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/.
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FORD MOTORS
Accounting For Leaders
Vamshi Pratap Bokketi
This Photo by Unknown Author is licensed under CC BY-SA
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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
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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
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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
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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
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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
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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).
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Thank you
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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
