determine if what you are reading on the internet is fact or fiction?

72. 15 MILLION IDENTITY THEFT VICTIMS Ensure every one of your students visits this website and is well aware of the consequences of identity theft, and what they can do to protect themselves.

UNIT CLOSING CASE ONE Explain the Internet of Things along with its potential impact on business. Also, list three IoT devices that you are currently using in your own personal life.

Over 20 years ago, a few professors at MIT began describing the Internet of Things (IoT) a world where interconnected internet-enabled devices or ―things‖ have the ability to collect and share data without human intervention. Another term commonly associated with The Internet of Things is machine-to-machine (M2M), which refers to devices that connect directly to other devices. With advanced technologies devices are connecting in ways not previously thought possible and researchers predict that over 50 billion IoT devices will be communicating by 2020. IOT devices include:  Fitness trackers  Cell phones  Medical trackers  Smart doors/keys  Smart bike locks  Smart home controls 73. Explain why it is important for business managers to understand that data collection rates from IoT devices are increasing exponentially.

The more data the more difficult it becomes to analyze. The massive amounts of data managers are going to have to navigate in the future is in the petabytes. Without great data analytics skills, managers will be lost in a sea of data.

74. Demonstrate how data from an IoT device can be transformed into information and business intelligence.

Taking data and analyzing it by segment, area, type, level, or past data is a great way to find information. Taking data and analyzing it against competitor data or weather data is a great way to find correlations in the data and turn it into business intelligence.

75. Propose a plan for how a start-up company can use IoT device data to make better business decisions.

Answers to this question will vary. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 49

76. Argue for or against the following statement: ―The Internet of Things is just a passing fad and will be gone within a decade.‖ Data is here to stay and only growing faster and quicker—IoT is just beginning, and it is here to stay!

UNIT CLOSING CASE TWO Explain how the fourth industrial revolution will impact your career.

Every student will be working with AI, ML, and robotics. I am sure many of your students have already interfaced with chatbots—a form of AI. Understanding that the new business environment is all about data and how they can analyze and digest vast amounts of data will help them understand the value of this class.

77. Explain why it is important for business managers to understand that data analysis is the future for any industry or functional area.

This class will cover all of the four different types of analytics including descriptive analytics, diagnostic analytics, predictive analytics, and prescriptive analytics. This is a great time to cover the boxed element in the text on the different questions associated with each type of analytics to ensure your students understand why these types of analytics can answer everyday business questions.

78. Demonstrate how data can be transformed into information and business intelligence.

When discussing MIS, it is important to understand the difference between data and information. Ask your students to look around the classroom and identify three pieces of data and three pieces of information.

• This is a bit of a trick question, unless you know the system you are building or the problem you are trying to solve, it is impossible to know what data is and what is information. For example, if you were building a system to track students:  Data might include height, name, and hair color.  Information might include student to professor ratio, percentage of marketing majors who are female, number of students who pass the course.

• If you were building a system to track inventory:  Data might include chair manufacturer, chair color, and chair size.  Information might include number of chairs required for students in each class, average number of chairs needed to be replaced each semester.

79. Propose a plan for how a start-up company can use data to make better business decisions and find success.

Many of your students are thinking about careers in marketing and this is one of the best ways to demonstrate the amazing value in this course. Using data to find your market segments and to survey customers on new products is one of the best ways for a start-up to ensure they are using data to build what the customer wants, not what they think the customer wants. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 50

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 51

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL This guide provides many classroom activities, videos, and debates to accompany Business Driven Technology 10e. A few course suggestions: 

Create one or two test questions based on the classroom activity to help reward students who attend lectures.



Many professors have found that assigning an activity and then lecturing on the material helps students gain a deeper understanding of the core MIS concepts as they have already struggled with applying the material to a real-world situation.



Asking a small group of students to explain their answer to the activity to the entire class after completion ensures students come to class prepared. I select a different group each activity to explain their answer and they do not want to look unprepared in front of their fellow classmates. It is a powerful motivator to get my students to read prior to class. After the activity and student’s presentations then I lecture—this keeps my students engaged and helps to achieve a higher level of learning outcomes as they are constantly tasked with applying the concepts during class.



Create an Ask the Professor Discussion Board that runs the entire course where students can ask course and content-related questions. I typically promise to respond within 24 hr, and I always encourage my students to check the discussion board before sending an email. Many times, if one student has a question so do other students.



**Three Before Me Rule! This is something I have found that saves a great deal of time answering email. I state the Three Before Me Rule in my syllabus. Before a student comes to me with a question, they must provide three sources they used to answer the question themselves. This significantly cuts down on emails as many times students can find the answer to their questions, but it seems easier just to email the professor.

Sources can include the syllabus, the Ask the Professor Q&A Discussion Board, classmates, the textbook, and so on. If I ask the student for the three sources and they do not have them, I dock participation points. Works great on significantly cutting down my emails and helps to prepare my students for the real world!



The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material.

Enjoy your course and best of luck! Please feel free to email me directly if you have any questions, ideas, suggestions, or feedback! For additional course materials, content, and cases, visit www.baltzan.net or pbaltzan@baltzan.net.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 52

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL UNIT TWO OVERVIEW Information is powerful. Information tells an organization everything from how its current operations are performing to estimating and strategizing how future operations might perform.

New perspectives open up when people have the right information and know how to use it. The ability to understand, digest, analyze, and filter information is a key to success for any professional in any industry.

This unit demonstrates the value an organization can uncover and create by learning how to manage, access, analyze, and protect organizational information. The chapters in this unit include:   

Chapter Six—Valuing and Storing Organizational Information—Databases Chapter Seven—Accessing Organizational Information—Data Warehouse Chapter Eight—Understanding Data’s Impact on Business

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 53

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL CHAPTER 6 This chapter provides an overview of information levels, formats, and granularities. It also discusses the differences between transactional and analytical information. The chapter concludes with a discussion on the issues found in low-quality information and how to obtain high-quality information.

LEARNING OUTCOMES 1.16Explain the four primary traits that determine the value of information.

Information levels include individual, department, and enterprise. Information formats include document, presentation, spreadsheet, and database. Information granularities include detail, summary, and aggregate.

Information is data converted into a meaningful and useful context. Information can tell an organization how its current operations are performing and help it estimate and strategize about how future operations might perform. It is important to understand the different levels, formats, and granularities of information along with the four primary traits that help determine the value of information, which include (1) information type: transactional and analytical; (2) information timeliness; (3) information quality; and (4) information governance.

Transactional information encompasses all of the information contained within a single business process or unit of work, and its primary purpose is to support the performing of daily operational tasks. Examples of transactional information include withdrawing cash from an ATM or making an airline reservation. Analytical information encompasses all organizational information, and its primary purpose is to support the performing of managerial analysis tasks. Examples of analytical information include trends, sales, and product statistics.  Accuracy determines if all values are correct. Example: Is the name spelled correctly?  Completeness determines if any values are missing. Example: Is the address complete?  Consistency ensures that aggregate or summary information agrees with detailed information. Example: Do totals equal the true total of the individual fields?  Uniqueness ensures that each transaction, entity, and event is represented only once in the information. Example: Are there any duplicate customers?  Timeliness determines if the information is current with respect to the business requirement. Example: – Is the information updated weekly?

Using the wrong information can lead to making the wrong decision. Making the wrong decision can cost time, money, and even reputations. Business decisions are only as good as the information used to make the decision. Low-quality information leads to low-quality business decisions. High-quality information can significantly improve the chances of making a good business decision and directly affect an organization’s bottom line.

1.17Describe a database, a database management system, and the relational database model. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 54

A database maintains information about various types of objects (inventory), events (transactions), people (employees), and places (warehouses). A database management system (DBMS) creates, reads, updates, and deletes data in a database while controlling access and security. A DBMS provides methodologies for creating, updating, storing, and retrieving data in a database. In addition, a DBMS provides facilities for controlling data access and security, allowing data sharing, and enforcing data integrity. The relational database model allows users to create, read, update, and delete data in a relational database.

1.18Identify the business advantages of a relational database.

Database advantages from a business perspective include: - Increased flexibility - Increased scalability and performance - Reduced information redundancy - Increased information integrity (quality) - Increased information security Many business managers are familiar with Excel and other spreadsheet programs they can use to store business data. Although spreadsheets are excellent for supporting some data analysis, they offer limited functionality in terms of security, accessibility, and flexibility and can rarely scale to support business growth. From a business perspective, relational databases offer many advantages over using a text document or a spreadsheet, including increased flexibility, increased scalability, and performance, reduced information redundancy, increased information integrity (quality), and increased information security.

CORE MATERIAL The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material. You will find numerous classroom ideas to keep your course exciting and challenge your students to apply the material.

RUNNING CASE STUDY QUESTION 80.

You have landed your dream job working for Steve Evert. Unfortunately, Steve doesn’t know anything about data. Your first assignment is to help educate Steve on the five common characteristics of high-quality information and how issues with low-quality information will impact your business.

Student answers to this question will vary depending on their personal views and experiences with technology. The important part of the question is understanding the students’ justifications for their order. Potential order of importance: © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 55

    

Timeliness—Information must be timely. If users are receiving old and outdated answers to their queries, then any report or business question they are answering will be wrong. It is like looking at yesterday’s TV listings. They won’t help you today.

Accuracy—Information must be accurate. If you Google health insurance and puppies display on the website, then you will not get an answer to your query.

Consistency—Users will not trust the system if it provides different results or prices for the same products at different times.

Completeness—Search results need to be complete and identify all information the customer is looking for based on their query.

Uniqueness—Users expect to receive unique answers to their queries, not the same answers listed over and over again.

As with any database management system, governance is a key issue. Without governance, there is no control over how information is published and maintained. But as data grows in volume and flows from different areas of the corporation, it will become nearly impossible to govern.

If a database contains information that is inaccurate, its customers would discontinue using it as a source of information. It could also find itself in legal trouble if it allows entries stating inaccurate information.

CHAPTER SIX CASE DETERMINING INFORMATION QUALITY ISSUES There are numerous data issues including:         

433 is missing a first name 436 is missing a last name The same zip code is used for both CO and OH in both 434 There are two different customers with customer number 434 M. J. Jones and Margaret J. Jones could be the same customers since they have similar addresses Address for 433 is probably incorrect since the street and city are the same, 13 Denver, and Denver, CO 437 has too many digits in the zip code 436 has the wrong city and state, New York, CA 435 has the wrong city and state, San Francisco, OH

Addressing any of the following four primary sources of low-quality information will increase Real People’s quality issues:    

Online customers intentionally enter inaccurate information to protect their privacy Information from different systems that have different information entry standards and formats Call center operators enter abbreviated or erroneous information by accident or to save time Third party and external information contains inconsistencies, inaccuracies, and errors

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 56

REVIEW QUESTIONS Why does a business need to be concerned with the quality of its data?

Without high-quality data, no matter how good the business is running the decision managers make will be inaccurate and incorrect.

81. Why would a company care about the timeliness of its data?

With data that is out-of-date the company will make incorrect decisions.

82. What are the five characteristics common to high-quality information?

The five characteristics for high-quality information include accurate, complete, consistent, timely, and unique.

83. What is data governance and its importance to a company?

Data governance refers to the overall management of the availability, usability, integrity, and security of company data. A company that supports a data governance program has a defined policy that specifies who is accountable for various portions or aspects of the data, including its accuracy, accessibility, consistency, timeliness, and completeness.

84. What are the four primary traits that help determine the value of information?

The four primary traits of the value of information include information type, information timeliness, information quality, and information governance.

85. What is the difference between an entity and an attribute?

An entity stores information about a person, place, thing, transaction, or event. An attribute includes the data elements associated with an entity.

86. What is the difference between the physical and logical view of data?

The physical view of data deals with the physical storage of data on a storage device. The logical view of data focuses on how individual users logically access data to meet their own particular business needs.

87. What are the advantages of a relational database?

A relational database stores information in the form of logically related two-dimensional tables allowing for increased scalability, decreased data redundancy, and increased flexibility, integrity, and security.

88. What is the difference between data latency and data redundancy?

Redundant data means you are saving the data multiple times. This means changes in numerous places when the data changes—costing additional time and money. There is also the problem if the change is not replicated everywhere. Redundant data can cause problems with aggregations if you do not know the data is repeating.

89. What value do integrity constraints offer a database?

Integrity constraints are rules that help ensure the quality of data. Without integrity constraints, the users could enter incorrect information. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 57

MAKING BUSINESS DECISIONS BIG BUSINESS DECISIONS: EXCEL VERSUS ACCESS The advantages of a database include:  Multiuser access  Reduced redundancy  Increased security with user access levels  Increased performance  Increased scalability  Increased reliability 90. DATA TIMELINESS Potential answers can include:  Weather tracking system—must update in real time to be able to track hurricanes, tornados, and so on  Car dealership inventories—depending on the size and number of dealerships, it could update hourly if there were many dealerships that shared inventories, or it could update nightly if there were only two dealerships that kept in close contact  Vehicle tire sales forecasts—update weekly or monthly since the information is used for forecasting  Interest rates—depending on what you are doing with the interest rates you might update hourly, daily, or weekly (if you are only using them for an analysis)  Restaurant inventories—the size of the restaurant will probably play a factor in deciding the frequency of updates. Hourly for a large restaurant that cannot afford to run out of any of its entrees, to daily for a small restaurant that has loyal customers, and it is OK to tell its customers that it has run out of its specials.  Grocery store inventories—near real time to avoid product overstocking and understocking 91.

ENTITIES AND ATTRIBUTES Potential entities and associated attributes can include:  CUSTOMER: Customer Number, First Name, Last Name, Address, Phone, email  PRODUCT: Product ID, Name, Size, Color, Weight, Height, Quantity  SALESREPRESENTATIVE: SalesRep ID, First Name, Last Name, Address, Phone  INVOICE: Invoice Number, Customer Number, Product ID, Quantity, Price, SalesRep ID 92. EXPLAINING RELATIONAL DATABASES The relational database model stores information in the form of logically related twodimensional tables. Entities, attributes, primary keys, and foreign keys are all fundamental concepts included in the relational database model. Relational database advantages from a business perspective include:   

Increased flexibility Increased scalability and performance Reduced information redundancy

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 58

 

Increased information integrity (quality) Increased information security

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 59

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL This guide provides many classroom activities, videos, and debates to accompany Business Driven Technology 10e. A few course suggestions: 

Create one or two test questions based on the classroom activity to help reward students who attend lectures.



Many professors have found that assigning an activity and then lecturing on the material helps students gain a deeper understanding of the core MIS concepts as they have already struggled with applying the material to a real-world situation.



Asking a small group of students to explain their answer to the activity to the entire class after completion ensures students come to class prepared. I select a different group each activity to explain their answer and they do not want to look unprepared in front of their fellow classmates. It is a powerful motivator to get my students to read prior to class. After the activity and student’s presentations then I lecture—this keeps my students engaged and helps to achieve a higher level of learning outcomes as they are constantly tasked with applying the concepts during class.



Create an Ask the Professor Discussion Board that runs the entire course where students can ask course and content-related questions. I typically promise to respond within 24 hr, and I always encourage my students to check the discussion board before sending an email. Many times, if one student has a question so do other students.



**Three Before Me Rule! This is something I have found that saves a great deal of time answering email. I state the Three Before Me Rule in my syllabus. Before a student comes to me with a question, they must provide three sources they used to answer the question themselves. This significantly cuts down on emails as many times students can find the answer to their questions, but it seems easier just to email the professor.

Sources can include the syllabus, the Ask the Professor Q&A Discussion Board, classmates, the textbook, and so on. If I ask the student for the three sources and they do not have them, I dock participation points. Works great on significantly cutting down my emails and helps to prepare my students for the real world!



The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material.

Enjoy your course and best of luck! Please feel free to email me directly if you have any questions, ideas, suggestions, or feedback! For additional course materials, content, and cases, visit www.baltzan.net or pbaltzan@baltzan.net.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 60

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL UNIT TWO OVERVIEW Information is powerful. Information tells an organization everything from how its current operations are performing to estimating and strategizing how future operations might perform.

New perspectives open up when people have the right information and know how to use it. The ability to understand, digest, analyze, and filter information is a key to success for any professional in any industry.

This unit demonstrates the value an organization can uncover and create by learning how to manage, access, analyze, and protect organizational information. The chapters in this unit include:   

Chapter Six—Valuing and Storing Organizational Information—Databases Chapter Seven—Accessing Organizational Information—Data Warehouse Chapter Eight—Understanding Data’s Impact on Business

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 61

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL CHAPTER 7 This chapter takes a step beyond databases and introduces students to data warehousing, data warehousing tools, and data mining. These technologies allow organizations to gain vast amounts of business intelligence.

LEARNING OUTCOMES 93. Identify the advantages of using business intelligence to support managerial decisionmaking.

Many organizations today find it next to impossible to understand their own strengths and weaknesses, let alone their biggest competitors, due to enormous volumes of organizational data being inaccessible to all but the MIS department. Organization data includes far more than simple structured data elements in a database; the set of data also includes unstructured data such as voice mail, customer phone calls, text messages, video clips, along with numerous new forms of data, such as tweets from Twitter. Managers today find themselves in the position of being data rich and information poor, and they need to implement business intelligence systems to solve this challenge.

94. Describe the roles and purposes of data warehouses and data marts in an organization.

The primary purpose of data warehouses and data marts is to perform analytical processing or OLAP. The insights into organizational information that can be gained from analytical processing are instrumental in setting strategic directions and goals.

Databases contain information in a series of two-dimensional tables, which means that you can only ever view two dimensions of information at one time. In a data warehouse and data mart, information is multidimensional, it contains layers of columns and rows. Each layer in a data warehouse or data mart represents information according to an additional dimension.

Dimensions could include such things as products, promotions, stores, category, region, stock price, date, time, and even the weather. The ability to look at information from different dimensions can add tremendous business insight.

An organization must maintain high-quality information in the data warehouse. Information cleansing and scrubbing is a process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information. Without high-quality information, the organization will be unable to make good business decisions.

CORE MATERIAL The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material. You will find numerous classroom ideas to keep your course exciting and challenge © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 62

your students to apply the material.

RUNNING CASE STUDY QUESTIONS 95. You have landed your dream job working for Steve Evert. Unfortunately, Steve doesn’t know anything about data. Your first assignment is to help educate Steve on the different types of dirty data and why it is important for an organization to cleanse data before performing an analysis.

Information is powerful. Information can tell an organization how its current operations are performing and help it estimate and strategize about how future operations might perform. The ability to understand, digest, analyze, and filter information is key to growth and success to any professional in any industry. Remember that new perspectives and opportunities can open up when you have the right data that you can turn into information and ultimately business intelligence. The value of timely information is critical to any business that wants to operate at the same speed as its customers, suppliers, and competitors.

With the growing number of systems it takes to run a business, there must be a central location for all of the business data. The accounting system does not need to store data on production details or plan operations; however all of the information needs to go together to ensure the company has an end-to-end view of all production and operations. A data warehouse is a central location for all data so customer service systems can store data that can be cross-referenced with accounting data and sales data providing a complete view of the customer—something that can’t be obtained from a single system alone.

There are many reasons for dirty data including:  Inaccurate data  Duplicate data  Misleading data  Incorrect data  Non-formatted data  Violates business rules data  Nonintegrated data Obviously, you must cleanse the data or else the problems from the analysis will be monumental. Garbage In is Garbage Out. 96. Explain to Steve how the marketing department could use a data mart that includes external and internal data to help analyze sales patterns.

Questions that might be answered by a marketing data mart include:  How has the business been performing? Historical perspective offers important variables for determining trends and patterns.  Where is the business now? Looking at the current business situation allows managers to take effective action to solve issues before they grow out of control.  Where is the business headed? Setting strategic direction is critical for planning and creating solid business strategies. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 63

Ask a simple question—such as who my best customer is or what is my worst selling product—and you might get as many answers as you have employees. Databases, data warehouses, and data marts can provide a single source of ―trusted‖ data that can answer questions about customers, products, suppliers, production, finances, fraud, and even employees. They can also alert managers to inconsistencies or help determine the cause and effects of enterprisewide business decisions. All business aspects can benefit from the added insights provided by business intelligence, and you, as a business student, will benefit from understanding how MIS can help you make intelligent decisions.

CHAPTER SEVEN CASE DATA CLEANSING: CAN YOU DO IT?      

Different account numbers, and some customers with the same numbers Similar Names with different spelling Address incomplete or missing data Incorrect city and state association Zip codes under five numbers or over nine numbers Phone numbers with letters or inaccurate numbers

REVIEW QUESTIONS What is business intelligence and how can it help a company achieve success?

Business intelligence is information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyzes patterns, trends, and relationships for strategic decision-making. BI manipulates multiple variables and in some cases even hundreds of variables including such items as interest rates, weather conditions, and even gas prices.

97. What is the difference between business intelligence and data?

Data are raw facts that describe the characteristics of an event or object. Business intelligence is information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyzes patterns, trends, and relationships for strategic decision-making.

Business intelligence is data that has been transformed and analyzed to provide insights into how the business is operating. It can analyze past history to help predict future operations.

98. Why would a marketing department want a data mart instead of just accessing the entire data warehouse?

The MIS department manages and controls the data warehouse. A department would only want to see the information relevant to their business operations and looking at the entire data warehouse would be overwhelming and probably beyond their technical abilities.

99. Why would a business be data rich and information poor?

It does not matter how much data an organization stores if the data cannot be analyzed and turned into information it is useless.

100.

What is a data warehouse and why would a business want to implement one?

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 64

A data warehouse is a logical collection of information, gathered from many different operational databases, that supports business analysis activities and decision-making tasks. Data warehouses allow organizations to have a single source of information for detailed crossfunctional business analysis.

101. How does ETL help transfer data in and out of the data warehouse?

ETL loads the data into the data warehouse and cleanses and scrubs the data before it is loaded.

This allows the analysis on the data to be performed without any worries that the data is dirty.

102. What is the difference between a backward integration and a forward integration?

A backward integration sends data back stream to other systems when the data is entered, and a forward integration sends data upstream to other systems when the data is entered.

103. What is the purpose of data cleansing (or scrubbing)?

Data cleansing allows a company to scrub data to remove inaccurate data or add values for incomplete data.

104. What are the causes of dirty data?

There are many reasons for dirty data including:  Inaccurate data  Duplicate data  Misleading data  Incorrect data  Non-formatted data  Violates business rules data  Nonintegrated data 105. What is a data lake?

A data lake is a storage repository that holds a vast amount of raw data in its original format until the business needs it.

MAKING BUSINESS DECISIONS DATA CLEANSING Answers to this question will vary depending on how your students interpret the decision. Some students will be comfortable using more of a gut feeling, while others will want all of the data prior to making a decision. This is such a great debate to get your students thinking about their own personal comfort levels with data.

106. BUSINESS INTELLIGENCE OR A DIVERSION FROM THE TRUTH? Student answers to this question will vary. It is important to ensure that they provide the proper justification for their answers. Technology-focused students will tend to disagree with President Obama, especially if they are familiar with the data mining and business intelligence he used to run his campaign.

107.

THAT IS NOT MY MOTHER IN THE CASKET

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 65

Low-quality information has caused so many problems—some funny, and some not so funny. As your students ponder the problems with the wrong person in the casket, ask them to search the internet for additional examples. There are always problems with data and as soon as students start to search for examples, they will hopefully remember to always check the data—twice!

108. SORRY, I DIDN’T MEAN TO POST YOUR SOCIAL SECURITY NUMBER ON THE INTERNET This makes for a great discussion question as students start to understand the problems associated with a rogue employee that could do no end of damage by posting data. What is someone at your school posted all of the student’s grades—how would that make your students feel?—Is that a FERPA law violation? Holding a disgruntled employee responsible won’t fix the problem. The trick is to ensure these types of problems never occur.

109. MINING THE DATA WAREHOUSE This is such a great exercise to get your students thinking—the name of the game when it comes to data. The rankings will be different so be sure to have students discuss their rankings and reasons. It will help awaken the classroom and get students thinking differently.

Student answers to this project will vary. The important part is their justification for each rating.

Sample ratings could include: 1.19Dimension Value (1–5) 1.20Product number 1 1.21Store location 1 1.22Customer net worth 2 1.23Number of sales personnel 1.24Customer eating habits 5 1.25Store hours 1 1.26Sales person ID 1 1.27Product style 1 1.28Order date 2 1.29Product quantity 2 1.30Ship date 2 1.31Current interest rate 3 1.32Product cost 2 1.33Customer’s political affiliate 1.34Local market analysis 3 1.35Order time 2 1.36Customer spending habits 1.37Product price 1 1.38Exchange rates 2 1.39Product gross margin 5 1.40Season 2 1.41Promotion 1 1.42Payment method2 1.43Commission policy 3

2

5

3

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 66

1.44Manufacturer 3 1.45Traffic report 5 1.46Customer language 5 1.47Weather 4 1.48Customer gender 3 1.49Local tax information 3 1.50Local cultural demographics 1.51Stock market closing 3 1.52Customer religious affiliation 1.53Reason for purchase 2 1.54Employee dress code policy 1.55Customer age 3 1.56Employee vacation policy 1.57Employee benefits 5 1.58Current tariff information

4 5 3 5 5

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 67

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 68

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL This guide provides many classroom activities, videos, and debates to accompany Business Driven Technology 10e. A few course suggestions: 

Create one or two test questions based on the classroom activity to help reward students who attend lectures.



Many professors have found that assigning an activity and then lecturing on the material helps students gain a deeper understanding of the core MIS concepts as they have already struggled with applying the material to a real-world situation.



Asking a small group of students to explain their answer to the activity to the entire class after completion ensures students come to class prepared. I select a different group each activity to explain their answer and they do not want to look unprepared in front of their fellow classmates. It is a powerful motivator to get my students to read prior to class. After the activity and student’s presentations then I lecture—this keeps my students engaged and helps to achieve a higher level of learning outcomes as they are constantly tasked with applying the concepts during class.



Create an Ask the Professor Discussion Board that runs the entire course where students can ask course and content-related questions. I typically promise to respond within 24 hr, and I always encourage my students to check the discussion board before sending an email. Many times, if one student has a question so do other students.



**Three Before Me Rule! This is something I have found that saves a great deal of time answering email. I state the Three Before Me Rule in my syllabus. Before a student comes to me with a question, they must provide three sources they used to answer the question themselves. This significantly cuts down on emails as many times students can find the answer to their questions, but it seems easier just to email the professor.

Sources can include the syllabus, the Ask the Professor Q&A Discussion Board, classmates, the textbook, and so on. If I ask the student for the three sources and they do not have them, I dock participation points. Works great on significantly cutting down my emails and helps to prepare my students for the real world! 

The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material.

Enjoy your course and best of luck! Please feel free to email me directly if you have any questions, ideas, suggestions, or feedback! For additional course materials, content, and cases, visit www.baltzan.net or pbaltzan@baltzan.net.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 69

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL UNIT TWO OVERVIEW Information is powerful. Information tells an organization everything from how its current operations are performing to estimating and strategizing how future operations might perform.

New perspectives open up when people have the right information and know how to use it. The ability to understand, digest, analyze, and filter information is a key to success for any professional in any industry.

This unit demonstrates the value an organization can uncover and create by learning how to manage, access, analyze, and protect organizational information. The chapters in this unit include:   

Chapter Six—Valuing and Storing Organizational Information—Databases Chapter Seven—Accessing Organizational Information—Data Warehouse Chapter Eight—Understanding Data’s Impact on Business

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 70

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL CHAPTER 8 This chapter discusses data storytelling and the power of visualizations along with the benefits and pitfalls of blockchain technologies.

LEARNING OUTCOMES 110.Explain the value of data storytelling along with the power of visualizations.

Data visualization describes technologies that allow users to see or visualize data to transform information into a business perspective. Data visualization is a powerful way to simplify complex data sets by placing data in a format that is easily grasped and understood far quicker than the raw data alone.

111.Explain blockchain and its advantages over a centralized relational database.

A blockchain is a type of distributed ledger consisting of blocks of data that maintain a permanent and tamperproof record of transactional data. Distributed ledgers allow many different parties around the world to access and verify the same data. Blockchains are a form of distributed computing in which a decentralized database is managed by computers belonging to a network. Each of the computers in the distributed network maintains a copy of the ledger to prevent a single point of failure, and all copies are updated and validated simultaneously. Because data is shared and continually reconciled by thousands or even millions of computers, it is almost impossible to corrupt a blockchain.

CORE MATERIAL The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material. You will find numerous classroom ideas to keep your course exciting and challenge your students to apply the material.

RUNNING CASE STUDY QUESTIONS 112. You have landed your dream job working for Steve Evert. Unfortunately, Steve doesn’t know anything about data. Your first assignment is to help educate Steve on the reasons a business would want to display big data in a graphic or visual format.

Data can tell a story and provide the audience with an instant understanding of the problem or situation, something raw numbers cannot provide. Any chance your students have to present data in a visual format they must do so. Be sure they are building great visualization techniques as well as learning why to be highly valuable in their work environment.

113. Steve also wants you to give him an overview of blockchain and its benefits to a business.

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Three advantages of implementing blockchain technologies include:  Immutability: Blockchain offers huge advances in cryptography, creating a far more secure network than a traditional centralized database. In a traditional database, a rogue employee or a hacker can potentially change historical transactions because of their access levels to the data. Immutable simply means unchangeable. Immutability is the ability for a blockchain ledger to remain a permanent, indelible, and unalterable history of transactions. Immutability has the potential to transform the auditing process into a quick, efficient, and cost-effective procedure and to bring more trust and integrity to the data businesses use and share every day; it is considered a key benefit of blockchain technology. Traditional databases have Create, Read, Update, and Delete options. In a blockchain, only Create and Read options are allowed, making it impossible to update or delete any transactions. Each transaction is created once and kept forever, making the data in the blockchain continuously grow.

However, with a blockchain implementation across data centers, one would need a large number of teams working together across data centers to modify historical data—which greatly reduces the possibility of data tampering. The more widespread the environments, the more difficult it is to tinker with data. 

Digital trust: The ledger is not stored in a single location nor managed by any particular company. The cryptographic linking between blocks ensures data unchangeability. It is public and easily verifiable because it is hosted by millions of computers simultaneously. Anyone can maintain a copy of it and verify its correctness. In other words, servers and clouds are replaced by a vast number of nodes run by volunteers across the globe. This provides resiliency and trust without a third party.

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Internet of Things integration: IoT devices linked wirelessly to a blockchain network are able to automatically update a distributed ledger of multiway transactions automatically and deliver data internally to other devices in the network or externally to operators entitled to access the data by previous agreement or on demand. To support paid, on-demand access, an IoT network needs a built-in payment system, which distributed ledger technology can natively support. Blockchain-based smart contracts can provide the necessary coordination between IoT-connected smart devices as well as the IoT interfaces with the external world. Imagine an IoT scenario in which a car lock operates only if the car has been paid for according to the terms in the smart contract.

CHAPTER EIGHT CASE In a group, explain the difference between a data warehouse and a data lake along with the advantages and disadvantages of each. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 72

A data warehouse captures all of the organizational data from every system into a data model that captures the business needs to store and understand information. The data warehouse then translates the data into data marts for analysis and scientific discovery.

A data lake dumps data in an unstructured format into a massive data dump. Using NoSQL or another format the data can be extracted for analysis. There is no data model representing the business in a data lake. A data warehouse has a data model that mimics the business.

114. Provide a few business examples of when you would use a data warehouse and when you would use a data lake.

A data warehouse can be used to store all data from all operational systems throughout a global organization. The data is collected and through an ETP process changed into the format where the data can be analyzed with a 365 view of all systems. Most organizations have between 100 and 300 source systems worldwide, so it is important to structure the data in the data warehouse for visual and scientific analysis.

In a data lake, the data is dumped and stored without a structure. If in the future, you want to perform an analysis on data that we captured but never analyzed, then you can get that data from the data lake.

REVIEW QUESTIONS What is an infographic?

Infographics (information graphics) present the results of data analysis, displaying the patterns, relationships, and trends in a graphical format. Infographics are exciting and quickly convey a story user can understand without having to analyze numbers, tables, and boring charts.

115. If you were giving a presentation, why would you choose an infographic over a data set?

People respond better to visualizations than raw numbers. Our minds operate visually—our eyes take in vast amounts of data every millisecond. Numbers in a chart are difficult to interpret and take our minds far longer to understand than simple visualizations. To captivate your audience use visuals.

116. What is a data artist?

A data artist is a business analytics specialist who uses visual tools to help people understand complex data. Great data visualizations provide insights into something new about the underlying patterns and relationships.

117. What is data storytelling?

Telling a story with data. You can reach people’s hearts and minds with data told through a story. Review the examples in the chapter.

118.

Why would a manager want to use a dashboard to monitor key metrics?

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A dashboard tells a manager at a high level how things are running. Many of your students will be familiar with COVID dashboards—red, yellow, green status based on cases.

Management just needs to be aware of a problem as soon as it occurs so they can place new processes to deal with the problems before they become significant. Just like the dashboard on your car—you watch a few key metrics—gas, oil, speed, and when the check engine light comes on you know that you need to check your engine. You do not know why—that is when you dig into the problem—a dashboard just alerts you to the problem.

119. What is distributed computing?

Distributed computing processes and manages algorithms across many machines in a computing environment. A key component of big data and blockchain technologies is a distributed computing environment that shares resources ranging from memory to networks to storage. With distributed computing, individual computers are networked together across geographical areas and work together to execute a workload or computing processes as if they were one single computing environment.

120. Why is analysis paralysis difficult for managers making decisions?

Analysis paralysis occurs when the user goes into an emotional state of overanalysis (or overthinking) a situation so that a decision or action is never taken, in effect paralyzing the outcome. In the time of big data, analysis paralysis is a growing problem. One solution is to use data visualizations to help people make decisions faster.

121. What is the relationship between a database and a blockchain?

A blockchain is a decentralized or distributed database where the entire chain maintains the validity of the data, not a centralized location.

122. Why are blockchains immutable?

Immutable simply means unchangeable. Immutability is the ability for a blockchain ledger to remain a permanent, indelible, and unalterable history of transactions. Immutability has the potential to transform the auditing process into a quick, efficient, and cost-effective procedure and to bring more trust and integrity to the data businesses use and share every day; it is considered a key benefit of blockchain technology.

MAKING BUSINESS DECISIONS TRACK YOUR LIFE This is so much fun—What would you track? Your heart rate, temperature, mood, calories burned, calories consumed, water consumed. What is important to your students? That is, what they need to track? Sleep patterns, headache patterns, allergies. Have them create the dashboard that will help them manage their lives—perhaps they will start a new business.

123.

BIG DATA TO THE RESCUE

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Data warehouses contain massive amounts of data, and with 5G on the horizon the data will only explode. Which customers are purchasing, which customers are not, which customers are angry in surveys, and which customers are happy? Which employee is making the most closed sales calls and which employee is using LinkedIn to job search? The additional benefits are numerous—again the goal of this exercise is to get your students thinking.

124. UNETHICAL DATA MINING Students will have strong opinions either way and the important part of this question is for the students to justify their response. This makes for an excellent classroom debate!

125. FREE DATA Data is the key to starting a new business as they can review all types of current market information such as growth trends, population statistics, and business overviews.

126. TWO TRILLION ROWS OF DATA ANALYZED—NO PROBLEM Introduce your students to Tableau—have them create a visualization of something they care about—heart disease, sustainability, social plastic, and recycling. Tableau if the girt that will keep on giving—show your students how to use Tableau. They will thank you.

UNIT CLOSING CASE ONE For each of the following, determine which type of chart would best visualize the data.       

Groups of customers by age. Histogram Sales by region or territory. Geographic Map Social media common terms. Word Cloud Chart Sales by sales representative. Bar Chart Stock price over time. Line Chart Products sold by country, region, and state. Treemap Tips compared to the amount of each bill. Scatter Plot

UNIT CLOSING CASE TWO Does the visualization tell the whole story? Are there any questions you cannot answer just by reviewing the visualization?

Any question not answered should be discussed. There might not be a need to have an answer to the question—perhaps additional visualizations will help answer additional questions. Use the rule of seven—only seven questions can be answered by a dashboard.

127. Are there any data elements that should be removed or added to the visualization to make it more interesting?

Get creative—perhaps a bubble chart that moves or a figure that speaks to the audience.

128. Rank the visualization in order of best data story (1) to worst data story (3). What criteria did you use to rank the visualizations? © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 75

Have your students explain the reasons for the ranking. This will make for an excellent debate.

129. Find an example of a data story on the internet and share it with your peers. Be sure to highlight the pros and cons of the data story.

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© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 77

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL This guide provides many classroom activities, videos, and debates to accompany Business Driven Technology 10e. A few course suggestions: 

Create one or two test questions based on the classroom activity to help reward students who attend lectures.



Many professors have found that assigning an activity and then lecturing on the material helps students gain a deeper understanding of the core MIS concepts as they have already struggled with applying the material to a real-world situation.



Asking a small group of students to explain their answer to the activity to the entire class after completion ensures students come to class prepared. I select a different group each activity to explain their answer and they do not want to look unprepared in front of their fellow classmates. It is a powerful motivator to get my students to read prior to class. After the activity and student’s presentations then I lecture—this keeps my students engaged and helps to achieve a higher level of learning outcomes as they are constantly tasked with applying the concepts during class.



Create an Ask the Professor Discussion Board that runs the entire course where students can ask course and content-related questions. I typically promise to respond within 24 hr, and I always encourage my students to check the discussion board before sending an email. Many times, if one student has a question so do other students.

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**Three Before Me Rule! This is something I have found that saves a great deal of time answering email. I state the Three Before Me Rule in my syllabus. Before a student comes to me with a question, they must provide three sources they used to answer the question themselves. This significantly cuts down on emails as many times students can find the answer to their questions, but it seems easier just to email the professor.

Sources can include the syllabus, the Ask the Professor Q&A Discussion Board, classmates, the textbook, and so on. If I ask the student for the three sources and they do not have them, I dock participation points. Works great on significantly cutting down my emails and helps to prepare my students for the real world!



The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material.

Enjoy your course and best of luck! Please feel free to email me directly if you have any questions, ideas, suggestions, or feedback! For additional course materials, content, and cases, visit www.baltzan.net or pbaltzan@baltzan.net.

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BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL UNIT THREE OVERVIEW Decision-making and problem-solving encompass large-scale, opportunity-oriented, and strategically focused solutions. Students today must have decision-making and problem-solving abilities to compete in the ebusiness world. Organizations today can no longer use a ―cookbook‖ approach to decision-making. This unit focuses on technology to help make decisions, solve problems, and find new innovative opportunities including:       

Decision support systems Executive information systems Artificial intelligence (AI) Data mining Customer relationship management Supply chain management Enterprise resource planning

The chapters in this unit include:    

Chapter Nine—Enabling the Organization—Decision-Making Chapter Ten—Extending the Organization—Supply Chain Management Chapter Eleven—Building a Customer-Centric Organization—Customer Relationship Management Chapter Twelve—Integrating the Organization From End to End—Enterprise Resource Planning

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BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL CHAPTER 9 What is the value of information? The answer to this important question varies depending on how the information is used. Two people looking at the exact same pieces of information could extract completely different value from the information depending on the tools they are using to look at the information. This chapter discusses technologies that people can use to help make decisions and solve problems.

LEARNING OUTCOMES 1.59Explain the importance of decision-making for managers at each of the three primary organization levels along with the associated decision characteristics.

Decision-making skills are essential for all business professionals, at every company level, who make decisions that run the business. At the operational level, employees develop, control, and maintain core business activities required to run the day-to-day operations. Operational decisions are considered structured decisions, which arise in situations in which established processes offer potential solutions. Structured decisions are made frequently and are almost repetitive in nature; they affect short-term business strategies. At the managerial level, employees are continuously evaluating company operations to hone the firm’s abilities to identify, adapt to, and leverage change. Managerial decisions cover short- and medium-range plans, schedules, and budgets along with policies, procedures, and business objectives for the firm. These types of decisions are considered semi-structured decisions; they occur in situations in which a few established processes help to evaluate potential solutions, but not enough to lead to a definite recommended decision. At the strategic level, managers develop overall business strategies, goals, and objectives as part of the company’s strategic plan. They also monitor the strategic performance of the organization and its overall direction in the political, economic, and competitive business environment. Strategic decisions are highly unstructured decisions, occurring in situations in which no procedures or rules exist to guide decision makers toward the correct choice. They are infrequent, extremely important, and typically related to long-term business strategy.

1.60Classify the different operational support systems, managerial support systems, and strategic support systems and explain how managers can use these systems to make decisions and gain competitive advantages.

Being able to sort, calculate, analyze, and slice-and-dice information is critical to an organization’s success. Without knowing what is occurring throughout the organization, there is no way that managers and executives can make solid decisions to support the business. The different operational, managerial, and strategic support systems include: Operational: A transaction processing system (TPS) is the basic business system that serves the operational level (analysts) in an organization. The most common example of a TPS is an operational accounting system such as a payroll system or an order-entry system. Managerial: A decision support system (DSS) models information to support managers and business professionals during the decisionmaking process. Strategic: An executive information system (EIS) is a specialized DSS that supports senior-level executives within the organization.

1.61Describe artificial intelligence and identify its main types. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 80

Artificial intelligence (AI) simulates human thinking and behavior, such as the ability to reason and learn. The three most common categories of AI are: Machine learning—enables computers both to understand concepts in the environment and to learn. Neural networks—attempts to emulate the way the human brain works. Virtual reality—a computer-simulated environment that can be a simulation of the real world or an imaginary world.

CORE MATERIAL The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material. You will find numerous classroom ideas to keep your course exciting and challenge your students to apply the material.

RUNNING CASE STUDY QUESTIONS 130. You have landed your dream job working for Steve Evert. Unfortunately, Steve doesn’t know anything about making solid business decisions. Your first assignment is to help educate Steve on the difference between transactional and analytical information and how he can use a digital dashboard to consolidate data and drill down into the details of data to help run his business.

Transactional information encompasses all of the information contained within a single business process or unit of work, and its primary purpose is to support the performing of daily operational tasks. Analytical information encompasses all organizational information, and its primary purpose is to support the performing of managerial analysis tasks. Let’s look at a connected car for example. It is using transactional information to make analytical decisions. The transactional information includes customer’s names, gas level, brake pad use, GPS location, music channels, and maps. The analytical decisions that are made from this information include determining optimal driving routes, service needs and requirements, weather issues, and driving safety.

131. Steve would also like you to create a document highlighting the five different types of artificial intelligence systems and how each system might help support making business decisions.

The five types of AI include:  Expert systems: Computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems.  Neural networks: Attempts to emulate the way the human brain works.  Genetic algorithms: Mimics the evolutionary, survival-of-the-fittest process to generate increasingly better salutation to problem.  Intelligent Agents: Special-purpose knowledge-based information system that accomplishes specific tasks on behalf of its users.  Virtual Reality: Computer-simulated environment that can be a simulation of the real world or an imaginary world.

Examples of AI include: © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 81

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Citibank uses neural networks to find opportunities in financial markets. By carefully examining historical stock market data with neural network software, Citibank financial managers learn of interesting coincidences or small anomalies (called market inefficiencies). For example, it could be that whenever IBM stock goes up, so does Unisys stock. Or it might be that a U.S. Treasury note is selling for 1 cent less in Japan than it is in the United States. These snippets of information can make a big difference to Citibank’s bottom line in a very competitive financial market.

In Westminster, California, a community of 87,000 people, police use neural network software to fight crime. With crime reports as input, the system detects and maps local crime patterns. Police say that with this system they can better predict crime trends, improve patrol assignments, and develop better crime prevention programs.

Fingerhut, the mail-order company based in Minnesota, has 6 million people on its customer list. To determine which customers were and were not likely to order from its catalog, Fingerhut recently switched to neural network software. The company finds that the new software is more effective and expects to generate millions of dollars by finetuning its mailing lists.

Fraud detection widely uses neural networks. Visa, MasterCard, and many other credit card companies use a neural network to spot peculiarities in individual accounts.

MasterCard estimates neural networks save it $50 million annually.

Many insurance companies (Cigna, AIG, Travelers, Liberty Mutual, Hartford) along with state compensation funds and other carriers use neural network software to identify fraud.

The system searches for patterns in billing charges, laboratory tests, and frequency of office visits. A claim for which the diagnosis was a sprained ankle but included an electrocardiogram would be flagged for the account manager.

FleetBoston Financial Corporation uses a neural network to watch transactions with customers. The neural network can detect patterns that may indicate a customer’s growing dissatisfaction with the company. The neural network looks for signs like decreases in the number of transactions or in the account balance of one of FleetBoston’s high-value customers.

CHAPTER NINE CASE Define the three primary types of decision-making systems and how machine learning in the workplace could affect each.

Decision-making skills are essential for all business professionals, at every company level, who make decisions that run the business. At the operational level, employees develop, control, and maintain core business activities required to run the day-to-day operations.

Operational decisions are considered structured decisions, which arise in situations where established processes offer potential solutions. Structured decisions are made frequently and are almost repetitive in nature; they affect short-term business strategies. Wearable technologies can be used to:  Track employees  Sales patterns on the floor to tell if there are lines  Temperature control to indicate if correct temperatures are maintained © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 82

At the managerial level, employees are continuously evaluating company operations to hone the firm’s abilities to identify, adapt to, and leverage change. Managerial decisions cover short- and medium-range plans, schedules, and budgets along with policies, procedures, and business objectives for the firm. These types of decisions are considered semi-structured decisions; they occur in situations in which a few established processes help to evaluate potential solutions, but not enough to lead to a definite recommended decision. Wearable technologies can be used to:  Tracking where individuals are in the warehouse and strategically locating them nearest potential issues or malfunctions of equipment  Tracking doctors in hospitals and being able to locate the nearest doctor during a problem or issue At the strategic level, managers develop overall business strategies, goals, and objectives as part of the company’s strategic plan. They also monitor the strategic performance of the organization and its overall direction in the political, economic, and competitive business environment. Strategic decisions are highly unstructured decisions, occurring in situations in which no procedures or rules exist to guide decision makers toward the correct choice. They are infrequent, extremely important, and typically related to long-term business strategy.

This is the most difficult area to determine how wearable technology can help with decisions due to the infrequent nature of the decisions.

132. Identify how machine learning can transform a traditional business process like checking out of a grocery store.

Machine learning can automate business processes. For example, self-driving cars. By feeding billions of photos into the system it can learn how to drive. Any business process where humans make decisions can be automated using machine learning. For example:  Detecting and deterring security intrusions.  Resolving users’ technical problems.  Reducing production management work by automation.  Gauging compliance internally by using approved technology vendors.  Screening and shortlisting job applicants from hundreds of résumés.  Scheduling interviews, performance reviews, and other group meetings.  Measuring and managing employee engagement.  Streamlining office workflows.  Tracking and enhancing employee rewards and recognition programs.  Identifying knowledge gaps or opportunities for employee development.  Answering questions about company policies, benefits, office procedures, and even basic conflict resolution.  Attracting and reaching out to top talent (through such sites as Glassdoor, LinkedIn, or Indeed).

133. Explain the relationship between bias and machine learning for Alexa.

If there is bias in the data being fed to Alexa, then she will learn with that bias. For example, if you always use the word parents to represent a man and a woman Alexa would learn that a man and a woman represent parents. Of course, there are many parents from single parents to same-gender parents. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 83

134. Argue for or against the following statement: Machine learning systems like Alexa invade user privacy.

There are numerous examples of how Alexa listens to your conversations 24/7 and can store the personal and private information of your home. This is a great argument for class as it is constantly recording everything in your home. This could be used for good if there is a crime, or bad if a conversation is taken out of context.

REVIEW QUESTIONS What are the three different levels found in a company? What types of decisions are made at each level?

A few key concepts about organizational structure will help our discussion of MIS decisionmaking tools. The structure of a typical organization is similar to a pyramid, and the different levels require different types of information to assist in decision-making, problem-solving, and opportunity capturing. The operational level supports transactional information, the managerial level supports analytical information, and the strategic level supports executive information systems.

135. Define transaction processing systems and describe the role they play in a business.

Transactional information encompasses all the information contained within a single business process or unit of work, and its primary purpose is to support the performance of daily operational or structured decisions. Transactional information is created, for example, when customers are purchasing stocks, making an airline reservation, or withdrawing cash from an ATM. Managers use transactional information when making structured decisions at the operational level, such as when analyzing daily sales reports to determine how much inventory to carry.

136. Define decision support systems and describe the role they play in a business.

Decision support systems (DSSs) model information using OLAP, which provides assistance in evaluating and choosing among different courses of action. DSSs enable high-level managers to examine and manipulate large amounts of detailed data from different internal and external sources. Analyzing complex relationships among thousands or even millions of data items to discover patterns, trends, and exception conditions is one of the key uses associated with a DSS. 137. Define expert systems and describe the role they play in a business.

Expert systems are computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems. Typically, they include a knowledge base containing various accumulated experience and a set of rules for applying the knowledge base to each particular situation. Expert systems are the most common form of AI in the business arena because they fill the gap when human experts are difficult to find or retain or are too expensive. The best-known systems play chess and assist in medical diagnosis.

138.

What are the capabilities associated with digital dashboards?

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 84

Executive information systems use visualization to deliver specific key information to top managers at a glance, with little or no interaction with the system. A common tool that supports visualization is a digital dashboard, which tracks KPIs and CSFs by compiling information from multiple sources and tailoring it to meet user needs.

139. What is artificial intelligence?

Artificial intelligence (AI) simulates human thinking and behavior, such as the ability to reason and learn. Its ultimate goal is to build a system that can mimic human intelligence. AI systems increase the speed and consistency of decision-making, solve problems with incomplete information, and resolve complicated issues that cannot be solved by conventional computing.

140. What is a neural network? List an example.

A neural network is a category of AI that attempts to emulate the way the human brain works.

141. What is machine learning training? List the problems that might occur.

The secret to building successful machine learning models is to ensure the training data has enough data to train the model. The problems with the training data could lead to the model overfitting or underfitting of the predictive model. These problems will lead to an inaccurate prediction from the model.

142. What are a few types of machine learning bias?

There are many types of bias including affinity bias, conformity bias, confirmation bias, and name bias.

143. What is the difference between virtual reality and augmented reality?

Virtual reality is a computer-simulated environment that can be a simulation of the real world or an imaginary world. Augmented reality is the viewing of the physical world with computer-generated layers of information added to it.

MAKING BUSINESS DECISIONS WAS STEPHEN HAWKING EVER WRONG? This is such a great debate with 5G entering the market and the catapult for VR and AR. Makes for an amazing classroom debate.

144. READY, SET, GO ALPHAGO! Computers are trained logically and can execute millions of transactions per seconds—far more than the human brain. I would train AI to play Trouble—my children always beat me.

However, with the roll of a dice is there any chance to win with AI? Or is it just luck? Same with a deck of cards—Can a computer program beat a person at Poker?

145. WILL THEY STAY OR WILL THEY GO? oTime required for next promotion. If the employee opts to not go up for promotion, then perhaps they are leaving. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 85

oYearly bonus. Bad bonuses could mean employees are seeking jobs elsewhere. oTime since last raise. If raises are not annual, then you must set employee expectations for when they can expect a raise. oEmployee performance. Performance reviews are a key factor in success at an organization. A bad review can mean the employee is not the right fit for the job or perhaps the manager has an issue with the employee. oManager performance. Upward reviews are just as important as downward reviews. Ban managers means problems in the workforce.

• Attrition under employee’s manager. This could be a sign that the manager is not ideal. oTime off taken. Taking off lots of time on Friday afternoons or Monday mornings could be a sign that the employee is interviewing. oTime off not taken. This is almost as bad as too much time taken off, either the employee does not have a backup or the employee is afraid to leave as their job might be at risk. oStock grants over time. This is a great strategy for keeping employees. oLocation of employee. Some employees will quit if they are not in the right location for their family for the promotion they seek. oLocation of employee’s team. If the team is in a different state or a different county, this can cause problems for management and time zone issues.

146. WHERE ARE YOU PLACING YOUR DATA? Students will be shocked to realize that every time you post to a social media site, they are collecting your data to target ads directly to your personal profile. Just think of all the stories about political battles fought by targeting people on Facebook that posted certain types of profiles.

147. MY VIRTUAL REALITY CHECK Madden football is coming in virtual reality form as well as workout games and music lessons. The social problems are numerous including society becoming more isolated and difficulty interacting with real humans. On a positive note, there are more people working out with virtual reality workout games as these individuals do not feel comfortable going to a gym.

148.       

WHAT LEVEL ARE MY DECISIONS? How many employees are out sick? Operational Decision What are the sales forecasts for next month? Managerial Decision What was the impact of last month’s marketing campaign discount on the primary product? Managerial Decision How will an increase in the interest rate over the next year affect sales? Strategic Decisions How will changes in health insurance laws impact the company over the next 5 years? Strategic Decisions How many paychecks were incorrect during the last payroll run? Operational Decisions What was the difference between forecast sales and actual sales last month?

Managerial Decisions

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How will new tax laws impact business? Strategic Decisions What are next week’s production schedules? Operational Decisions

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 87

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL This guide provides many classroom activities, videos, and debates to accompany Business Driven Technology 10e. A few course suggestions: 

Create one or two test questions based on the classroom activity to help reward students who attend lectures.



Many professors have found that assigning an activity and then lecturing on the material helps students gain a deeper understanding of the core MIS concepts as they have already struggled with applying the material to a real-world situation.



Asking a small group of students to explain their answer to the activity to the entire class after completion ensures students come to class prepared. I select a different group each activity to explain their answer and they do not want to look unprepared in front of their fellow classmates. It is a powerful motivator to get my students to read prior to class. After the activity and student’s presentations then I lecture—this keeps my students engaged and helps to achieve a higher level of learning outcomes as they are constantly tasked with applying the concepts during class.



Create an Ask the Professor Discussion Board that runs the entire course where students can ask course and content-related questions. I typically promise to respond within 24 hr, and I always encourage my students to check the discussion board before sending an email. Many times, if one student has a question so do other students.



**Three Before Me Rule! This is something I have found that saves a great deal of time answering email. I state the Three Before Me Rule in my syllabus. Before a student comes to me with a question, they must provide three sources they used to answer the question themselves. This significantly cuts down on emails as many times students can find the answer to their questions, but it seems easier just to email the professor.

Sources can include the syllabus, the Ask the Professor Q&A Discussion Board, classmates, the textbook, and so on. If I ask the student for the three sources and they do not have them, I dock participation points. Works great on significantly cutting down my emails and helps to prepare my students for the real world!



The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material.

Enjoy your course and best of luck! Please feel free to email me directly if you have any questions, ideas, suggestions, or feedback! For additional course materials, content, and cases, visit www.baltzan.net or pbaltzan@baltzan.net.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 88

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL UNIT THREE OVERVIEW Decision-making and problem-solving encompass large-scale, opportunity-oriented, and strategically focused solutions. Students today must have decision-making and problem-solving abilities to compete in the ebusiness world. Organizations today can no longer use a ―cookbook‖ approach to decision-making. This unit focuses on technology to help make decisions, solve problems, and find new innovative opportunities including:       

Decision support systems Executive information systems Artificial intelligence (AI) Data mining Customer relationship management Supply chain management Enterprise resource planning

The chapters in this unit include:    

Chapter Nine—Enabling the Organization—Decision-Making Chapter Ten—Extending the Organization—Supply Chain Management Chapter Eleven—Building a Customer-centric Organization—Customer Relationship Management Chapter Twelve—Integrating the Organization from End to End—Enterprise Resource Planning

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 89

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL CHAPTER 10 Traditional SCM thinking involved ―I buy from my suppliers, I sell to my customers.‖ Today, organizations are quickly realizing the tremendous value they can gain from having visibility throughout its supply chain. Knowing immediately what is transacting at the customer end of the supply chain, instead of waiting days or weeks for this information to flow upstream, allows the organization to react immediately. The role of SCM is evolving and it is not uncommon for suppliers to be involved in product development and for distributors to act as consultants in brand marketing. This chapter takes a look at extending an organization through SCM.

LEARNING OUTCOMES 1.62Describe supply chain management along with its impact on business.

A supply chain consists of all parties involved, directly or indirectly, in obtaining raw materials or a product. To automate and enable sophisticated decision-making in these critical areas, companies are turning to systems that provide demand forecasting, inventory control, and information flows between suppliers and customers. Supply chain management (SCM) is the management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and corporate profitability. In the past, manufacturing efforts focused primarily on quality improvement efforts within the company; today these efforts reach across the entire supply chain, including customers, customers’ customers, suppliers, and suppliers’ suppliers. Today’s supply chain is an intricate network of business partners linked through communication channels and relationships. Improved visibility across the supply chain and increased profitability for the firm are the primary business benefits received when implementing supply chain management systems. Supply chain visibility is the ability to view all areas up and down the supply chain in real time. The primary challenges associated with supply chain management include costs and complexity. The next wave in supply chain management will be home-based supply chain fulfillment. No more running to the store to replace your products because your store will come to you as soon as you need a new product.

1.63Identify the three components of supply chain management along with the technologies reinventing the supply chain.

The three components of supply chain management on which companies focus to find efficiencies include procurement, logistics, and materials management. Procurement is the purchasing of goods and services to meet the needs of the supply chain. Materials management includes activities that govern the flow of tangible, physical materials through the supply chain such as shipping, transport, distribution, and warehousing. The technologies reinventing the supply chain include 3D printing, RFID, drones, and robotics.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 90

CORE MATERIAL The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material. You will find numerous classroom ideas to keep your course exciting and challenge your students to apply the material.

RUNNING CASE STUDY QUESTIONS 149. You have landed your dream job working for Steve Evert. Unfortunately, Steve doesn’t know anything about supply chain management. Your first assignment is to help educate Steve on the business benefits associated with supply chain management and how your business can use RFID to improve efficiency and effectiveness along the supply chain.

Supply chain management systems can increase profitability across an organization. For example, a manufacturing plant manager might focus on keeping the inventory of Product A as low as possible, which will directly reduce the manufacturing costs and make the plant manager look great. However, the plant manager and the business might not realize that these savings are causing increased costs in other areas, such as having to pay more to procure raw materials for immediate production needs or increasing costs due to expedited shipping services. Only an end-to-end view or an integrated supply chain would uncover these issues, allowing a firm to adjust business strategies to increase profitability across the enterprise.

Radio-frequency identification (RFID) uses electronic tags and labels to identify objects wirelessly over short distances. It holds the promise of replacing existing identification technologies such as the barcode. RFID tags are evolving, too, and the advances will provide more granular information to enterprise software. Today’s tags can store an electronic product code. In time, tags could hold more information, making them portable minidatabases. RFID can track everything in the supply chain.

150. Steve has been reading about 3D printing, robots, and drones and would like you to create a presentation explaining how each might impact your supply chain.

Answers to this question will vary. Get your students thinking outside the box like drone delivery of packages and 3D printing a home or an office building. You can also challenge your students to think about blockchain technologies and how it will impact the supply chain.

CHAPTER TEN CASE What are the pros and cons of using blockchain technologies to manage the supply chain?

Blockchain can help protect against fraud and counterfeits, immutability, interoperability, provenance, recalls, security, smart contracts, and traceability.

151. Identify three products currently not using blockchain technologies to manage their supply chain that could benefit from this amazing technology. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 91

These can be any product from automobile purchases to home purchases to fine art purchases. Blockchain is already in the food supply chain tracking everything back to the farm where it was produced. However, there are still a number of products that are not yet using blockchain and can take advantage of this amazing stealthy technology such as College Tuition.

152. Given the choice, would you implement a blockchain technology to manage your supply chain? Why or why not?

Blockchain can track every step in the supply chain back to the original manufacturer and follow each product every step ensuring there are no counterfeits or nefarious activities.

REVIEW QUESTIONS What are the five primary activities in a supply chain?

Plan, source, make, deliver, and return are the primary activities in a supply chain.

153. What is the bullwhip effect and how can it impact a supply chain and a firm’s profitability?

The bullwhip effect distorted product–demand information ripples from one partner to the next throughout the supply chain. The misinformation regarding a slight rise in demand for a product could cause different members in the supply chain to stockpile inventory.

154. Where are the customer’s customers in a typical supply chain?

Products are distributed to customers and their downstream customers at all levels.

155. Where are the supplier’s suppliers in a typical supply chain?

Materials flow from suppliers and their upstream suppliers at all levels.

156. What is procurement and how does it impact the supply chain?

Procurement is the purchasing of goods and services to meet the needs of the supply chain.

The procurement process is a key supply chain strategy because the capability to purchase input materials at the right price is directly correlated to the company’s ability to operate.

Without the right inputs, the company simply can’t create cost-effective output.

157. What is logistics and how does it impact the supply chain?

Logistics includes the processes that control the distribution, maintenance, and replacement of materials and personnel to support the supply chain. Recall from the value chain analysis in Unit 1 that the primary value activities for an organization include inbound and outbound logistics.

158. What is materials management and how does it impact the supply chain?

Materials management includes activities that govern the flow of tangible, physical materials through the supply chain such as shipping, transport, distribution, and warehousing. In materials management, you focus on quality and quantity of materials as well as on how you will plan, acquire, use, and dispose of such materials. It can include the handling of liquids, fuel, produce, and plants and a number of other potentially hazardous items. Materials © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 92

management focuses on handling all materials safely, efficiently, and in compliance with regulatory requirements and disposal requirements.

159. What is RFID’s primary purpose in the supply chain?

Radio-frequency identification (RFID) uses electronic tags and labels to identify objects wirelessly over short distances. It holds the promise of replacing existing identification technologies such as the barcode. RFID tags are evolving, too, and the advances will provide more granular information to enterprise software. Today’s tags can store an electronic product code. In time, tags could hold more information, making them portable minidatabases.

MAKING BUSINESS DECISIONS 3D PRINTING FOR POVERTY 3D printing is destined to change the world in ways that we cannot even understand and the social good (or bad) they can do is endless. Ask your students to think about the different ways 3D printing is helping society.

160. CAN I PRINT A WEAPON? 3D printing is destined to change the world in ways that we cannot even understand and the social bad (or good) they can do is endless. Ask your students to think about the different ways 3D printing is hurting society.

161. DRONE RACES Drones are being used by Walgreens to deliver drugs after a natural disaster, to wash windows on high-rises, to find people lost in the mountains, and to take photographs of everything. The uses are limitless and hopefully your students will find some new exciting ways for drones to help with the supply chain.

162. BUY ONE, GET ONE GROCERIES This is such an interesting discussion. Why would one grocery store collect customer data and be aware of shopping patterns and correlations, while the other grocery store does not collect customer data and sends coupons blind or offers in-store discounts.

163. KIVA IN THE HOUSE How can Kiva robots help distribution centers attain flexible, efficient order fulfillment?

Kiva robots do not take vacation or call in sick. They do not need health insurance or vacation time. They work 24/7/365 all day and night. They do exactly as they are told and never complain. There are no annual reviews or HR benefits. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 93

What other types of businesses could use Kiva robots to improve distribution productivity?

Every single business possibly could use Kiva robots. A fast-food restaurant can use them to make the orders, take the orders, or clean the restaurant. A large store such as Target could use them to stack shelves and clean. A bank could use them to clean and patrol the perimeter.

How would warehouse employees react if they were told the company was implementing Kiva robots?

This could be a potentially bad situation as the human workers are being replaced by robots.

However, with proper training and communication the human workers could be transformed into knowledge workers.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 94

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 95

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL This guide provides many classroom activities, videos, and debates to accompany Business Driven Technology 10e. A few course suggestions: 

Create one or two test questions based on the classroom activity to help reward students who attend lectures.



Many professors have found that assigning an activity and then lecturing on the material helps students gain a deeper understanding of the core MIS concepts as they have already struggled with applying the material to a real-world situation.



Asking a small group of students to explain their answer to the activity to the entire class after completion ensures students come to class prepared. I select a different group each activity to explain their answer and they do not want to look unprepared in front of their fellow classmates. It is a powerful motivator to get my students to read prior to class. After the activity and student’s presentations then I lecture—this keeps my students engaged and helps to achieve a higher level of learning outcomes as they are constantly tasked with applying the concepts during class.



Create an Ask the Professor Discussion Board that runs the entire course where students can ask course and content-related questions. I typically promise to respond within 24 hr, and I always encourage my students to check the discussion board before sending an email. Many times, if one student has a question so do other students.



**Three Before Me Rule! This is something I have found that saves a great deal of time answering email. I state the Three Before Me Rule in my syllabus. Before a student comes to me with a question, they must provide three sources they used to answer the question themselves. This significantly cuts down on emails as many times students can find the answer to their questions, but it seems easier just to email the professor.

Sources can include the syllabus, the Ask the Professor Q&A Discussion Board, classmates, the textbook, and so on. If I ask the student for the three sources and they do not have them, I dock participation points. Works great on significantly cutting down my emails and helps to prepare my students for the real world!



The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material.

Enjoy your course and best of luck! Please feel free to email me directly if you have any questions, ideas, suggestions, or feedback! For additional course materials, content, and cases, visit www.baltzan.net or pbaltzan@baltzan.net.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 96

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL UNIT THREE OVERVIEW Decision-making and problem-solving encompass large-scale, opportunity-oriented, and strategically focused solutions. Students today must have decision-making and problem-solving abilities to compete in the ebusiness world. Organizations today can no longer use a ―cookbook‖ approach to decision-making. This unit focuses on technology to help make decisions, solve problems, and find new innovative opportunities including:       

Decision support systems Executive information systems Artificial intelligence (AI) Data mining Customer relationship management Supply chain management Enterprise resource planning

The chapters in this unit include:    

Chapter Nine—Enabling the Organization—Decision-Making Chapter Ten—Extending the Organization—Supply Chain Management Chapter Eleven—Building a Customer-centric Organization—Customer Relationship Management Chapter Twelve—Integrating the Organization from End to End—Enterprise Resource Planning

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 97

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL CHAPTER 11 CRM is a business philosophy based on the premise that those organizations that understand the needs of individual customers are best positioned to achieve sustainable competitive advantages in the future. This chapter discusses:   

The reasons for CRM’s explosive growth Using CRM to enhance decision-making CRM success factors

LEARNING OUTCOMES 1.64Describe customer relationship management along with its importance to a business.

Customer relationship management (CRM) is a means of managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability. CRM allows an organization to gain insights into customers’ shopping and buying behaviors. Every time a customer communicates with a company, the firm has the chance to build a trusting relationship with that particular customer.

1.65Differentiate operational and analytical customer relationship management.

The two primary components of a CRM strategy are operational CRM and analytical CRM. Operational CRM supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers. Analytical CRM supports backoffice operations and strategic analysis and includes all systems that do not deal directly with the customers.

CORE MATERIAL The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material. You will find numerous classroom ideas to keep your course exciting and challenge your students to apply the material.

RUNNING CASE STUDY QUESTIONS 164. You have landed your dream job working for Steve Evert. Unfortunately, Steve doesn’t know anything about customer relationship management. Your first assignment is to help educate Steve on the business reason why CRM is important to every business. Help Steve understand how your business can use CRM to improve sales.

Customer relationship management (CRM) is a means of managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability. CRM allows an organization to gain insights into customers’ © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 98

shopping and buying behaviors. Every time a customer communicates with a company, the firm has the chance to build a trusting relationship with that particular customer. Without knowing everything about your customers it is impossible to provide great customer service, which always leads to increases in sales.

165. Steve wants to measure customer satisfaction in all areas of your business. Create a document highlighting the metrics you are recommending the company implement, along with the importance of each metric.

Analyzing data is at the core of any business model and without metrics the company will have no idea how they are performing. Potential metrics include:  Number of service calls  Number of faulty parts  Number of returns  Number of repeat customers  Average speed  Number of times brakes are pressed  Average gas levels  Average oil levels  Driving inclines  City driving  Highway driving Customer service metrics include:  Cases closed same day  Number of cases handled by agent  Number of service calls  Average number of service requests by type  Average time to resolution  Average number of service calls per day  Percentage compliance with service-level agreement  Percentage of service renewals  Customer satisfaction levels

CHAPTER ELEVEN CASE In a group, create a new customer relationship management product or service that takes advantage of using a robot. Be sure to highlight how the robot works, what it looks like, and how it will interact with humans.

There are robots acting as receptionists, running restaurants, and the first robot bartender was released in Japan. Your students will enjoy thinking of all the ways robots are becoming CRM experts.

166. What are the advantages and disadvantages of robots to replace customer service representatives in the workplace? © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 99

Robots do not take vacation, sick days, require health insurance and do work 24/7/365. The robot can be programmed to respond identically to every customer, and they never lose their temper or become angry. Overall, a robot is a wonderful employee that does exactly as it is programmed.

That is, the problem with a robot is that if something occurs that is not programmed, the robot will not be able to respond. The personal touch is also lost with a robot.

167. What potential social problems do you foresee with using robots in the workplace?

There are many issues with bias when training AI, and if the robot is trained with incorrect or inaccurate data, the robot could practice bias decision-making. Many people believe that workers will be outsourced by robots and that could be bad for society as a whole.

168. Overall, do you believe people would rather interact with a human or a robot? Why or why not?

Answers will vary based on the student’s personal choices. This makes for a great discussion.

REVIEW QUESTIONS Why are customer relationships important to an organization?

Without customers, you will not have an organization. CRM is critical to ensure customers are happy and heard and attended to if they are upset or disgruntled.

169. Do you agree that every business needs to focus on customers to survive?

This makes for an interesting classroom discussion. Does the IRS worry about its customers?

Any person that has sat on the phone for hours with the IRS knows that customer service is not a priority for the IRS. Most businesses do need to have strong customer relationships, but government businesses do not always place a high level of service on customers. Just visit the DMV!!

170. What is the difference between operational and analytical CRM? Operational CRM focuses on business operations such as sales and marketing, while analytical CRM provides business intelligence to identify patterns in product sales and customer behaviors.

171. How can a sales department use CRM to improve operations?

Sales departments can use customer service and support, sales force automation, contact management CRM, and opportunity management CRM. 172. How can a marketing department use CRM to improve operations?

Marketing departments can use list generators, campaign management, cross-selling, and upselling as CRM advantages.

MAKING BUSINESS DECISIONS NICE EMOTIONS Voice recognition software is used to gauge how angry or happy a customer is when they call the customer service help desk so the call can be routed to the appropriate representative. Any time a © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 100

tool can understand emotions, the chances of a successful engagement are higher resulting in a better performing organization.

173. RUBY RECEPTIONISTS Small companies can’t always afford a receptionist and most people hate when a phone call is answered by a machine with an endless menu for button pushing. Any small business would be rewarded by hiring a real person to answer customer service calls.

174. CHATBOT SALES I am sure all of your students have interacted with a chatbot on a website. Do they agree that sending an email from a chatbot to remind a customer to purchase items left in a checkout cart is good for business? Chatbots can also ask customers to purchase more products at a discount causing an up-sale.

175. MY CUSTOMERS HATE ME Student answers to this question will vary. There are so many great examples of angry customers that your students will enjoy finding the unique ways people are fighting back.

176. GREAT STORIES Except for the IRS, most businesses are obsessed with their customers and want to ensure that the customer journey is positive. Challenge your students to find the worst example of customer service and have the class vote on which example was the worst. CRM is a business philosophy based on the premise that those organizations that understand the needs of individual customers are best positioned to achieve sustainable competitive advantage in the future. Many aspects of CRM are not new to organizations; CRM is simply performing current business better. Placing customers at the forefront of all thinking and decision-making requires significant operational and technology changes, however. These websites show the power people have in the consumer market today.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 101

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 102

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL This guide provides many classroom activities, videos, and debates to accompany Business Driven Technology 10e. A few course suggestions: 

Create one or two test questions based on the classroom activity to help reward students who attend lectures.



Many professors have found that assigning an activity and then lecturing on the material helps students gain a deeper understanding of the core MIS concepts as they have already struggled with applying the material to a real-world situation.



Asking a small group of students to explain their answer to the activity to the entire class after completion ensures students come to class prepared. I select a different group each activity to explain their answer and they do not want to look unprepared in front of their fellow classmates. It is a powerful motivator to get my students to read prior to class. After the activity and student’s presentations then I lecture—this keeps my students engaged and helps to achieve a higher level of learning outcomes as they are constantly tasked with applying the concepts during class.



Create an Ask the Professor Discussion Board that runs the entire course where students can ask course and content-related questions. I typically promise to respond within 24 hr, and I always encourage my students to check the discussion board before sending an email. Many times, if one student has a question so do other students.



**Three Before Me Rule! This is something I have found that saves a great deal of time answering email. I state the Three Before Me Rule in my syllabus. Before a student comes to me with a question, they must provide three sources they used to answer the question themselves. This significantly cuts down on emails as many times students can find the answer to their questions, but it seems easier just to email the professor.

Sources can include the syllabus, the Ask the Professor Q&A Discussion Board, classmates, the textbook, and so on. If I ask the student for the three sources and they do not have them, I dock participation points. Works great on significantly cutting down my emails and helps to prepare my students for the real world!



The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material.

Enjoy your course and best of luck! Please feel free to email me directly if you have any questions, ideas, suggestions, or feedback! For additional course materials, content, and cases, visit www.baltzan.net or pbaltzan@baltzan.net.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 103

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL UNIT THREE OVERVIEW Decision-making and problem-solving encompass large-scale, opportunity-oriented, and strategically focused solutions. Students today must have decision-making and problem-solving abilities to compete in the ebusiness world. Organizations today can no longer use a ―cookbook‖ approach to decision-making. This unit focuses on technology to help make decisions, solve problems, and find new innovative opportunities including:       

Decision support systems Executive information systems Artificial intelligence (AI) Data mining Customer relationship management Supply chain management Enterprise resource planning

The chapters in this unit include:    

Chapter Nine—Enabling the Organization—Decision-Making Chapter Ten—Extending the Organization—Supply Chain Management Chapter Eleven—Building a Customer-centric Organization—Customer Relationship Management Chapter Twelve—Integrating the Organization from End to End—Enterprise Resource Planning

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 104

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL CHAPTER 12 Organizations are anticipating that ebusiness will increase profitability, create competitive differentiation, and support innovative business practices. To achieve these goals, companies must evolve through distinct stages, from integrated processes to truly synchronized interenterprise communities. Getting ebusiness applications based on different technologies and with differing business models and data models to work together are key issues for 21st-century organizations.

LEARNING OUTCOMES 1.66Describe the role information plays in enterprise resource planning systems.

Enterprise resource planning systems serve as the organization’s backbone in providing fundamental decision-making support. In the past, departments made decisions independent of each other. ERP systems provide a foundation for collaboration between departments, enabling people in different business areas to communicate. ERP systems have been widely adopted in large organizations to store critical knowledge used to make the decisions that drive performance.

1.67Identify the core and extended areas of enterprise resource planning.

Enterprise resource planning (ERP) integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so employees can make decisions by viewing enterprisewide information about all business operations. The current generation of ERP, ERP-II, is composed of two primary components—core and extended.

Core ERP components are the traditional components included in most ERP systems and primarily focus on internal operations. Extended ERP components are the extra components that meet organizational needs not covered by the core components and primarily focus on external operations.

1.68Discuss the current technologies organizations are integrating in enterprise resource planning systems.

The goal of ERP is to integrate all of the organizational systems into one fully functioning, high-performance system that is capable of meeting all business needs and user requirements. Of course, this goal is incredibly difficult to achieve because businesses and technologies experience rapid change, and ERP must support mobility, cloud, SaaS, and tiered architectures.

CORE MATERIAL The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material. You will find numerous classroom ideas to keep your course exciting and challenge © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 105

your students to apply the material.

RUNNING CASE STUDY QUESTIONS 177. You have landed your dream job working for Steve Evert. Unfortunately, Steve doesn’t know anything about enterprise resource planning systems. Your first assignment is to help educate Steve on the business benefits associated with implementing an ERP system to gain a 360-degree view of business operations.

ERP runs end-to-end throughout the organization and a connected car would need to run from the manufacturer all the way to the customer. If one part fails, the entire system fails. If the garage door is left open and a stray raccoon begins pulling parts off of the car, would it be the car’s fault? There are so many connections in the system that it is impossible to monitor every area—just like an ERP system has a hard time monitoring the entire business.

178. You know that measuring the success of an ERP system is difficult. Create a document explaining the difficulty in measuring the success of an ERP system and provide suggestions on how the business can ensure the success of the new ERP system.

There is no guarantee of success for an ERP system. It is difficult to measure the success of an ERP system because one system can span an entire organization, including thousands of employees across the globe. ERPs focus on how a corporation operates internally, and optimizing these operations takes significant time and energy.

CHAPTER TWELVE CASE Why do you think it is so difficult to find successful ERP implementation?

Training is crucial in helping roll out a new ERP system to company personnel, and also for the third-party contractors who also use the system. Formal and informal education helps the end users understand the mechanics of the system and helps them to appreciate the benefits and efficiencies the ERP can offer. This helps promote end-user acceptance and helps employees to effectively use the system in their daily work.

179. How do you think cloud computing will help ERP implementations find success?

By storing everything in the cloud the company can access the data from any part of the supply chain including customers and suppliers. This is a great benefit when all parties can see the data flowing from the end-to-end processes required to run the organization.

180. What advice would you give a company deciding to implement an ERP system?

ERP systems help improve business operations in a number of different ways. The implementation of the system helps to integrate and manage daily operations. An ERP system reduces and streamlines third-party contractors who are required to submit information and invoices. This results in a reduction of errors in invoices, reducing the hours of labor required to decipher and correct any errors in the invoice. Information is entered immediately and can be fed to the upstream payment and accounts payable systems.

181. How can integrating SCM, CRM, and ERP help improve business operations at your school? © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 106

Answers to this question may vary. Supply chain management and customer relationship management are components of an enterprise resource planning system, and so acknowledgment that integrating all of the components of an ERP should be implied in the students’ answer.

REVIEW QUESTIONS 182.

What is an enterprise resource planning system?

Enterprise resource planning (ERP) integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so employees can make decisions by viewing enterprisewide information about all business operations.

183.

What is the difference between core and extended ERP? Core ERP components are the traditional components included in most ERP systems and primarily focus on internal operations. Extended ERP components are the extra components that meet the organizational needs not covered by the core components and primarily focus on external operations.

184.

What are the components in a core ERP system?

Core ERP components are the traditional components included in most ERP systems and primarily focus on internal operations. The three most common core ERP components focusing on internal operations are accounting and finance, production and materials management, and human resources.

185.

What are the components in an extended ERP system?

The four most common extended ERP components are business intelligence, customer relationship management, supply chain management, and ebusiness.

186.

What is at the heart of an ERP system?

At the heart of an ERP system is a database that is capturing all of the operational system data.

187.

How does a company measure the success of an ERP system?

A company can use a Balanced Scorecard to measure the success of an ERP system.

188.

What are the three different ERP implementation choices?

The three different ERP implementation choices include hybrid, on premise, and cloud ERP.

MAKING BUSINESS DECISIONS IS THE COMPUTER SMARTER THAN A HUMAN? It is my dream to have my own IBM Watson. Just imagine how easy life could be with IBM Watson helping you to make all of your decisions. What ingredients are in the fridge and what can we cook for dinner? What should I wear given the weather, my travel, and my © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 107

appointments today? What is the best way to lecture on ERP to students that have not yet entered the workforce? Just imagine the possibilities!!!!!

189.

SCM, CRM, AND ERP SCM’s primary users are customers, resellers, partners, suppliers, distributors, and manufacturers. SCM helps make the process of gathering materials and transforming them into finished products more efficient and effective. CRM’s primary users are sales, marketing, and customer service. CRM helps build strong relationships between an organization and its customers. ERP’s users are primarily internal, including accounting, finance, logistics, and production. ERPs usually focus on improving internal processes and operations. An ERP can include SCM and CRM components; however, these components are typically not as advanced and offer less functionality than vendors who specialize in SCM or CRM. 190.

SOFTWARE AS A SERVICE Software as a Service (SaaS) delivers applications over the cloud using a pay-per-use revenue model. Before its introduction, companies often spent huge amounts of money implementing and customizing specialized applications to satisfy their business requirements.

Many of these applications were difficult to implement, expensive to maintain, and challenging to use. Usability was one of the biggest drivers for creating interest in and success for cloud computing service providers. SaaS ERP uses the cloud platform to enable organizations not only to unite around business processes but also to gather cloud data across supplier networks and supply chains to drive greater efficiency in manufacturing projects.

The move to SaaS ERP is attracting many small and midsized businesses that simply cannot afford the costs associated with a traditional large ERP implementation.

191.

GAINING BUSINESS INTELLIGENCE FROM STRATEGIC INITIATIVES SCM enhances decision-making. Collecting, analyzing, and distributing transactional information to all relevant parties, SCM systems help all the different entities in the supply chain work together more effectively. SCM systems provide dynamic holistic views of organizations. Users can ―drill down‖ into detailed analyses of supply chain activities in a process analogous to DSS. Without SCM systems, organizations would be unable to make accurate and timely decisions regarding their supply chain.

Operational CRM supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers. Analytical CRM supports backoffice operations and strategic analysis and includes all systems that do not deal directly with the customers. The primary difference between operational CRM and analytical CRM is the direct interaction between the organization and its customers.

The primary purpose of an ERP is to collect, update, and maintain enterprisewide information. All of the functional departments access the same information when making decisions and solving problems. The primary benefits of an ERP system include: - ERP is a logical solution to the mess of incompatible applications that had sprung up in most businesses. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 108

-

ERP addresses the need for global information sharing and reporting.

ERP is used to avoid the pain and expense of fixing legacy systems.

192.

SHARPTOOTH INCORPORATED Stephen Kern is the founder and CEO of Sharptooth, a small business that buys and sells comic strips to magazines and newspapers around the country. Some of Sharptooth’s artists have made it big and are syndicated in hundreds of magazines and newspaper, while others are new to the industry. Stephen started in the business as an artist and began contracting other artists when he realized he had a knack for promoting and marketing comic materials.

Stephen’s artistic background is great for spotting talented young artists, but not so great for running the business.

Stephen recently began selling comics to new forms of media such as blog sites, websites, and other online tools. Stephen has hired you to build him a new system to track all online comic sales. You quickly notice that Stephen has a separate system for each of his different lines of business including newspaper sources, magazine sources, billboard sources, and now online sources. You notice that each system works independently to perform its job of creating, updating, and maintaining sales information, but you are wondering how Stephen operates his business as a whole. Create a list of issues Stephen will encounter if he continues to run his business with four separate systems performing the same operations. What could happen to Stephen’s business if he cannot correlate the details of each? Be sure to highlight at least 10 issues where separate systems could cause Stephen problems.

Stephen is going to have a very difficult time running Sharptooth Incorporated with separate systems. The biggest problem for Stephen is that he is maintaining duplicate (or redundant) information. This will cause many problems including: - It will be difficult to tell total revenue for a piece of artwork that is sold to different media forms.

- Costly to maintain redundant information.

- Updates need to be made multiple times which costs money and can lead to inconsistencies in data. For example, customers and suppliers will be listed in each system, and if an address or name changes how will Stephen ensure the change is made in all the systems.

- If a supplier sends one check to cover multiple sources how will Stephen apply the payments to each piece of work (especially if the check is under).

- It will be difficult to tell such things as revenue per job (especially if it is across systems), revenue per customer, costs per supplier, and so on. All of this information will require Stephen to consolidate the information he has in his different systems— which is a hard task to complete.

- Customer numbers could be different across systems.

- Supplier numbers could be different across systems.

- Artwork numbers could be different across systems.

- How will Stephen charge back items such as rent, electricity, and payroll. Will he charge it all to one system or all systems equally? © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 109

-

How will Stephen track due dates for work? Will he look at each system every day and record what is due?

How is the detail tracked in each system? If it is tracked differently, this will cause additional problems. For example, billboards might track sales by month since you rent the billboard for the month. Newspapers might track sales by day and online might track by the hour. Stephen will have to do some work to put all of these in one common category (by hours) to perform data analysis.

193.

CLASSIC CARS The purpose of this question is to have the students analyze the five bullet points to determine the different CRM, SCM, and ERP systems and how they can streamline each system into one ERP data source. This ERP data source will allow a 360-degree view of the organization.

194.

BEAN INTEGRATION Students need to determine how Flavors can have one sales system, one customer relationship system, and one supply chain system that can support all of the different lines of business. Get the students asking questions such as how would you identify a customer, John Smith, in all of the systems? What types of data are being stored in each system? How will the data be shared between systems? This is great insight into the difficulties of integrating data and why ERP systems are so valuable.

UNIT CLOSING CASE ONE Why is social media critical to business success?

Social media offers an excellent way to market products and for consumers to hear true testimonies from other customers. Social media spreads virtually, unlike a newspaper or magazine article. The buzz around a new product, book, or band can hike unknown products/services into the mainstream. Just ask your students about any new musician that was once a YouTuber and then became famous.

195. Why is monitoring, responding, creating, and analyzing social media content critical to any business?

Garbage In is Garbage Out. You need to carefully analyze and understand what the social media content is stating. And you always need to be aware that social media can just as quickly take a product or service down with bad media.

196. What can you do if you find from Hootsuite that several customers are complaining about your product on Facebook?

Work quickly to attempt to mitigate the problem and be honest to your customers. Most customers understand that life is not perfect and can easily continue to be loyal to a product that had problems—just think of Tylenol. However, if a company lies, the customer will leave and never return. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 110

197. What types of analytics will a business want to measure for analyzing its social media content?

Predictive analytics will help a company take the past trends of social media to analyze future success for marketing campaigns, sales and discount strategies, time patterns, market basket analysis, and even future spending patterns of customers. Prescriptive analytics can help a company determine the optimal selling strategies based on current inventory, and it can even help decide how to staff during business seasons.

UNIT CLOSING CASE TWO Define 3D printing and its impact on business.

The process of 3D printing (additive manufacturing) builds—layer by layer in an additive process—a three-dimensional solid object from a digital model. The additive manufacturing process of 3D printing is profoundly different from traditional manufacturing processes. The Financial Times and other sources are stating that 3D printing has the potential to be vastly more disruptive to business than the internet. That is a bold statement! The reason people are betting on 3D printing to disrupt business is that it brings production closer to users, thus eliminating steps in the supply chain similar to disintermediation by the internet. Three-dimensional printing also promotes mass customization, small production batches, and reduction in inventory.

Traditionally, the costs associated with 3D printing made it accessible only to large corporations.

198. Explain CRM and how 3D printing could affect customer relations.

This offers an interesting perspective on 3D printing as it impacts customer relations. Just think of a car at the drive-thru in a McDonald’s and the exact toy the child wants is printed on demand.

Converse stores have a 3D printer where you can print the exact design the customer wants on their shoe while they wait. Personalization and mass customization will take on new meaning as 3D printing becomes more available and has better technology.

199. Provide an example of how 3D printing might affect the global economy.

The biggest impact will be on shipping and transportation companies as we move the manufacturing of parts and goods to the individual level and away from the massive manufacturing plants. Products will be available to all people from all over the world as they can print the product right at the exact location. No more traveling to procure goods as you can print the good wherever you happen to be located.

200. Analyze how 3D printing is affecting supply chains.

The biggest impact will be on shipping and transportation companies as we move the manufacturing of parts and goods to the individual level and away from the massive manufacturing plants. Products will be available to all people from all over the world as they can print the product right at the exact location. No more traveling to procure goods as you can print the good wherever you happen to be located.

201. Propose a plan for how a company can use 3D printing to increase sales and customer satisfaction.

Anything that a business typically has to order can be printed on-demand for customers and that will have a huge impact on sales and satisfaction. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 111

202. Argue for or against the following statement: ―3D printing will be more disruptive to business than the internet.‖ This makes for an outstanding classroom debate!

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 112

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL This guide provides many classroom activities, videos, and debates to accompany Business Driven Technology 10e. A few course suggestions: 

Create one or two test questions based on the classroom activity to help reward students who attend lectures.



Many professors have found that assigning an activity and then lecturing on the material helps students gain a deeper understanding of the core MIS concepts as they have already struggled with applying the material to a real-world situation.



Asking a small group of students to explain their answer to the activity to the entire class after completion ensures students come to class prepared. I select a different group each activity to explain their answer and they do not want to look unprepared in front of their fellow classmates. It is a powerful motivator to get my students to read prior to class. After the activity and student’s presentations then I lecture—this keeps my students engaged and helps to achieve a higher level of learning outcomes as they are constantly tasked with applying the concepts during class.



Create an Ask the Professor Discussion Board that runs the entire course where students can ask course and content-related questions. I typically promise to respond within 24 hr, and I always encourage my students to check the discussion board before sending an email. Many times, if one student has a question so do other students.



**Three Before Me Rule! This is something I have found that saves a great deal of time answering email. I state the Three Before Me Rule in my syllabus. Before a student comes to me with a question, they must provide three sources they used to answer the question themselves. This significantly cuts down on emails as many times students can find the answer to their questions, but it seems easier just to email the professor.

Sources can include the syllabus, the Ask the Professor Q&A Discussion Board, classmates, the textbook, and so on. If I ask the student for the three sources and they do not have them, I dock participation points. Works great on significantly cutting down my emails and helps to prepare my students for the real world!



The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material.

Enjoy your course and best of luck! Please feel free to email me directly if you have any questions, ideas, suggestions, or feedback! For additional course materials, content, and cases, visit www.baltzan.net or pbaltzan@baltzan.net.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 113

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL UNIT FOUR OVERVIEW One-hour film processing and digital cameras both contributed to the demise of Polaroid, a solid company that had an innovative technology and a captive customer base. The dilemma that faced Polaroid is a dilemma that most organizations face—the criteria an organization uses to make business decisions for its present business could possibly create issues for its future business. Essentially, what is best for the current business could ruin it in the long term.

Forming and maintaining collaborative partnerships are essential for businesses to thrive in this new economy. Strategic alliances enable businesses to gain competitive advantage(s) through access to partner(s) resources, including markets, technologies, capital, and people.

Teaming up with another business adds complementary resources and capabilities, enabling participants to grow and expand more quickly and efficiently—especially fast-growing companies that rely heavily on outsourcing many areas of their business to extend their technical and operational resources.

This unit focuses on the opportunities and advantages found with developing collaborative partnerships in ebusiness, outsourcing, and integration. Specific relationships have been developed in the chapter between the use and deployment of technology and the creating of partnerships. The chapters in this unit include:   

Chapter Thirteen—Creating Innovative Organizations Chapter Fourteen—Ebusiness Chapter Fifteen—Creating Collaborative Partnerships

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 114

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL CHAPTER 13 What do steamboats, transistor radios, and Intel’s 8088 processor all have in common? They are all disruptive technologies. Disruptive technologies redefine the competitive playing fields of their respective markets. Disruptive technologies tend to open new markets and destroy old ones.

Sustaining technologies tend to provide us with better, faster, and cheaper products in established markets, but virtually never lead in markets opened by new and disruptive technologies.

LEARNING OUTCOMES 1.69Compare disruptive and sustaining technologies and explain how the internet and WWW caused business disruption.

Disruptive technologies offer a new way of doing things that initially does not meet the needs of existing customers. Disruptive technologies redefine the competitive playing fields of their respective markets, open new markets, and destroy old ones, and cut into the low end of the marketplace and eventually evolve to displace high-end competitors and their reigning technologies.

Sustaining technologies produce improved products customers are eager to buy, such as a faster car or larger hard drive. Sustaining technologies tend to provide us with better, faster, and cheaper products in established markets and virtually never lead in markets opened by new and disruptive technologies.

The internet and WWW caused business disruption by allowing people to communicate and collaborate in ways that were not possible before the information age. The internet and WWW completely disrupted the way businesses operate, employees communicate, and products are developed and sold.

1.70Describe Web 1.0 along with ebusiness and its associated advantages.

Web 1.0 is a term to refer to the World Wide Web during its first few years of operation between 1991 and 2003. Ebusiness includes ecommerce along with all activities related to internal and external business operations such as servicing customer accounts, collaborating with partners, and exchanging real-time information. During Web 1.0, entrepreneurs began creating the first forms of ebusiness. Ebusiness advantages include expanding global reach, opening new markets, reducing costs, and improving operations and effectiveness.

CORE MATERIAL The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material. You will find numerous classroom ideas to keep your course exciting and challenge © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 115

your students to apply the material.

RUNNING CASE STUDY QUESTIONS 203. You have landed your dream job working for Steve Evert. Unfortunately, Steve doesn’t understand why communication is important for your organization. Research Slack and explain how the system can help employees around the globe communicate.

Communication is important for any employee in an organization. Regardless of where the employee is working—France, Australia, or Canada—the employees must communicate. Time zone changes and differences in working hours can make this task nearly impossible. Slack is a great tool for helping employees whom are not physically located together communicate and collaborate together. And of course, it can be just as effective with employees that work in the same office share documents, tasks, and communications. It is an invaluable tool for helping employees collaborate.

204. Do you consider Slack a form of disruptive or sustaining technology? Why or why not?

Depending on the time when you review the case Slack could be considered disruptive or sustaining, and you’ll want to ensure your students justify their answers in their response.

CHAPTER THIRTEEN CASE How did Uber take advantage of mobile technologies to create a disruptive business model?

Uber disrupted the taxi business by turning every car into a potential taxi. With wireless technology, a customer can see all of the Ubers in the area and select the price and type of ride from their location. Prior to wireless technology people had to stand on a corner and wait for a taxi to pass by to hail the ride or call for a taxi. This new technology is far more efficient and effective for both the passengers and customers. Can you imagine a world without Uber or Lyft?

205. As 5G enters the market, can you think of any new services Uber can offer its customers?

5G is going to offer so many new services. 5G is like 4G a million times faster. New services offered in Tesla will be similar to things the Uber can do to make customers more comfortable.

Large screen to watch content, a warm fire, or a beach scene in the car to relax the customer.

Better safety features in the car.

206. Lyft is a fast follower to Uber. Would you want to be CEO of Uber or Lyft?

This is such a great discussion. Lyft can move past Uber by not making their mistakes. Uber has the advantage of being first to market so it is ahead of its competitors, but for how long? Uber will need to keep innovating and updating to stay as the leader.

207. How will driverless cars impact Uber’s business model?

With driverless cars, there will be car sharing where you summon the car from your home, and it shows up in your driveway. No driver means more security as you are not worried about the driver being a bad actor. The car will drive safely and avoid accidents. Will we even need Uber and Lyft if we can contact the car directly? © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 116

REVIEW QUESTIONS 208.

What is the different between sustaining and disruptive technology?

A disruptive technology is a new way of doing things that initially does not meet the needs of existing customers. Disruptive technologies tend to open new markets and destroy old ones.

A sustaining technology, on the other hand, produces an improved product customers are eager to buy, such as a faster car or larger hard drive. Sustaining technologies tend to provide us with better, faster, and cheaper products in established markets. Incumbent companies most often lead sustaining technology to market, but they virtually never lead in markets opened by disruptive technologies 209.

What is a paradigm shift and what is its relation to ebusiness?

A paradigm shift occurs when a new radical form of business enters the market that reshapes the way companies and organizations behave. Ebusiness created a paradigm shift, transforming entire industries and changing enterprisewide business processes that fundamentally rewrote traditional business rules. Deciding not to make the shift to business proved fatal for many companies.

210.

What is the difference between information richness and information reach?

Easy access to real-time information is a primary benefit of ebusiness. Information richness refers to the depth and breadth of details contained in a piece of textual, graphic, audio, or video information. Information reach measures the number of people a firm can communicate with all over the world. Buyers need information richness to make informed purchases, and sellers need information reach to properly market and differentiate themselves from the competition.

211.

Do you consider the internet and WWW forms of sustaining or disruptive technology?

The WWW and the internet are both disruptive technologies.

212.

How has the internet and WWW created a global platform for business?

As people began learning about the WWW and the internet, they understood that it enabled a company to communicate with anyone, anywhere, at any time, creating a new way to participate in business. The competitive advantages for first movers would be enormous, thus spurring the beginning of the Web 1.0 internet boom. Web 1.0 (or Business 1.0) is a term to refer to the World Wide Web during its first few years of operation between 1991 and 2003.

213.   

How does disintermediation, reintermediation, and cybermediation differ?

Disintermediation—Occurs when a business sells directly to the customer online and cuts out the intermediary Reintermediation—Steps are added to the value chain as new players find ways to add value to the business process Cybermediation—Refers to the creation of new kinds of intermediaries that simply could not have existed before the advent of ebusiness, including comparison shopping sites such as Kelkoo and bank account aggregation services such as Citibank

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 117

214.

What are the four ebusiness advantages?

The four ebusiness advantages include:  Expanding global reach  Opening new markets  Reducing costs  Improving effectiveness 215.

How can a business use clickstream data to help improve website efficiency?

The ultimate outcome of any advertisement is a purchase. Organizations use metrics to tie revenue amounts and number of new customers created directly back to the websites or banner ads. Through clickstream data they can observe the exact pattern of a consumer’s navigation through a site.

216.

How can a company use disintermediation to achieve a competitive advantage?

Disintermediation occurs when a business sells directly to the customer online and cuts out the intermediary. Anytime a company can reduce one phase in the supply chain it can save money. Each phase increases costs to make a profit. Reducing middlemen will always help the process be more profitable.

217.

What is the difference between ebusiness and ecommerce?

Ecommerce is the buying and selling of goods and services over the internet. Ecommerce refers only to online transactions. Ebusiness includes ecommerce along with all activities related to internal and external business operations such as servicing customer accounts, collaborating with partners, and exchanging real-time information. During Web 1.0, entrepreneurs began creating the first forms of ebusiness.

MAKING BUSINESS DECISIONS WHAT WILL NET NEUTRALITY COST SMALL BUSINESS? Net neutrality ensures that everyone has equal access to the internet. There are many different players and sides to this controversial issue. In some countries, like China, the government controls the internet and determines which websites its citizens can visit and what can be searched. Net neutrality might be good for small businesses that have trouble competing with big companies that could pay more for early access to traffic.

218.

DUCK DUCK GO! It is rather frightening when you log into your browser and it shows you ideas for things you searched on your cell phone weeks ago. Does Google have the right to capture your searches and then use them to market products to you? Cyberstalking can happen from a company or an organization—not just people. DuckDuckGo is a great alternative.

219.

FINDING INNOVATION Students need to be focusing on the language and ideas that suggest enabling marketplace structures where multiple buyers and suppliers can engage in ebusiness activities. Students should present ideas on the foundations for commercial exchange, consolidating supply © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 118

chains, and creating new sales channels. The internet extends a company’s business processes to customers, trading partners, suppliers, and distributors.

220.

BOOK’EM Chris Anderson, editor in chief of Wired magazine, describes niche-market ebusiness strategies as capturing the long tail, referring to the tail of a typical sales curve. This strategy demonstrates how niche products can have viable and profitable business models when selling via ebusiness. In traditional sales models, a store is limited by shelf space when selecting products to sell. For this reason, store owners typically purchase products that will be wanted or needed by masses, and the store is stocked with broad products as there is not room on the shelf for niche products that only a few customers might purchase. Ebusinesses such as Amazon and eBay eliminated the shelf-space dilemma and were able to offer infinite products.

The theory of disruptive innovation was invented by Clayton Christensen, of Harvard Business School, in his book The Innovator’s Dilemma. Mr. Christensen used the term to describe innovations that create new markets by discovering new categories of customers.

They do this partly by harnessing new technologies but also by developing new business models and exploiting old technologies in new ways. He contrasted disruptive innovation with sustaining innovation, which simply improves existing products. Personal computers, for example, were disruptive innovations because they created a new mass market for computers; previously, expensive mainframe computers had been sold only to big companies and research universities.

221.

UNETHICAL DISRUPTION Student answers to this question will vary depending on their ethics and values. This makes for a great classroom debate.

222.

IBM WATSON: TAKING OVER THE WORLD Explain why IBM Watson is a form of disruptive technology.

All robots and AI are a form of disruptive technology. This is new and will continue to power many amazing discoveries and decisions.

Explain how IBM Watson can be used in ebusiness to help a company compete.

The algorithms IBM Watson can calculate will help any organization compete on analytics— just research Stitch Fix to see how powerful ebusiness can become with the right technology coupled with great data scientists.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 119

If you could access IBM Watson at your school, how would you use it to help you create a competitive advantage?

The possibilities are limitless—let your students run with this idea and see what they invent.

223.

WEBSITE ANALYTICS Students need to take all of the metrics and compare which site has the best chances of succeeding. Student answers to this question will vary. The important factor is their justification for why the site they pick will be successful. Students should understand the metrics of how stickiness affects a website and how abandoned shopping carts can affect a website. There is no right or wrong in this answer. The important part is how the students justify the website they choose. Student’s arguments for supporting one site should discuss each metric and its impact on the site. This is such a great example of using analysis skills and business acumen. The choice will depend on how the student views success. Success metrics are different for everyone. This makes a great classroom discussion.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 120

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 121

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL This guide provides many classroom activities, videos, and debates to accompany Business Driven Technology 10e. A few course suggestions: 

Create one or two test questions based on the classroom activity to help reward students who attend lectures.



Many professors have found that assigning an activity and then lecturing on the material helps students gain a deeper understanding of the core MIS concepts as they have already struggled with applying the material to a real-world situation.



Asking a small group of students to explain their answer to the activity to the entire class after completion ensures students come to class prepared. I select a different group each activity to explain their answer and they do not want to look unprepared in front of their fellow classmates. It is a powerful motivator to get my students to read prior to class. After the activity and student’s presentations then I lecture—this keeps my students engaged and helps to achieve a higher level of learning outcomes as they are constantly tasked with applying the concepts during class.



Create an Ask the Professor Discussion Board that runs the entire course where students can ask course and content-related questions. I typically promise to respond within 24 hr, and I always encourage my students to check the discussion board before sending an email. Many times, if one student has a question so do other students.



**Three Before Me Rule! This is something I have found that saves a great deal of time answering email. I state the Three Before Me Rule in my syllabus. Before a student comes to me with a question, they must provide three sources they used to answer the question themselves. This significantly cuts down on emails as many times students can find the answer to their questions, but it seems easier just to email the professor.

Sources can include the syllabus, the Ask the Professor Q&A Discussion Board, classmates, the textbook, and so on. If I ask the student for the three sources and they do not have them, I dock participation points. Works great on significantly cutting down my emails and helps to prepare my students for the real world! 

The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material.

Enjoy your course and best of luck! Please feel free to email me directly if you have any questions, ideas, suggestions, or feedback! For additional course materials, content, and cases, visit www.baltzan.net or pbaltzan@baltzan.net.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 122

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL UNIT FOUR OVERVIEW One-hour film processing and digital cameras both contributed to the demise of Polaroid, a solid company that had an innovative technology and a captive customer base. The dilemma that faced Polaroid is a dilemma that most organizations face—the criteria an organization uses to make business decisions for its present business could possibly create issues for its future business.

Essentially, what is best for the current business could ruin it in the long term.

Forming and maintaining collaborative partnerships are essential for businesses to thrive in this new economy. Strategic alliances enable businesses to gain competitive advantage(s) through access to partner(s) resources, including markets, technologies, capital, and people.

Teaming up with another business adds complementary resources and capabilities, enabling participants to grow and expand more quickly and efficiently—especially fast-growing companies that rely heavily on outsourcing many areas of their business to extend their technical and operational resources.

This unit focuses on the opportunities and advantages found with developing collaborative partnerships in ebusiness, outsourcing, and integration. Specific relationships have been developed in the chapter between the use and deployment of technology and the creating of partnerships. The chapters in this unit include:   

Chapter Thirteen—Creating Innovative Organizations Chapter Fourteen—Ebusiness Chapter Fifteen—Creating Collaborative Partnerships

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 123

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL CHAPTER 14 In the past few years, ebusiness seems to have permeated every aspect of daily life. In just a short time, both individuals and organizations have embraced internet technologies to enhance productivity, maximize convenience, and improve communications globally. This chapter focuses on the ebusiness processes changing the nature of the buyer–seller relationship, the role of information technology (IT), and organizational structures and tasks.

LEARNING OUTCOMES 224. Compare the four categories of ebusiness models.  Business-to-business (B2B) applies to businesses buying from and selling to each other over the internet.  Business-to-consumer (B2C) applies to any business that sells its products or services to consumers over the internet.  Consumer-to-business (C2B) applies to any consumer that sells a product or service to a business over the internet.  Consumer-to-consumer (C2C) applies to sites primarily offering goods and services to assist consumers interacting with each other over the internet.

The primary difference between B2B and B2C are the customers; B2B customers are other businesses while B2C markets to consumers. Overall, B2B relations are more complex and have higher security needs; plus, B2B is the dominant ebusiness force, representing 80% of all online business.

225. Describe the six ebusiness tools for connecting and communicating.

As firms began to move online, more MIS tools were created to support ebusiness processes and requirements. The ebusiness tools used to connect and communicate include email, instant messaging, podcasting, content management systems, videoconferencing, and web conferencing.

CORE MATERIAL The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material. You will find numerous classroom ideas to keep your course exciting and challenge your students to apply the material.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 124

RUNNING CASE STUDY QUESTIONS 226. You have landed your dream job working for Steve Evert. Unfortunately, Steve doesn’t understand why ebusiness models are important for a business. Explain to Steve the importance of ebusiness models and the model implemented by Slack.

Ebusiness models include business-to-business, business-to-consumer, consumer-toconsumer, and consumer-to-business. Ebusiness models are a plan that details how a company creates, delivers, and generates revenues on the internet.

227. Steve would also value an overview of the different types of ebusiness revenue models and be sure to describe the revenue model implemented by Slack. What is the ebusiness and revenue models implemented by Slack?

Ebusiness revenue models include advertising fees, license fees, subscription fees, transaction fees, and value-added services fees. **Please note the answer to the below might change over time as the companies change the way they operate.

1.71 Revenue Model Ebusiness Model 1.72Slack Subscription Fees B2B

CHAPTER FOURTEEN CASE How has Web 2.0 helped develop the gig economy?

Without the development of the internet and the ability for internet users to connect and communicate via Web 2.0, there would not be a gig economy. With the aid of the internet, all users can find and connect with the people looking for the exact skills they have to offer.

228.

Describe the ebusiness model associated with the gig economy.

Business-to-business, business-to-consumer, and consumer-to-business. These three different ebusiness models are all associated with the gig economy. The only ebusiness model not associated with the gig economy is business-to-business.

229.

Describe the revenue model associated with the gig economy.

Any of the revenue models are applicable to the gig economy.

230.

Are you ready for your next gig?

Yes!!

REVIEW QUESTIONS What is an ebusiness model?

An ebusiness model is a plan that details how a company creates, delivers, and generates revenues on the internet. Ebusiness models fall into one of the four categories: (1) businessto-business, (2) business-to-consumer, (3) consumer-to-business, and (4) consumer-toconsumer.

231.

How did ebusiness change traditional business models?

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A business model is a plan that details how a company creates, delivers, and generates revenue. Ebusiness opened new avenues for companies to generate revenue and new business models including B2B, B2C, C2C, and C2B. 232.

What are the benefits and challenges associated with ebusiness?

The benefits of Business 2.0 include content sharing through open sourcing, usercontributed content, and collaboration inside and outside the organization. The challenges of Business 2.0 include technology dependence, information vandalism, and violations of copyright laws and plagiarism.

233.

What is the difference between a B2B and a B2C? Business-to-business—applies to businesses buying from and selling to each other over the internet.

Business-to-consumer—applies to any business that sells its products or services to consumers over the internet.

234.

What is the difference between a C2B and C2C? Consumer-to-business—applies to any consumer that sells a product or service to a business over the internet.

Consumer-to-consumer—applies to sites primarily offering goods and services to assist consumers interacting with each other over the internet.

235.

What is a pure-play? Provide an example.

Pure-play (virtual) business—A business that operates on the internet only without a physical store. Example: Google.

236.

What is a brick-and-mortar? Provide an example.

Brick-and-mortar business—A business that operates in a physical store without an internet presence. Example: T.J. Maxx.

237.

What is a click-and-mortar? Provide an example.

Click-and-mortar business—A business that operates in a physical store and on the internet.

Example: Barnes & Noble.

238.

Why is search engine ranking important to a company?

Without appearing in the top of the search or on the first page your customers will never find you and your competitors will gain all of the business from search.

239. What is the difference between search engine ranking and search engine optimization?

A search engine is website software that finds other pages based on keyword matching similar to Google. Search engine ranking evaluates variables that search engines use to determine where a URL appears on the list of search results. Search engine optimization (SEO) combines art along with science to determine how to make URLs more attractive to search engines resulting in higher search engine ranking. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 126

MAKING BUSINESS DECISIONS THE TOUGHEST COLLEGE TEST YOU’LL EVER TAKE This is such a fun exercise to do in the classroom. Of course, this will vary depending on how technologically savvy your students are, but for the most part, many of your students have cell phones and are on Facebook. I highly recommend performing this exercise in class. Then extrapolate the exercise to how a business needs to stay in contact 24 × 7. Just imagine what can happen when the president doesn’t get a sales answer ASAP, or a sales representative does not get an inventory count on the spot. People today want instant access to information and to other employees, which is both good and bad. No more vacations!!

If any of your students can go 5 days without any tech—well done!!! I am actually not sure that I can go 5 days without my tech—although that might mean I need a vacation! Dare your students to go the length of the class without checking their phone or email—see if they can even take a few hours without tech!

240.

USING HASHTAGS This is a great exercise to get your students learning about the different types of industries they might want to work for and how they can learn a great deal about the industries from hashtags that constantly appear for that industry. Hashtags are also great for marketing as this is how your organic search can appear higher—without the right hashtags your customers will not know how to Google to find you!

241.

VIRTUAL ABANDONMENT The majority of your students have abandoned their shopping carts at some point in time.

Take a poll of your students and ask when they abandoned the carts and why? Was it because they were interrupted or because the website just didn’t work—or did they decide they didn’t want to spend the money on the items?

242.

VIRTUAL FOXES AND DEVIL BABIES If anything, this is just a fun exercise to get your students thinking about how quickly virtual material spreads across the globe.

243.

COLLABORATING FOR NONPROFITS—KIVA Business opportunities with a worldwide social media network are endless. For the first time in history, you’d be able to gather detailed information on customers, products, social, political, environmental, and so on, data that could be used in countless ways to create new business opportunities.

Creating a worldwide social network could help decrease the digital divide by allowing people to connect with mentors and financiers around the globe, such as www.kiva.org There are numerous benefits and challenges. Benefits including sharing and collaborating among individuals of different cultures, environments, and economic standing. Challenges would include identity theft, privacy violations, and hackers and viruses.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 127

A global social network would need to be bilingual causing a great amount of issues among tags and crowdsourcing. The name for a simple waste basket is different all over the globe and it would become increasingly complex to perform simple searches.

Kiva is such a great organization—have fun allowing your students to review this amazing website and if they had $1,000 which individual or organization would they fund?

244.

NET NEUTRALITY This is a great debate. We now have fast lanes on the highway where you can pay extra to drive. Why is it so far-fetched to believe that paying extra to drive faster on the Information Highway is so far-fetched? Divide your students into groups and have half the class argue for Net Neutrality and half the class argue against Net Neutrality.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 128

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 129

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL This guide provides many classroom activities, videos, and debates to accompany Business Driven Technology 10e. A few course suggestions: 

Create one or two test questions based on the classroom activity to help reward students who attend lectures.



Many professors have found that assigning an activity and then lecturing on the material helps students gain a deeper understanding of the core MIS concepts as they have already struggled with applying the material to a real-world situation.



Asking a small group of students to explain their answer to the activity to the entire class after completion ensures students come to class prepared. I select a different group each activity to explain their answer and they do not want to look unprepared in front of their fellow classmates. It is a powerful motivator to get my students to read prior to class. After the activity and student’s presentations then I lecture—this keeps my students engaged and helps to achieve a higher level of learning outcomes as they are constantly tasked with applying the concepts during class.



Create an Ask the Professor Discussion Board that runs the entire course where students can ask course and content-related questions. I typically promise to respond within 24 hr, and I always encourage my students to check the discussion board before sending an email. Many times, if one student has a question so do other students.



**Three Before Me Rule! This is something I have found that saves a great deal of time answering email. I state the Three Before Me Rule in my syllabus. Before a student comes to me with a question, they must provide three sources they used to answer the question themselves. This significantly cuts down on emails as many times students can find the answer to their questions, but it seems easier just to email the professor.

Sources can include the syllabus, the Ask the Professor Q&A Discussion Board, classmates, the textbook, and so on. If I ask the student for the three sources and they do not have them, I dock participation points. Works great on significantly cutting down my emails and helps to prepare my students for the real world! 

The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material.

Enjoy your course and best of luck! Please feel free to email me directly if you have any questions, ideas, suggestions, or feedback! For additional course materials, content, and cases, visit www.baltzan.net or pbaltzan@baltzan.net.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 130

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL UNIT FOUR OVERVIEW One-hour film processing and digital cameras both contributed to the demise of Polaroid, a solid company that had an innovative technology and a captive customer base. The dilemma that faced Polaroid is a dilemma that most organizations face—the criteria an organization uses to make business decisions for its present business could possibly create issues for its future business.

Essentially, what is best for the current business could ruin it in the long term.

Forming and maintaining collaborative partnerships are essential for businesses to thrive in this new economy. Strategic alliances enable businesses to gain competitive advantage(s) through access to partner(s) resources, including markets, technologies, capital, and people. Teaming up with another business adds complementary resources and capabilities, enabling participants to grow and expand more quickly and efficiently—especially fast-growing companies that rely heavily on outsourcing many areas of their business to extend their technical and operational resources.

This unit focuses on the opportunities and advantages found with developing collaborative partnerships in ebusiness, outsourcing, and integration. Specific relationships have been developed in the chapter between the use and deployment of technology and the creating of partnerships. The chapters in this unit include:   

Chapter Thirteen—Creating Innovative Organizations Chapter Fourteen—Ebusiness Chapter Fifteen—Creating Collaborative Partnerships

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BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL CHAPTER 15 Collaboration allows people, teams, and organizations to leverage and build upon the ideas and talents of staff, suppliers, customers, and business partners. It involves a unique set of business challenges that:   

Include complex interactions between people who may be in different locations and desire to work across function and discipline areas Require flexibility in work process and the ability to involve others quickly and easily Create and share information rapidly and effortlessly within a team

Increasingly, organizations are extending their focus from internal operations like planning and scheduling, enterprise resource planning and sales force automation, toward operations beyond their own four walls with external customers and suppliers. This chapter focuses on the need for collaboration, the technology that supports collaboration, and collaboration trends.

LEARNING OUTCOMES 245. Explain Web 2.0, and identify its four characteristics.

Web 2.0, or Business 2.0, is the next generation of internet use—a more mature, distinctive communications platform characterized by new qualities such as collaboration, sharing, and free. Web 2.0 encourages user participation and the formation of communities that contribute to the content. In Web 2.0, technical skills are no longer required to use and publish information to the World Wide Web, eliminating entry barriers for online business.

The four characteristics of Web 2.0 include content sharing through open sourcing, usercontributed content, collaboration inside the organization, and collaboration outside the organization.

246. Explain how Business 2.0 is helping communities’ network and collaborate.

A social network is an application that connects people by matching profile information.

Providing individuals with the ability to network is by far one of the greatest advantages of Business 2.0. Social networking is the practice of expanding your business and/or social contacts by constructing a personal network. Business 2.0 simplifies the way individuals communicate, network, find employment, and search for information.

247. Describe the three Business 2.0 tools for collaborating.

The three tools that harness the ―power of the people‖ for Business 2.0 include blogs, wikis, and mashups. A blog, or weblog, is an online journal that allows users to post their own comments, graphics, and video. Blog websites let writers communicate—and reader’s respond—on a regular basis through a simple yet customizable interface that does not require any programming. A wiki is a type of collaborative webpage that allows users to add, remove, and change content, which can be easily organized and reorganized as required. While blogs have largely drawn on the creative and personal goals of individual authors, wikis are based on open collaboration with any and everybody. A mashup is a © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 132

website or web application that uses content from more than one source to create a completely new product or service. A mashup allows users to mix map data, photos, video, news feeds, blog entries, and so on to create content with a new purpose.

248. Describe Web 3.0 and the next generation of online business.

Web 3.0 is based on ―intelligent‖ web applications using natural language processing, machine-based learning and reasoning, and intelligent applications. Web 3.0 is the next step in the evolution of the internet and web applications. Business leaders who explore its opportunities will be the first to market with competitive advantages. Web 3.0 offers a way for people to describe information such that computers can start to understand the relationships among concepts and topics.

CORE MATERIAL The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material. You will find numerous classroom ideas to keep your course exciting and challenge your students to apply the material.

RUNNING CASE STUDY QUESTIONS 249. You have landed your dream job working for Steve Evert. Unfortunately, Steve doesn’t understand the difference between Web 1.0 and Web 2.0. Create a one-page document describing this important difference along with examples of each. Be sure to explain if Slack is an example of Web 1.0 (ebusiness) or Web 2.0 (Business 2.0).

Slack is an example of Web 2.0.

250. Explain the four characteristics of Business 2.0 to Steve and how each applies to Slack.

- Content sharing through open sourcing—Slack is a system that allows users to connect and communicate on projects throughout the globe including open source projects.

- User-contributed content—All of the content on Slack is user contributed since it is a collaboration and communication application for a company.

- Collaboration inside the organization—Everyone at Slack uses the application to communicate and all customers of Slack use the application at their organizations to communicate—even around the globe.

- Collaboration outside the organization—Any Slack customer has the right to ask users outside the organization to join the Slack application and participate in the connections.

251. Explain to Steve how Slack can use social networking analysis to help organizations function more efficiently.

Everything about Slack could benefit from social networking analysis allowing customers to analyze how communication and collaboration occurs at the organization.

CHAPTER FIFTEEN CASE © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 133

If you could build a data tracking website, what sources would you scrape and how would you communicate its existence to your audience?

Scraping data is an ethical issue—Did the user know you were going to scrape the data? Did they sign an informed consent that the data would be scrapped? Depending on your business goal—perhaps the best website to scrape is Facebook as you can glean all kinds of tremendous insights into the individuals.

252. Why would a company offer its application for free during a crisis such as COVID19?

COVID-19 changed the world and offering a freemium business strategy is a great idea during uncertain times.

253. Review Microsoft’s Teams, Google GSuite, Zoom, and Slack. Which collaboration tool would you choose for each of the following situations?

Depending on when your students are working on this mini-case the answers will change.

Expect to see big changes in these applications as the world continues to morph online.

254. Online college with students all over the globe.

Just imagine taking your English class at Oxford and your Biology class at MIT. The new ways to design degrees are endless with online learning.

255. Online elementary school in a neighborhood.

This is a bit more difficult as kiddos need to be in a classroom with hands-on learning tools and learning how to socialize. A difficult task online. How fun can cut-and-paste be at home by yourself?

256. Virtual meeting with participants all over the globe.

Easy and already being accomplished daily.

257. Daily call with family and friends.

Many people are posting photos of their favorite restaurants as they chat online with friends and family, so it seems more authentic.

258. Virtual happy hour with coworkers.

Enough said!

259. Online fitness class.

This is not the same, but Peloton and many other apps are making it more fun. But nothing helps the motivation as being in a room with everyone working hard.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 134

REVIEW QUESTIONS What is the difference between Web 1.0 and Web 2.0?

Web 1.0 is a form of one-way communication. In Web 1.0, we took a physical catalog and placed it on the website for customers to order. The business was still talking directly to the customer, without the customer talking back to the business. In Web 2.0, we realized the value of customer interaction and engagement with the business, and we now communicate in two directions, from the business to the customer and from the customer back to the business.

260.

-

What are the four primary characteristics of Web 2.0?

Content sharing through open sourcing User-contributed content Collaboration inside the organization Collaboration outside the organization

261. What is the difference between information richness and information reach?

Information richness refers to the depth and breadth of details contained in a piece of textual, graphical, audio, or video information. Information reach measures the number of people a firm can communicate with all over the world.

262. How can a business use a reputation system?

One of the most popular forms of user-generated content is a reputation system, where buyers post feedback on sellers. eBay buyers voluntarily comment on the quality of service, their satisfaction with the item traded, and promptness of shipping. Sellers comment about prompt payment from buyers or respond to comments left by the buyer. Companies ranging from Amazon to restaurants are using reputation systems to improve quality and enhance customer satisfaction.

263. Why are explicit knowledge and tacit knowledge important to a business?

As a rule, explicit knowledge consists of anything that can be documented, archived, and codified, often with the help of IT. Examples of explicit knowledge are assets such as patents, trademarks, business plans, marketing research, and customer lists. Tacit knowledge is the knowledge contained in people’s heads. The challenge inherent in tacit knowledge is figuring out how to recognize, generate, share, and manage knowledge that resides in people’s heads.

264. Would a small business want to use crowdsourcing or crowdfunding?

The most common form of collective intelligence found outside the organization is crowdsourcing, which refers to the wisdom of the crowd.

Crowdfunding sources capital for a project by raising many small amounts from a large number of individuals, typically via the internet.

265. How could a business use a blog, a wiki, and a mashup to improve communications?

A blog, or weblog, is an online journal that allows users to post their own comments, graphics, and video. Unlike traditional HTML webpages, blog websites let writers © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 135

communicate—and readers respond—on a regular basis through a simple yet customizable interface that does not require any programming.

Wikis are great tools for collaborating but can be changed and updated by any person.

Wikipedia is a great resource for information, however there is no guarantee that the information is accurate.

A mashup is a website or web application that uses content from more than one source to create a completely new product or service.

266. What is the difference between paid search and organic search?

Paid search appears when a company spends money to bid on the customer’s search query.

Organic search will display based on algorithms that determine the most popular website for the search query.

267. What is snackable content?

Snackable content is website content that is designed to be easy for readers to consume and to share.

268. What is the semantic web?

The semantic web as a component of Web 3.0 that describes things in a way that computers can understand. The semantic web is not about links between webpages; rather it describes the relationships between things (such as A is a part of B and Y is a member of Z) and the properties of things (size, weight, age, and price).

MAKING BUSINESS DECISIONS WIKIBLUNDERS—THIN ICE REPORT Living in the Fake News era has everyone concerned about misinformation, disinformation, and just plain wrong information. Any website students are using for research should be cross-referenced to ensure the accuracy of the information. Always validating a source is a great idea. Wikipedia would have to vet all contributors to ensure they are who they say they are and capable of good journalism research techniques to validate the data on the website.

Of course, this would have to occur constantly as anyone can update the website. In other words, it would be impossible to validate all of the entries and credentials on Wikipedia.

269. FIVE WAYS GOOGLE DOCS SPEEDS UP COLLABORATION Google Docs is open-source software, and its revenue model is simply to attract more individuals to the world’s greatest search engine website. Create and share your work online with Google Docs and upload your files from your desktop: It’s easy to get started and it’s free! Access anywhere: Edit and view your docs from any computer or smartphone. Share your work: Real-time collaboration means work gets done more quickly. o Documents o Spreadsheets o Presentations © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 136

o Drawings o Forms 270. ANTISOCIAL NETWORKING Students should be using language that suggests that integration within organizations and across trading communities will reduce costs and radically boost productivity. Enabling realtime information flow will also allow quick response to the movements of a highly demanding global marketplace. In addition, students should be making the connection with the internet incorporated into an already existing infrastructure or potentially new infrastructure; an organization will be able to expand to encompass new partners, new customers, and new markets.

271. CONNECTIVITY BREAKDOWN Students can mix and match many of the collaboration tools mentioned in the chapter, except for peer-to-peer systems. Given the scenario in this exercise, P-2-P systems would not offer any value. Therefore, the following are acceptable as a response: - Content management systems - Workflow management systems - Groupware systems - Knowledge management systems Instructor Note: You can take this exercise one step further by having students rank the systems in order of importance, and if they had to recommend one system, what would that be, which does not necessarily mean their number one choice.

272.

-

BLOGGING FOR DOLLARS Research the internet and find several customer blogs and employee blogs.

Determine the top three blogs for customers and for employees, and critique the blogs for content, ease of use, and overall value.

Design a prototype customer blog and a prototype employee blog for The Financial Level, using Word, PowerPoint, or a tool of your choice.

CLOSING CASE ONE 1. Would you classify Spotify as a disruptive business model? Why or why not?

Spotify is a disruptive business model as it was the first to offer music-as-a-service.

2. How has the music-as-a-service business impacted traditional CD and album download sites?

Music-as-a-service eliminated the CD business and the CD download business. Nobody buys music on Apple iTunes anymore.

3. How has Spotify impacted musicians? If you were a musician, would you be excited to be featured on Spotify? Why or why not?

Overall Spotify has been great for musicians as they are able to reach a far greater audiences and new artists can find their fan base. There are revenue implications for artists as they are © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 137

not making the royalties, they used to make on CD sales and downloads, but they are making more money on tours based on a bigger fan base.

4. How is Spotify taking advantage of collaborative environments?

Allowing anyone to place their music and podcases on Spotify is making the platform far more valuable to all individuals.

5. Create a product or a service that takes advantage of the semantic web.

Encourage your students to have some fun thinking of new products that will emerge over the next years of the semantic web.

CLOSING CASE TWO Do you believe everything you read on social media? If so, why?

This is like opening a can of worms in your classroom. There will be people who believe the information and people who do not. This makes for a great discussion.

6. Have you ever experienced misinformation on social media? If so, how did it impact your life?

There are so many examples of misinformation including medical, political, business, and about celebrities. Always questioning everything you read on social media is a great approach to finding misinformation.

7. What strategies do you have to stop the spread of misinformation?

Finding additional sources of information, additional people that represent the same pointof-view, and talking about the information you find on social media are a few ways to determine if the information is true.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 138

BUSINESS DRIVEN TECHNOLOGY 10E © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 139

INSTRUCTOR’S MANUAL This guide provides many classroom activities, videos, and debates to accompany Business Driven Technology 10e. A few course suggestions: 

Create one or two test questions based on the classroom activity to help reward students who attend lectures.



Many professors have found that assigning an activity and then lecturing on the material helps students gain a deeper understanding of the core MIS concepts as they have already struggled with applying the material to a real-world situation.



Asking a small group of students to explain their answer to the activity to the entire class after completion ensures students come to class prepared. I select a different group each activity to explain their answer and they do not want to look unprepared in front of their fellow classmates. It is a powerful motivator to get my students to read prior to class. After the activity and student’s presentations then I lecture—this keeps my students engaged and helps to achieve a higher level of learning outcomes as they are constantly tasked with applying the concepts during class.



Create an Ask the Professor Discussion Board that runs the entire course where students can ask course and content-related questions. I typically promise to respond within 24 hr, and I always encourage my students to check the discussion board before sending an email. Many times, if one student has a question so do other students.



**Three Before Me Rule! This is something I have found that saves a great deal of time answering email. I state the Three Before Me Rule in my syllabus. Before a student comes to me with a question, they must provide three sources they used to answer the question themselves. This significantly cuts down on emails as many times students can find the answer to their questions, but it seems easier just to email the professor.

Sources can include the syllabus, the Ask the Professor Q&A Discussion Board, classmates, the textbook, and so on. If I ask the student for the three sources and they do not have them, I dock participation points. Works great on significantly cutting down my emails and helps to prepare my students for the real world!



The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material.

Enjoy your course and best of luck! Please feel free to email me directly if you have any questions, ideas, suggestions, or feedback! For additional course materials, content, and cases, visit www.baltzan.net or pbaltzan@baltzan.net.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 140

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL UNIT FIVE OVERVIEW This unit focuses on how to build an organization that can transform itself to meet changing business, organization, and industry needs to sustain long-term business success. The chapters in this unit include:   

Chapter Sixteen—Integrating Wireless Technology in Business Chapter Seventeen—Developing Software to Streamline Operations Chapter Eighteen—Managing Organizational Projects

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 141

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL CHAPTER 16 This chapter focuses on wireless technologies changing the competitive landscape of business.

RFID, GIS, GPS, and the different ways that 5G and mobile device applications help an organization keep track of data that is in the air.

LEARNING OUTCOMES 1.73 Identify the benefits of wireless networks.

Before networks, transferring data between computers was time-consuming and labor-intensive.

People had to copy data physically from machine to machine using a disk. Networks offer many advantages for a business, including:  Sharing resources  Providing opportunities  Reducing travel Networks have created a diverse yet globally connected world. By eliminating time and distance, networks make it possible to communicate in ways not previously imaginable. Even though networks provide many business advantages, they also create increased challenges in (1) security and (2) social, ethical, and political issues.

1.74Describe the different wireless network categories.

There are four types of wireless networks: PAN, WLAN, WMAN, and WWAN. A PAN provides communication over a short distance that is intended for use with devices that are owned and operated by a single user. A WLAN is a local area network that uses radio signals to transmit and receive data over distances of a few hundred feet. A WMAN is a metropolitan area network that uses radio signals to transmit and receive data, and a WWAN is a wide area network that uses radio signals to transmit and receive data.

1.75Identify the challenges of wireless networks.

Data theft and network intrusions can occur if access codes, passwords, or devices are not managed properly on and off corporate networks. Lost or stolen devices are big risks for a corporation’s sensitive data.

1.76Explain mobile enterprise management and its importance to a business.

Enterprise mobility management (EMM) is an enterprisewide security strategy to enforce corporate epolicies while enabling employee use of mobile devices such as smartphones and tablets. EMM prevents unauthorized access to corporate applications and data on mobile devices. The goal of EMM is to customize a strategy for devices, applications, and information management among remote employees inside and outside the workplace.

1.77Explain the three primary business applications of wireless technology.

Mobile and wireless business applications and services are using satellite technologies.

These technologies are GPS, GIS, and LBS. GPS is a satellite-based navigation system © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 142

providing extremely accurate position, time, and speed information. GIS is location information that can be shown on a map. LBSs are applications that use location information to provide a service that both GPS and GIS use.

CORE MATERIAL The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material. You will find numerous classroom ideas to keep your course exciting and challenge your students to apply the material.

RUNNING CASE STUDY QUESTIONS 273. You have landed your dream job working for Steve Evert. Unfortunately, Steve doesn’t understand the difference between the three different wireless business applications. Create a document explaining these important concepts to Steve along with how Slack can use each to provide value to its customers.

The important concepts can include any of the following:  Radio-frequency identification: Slack could use RFID to track office supplies.  Global positioning system: Slack could use GPS to track photos and display location of people posting pins.  Geographic information system: Slack could use a GIS to show where are of its posts are coming from around the globe.  Wireless local area network (WLAN): Uses radio waves rather than wires to transmit information across a local area network.  Cellular phones and pagers: Provide connectivity for portable and mobile applications, both personal and business.  Cordless computer peripherals: Connect wirelessly to a computer, such as a cordless mouse, keyboard, and printer.  Satellite television: Allows viewers in almost any location to select from hundreds of channels.  WiMAX wireless broadband: Enables wireless networks to extend as far as 30 miles and transfer information, voice, and video at faster speeds than cable. It is perfect for internet service providers (ISPs) that want to expand into sparsely populated areas, where the cost of bringing in cable wiring or DSL is too high.  Security sensor: Alerts customers to break-ins and errant pop flies. Its dual sensors record vibration and acoustic disturbances—a shattered window—to help avoid false alarms.

274. It is also important that Steve understands the mobility benefits and challenges.

Create an overview of these benefits and challenges and be sure to include how they might impact Slack.

Advantages of Wireless Networks - Enhances mobility © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 143

-

Provides immediate data access Increases location and monitoring capabilities Improves workflow Provides mobile business opportunities Provides alternatives to wiring

Challenges of Business Mobility  Protecting against theft  Protecting wireless connections  Preventing viruses on mobile devices  Addressing privacy concerns with RFID and LBS

CHAPTER SIXTEEN CASE Explain how connected cars are using wireless technologies to become more efficient and effective.

The IoT sensors on the car enables the car to learn how to drive-thru machine learning. With the advent of 5G, the car will have instantaneous always-on connected sensors to every other car on the road.

275. Identify how a connected car uses streaming data to help drivers make better decisions.

The data must be tracking and monitoring the IoT devices on the car continuously. Streaming data provides feedback immediately so the car can make the right decision about driving.

276. Argue for or against the following statement: Technology companies will invade driver privacy by collecting data from connected cars without the consent of the drivers.

This will be an interesting development as more and more autonomous vehicles hit the roads.

The laws are not yet here—but they are coming and will take time to develop.

277. How will mobile enterprise management be deployed for corporate connected cars?

If the employee suddenly quits, will the car stop working? This is an interesting dilemma for the MDM. Is a corporate car considered a device? How will the company track the cars data, if the employee is using it off-hours? Can they track the speed of the car and if it ran a red light? Lots of unanswered questions around corporate autonomous vehicles.

REVIEW QUESTIONS What is a personal area network?

A personal area network (PAN) provides communication for devices owned by a single user that work over a short distance. PANs are used to transfer files, including email, calendar appointments, digital photos, and music. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 144

278. How does Wi-Fi work?

Wireless fidelity (Wi-Fi) is a means by which portable devices can connect wirelessly to a local area network, using access points that send and receive data via radio waves. Wi-Fi has a maximum range of about 1,000 ft in open areas such as a city park and 250–400 ft in closed areas such as an office building.

279. What are GIS, GPS, and LBS? How are businesses using these applications to compete?

A global positioning system (GPS) is a satellite-based navigation system providing extremely accurate position, time, and speed information. A geographic information system (GIS) stores, views, and analyzes geographic data creating multidimensional charts or maps. GPS and GIS both utilize location-based services (LBS), applications that use location information to provide a service.

280. What is RFID and how could it help a large retailer track inventory?

Radio-frequency identification (RFID) uses electronic tags and labels to identify objects wirelessly over short distances. It holds the promise of replacing existing identification technologies such as the barcode.

281. What are the advantages of mobile business?

Business anytime, anywhere is always going to be a win for any customer.

282. Why would a company want to implement mobile device management?

Mobile device management (MDM) remotely controls smartphones and tablets, ensuring data security.

283. What is IT consumerization and how does it impact an organization?

IT consumerization is the blending of personal and business use of technology devices and applications.

284. Why would a company want to use VoLTE? Voice over LTE (VoLTE) allows mobile voice calls to be made over broadband networks, creating—under the right network conditions—clearer audio and fewer dropped calls.

285. What is the difference between WEP and WPA? Wired equivalent privacy (WEP) is an encryption algorithm designed to protect wireless transmission data. Wi-Fi protected access (WPA), a wireless security protocol to protect WiFi networks. It is an improvement on the original Wi-Fi security standard, wired equivalent privacy (WEP), and provides more sophisticated data encryption and user authentication.

286. How could hackers use war chalking and war driving?

War chalking is the practice of tagging pavement with codes displaying where Wi-Fi access is available. The codes for war chalking tell other users the kind of access available, the speed of the network, and if the network is secured. War driving is deliberately searching for Wi-Fi signals while driving by in a vehicle. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 145

MAKING BUSINESS DECISIONS SPORTS SENSORS The idea here is to have students thinking of the issues surrounding online business and sensors. There are so many different devices capturing data and contributing to the big data movement. Millions of bytes are being generated and collected from sensors from all kinds of new devices.

287. SNAPPING A THEFTIE There are so many sides to this argument. What a great way to find out if someone has stolen your phone, but the downside could be photos of people who are not stealing your phone.

Not only will your students think of the potential problems with this app but also other uses for the application.

288.   

POKÉMON GO FOR PLAYGROUNDS Can you think of another way to get kids moving using wireless technologies?

How can Pokémon Go be used to help children exercise beyond a playground?

How could a gym incorporate the same technology for adults?

289. CARS HACKED The future of the connected car is just beginning to be realized. As our cars become smart cars how many criminals will be focused on stealing the information in the car and not the car itself.

290.

WAR DRIVING: ENGINEERING OR PRIVACY?  Do you believe that is what you are agreeing to when you join an unsecured wireless network at a coffee shop or in a hotel?  When you join an unsecured network, do you agree that your activity is public? Is this agreement implicit?  If it were explicit, would you agree to it?

291. GOOGLE COLLECTED PUBLIC WI-FI DATA—BY MISTAKE? Student answers will vary depending on each student’s view of personal privacy.

292. SHOULD AIRLINES ALLOW CELL PHONE CALLS DURING FLIGHTS? Anyone who has ever been on a plane and the person next to them is talking on a phone will say Hard No!! It would disrupt every passenger on the plane.

293. MYTH BUSTING: IS 5G SAFE? There are many differing views to the safety of cell phones ranging from causing brain tumors to anxiety. Great discussion material for your class.

294. ADVERTISING GO-NO? Ethics around the use of technology and personal data are always a great topic for students.

Many companies share data for payment including pharmacies selling data to drug makers and the post office sharing data when a customer moves. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 146

295. VIRTUAL REALITY AND AUGMENTED REALTY DISRUPTING THE CLASSROOM. Fun and exciting classroom exercise and many of the apps your students will create are already here—biology for dissection, geography when you travel to the places you are learning about, and history where you can see the battles being fought.

296. MOBILITY AS A SERVICE START-UP. Many of your students might be using this app as their parents had it placed on their cars when they were new drivers. Ask your students if their answers to this question change if they are the parents and their children are just turning 16 and starting to drive.

297. THE MAGIC MOBILITY OF DISNEY. Disney is a fascinating company to study when you are discussing technology as they are a true innovator in this space. There are some concerns as people could hack into your band and use your credit card or rob your hotel room. Overall, it has improved the customer experience tremendously which might outweigh the security concerns.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 147

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 148

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL This guide provides many classroom activities, videos, and debates to accompany Business Driven Technology 10e. A few course suggestions: 

Create one or two test questions based on the classroom activity to help reward students who attend lectures.



Many professors have found that assigning an activity and then lecturing on the material helps students gain a deeper understanding of the core MIS concepts as they have already struggled with applying the material to a real-world situation.



Asking a small group of students to explain their answer to the activity to the entire class after completion ensures students come to class prepared. I select a different group each activity to explain their answer and they do not want to look unprepared in front of their fellow classmates. It is a powerful motivator to get my students to read prior to class. After the activity and student’s presentations then I lecture—this keeps my students engaged and helps to achieve a higher level of learning outcomes as they are constantly tasked with applying the concepts during class.



Create an Ask the Professor Discussion Board that runs the entire course where students can ask course and content-related questions. I typically promise to respond within 24 hr, and I always encourage my students to check the discussion board before sending an email. Many times, if one student has a question so do other students.



**Three Before Me Rule! This is something I have found that saves a great deal of time answering email. I state the Three Before Me Rule in my syllabus. Before a student comes to me with a question, they must provide three sources they used to answer the question themselves. This significantly cuts down on emails as many times students can find the answer to their questions, but it seems easier just to email the professor.

Sources can include the syllabus, the Ask the Professor Q&A Discussion Board, classmates, the textbook, and so on. If I ask the student for the three sources and they do not have them, I dock participation points. Works great on significantly cutting down my emails and helps to prepare my students for the real world!



The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material.

Enjoy your course and best of luck! Please feel free to email me directly if you have any questions, ideas, suggestions, or feedback! For additional course materials, content, and cases, visit www.baltzan.net or pbaltzan@baltzan.net.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 149

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL UNIT FIVE OVERVIEW This unit focuses on how to build an organization that can transform itself to meet changing business, organization, and industry needs to sustain long-term business success. The chapters in this unit include:   

Chapter Sixteen—Integrating Wireless Technology in Business Chapter Seventeen—Developing Software to Streamline Operations Chapter Eighteen—Managing Organizational Projects

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 150

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL CHAPTER 17 Organizations must learn how to build and implement disruptive technologies, such as software for wireless devices, to remain competitive. Software that is built correctly can support agile organizations and can transform as the organization and its business transforms. Software that effectively meets employee needs will help an organization become more productive and enhance decision-making. Software that does not meet employee needs may have a damaging effect on productivity and can even cause a business to fail.

No one would think of building an office complex by turning loose 100 different construction teams to build 100 different rooms, with no single blueprint or agreed-upon vision of the completed structure. Yet this is precisely the situation in which many large organizations find themselves when managing information technology projects. Organizations routinely overschedule their resources (human and otherwise), develop redundant projects, and damage profitability by investing in nonstrategic efforts that do not contribute to the organization’s bottom line. Project management offers a strategic framework for coordinating the numerous activities associated with organizational projects.

Business leaders face a rapidly moving and unforgiving global marketplace that will force them to use every possible tool to sustain competitiveness. A good project manager understands not only the fundamentals of project management but also how to effectively deal with change management and risk management. This chapter explores project management, change management, risk management, and outsourcing in detail.

LEARNING OUTCOMES 1.78Describe the seven phases of the systems development life cycle.

The seven phases in the SDLC include:  Planning phase—involves establishing a high-level plan of the intended project and determining project goals  Analysis phase—involves analyzing end-user business requirements and refining project goals into defined functions and operations of the intended system  Design phase—involves describing the desired features and operations of the system including screen layouts, business rules, process diagrams, pseudo code, and other documentation  Development phase—involves taking all of the detailed design documents from the design phase and transforming them into the actual system  Testing phase—involves bringing all the project pieces together into a special testing environment to test for errors, bugs, and interoperability and verify that the system meets all of the business requirements defined in the analysis phase  Implementation phase—involves placing the system into production so users can begin to perform actual business operations with the system  Maintenance phase—involves performing changes, corrections, additions, and upgrades to ensure the system continues to meet the business goals © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 151

1.79Summarize the different software development methodologies.

The oldest and the best known project management methodology is the waterfall methodology, a sequence of phases in which the output of each phase becomes the input for the next. In the SDLC, this means the steps are performed one at a time, in order, from planning through implementation and maintenance. The traditional waterfall method no longer serves most of today’s development efforts, however; it is inflexible and expensive, and it requires rigid adherence to the sequence of steps. Its success rate is only about 1 in 10.

There are a number of software development methodologies:      

Agile methodology aims for customer satisfaction through early and continuous delivery of useful software components developed by an iterative process with a design point that uses the bare minimum requirements.

Waterfall methodology follows an activity-based process in which each phase in the SDLC is performed sequentially from planning through implementation and maintenance.

Rapid application development (RAD) methodology emphasizes extensive user involvement in the rapid and evolutionary construction of working prototypes of a system to accelerate the systems development process.

Extreme programming (XP) methodology breaks a project into tiny phases, and developers cannot continue on to the next phase until the first phase is complete.

Rational unified process (RUP) provides a framework for breaking down the development of software into four gates.

Scrum uses small teams to produce small pieces of deliverable software by using sprints, or 30-day intervals, to achieve an appointed goal.

CORE MATERIAL The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material. You will find numerous classroom ideas to keep your course exciting and challenge your students to apply the material.

RUNNING CASE STUDY QUESTIONS 298. You have landed your dream job working for Steve Evert. Unfortunately, Steve doesn’t understand the phases in the systems development life cycle. Create an overview of each phase and be sure to explain to Steve which phase is the most critical (and least critical) when building a new system.

The seven phases in the SDLC include:  Planning phase—involves establishing a high-level plan of the intended project and determining project goals  Analysis phase—involves analyzing end-user business requirements and refining project goals into defined functions and operations of the intended system © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 152



Design phase—involves describing the desired features and operations of the system including screen layouts, business rules, process diagrams, pseudo code, and other documentation  Development phase—involves taking all of the detailed design documents from the design phase and transforming them into the actual system  Testing phase—involves bringing all the project pieces together into a special testing environment to test for errors, bugs, and interoperability and verify that the system meets all of the business requirements defined in the analysis phase  Implementation phase—involves placing the system into production so users can begin to perform actual business operations with the system  Maintenance phase—involves performing changes, corrections, additions, and upgrades to ensure the system continues to meet the business goals Every phase is important when it is developing software. Software development projects cannot skip any of the SDLC phases when developing software or they will risk failure.

299. Create a brief overview of the different development methodologies and explain which one you recommend using to build a new system.

There are a number of software development methodologies:  Agile methodology aims for customer satisfaction through early and continuous delivery of useful software components developed by an iterative process with a design point that uses the bare minimum requirements.  Waterfall methodology follows an activity-based process in which each phase in the SDLC is performed sequentially from planning through implementation and maintenance.  Rapid application development (RAD) methodology emphasizes extensive user involvement in the rapid and evolutionary construction of working prototypes of a system to accelerate the systems development process.  Extreme programming (XP) methodology breaks a project into tiny phases, and developers cannot continue on to the next phase until the first phase is complete.  Rational unified process (RUP) provides a framework for breaking down the development of software into four gates.  Scrum uses small teams to produce small pieces of deliverable software by using sprints, or 30-day intervals, to achieve an appointed goal.  Students should not recommend the waterfall approach as this methodology fails 90% of the time. Students can choose any of the agile approaches as long as they explain the reasoning for the success of agile methodologies over waterfall methodology.

CHAPTER SEVENTEEN CASE List five types of data Peloton might be collecting from its customers as they ride on a bike or use a treadmill.

Lots of interesting ideas—speed, calories burned, time, cadence, left in the middle of a class, classes completed, favorite coaches, different types of classes, different users on one bike per household. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 153

300. What types of business questions can Peloton answer from the data listed in Question 1?

Everything. Who are their best and worst customers? What customers would value additional challenges or less strenuous classes? How many bike riders are in a home with multiple riders? How many people ride every day? How can they keep customers riding every day?

Which coaches are the best and why? Which coaches are the worst and why? Which classes burn the most calories?

301. Which phase in the SDLC is most critical to Peloton application development success?

All!!!! Every single SDLC phase is important—You simply can’t skip any without causing failure.

302. Which phase in the SDLC is least critical to Peloton’s application development success?

None!

303. Which software development methodology should Peloton follow to ensure success?

Any methodology except waterfall!

REVIEW QUESTIONS What is the systems development life cycle?

The systems development life cycle (SDLC) is the overall process for developing information systems, from planning and analysis through implementation and maintenance.

The SDLC is the foundation for all systems development methods, and hundreds of different activities are associated with each phase. These activities typically include determining budgets, gathering system requirements, and writing detailed user documentation.

304. What are the phases in the systems development life cycle?

The seven phases in the SDLC include:  Planning phase—involves establishing a high-level plan of the intended project and determining project goals  Analysis phase—involves analyzing end-user business requirements and refining project goals into defined functions and operations of the intended system  Design phase—involves describing the desired features and operations of the system including screen layouts, business rules, process diagrams, pseudo code, and other documentation  Development phase—involves taking all of the detailed design documents from the design phase and transforming them into the actual system  Testing phase—involves bringing all the project pieces together into a special testing environment to test for errors, bugs, and interoperability and verify that the system meets all of the business requirements defined in the analysis phase  Implementation phase—involves placing the system into production so users can begin to perform actual business operations with the system  Maintenance phase—involves performing changes, corrections, additions, and upgrades to ensure the system continues to meet the business goals © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 154

305. Which phase in the systems development life cycle is the most important?

All phases in the systems development life cycle are important. One of the most critical phases is analysis of the business requirements. Without the right business requirements, every area of the project will be heading in the wrong direction.

306. If you had to skip a phase during the development of a system, which phase would it be and why?

You should never skip any phases during the systems development life cycle. If you must make a choice, reduce scope, increase resources, or increase time, but it is critical to complete each and every phase.

307. Which phase in the systems development life cycle contains the most risk? Be sure to explain your answer.

All phases have risk but where most projects fail is in analysis of the business requirements.

If you do not gather the correct business requirements, it will be impossible to complete the project. Seventy percent of projects fail due to inaccurate business requirements.

308. What are the different types of system testing?

The different types of system testing include: - Alpha Testing: Assess if the entire system meets the design requirements of the users - Development Testing: Test the system to ensure it is bug-free - Integration Testing: Verify that separate systems can work together, passing data back-and-forth correctly - System Testing: Verify that the units or pieces of code function correctly when integrated - User Acceptance Testing (UAT): Determine if the system satisfies the user and business requirements - Unit Testing: Test individual units or pieces of code for a system 309.

What are the different types of system implementation methods?

- Parallel Implementation: Uses both the legacy system and new system until all users verify that the new system functions correctly - Plunge Implementation: Discards the legacy system and immediately migrates all users to the new system - Pilot Implementation: Assigns a small group of people to use the new system until it is verified that it works correctly; then the remaining users migrate to the new system

-

Phased Implementation: Installs the new system in phases (e.g., by department) until it is verified that it works correctly

310. Why should end users be involved in the systems development effort?

End users should be heavily involved in every phase of the systems development life cycle to ensure the project is complete to their expectations. No matter how good of a system is developed, if it does not meet the end users’ needs or approval, it will become vaporware.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 155

311. Which project management methodology would you choose to run your systems development project?

Answers to this question will vary. No student should choose waterfall. Any of the agile software development methodologies will work.

312. If you started on a new software development project and the project plan was using the waterfall methodology, would you remain on the project? Why or why not? What could you do to prepare your project better for success?

Any project using the waterfall approach is doomed for failure and you should exit the project if possible. If you stay on the project, you would want to recommend switching to one of the agile methodologies to ensure the project’s success.

MAKING BUSINESS DECISIONS MANAGING PHASES IN THE SYSTEMS DEVELOPMENT LIFE CYCLE Every phase in the SDLC must be followed or else the project will be in jeopardy of failure.

Testing is one of the most important phases. You would never consider handing in a term paper that has not been spell-checked, and the same goes for an information system. You should never consider placing a system into production that has not been tested.

313. REFUSING TO SIGN-OFF Sign-off is the system users’ actual signatures indicating they approve all of the business requirements. Student answers to this question will vary. The important part of their answer will be their justification for providing sign-off, or not providing their sign-off.

314. BUGS EVERYWHERE Rank the three types of bugs by which one is the easiest to identify and which one is the most difficult to identify.

Syntax bugs are the easiest to identify as the program will highlight and recognize the syntax error immediately after the user has typed the word. Runtime errors are second as they are found when the programmer attempts to run the program. Logic errors are the most difficult to identify as they are only found by analyzing the output of the program to ensure the results are the same as expected.

What happens if metrics are not tracked on bug identification and bug fixes?

If you fail to track bug report metrics, you would be unable to identify either a programmer who is not doing their job or a section of code that is not working correctly.

What happens if a bug is not caught during development and goes live in production?

This occurs all the time and is the primary reason why many people do not take the most recent software release. It is next to impossible to test every scenario of use for software and many times the bugs are not found until the program is up-and-running and being used in ways the developer never expected. When a bug is found during live production, the bug must be fixed and a patch is typically released to solve the problem.

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 156

Imagine the following scenario: A tester creates a new bug report for a problem that was already identified as a bug; however, it is not detected as a duplicate. What happens to the project? This is a particularly common issue with large, complex system development efforts. How can you mitigate the problem of different users reporting the same bug or problem about the same system?

The developer certainly doesn’t want to continuously fix the same problem, but it is impossible to correlate all of the bug problems. Having a team that can analyze the bug reports and ensure they are grouped into categories will save the development team a tremendous amount of time (and money).

315.    

MEETINGS, MEETINGS, NO MORE MEETINGS! In a group, create a charter for your group meetings using the above list as a starter.

Are there any other items you would add to the list, perhaps about distractions such as cell phones or side conversations?

How can having meeting rules help foster more effective meetings?

Do you foresee any issues with implementing a meeting charter for your own personal group meetings? If so, how would you combat such issues?

316. PICKING GREAT PROJECTS A project is a temporary endeavor undertaken to create a unique product or service.

According to the Project Management Institute, project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project.

One of the most difficult decisions organizations make is determining the projects in which to invest time, energy, and resources. An organization must identify what it wants to do and how it is going to do it. The ―what‖ part of this question focuses on issues such as justification for the project, definition of the project, and expected results of the project. The ―how‖ part of the question deals with issues such as project approach, project schedule, and analysis of project risks. Determining which projects to focus corporate efforts on is as necessary to projects as each project is to an organization. The three common techniques an organization can use to select projects include:  Focus on organizational goals  Categorize projects  Perform a financial analysis The projects that contain business critical needs should be prioritized first, and the projects that are simply nice-to-haves should be last. For example, developing backup and recovery strategies are considered business critical needs, whereas enhancing the employee intranet and developing an employee vacation tracking system are not as critical to running the core business.

Student answers to this question will vary. The important part of the answer is the justification for their answer. Potential answer includes:  Develop backup and recovery strategy—without this strategy the business is at risk. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 157

     

   317.   

Implement supply chain management system—implement means there is not a current system. An SCM system can help improve the business.

Performance test all hardware to ensure 20% growth scalability—if the business cannot grow, there is no need to continue the business.

Implement changes to employee benefits system—employee benefits are core to employees and the business should not risk alienating its employees.

Upgrade accounting system—the accounting system is critical to the core business and an upgrade could help the business with better financial information.

Upgrade customer relationship management system—CRM is critical to a business, as without customers there is no business.

Cleanse and scrub data warehouse information—without clean information there is no level of accuracy or completeness in data warehouse report information. This is not as critical because core reports can be run straight from the systems (not from the data warehouse).

Build executive information system for CEO—this is a nice to have, the CEO will have an easier time tracking the business.

Develop employee vacation tracking system—this is a nice to have, the business can track this on paper until the system is built.

Enhance employee intranet—this is a nice to have, employees can find information from other sources until the intranet is enhanced.

RESPONDING TO DILEMMAS You are aware that the project you are managing has gone to ―red‖ status due to a 10% schedule slippage. Do you alert the stakeholders or wait to see if the team can get back on track?

A member of the executive team asks you to hide the fact that one of the business requirements collected is inaccurate, causing a $200,000 fix. The executive believes it is the customer’s fault as they signed off on the business requirements.

You have several employees who are not pulling their weight on the project, leaving early, and missing deadlines. One employee will be fired if you notify Human Resources of these problems.

318. SCRATCH Scratch is using an agile/iterative approach to building software. Small pieces are built and tested before additional pieces are added. Scratch is a fun site to review if your students are curious about software and coding.

319.

-

MOORE’S LAW IS DEAD Do you agree or disagree that Moore’s law is coming to an end?

What will happen to the business environment if Moore’s law does die?

What can companies do to remain competitive when hardware advances are not driving the companies forward?

How does Moore’s law impact the SDLC?

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 158

© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 159

BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL This guide provides many classroom activities, videos, and debates to accompany Business Driven Technology 10e. A few course suggestions: 

Create one or two test questions based on the classroom activity to help reward students who attend lectures.



Many professors have found that assigning an activity and then lecturing on the material helps students gain a deeper understanding of the core MIS concepts as they have already struggled with applying the material to a real-world situation.



Asking a small group of students to explain their answer to the activity to the entire class after completion ensures students come to class prepared. I select a different group each activity to explain their answer and they do not want to look unprepared in front of their fellow classmates. It is a powerful motivator to get my students to read prior to class. After the activity and student’s presentations then I lecture—this keeps my students engaged and helps to achieve a higher level of learning outcomes as they are constantly tasked with applying the concepts during class.



Create an Ask the Professor Discussion Board that runs the entire course where students can ask course and content-related questions. I typically promise to respond within 24 hr, and I always encourage my students to check the discussion board before sending an email. Many times, if one student has a question so do other students.

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**Three Before Me Rule! This is something I have found that saves a great deal of time answering email. I state the Three Before Me Rule in my syllabus. Before a student comes to me with a question, they must provide three sources they used to answer the question themselves. This significantly cuts down on emails as many times students can find the answer to their questions, but it seems easier just to email the professor.

Sources can include the syllabus, the Ask the Professor Q&A Discussion Board, classmates, the textbook, and so on. If I ask the student for the three sources and they do not have them, I dock participation points. Works great on significantly cutting down my emails and helps to prepare my students for the real world!



The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material.

Enjoy your course and best of luck! Please feel free to email me directly if you have any questions, ideas, suggestions, or feedback! For additional course materials, content, and cases, visit www.baltzan.net or pbaltzan@baltzan.net.

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BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL UNIT FIVE OVERVIEW This unit focuses on how to build an organization that can transform itself to meet changing business, organization, and industry needs to sustain long-term business success. The chapters in this unit include:   

Chapter Sixteen—Integrating Wireless Technology in Business Chapter Seventeen—Developing Software to Streamline Operations Chapter Eighteen—Managing Organizational Projects

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BUSINESS DRIVEN TECHNOLOGY 10E INSTRUCTOR’S MANUAL CHAPTER 18

LEARNING OUTCOMES 1.80: Explain project management and identify the primary reasons projects fail.

A project is a temporary or short-term endeavor undertaken to create a unique product, service, or result, such as developing a custom ecommerce site or merging databases. Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. A project manager is an individual who is an expert in project planning and management, defines and develops the project plan, and tracks the plan to ensure the project is completed on time and on budget.

The triple constraints are scope, resources, and time. These three components are interdependent, and if you change one the others must change. The three primary activities performed by a project manager include choosing strategic projects, setting the project scope, and managing resources and maintaining the project plan.

Project stakeholders are individuals and organizations actively involved in the project or whose interests might be affected as a result of project execution or project completion. While all stakeholders are important, one stands out as having the most impact on the success or failure of a project. That person is the executive sponsor or the person or group who provides the financial resources for the project. Techniques for choosing strategic projects include focusing on organizational goals, categorizing projects, or performing a financial analysis.

1.81: Identify the primary project planning diagrams.

A PERT (Program Evaluation and Review Technique) chart is a graphical network model that depicts a project’s tasks and the relationships between those tasks. A dependency is a logical relationship that exists between the project tasks, or between a project task and a milestone.

A Gantt chart is a simple bar chart that depicts project tasks against a calendar. In a Gantt chart, tasks are listed vertically, and the project’s time frame is listed horizontally. A Gantt chart works well for representing the project schedule. It also shows actual progress of tasks against the planned duration. The three primary areas a project manager must focus on managing to ensure success are managing people, communications, and change.

1.82: Identify the three different types of outsourcing along with their benefits and challenges.  Onshore outsourcing—engaging another company within the same country for services.  Nearshore outsourcing—contracting an outsourcing arrangement with a company in a nearby country.  Offshore outsourcing—using organizations from developing countries to write code and develop systems.

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The many benefits associated with outsourcing include increased quality and efficiency of a process, service, or function; reduction of operating expenses and exposure to risks involved with large capital investments; and access to outsourcing service provider’s expertise, economies of scale, best practices, and advanced technologies. Outsourcing comes with several challenges including length of contracts, losing competitive advantages, and risking a breach of confidential information.

CORE MATERIAL The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed teaching notes including exercises, class activities, questions, and examples. Please review the PowerPoint slides for detailed notes on how to teach and enhance the core chapter material. You will find numerous classroom ideas to keep your course exciting and challenge your students to apply the material.

RUNNING CASE STUDY QUESTIONS 320. You have landed your dream job working for Steve Evert. Unfortunately, Steve doesn’t understand the importance of project management and needs to create a presentation explaining the three interdependent variables shaping project management and why these variables are important to a software development project.

Time, resources, and scope are the three interdependent variables shaping project management. These variables are interdependent indicating that if one variable changes the other variables must change to meet success. For example, is you change time by moving the deadline up the project must decrease scope or increase resources to find success? For this reason, these three variables are important to any project!

321. Be sure to explain to Steve why the cost of finding errors is important to a business when developing software.

Finding errors early is important to every systems development effort regardless of the industry. The later in the life cycle that you find the errors the more expensive it is to fix. A 10-dollar error found in planning could cost the company 1 million dollars to fix during implementation.

CHAPTER EIGHTEEN CASE What are the three interdependent variables shaping project management? Why are these variables important to a video game software development company?

The triple constraints include scope, resources, and time. These three components are interdependent and if you change one the others must change. The three primary activities performed by a project manager include choosing strategic projects, setting the project scope, and managing resources and maintaining the project plan. Every company that develops software must watch these three variables closely to ensure projects are executed in a timely and efficient manner.

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322. If you were consulting to a business that wanted to build a video game for the iPhone, which development methodology would you recommend and why?

One of the agile development methodologies should be recommended. If a student recommends the waterfall methodology, ensure they have a solid reason for not going back to requirements constantly to ensure success.

323. Illustrate the triple constraints role when building a new game. Why is the cost of finding errors important to a business when developing and designing video games?

The triple constraints include scope, resources, and time. These three components are interdependent and if you change one the others must change. The three primary activities performed by a project manager include choosing strategic projects, setting the project scope, and managing resources and maintaining the project plan. The later in the life cycle you find an error the more expensive it is to fix. Finding errors early and quickly during the requirements phase is the key to a successful project.

324. Which phase in the systems development life cycle is most critical when building a video game? Which phase in the systems development life cycle is least critical when building a video game?

The requirements phase is typically more critical—wrong requirements and all other phases suffer. Answers to this question will vary—the key is to understand the students’ rationale for the phases they pick as most and leave critical. All phases in the life cycle are critical, and for success, a project should decrease scope and increase time or resources before eliminating a phase in the life cycle.

325. What are the ethical and security issues associated with outsourcing the development of a video game to India or China?

Outsourcing a project can have all kinds of ethical and security issues including copyright infringement, lack of coding standards, quality of work, and delivery of the system.

Outsourcing is always risky! Length of contract, threat to competitive advantage, and loss of confidentiality are all challenges of outsourcing.

REVIEW QUESTIONS What role does project management play in the systems development effort?

Any systems development effort needs to be properly managed. Each step in the systems development life cycle needs to be measured, managed, and reviewed to ensure completion within budget and in scope.

326. What role does the project manager play in determining a project’s success?

The success of a project completely depends on the ability of the project manager to execute the project successfully. The project manager is an individual who is an expert in project planning and management, defines and develops the project plan, and tracks the plan to ensure the project is completed on time and on budget.

327. Why would a project require an executive sponsor?

The person or group who provides the financial resources for the project is the executive sponsor. Executive sponsors play a critical role in systems development as the project needs funding and executive-level support for resources and momentum. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 164

328. Why would a project manager use Gantt and PERT charts?

A PERT (Program Evaluation and Review Technique) chart is a graphical network model that depicts a project’s tasks and the relationships between them. A Gantt chart is a simple bar chart that lists project tasks vertically against the project’s time frame listed horizontally.

Both are tools the project manager can use to ensure the project is performing as expected.

329. Why is gathering business requirements a challenge for most projects?

Gathering business requirements is difficult as most users do not understand the entire business processes from end-to-end, and gathering workflow information that crosses departments is a difficult task. It is even harder to capture the vision of future business processes based on continued change.

330. What are the different types of outsourcing available for a project?

Onshore outsourcing—engaging another company within the same country for services.

Nearshore outsourcing—contracting an outsourcing arrangement with a company in a nearby country. Often this country will share a border with the native country. Offshore outsourcing—using organizations from developing countries to write code and develop systems. In offshore outsourcing, the country is geographically far away.

331. Explain the goals of the Project Management Institute and identify three key terms associated with PMBOK. The Project Management Institute created the Project Management Body of Knowledge (PMBOK) for the education and certification of project managers. There are a number of terms associated with PMBOK in the figure in the text.

332. Explain the different types of feasibility studies a project manager can use to prioritize project importance.

The different feasibility studies include economic, operational, schedule, technical, political, and legal. All of these studies will help managers prioritize projects based on completion success.

MAKING BUSINESS DECISIONS 333.

WORK BREAKDOWN STRUCTURES Have you ever had to delegate to a coworker or a fellow student? What problems did you encounter? Was the work done to your satisfaction? Have you ever found yourself as the student on the group project completing all of the work? In a group, discuss the pros and cons of delegating work. What can you do to ensure you are comfortable delegating your workload?

Learning how to break down tasks and assign them to a team based on measurable metrics is a key to successful management. Have your students create a few different work breakdown structures and have their peers review them. Finding missing steps or © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 165

challenging the time it takes to complete a task should always be reviewed by another person.

334.

PRIORITIZING PROJECTS A project is a temporary endeavor undertaken to create a unique product or service.

According to the Project Management Institute, project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project.

One of the most difficult decisions organizations make is determining the projects in which to invest time, energy, and resources. An organization must identify what it wants to do and how it is going to do it. The ―what‖ part of this question focuses on issues such as justification for the project, definition of the project, and expected results of the project. The ―how‖ part of the question deals with issues such as project approach, project schedule, and analysis of project risks. Determining which projects to focus corporate efforts on is as necessary to projects as each project is to an organization. The three common techniques an organization can use to select projects include:   

Focus on organizational goals.

Categorize projects.

Perform a financial analysis.

The projects that contain business critical needs should be prioritized first, and the projects that are simply nice-to-haves should be last. For example, developing backup and recovery strategies are considered business critical needs, whereas enhancing the employee intranet and developing an employee vacation tracking system are not as critical to running the core business.

Student answers to this question will vary. The important part of the answer is the justification for their answer. Potential answer includes:       

Develop backup and recovery strategy—without this strategy the business is at risk.

Implement supply chain management system—implement means there is not a current system. An SCM system can help improve the business.

Performance test all hardware to ensure 20% growth scalability—if the business cannot grow there is no need to continue the business.

Implement changes to employee benefits system—employee benefits are core to employees and the business should not risk alienating its employees.

Upgrade accounting system—the accounting system is critical to the core business and an upgrade could help the business with better financial information.

Upgrade customer relationship management system—CRM is critical to a business, without customers there is no business.

Cleanse and scrub data warehouse information—without clean information there is no level of accuracy or completeness in data warehouse report information. This is not as critical because core reports can be run straight from the systems (not from the data warehouse).

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  

Build executive information system for CEO—this is a nice to have, the CEO will have an easier time tracking the business.

Develop employee vacation tracking system—this is a nice to have, the business can track this on paper until the system is built.

Enhance employee intranet—this is a nice to have, employees can find information from other sources until the intranet is enhanced.

335.

GLOBAL WORK BREAKDOWN STRUCTURES In a group, discuss the following list and identify three problems you might encounter in each area along with potential solutions.

-

Geographic boundaries Cultural differences Economic issues Technological differences

336.

TIME MANAGEMENT APPLICATIONS To empower your life and take back your time, research these applications to see if one can help you use your time more efficiently and effectively. Which one will you start using today and why? How much time do you think this application can help you regain?

If you could create your own time tracking/project management application, what would it do and how would it work?

337.

CONFUSING COFFEE Business requirements are the detailed set of business requests that the system must meet to be successful. At this point, there is little or no concern with any implementation or reference to technical details. For example, the types of technology used to build the system, such as an Oracle database or the Java programming language, are not yet defined. The only focus is on gathering the true business requirements for the system. A sample business requirement might state, ―The system must track all customer sales by product, region, and sales representative.‖ This requirement states what the system must do from the business perspective, giving no details or information on how the system is going to meet this requirement. Gathering business requirements is basically investigating in which users identify all the organization’s business needs and take measurements of these needs. 

All employees must have a unique employee ID. There are no issues with this requirement; in fact, this is a good requirement since each employee must have a unique employee ID.

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The system must track employee hours worked based on employee’s last name.

The system cannot track employee by last name since two or more employees could have the same last name, for example, Smith. The requirement should state that the system will track employees by employee ID since we know this will be unique.



Employees must be scheduled to work a minimum of 8 hr per day.

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This requirement is too detailed. The requirement should state that a full-time employee must work a minimum of 40 hr per week and a part-time employee must work a minimum of 20 hr per week. This requirement needs to move from a day level to a weekly level. 

Employee payroll is calculated by multiplying the employee’s hours worked by $7.25.

This requirement is only correct if every employee makes $7.25 an hour. Since managers are typically paid more than other workers this cannot be correct. The correct requirement would state that employee payroll is calculated by multiplying the employee’s hours worked by the employee’s wage.

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Managers must be scheduled to work morning shifts.

This requirement is correct, but it is missing information. Managers typically need to be scheduled for every shift including afternoons and evenings. The correct requirement would state that a manager must be scheduled to work during every shift.

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Employees cannot be scheduled to work more than 8 hr per day.

This requirement is in direct conflict with requirement #3. Conflicting requirements is very common during requirements gathering.

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Servers cannot be scheduled to work morning, afternoon, or evening shifts.

This requirement is incorrect since servers will never work and the business requires servers to serve the food. ―Cannot‖ might be changed to can or must. Servers must be scheduled to work morning, afternoon, and evening shifts.

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The system must allow managers to change and delete employees from the system.

This requirement is missing information; the managers must also be allowed to add employees into the system.

338.

DEATH MARCH

8. Analyze your school and work projects and find a project that would fit in each box in the accompanying figure.

Answers to this question will vary.

9. What could you have done differently on your suicide project to ensure its success?

The best answer is to pull the kill switch and run away from the suicide project. If you are set up for failure, the best managerial decision is to find a new project and use your time wisely.

10. What can you do to avoid being placed on a suicide project? Given the choice, which type of project would you choose to work on and why?

Being informed of the time, resources, and scope can help students understand the project’s chances of success. If the project manager on the project is not creating Gantt charts and tracking the three primary variables, chances are the project will fail. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 168

Students can choose Kamikaze, mission impossible, or ugly projects but should avoid suicide at all cost.

UNIT CLOSING CASE ONE Why are ambiguous business requirements the leading cause of system development failures?

The most common reason systems fail is because the business requirements are either missing or incorrectly gathered during the analysis phase. The business requirements drive the entire system. If they are not accurate or complete, the system will not be successful.

339.

Why do the words ―and‖ and ―or‖ tend to lead to ambiguous requirements? ―And‖ and ―or‖ have well-defined meanings and ought to be completely unambiguous; yet they are often understood only informally and interpreted inconsistently. For example, consider the statement, ―The alarm must ring if button T is pressed and if button F is pressed.‖ This statement may be intended to mean that to ring the alarm, both buttons must be pressed, or it may be intended to mean that either one can be pressed.

340.

Research the web and determine other reasons for ―bad‖ business requirements.

Student answers to this question will vary.

341.

What is wrong with the following business requirement: ―The system must support employee birthdays since every employee always has a birthday every year.‖ Every employee does not have a birthday every year. Some employees could be born on leap year and therefore would not have a birthday every year. If you build the system with this requirement, you would find yourself in the position of having to find a workaround for those employees born on leap year.

UNIT CLOSING CASE TWO Why does Stitch Fix employ data scientists when it operates in the fashion apparel market?

It is all about prediction and correlation. Stitch Fix has proved it can create a wonderful wardrobe each customer will love based on their preferences. The same way Amazon can tell what I will buy next based on my past purchasing patterns.

342.

Which systems development methodology is Stitch Fix deploying?

Iterative—they are fast and agile and always changing. Only an iterative methodology would support such an amazing fast company.

343.

How do you mail clothes a customer will love without the customer ever getting measured or viewing the inventory?

The same way Spotify can recommend a band based on the music you listen to and what other people that have similar tastes are listening to. It is all about the data. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 169

344.

How can you combine a unique set of algorithms and personalization to create a new kind of company?

Let your students be creative and have fun with this amazing task!

345.

Why are data and systems development critical to Stitch Fix’s business model?

Data and systems development are critical to every business!

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