School of Computer & Information Sciences ITS-631 Operational Excellence Chapter 3 – Information Systems for Business and Beyond (2019)

Learning Objectives

define the term software;

identify and describe the two primary categories of software;

describe the role ERP software plays in an organization;

describe cloud computing and its advantages and disadvantages for use in an organization; and

define the term open-source and identify its primary characteristics.

Software

Two key categories

Operating (manage the hardware) and Application Software (perform specific tasks like word processing, accounting, etc..).

Operating Systems

boot programs

Manages PC resources

Application Software

Used to accomplish specific goals like word processing or calculation.

Productivity Software

Word processing, Spreadsheet, Presentation.

Applications for Enterprise

ERP Software

SAP, Peoplesoft, etc…

Implementation can take 2-3 years and several million dollars

CRM Software

Manages an organizations customers

Example: Salesforce

Supply Chain Management

Links an organization’s suppliers, manufacturing facilities, and distributors of products.

Mobile Applications and Cloud Computing

All mobile devices need specific mobile applications

Smartphones

Electronic Tablets

The cloud refers to applications, services, and data storage located on the Internet.

Advantages and Disadvantages of Cloud Computing

Understand

Using a Private Cloud vs. Virtualization

Software Creation

Various Computer Languages

C

C++

Java

Visual Basic

Python

R

etc…

Open-Source Software

Allows various people to use the source code

References

Bourgeous, D., Smith, J., Wang. S., Mortati, J. (2019). Information Systems for Business and Beyond. Retrieved from https://opentextbook.site/informationsystems2019/.

image1.emf

image2.emf

image6.png

image7.png

image8.png

FORD MOTORS

Accounting For Leaders

Vamshi Pratap Bokketi

This Photo by Unknown Author is licensed under CC BY-SA

1

Background

Founded in 1903 by henry fond with other 11 associates

Common stock sold in 1956 for first time

It is shares are worth $ 10.86

Net income in 2019 was $ 47 millions

Selected ratios

Quick Ratio

Earnings per Share (EPS)

Asset turnover ratio

Debt-Equity Ratio

Quick ratio determines the ability of the company to pay off its short term liabilities

Earning per share measures the money that each shares earned during that financial period.

Asset turnover measures how much is being generated by each assets in the company

Debt ratio measures the relative amount of a company’s assets that are provided from debt

3

Selected ratios

Return on equity

Return on assets ratio

Interest coverage ratio

Operating margin ratio

Operating margin ratio compares the operating income to its net sales to determine the efficiency

Return on equity determine the company`s efficiency at using the equity to generate profit.

Interest coverage ratio measures how easy it is for the company to pay all interest expenses

4

Current Ratio

CR = Current assets / Current liabilities

QR(2019) = 114,047 / 98,132 = 1.16217951

AND qr (2018 = 114,649 / 95,569 = 1.199646

Industrial quick ratio 1.04 and 0.89 for 2019 and 2018 respectively

5

Earnings per Share (EPS)

2019 2018
Ford Motors 0.01 0.92
Industry N/A N/A

Asset turnover ratio

A t r = Net sales / Average total assets

ATR(2019)= 155,900 /((258,537+256,540)*0.5) = 0.60534639

ATR(2018)= =160,338 /((256,540+258,496)*0.5) =0.622628

No industrial ratio available

Debt-Equity Ratio

DER= total liabilities / Shareholder’s equity

DER(2019) = 225,307/33,230 = 6.78022871

DER(2018) = 220,474/36,066= 6.11307

Industrial ratio 1.01 for year 2018, year 2019 is not available

This Photo by Unknown Author is licensed under CC BY-SA

Return on Equity (ROE)

ROE= Net income / Shareholder’s equity

ROE(2019) = 47 /33,230 =0.001414385

ROE(2018) = 3,677 / 36,066 = 0.101951977

Industrial values 5.4% for 2018, values for 2019 not available

9

Return on assets ratio

Return on assets ratio = Net income / Total assets

ROA (2019)= 47/ 258,537 =0.000181792

ROA (2018)= 3,677 / 256,540 = 0.014333047

Industrial values 4.1 % for 2018, values for 2019 not available

Interest coverage ratio

Interest coverage ratio = Operating income / Interest expenses

ICR (2019) = 19,110/1,020 =18.73529412

ICR (2018) = 22,756 /1,238 = 18.3812601

Industrial values 2.67 for 2018, values for 2019 not available

11

Operating margin ratio

Operating margin ratio = Operating income / Net sales

For year 2019 = 19,110/ 155,900 = 0.122578576

For year 2018 = 22,756/ 160,338 =0.141925183

Industrial values 6% for 2018, values for 2019 not available

Areas of improvement

Return on assets is 1.4% while the industrial value is 4.1 for 2018. This is the place where improvements need to be made

EPS is very low for any industry. Any amount that is less than $ 1 is very low bearing in mind this is an international company.

However, other ratios calculated above are good since they are above the industrial ratios

REFERENCES

Hoffman, B. G. (2013). American icon: Alan Mulally and the fight to save Ford Motor Company. New York: Crown.

Billstein, R., & Mazal Holocaust Collection. (2014). Working for the enemy: Ford, General Motors, and forced labor in Germany during the Second World War. New York: Berghahn Books.

Journal, W. S. (2020, December 31). F | Ford Motor Co. Annual Income Statement - WSJ. Retrieved from https://www.wsj.com/market-data/quotes/F/financials/annual/income-statement

Car Carriers, Inc. v. Ford Motor Company. (2015).

14

Thank you

15

image1.jpeg

image2.png

image3.jpeg

image4.jpeg

image5.jpeg

image6.jpeg

image7.png

image8.svg

.MsftOfcThm_Accent1_Fill { fill:#30ACEC; } .MsftOfcThm_Accent1_Stroke { stroke:#30ACEC; }

School of Computer & Information Sciences ITS-631- Operational Excellence Chapter 3 – Information Technology and Organizational Learning

Introduction

Technology as a variable and responsive organizational dynamism

Focuses on defining the components of technology and how they affect corporate organizations.

Answers the questions: how should organizations adjust to its short and long term impacts.

Technological Dynamism

Technology should be regarded as a variable, independent of others, that contributes to the life of a business operation.

Technology can produce a distinctive effect on an organization.

Dynamism is defined as a process or mechanism responsible for the development of motion of a system.

Technological dynamism is the unpredictable and accelerated way in which technology can change strategic planning and organizational behavior.

Responsive Organizational Dynamism

The technological dynamism has the power to disrupt any antecedent sense of comfortable equilibrium of stasis.

Strategic integration

Cultural assimilation

Cultural Assimilation

A process that focuses on organizational aspects of how technology is internally organized including the role of the IT department, and how it is assimilated within the organization as a whole.

IT Organization Communications with Others

Movement of Traditional IT Staff

Technology Business Cycle

To better understand technology dynamism it is necessary to define the specific steps that occur during its evolution in an organization:

IT Roles and Responsibilities and Replacement or Outsource

Two distinct business operations

IT need to change accordingly and should be designed within the driver and supporter theory

Replacement or Outsource

References

Langer, A. M. (2018). Information Technology and Organizational Learning. 3rd edition. Taylor & Francis Group, LLC. ISBN: 978-1-138-23858-9

image1.emf

image2.emf

image6.png

image7.png

image8.png

Get help from top-rated tutors in any subject.

Efficiently complete your homework and academic assignments by getting help from the experts at homeworkarchive.com