INTRODUCTION TO THE COURSE

New technologies, information system, application,…=> Their impact on business

models and managerial decision-making.

How to use information technology to create competitive firms, provide useful

products, and services customers,…

* Roles of IS in business and management:

- Technology: hardware, software, network, data, cloud computing, and so on.

- Organization: people, structure, regulations (quy định), rules (quy tắc), and so on

- Management: finance, business models, revenue models, business process, and so on.

* Business values:

- Prediction:

+ Inventory.

+ Demands/needs.

+ Customer experience.

+ So on.

- Enhance custormer experience.

- Mitigate cost.

- Real time.

- Collaboration.

- Data integration => information.

(Integration: tích hợp).

- So on.
 PART ONE: ORGANIZATIONS, MANAGEMEN, AND THE
NETWORKED ENTERPRISE

CHAPTER 1: INFORMATION SYSTEMS IN BUSINESS TODAY

I. How are information systems transforming global business, and why are they so
essential for running and managing a business today?

I. How Information Systems Are Transforming Business:

1.1. Why are they so essential for running and managing a business today?

 Information systems and technologies are transforming the global business

environment.

 In fact, most of the business value of IT investment derives from these organizational,
management, and cultural changes inside firms.

 Help managements decisive wisely.

(Wisely: sáng suốt)

1.2. How Information Systems Are Transforming Business:

* Changes in technology and new, innovative business models have transformed social
life and business practices:

(Innovative: sáng tạo, đổi mới).

- Mobile digital platform.

- Businesses are using information technology to sense and respond to rapidly changing
customer demand, Reduce inventories to the lowest possible levels, and achieve higher
levels of operational efficiency.

(Sense: cảm nhận, achieve: đạt được).

 - Growing online newspaper readership and creating an explosion of new writers and
new forms of customer feedback.

- Global e-commerce and Internet advertising continue to expand.

- New federal security and accounting laws.

 These change in information technology, information systems, consumer behavior and

commerce have spurred the annual growth of digital information.

(Spurred: thúc đẩy).

 The value of this information now exceeds the value of goods and finance exchanged.

(Exceed: vượt quá).

Figure 1.1. Information Technology Capital Investment:

1.3. What’s new in management information systems:

* Five important changes:

- Technology:

+ Cloud computing.

+ Mobile digital business platform base on smart phones and tablet computers.

+ Big data.

+ Business analytic.
 + Social networks.

+ Internet of Things (IoT).

 Achieve business objectives. (objective: mục tiêu).

 To create new products and services, develop new business models, and transform the
day-to-day conduct of business.

(Conduct: hoạt động; day-to-day: hàng ngày).

- New business models:

Ex: The emergence of online video service like Netflix, Apple iTunes,…

- E-commerce expanding:

+ E-commerce is changing how firms design, produce, and deliver their products and
services.

+ They sell services. When we think of e-commerce, we tend to think of selling

physical products => Sell services not goods.

(Tend: xu hướng).

 Information systems and technologies are the foundation of this new services-based e-
commerce: HTTT và CN là nền tảng của TMĐT dựa trên dịch vụ mới.

- Management:

+ Business is going mobile along with consumers.

+ Online collaboration and social networking software: Phần mềm cộng tác trực
tuyến và mạng XH.

+ Business intelligence.

+ Virtual meetings: Các cuộc họp ảo.

- Organizations:

+ Social business.

+ Telework: Làm việc từ xa.

 + Co-creation of business value: Đều tạo ra giá trị KD.

1.4. Globalization challenges and opportunities:

 Challenges:

- Human resources.

- Competitions.

- Security/cyber security.

- Location/time zone.

- SCM: suppliers/vendors/logistics.

- System/data/integration.

- Cost for IS investment.

- Sustainability (Tính bền vững) => ecosystem.

Environment:

+ Regulations/laws/policies <= negotiation.

+ Different cultures: Customers, employees.

 Opportunities:

- Internet has drastically reduced costs of operating on global scale: Internet đã giảm
đáng kể chi phí hoạt động trên quy mô toàn cầu.

- Increases in foreign trade, outsourcing: Tăng cường thương mại nước ngoài, gia công
phần mềm.

1.5 The Emerging Firm:

- In a fully digital firm: Trong 1 công ty hoàn toàn số hóa.

+ Significant business relationships are digitally enabled and mediated: Kỹ thuật số

được kích hoạt và làm trung gian cho các mqh kinh doanh quan trọng.
 + Core business processes are accomplished through digital networks: Các quy
trình KD cốt lõi được thực hiện thông qua các mạng kỹ thuật số.

+ Key corporate assets are managed digitally: Các tài sản quan trọng của công ty
được quản lý bằng kỹ thuật số.

=> Digital firms offer greater flexibility in organization and management: Các công ty
số hóa cung cấp tính linh hoạt hơn trong tổ chức và quản lý (Time shifting, Space
sgifting).

1.6. Strategic business objectives: Mục tiêu chiến lược kinh doanh: (6 mục tiêu)

 Growing interdependence between: Tăng cường sự phụ thuộc lẫn nhau giữa:

- Ability to use information technology and

- Ability to implement corporate strategies and achieve corporate goals: Khả năng triển
khai các chiến lược của công ty và đạt được mục tiêu của công ty.

* Operational excellence:

- Business process optimization.

(Optimization: tối ưu hóa).

- Attain higher profitability.

(Attain: đạt được).

- Work performance.

- Productivity: Năng suất.

* New products, services, business models:

- Deeply understand about customer behavior/experience.

(Deeply: sâu sắc; behavior: hành vi).

- Business model: describe how company makes new products, services and sell
products to the market to earn revenue.

* Customer and supplier intimacy:

(Intimacy: sự gần gũi).

- Improved relationships.

- Track customer profiles/preferences to deeply understand every customer segment to

offer suitable packages: Theo dõi hồ sơ/sở thích của khách hàng để hiểu sâu sắc từng phân
khúc khách hàng nhằm cung cấp các gói sp phù hợp.

- Suppliers can get customer data to predict marketing demands/needs; feedback on the
products. => Make and supply products to the market effectively; logistics - supply
chain optimization => inventory optimization.

* Improved decision making:

- Track and store historical customers/partners/competitors/market. =>

Insights/findings/hidden data => Make decision effectively/accuracy.

(Insight: ẩn; accuracy: chính xác).

- Poor dataset/outcomes or lack of data => Lose customers => Low revenue (raise cost).

* Competitive advantage:

- Saving cost but good performance.

- Respond to customer and suppliers quickly/real.

- Materials planning.

* Survival:

- Apply state-of-the art technology/new technology: Áp dụng công nghệ tiên tiến/công
nghệ mới.

=> Adapt, sustainability => Goals.

(Adapt: thích nghi).

II. What is an information system? How does it work? What are its management,
organization, and technology components? Why are complementary assets essential
for ensuring that information systems provide genuine value for organizations?
2.1. What is an Information System?

* Information system:

- Collection/set of interrelated components: Tập hợp các thành phần có liên quan.

- Collect, process, store, and distribute data/information.

- Support/promote decision making, collaboration, coordination, management,

monitoring, controlling, and so on.

* Information vs Data:

- Data are streams of raw facts: dữ liệu là luồng dữ liệu thô.

- Information is data shaped into meaningful form: thông tin là dữ liệu được định hình
thành dạng có nghĩa.

=> Data (raw data, events) vs information (meaningful data):

Ex:

Data Process Information

1 abc 50 10-11 Synthetic, analyst,.. 100 products sold

1 abc 50 10-12 Revenue: 2 billions

1 abc 50 10-13 …

…
* Three activities of IS produce information organizations need:

- Input: captures raw data from organization or external enviroment: Thu thập dữ liệu
thô từ tổ chức hoặc môi trường bên ngoài.

- Process: convert input to output (Convert data into meaningful form (information)):
Chuyển đổi dữ liệu thô thành dạng có nghĩa.

- Output: Transfers processed information to people or activities that use it: Chuyển
thông tin đã xử lý cho những người hoặc hoạt động sử dụng thông tin đó.

* Feedback:
 - Output is returned to appropriate members of organization to help evaluate or correct
input stage: đầu ra được trả lại cho các thành viên thích hợp của tổ chức để giúp đánh giá
hoặc hiệu chỉnh giai đoạn đầu vào.

* Computer/computer program vs. information system:

- Computers and software are technical foundation and tools, similar to the material and
tools used to build a house: máy tính và phần mềm là nền tảng và công cụ kỹ thuật cho
HTTT.

2.2. Dimension of Information Systems:

* Organizations:

- 3 levels:

+ Senior/strategy level/ excutive. (C level, ,managers). => Knowledge.

(Ecutive: điều hành; strategy: chiến lược).

+ Middle/tactic level (Heads of departments). => Information.

(Tactic level: cấp chiến thuật).

+ Operational management (Staff: Knowledge workers, data workers, production or

service workers). => Create data (Website, PoS (Point of Sales))

(Point of Sales (PoS): điểm bán hàng).

 - Separation of business (4) functions: Phân tách các chức năng kinh doanh.

+ Sales and marketing

+ Human resources

+ Finance and accounting

+ Manufacturing and production

- Unique business processes.

- Unique business culture.

- Organizational politics.

(Unique: độc đóa, politics: chính trị).

* Management:

- Managers set organizational strategy for responding to business challenges: Người quản
lý thiết lập chiến lược tổ chức để ứng phó với những thách thức kinh doanh.

- In addition, managers must act creatively: Ngoài ra, người quản lý phải hành động sáng
tạo.

+ Creation of new products and services

 + Occasionally re-creating the organization: Thỉnh thoảng tái tổ chức.

* Technology:

- Computer hardware and software.

- Data management technology.

- Networking and telecommunications technology: công nghệ mạng và viễn thông.

+ Networks, the Internet, intranets and extranets, World Wide Web

- IT infrastructure: provides platform that system is built on

2.3. It Isn’t Just Technology: A Business Perspective on Information Systems:

CHAPTER 2: GLOBAL E-BUSINESS AND COLLABORATION

* Business process:

- Sales, accounting, procurement, inventory, manufacturing, HR, finance, and so on.

- Sharing, connection, and so on.

- End-to-end process.

=> If BPs are disconnected - isolated:

(Isolated: bị cô lập).

+ Inconsistency, high-cost leadership, response slowly.

(Inconsistency: sự thiếu nhất quán).

+ Lack of flexibility, difficult to predict demand/needs because of lacking data:

Thiếu tính linh hoạt, khó để dự đoán nhu cầu vì thiếu dữ liệu.

+ Lack of collaboration.

+ Mitigate productivity: Giảm năng suất.

* BPs are based-on paper work => Silo effect => Lose the sight of the big picture
(Không nhìn thấy được bức tranh toàn cảnh).
 - Take a long time, cost, respone slowly, mis-delay, understanding: Mất nhiều thời gian,
tốn kém, phản hồi chậm, chậm trễ, hiểu sai.

- Space for document-data storing, access documents difficultly: Tốn không gian để lưu
trữ tài liệu-dữ liệu, khó khăn trong việc truy cập tài liệu.

- Data collection to build dashboard to make decision.

- Do not meet the real-time data: Không đáp ứng được dữ liệu thời gian thực.

- Security, data lost.

- Less effective.

- Lose custumers.

CHAPTER 3: INFORMATION SYSTEMS, ORGANIZATION, AND STRATEGY

* Case study: You are consulting with the owner of Better Fitness, a national chain of
gyms. What strategies (IS Strategies) might Better Fitness use in applying information
services to achieve a competitive advantage?

=> Solution:

- Low-cost leadership:

+ Cost saving related to how many products sold.

+ CRM: sales, marketing, CS.

+ HR management system to PT stands for Personal Trainers.

 - Product differentiation:

+ Online course for online training.

+ Food & drinks <= Expert consultant/influences.

- Customer intimacy:

+ App/website for online training.

+ AI for tracking customer training progress at anywhere and in person as well and
recommending suitable packages.

- Focus on market niche: Tập trung vào phân khúc thị trường:

+ Young generation.

* Porter's Competitive Forces Model:

- Traditional competitors:

=> Giải quyết:

+ Products.

+ Services.

+ Market.

+ IS.

+ Suppliers.

+ Brand identify.

- Customers:

+ Power.

+ The number of customers.

+ Demands/needs/market.

+ Loyalty.
 + And so on.

- Supplier:

+ Power.

+ The number of suppliers.

+ Prices.

+ Volume, speed/velocity, variety relevant to products.

+ Quality.

+ Delivery schedule.

+ And so on.

- New market entrants:

+ Market barriers.

+ Products and service.

+ Fund/budget.

+ HR: human resources/policy.

+ So on.

- Substitute products:

+ The number of products and services.

+ Prices.

+ Brand identifier.

+ Quality.

+ So on.

(?) Q&A for midterm project:

- Nhấn mạnh vào những cái cần thiết.

 - IS strategies: Data-driven + Technology.

- Khai thác sơ lược về những giải pháp HTTT để giải quyết 5 mô hình chiến lược cạnh
tranh (Phần IS strategies) => Chi tiết về giải pháp HTTT sẽ làm ở CK.

PART TWO: INFORMATION TECHNOLOGY

INFRASTRUCTURE

CHAPTER 6: FOUNDATIONS OF BUSINESS INTELLIGENCE: DATABASES

AND INFORMATION MANAGEMENT

* Foundation of Business Intelligence Database and Information Management:

Data --> Information --> Knowledge --> Wisdom (human)

Data Database Traditional File/Flat File

Facts,… - Storage, organize, manage, access. - Group of data/records.

- Columns, Rows, Cells. - Columns, Rows, Cells.

- Files have structure, relationships - Portable, Redundancy, missing,

=> Group of relevant files. inconsistency, poor security, lack of
sharing, Program - data dependence
- Solve the problems of traditional
files.

Constrains/Relationship/Relevant/
 Related files

- Keys: primary/foreign key =>

Relationship among tables => Solve
the problems of traditional files.

Notes: Database (logic model) => DBMS stands for Database Management Systems.

Ex: Two-dimension tables/entities (column => Fileld/attribute, row/record,…

Insert, update, select (OLTP) => Database <= Data transaction.

- Operational management => TPS (Transaction Processing System) => OLTP (On-line
Transactional Processing)

+ Collect data.

+ Daily basis.

- Data => Database => Process => Report => Manager.

- Ad-hoc report (Báo cáo phát sinh): Data => Database => Process => Report => Manager.

- Tools:

+ SQL stands for Structured query language (Ngôn ngữ truy vấn có cấu trúc: Select,
form, where, group by, order by, having, sub query,…)

+ Export data from database to Excel or others => Process => Report.

+ …….

=> Solutions:
 CHAPTER 9: MANAGEMENT INFORMATION SYSTEMS: MANAGING THE
DIGITAL FIRM

* Enterprise Applications: ERP:

+ Objectives.

+ Responsibilities.

+ Functions.

+ Business Values.

+ Silo effect.

* Supply Chain: SCM

 + Network of enterprise and processes for:

 Procuring (Procurement) materials.

 Transforming them into products.

 Distributing the products.

+ Materials:

 Raw materials.

 Finish goods.

 Semi-finish goods.

 Trading goods.

+ Upstream & Downstream:

 Upstream: suppliers -> Warehouse.

 Downstream: warehouse -> Market.

 Internal supply chain.

+ Just-in-time.

+ Safety stock.

+ Bullwhip effect.

+ Push-base model (build-to-stock or make-to-stock).

+ Pull-based model (demand-driven).

+ Business Values.

- Strategies:

+ Make-to-stock (MASSIVE produce).

+ Make-to-order (demand).

* CRM:
 + Objective.

+ Responsibilities.

+ Dimensions:

 Marketing.

 Sales.

 Customent services.

+ PRM: Partner Relationship Management.

+ ERM: Employee Relationship Management.

+ SFA.

+ Levels of CRM:

 Operational CRM.

 Analytical CRM.

Customer Churns/Churn rate:

- Customer’s transactions:

+ Date.

+ Amount.

+ Quantity.

+ Products.

+ So on.

Begin: 200.

End: 150:

+ New customers

+ Churn: rời bỏ.

 + Old customers.

=> Percentage of churn.

CRM:

+ Operational CRM: collect data => Đưa đến Analytical CRM.

+ Analytical CRM: analysts data => Đưa đến Operational CRM các report.