BITSCMHHSM ZC471

Management Information
Systems
BITS Pilani
Pilani Campus

BITS Pilani
Pilani Campus

Review of Mid-Sem Portion

06 09 14

Review
(of mid-sem portion)

06/09/14

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Text organization
Part I: IT in the organization
Chapters 1 & 2

Part II: Data and IT infrastructure

Chapters 4 & 5

Part III: The Web revolution

Chapters 6 & 7

Part IV: Organizational applications

Chapters 9, 10 & 11
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Ch 1. IT Supports Organizational Performance

in Turbulent Business Environments

06/09/14

Characteristics of the digital economy and digital

enterprises.
Information system, CBIS and information
technology.
Relationships between performance,
environmental pressures, organizational
responses, and IT.
Adaptive enterprises and why they are ITdependent.
Social computing and social-networking.
Importance of learning about information
technology.
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Chapter 1. IT in Practice
Opening Case: Toyota Scions Innovative Advertising Strategies segmented advertising targeting - 1980 and 1994

August 2007, Toyota launched Club Scion, a three story virtual nightclub; each level
relfects a different Scion model, hatchback, SUV, subcompact and sports coupe
Maintains presence in other virtual worlds also; Toyota tracks virtual return on
investment (ROI) through online chatter.
To capitalize on wireless tech, in 2004 Toyota launched a mobile advergame called
Scion Road Trip; Created a special web site want2square.com;
Targeting children as a means to influence their parents; Toyota created its own social
network called Scion Speak ; Result: No.1 brank for quite some time

IT at Work 1.1 How college students become entrepreneurs?

Jetpens.com

In 2004, $9000 started a business; On-line store front advertising via email to
students; Product line included character collection pens Hello Kitty. In 2007, they
extended the product line by including office supplies (eraser with 28 corners)

Closer Look 1.1 Four representative business models of digital age

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eTendering (Tendering via Reverse Auctions One buyer), Affiliate marketing

(Marketing partners place a banner), Product/service customization (Nike, Barbie,
Motorola, ) E-Market places and E-Exchanges

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Chapter 1. IT in Practice
IT at Work 1.2 Perfect weather at UK Met. Dept.
Set up in 1854 - Summer 2007 terrible floods
Core is a new 27.5 million pounds super computers; It processes 10 million pieces of
weather information and issues 3000 forecasts to organizations around the world
everyday; Supercomputer has 45 processing nodes; Data are measured in terabytes
per day

IT at Work 1.3 Deploying IT at Beijing Olympics

Tests on IT infrastructure started one year prior to event; In June 2008, the system
architecture was finalized A PC factory, data centre, integration lab, and technology
operation centre
IT team of around 3500 people 10,000 PCs, 1000 servers, a game information system
and an information diffusion system across seven cities.

Closer Look 1.2 Failures at Nike (SCM) and AT & T (CRM)

Nike installed a $400 million supply chain system in early 2001; Due to software
problem (software was from i2, a SC software group), $100 million in lost sales in the
third quarter of 2001; Problem: Nike wanted customized software quickly lead to
failure
AT & T Wireless customer care system crashed during upgrade in 2003;
It continued in 2004 resulting in problems and $100 million lost sales ultimate sold to
Cingular for only $15/share half of the original value in 2000
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Chapter 1. IT in Practice
IT at Work 1.4 MySpace

Consists of user submitted blogs, profiles, groups, photos, MPEs, videos, instant messaging,
and an internal e-mail system
Pop culture; 115 million members 1.5 million new members each week
Contents: Each members profile contains two blurbs; About Me and Who Id like to meet?
Major capabilities: IM; Groups creation, MySpace TV for video sharing; MySpace Mobile is a
service for accessing with mobile devices

Closer Look 1.4 Second Life(SL) and Business

Example-1: more than 2000 IBM employees have signed up as members and use the site to
share ideas and work on projects; IBM holds alumni block
Example-2: MR and Product/Service Design; The company purchased two islands; Aloft for
hotel prototype; Argali where visitors can view the development project

End of Chapter Case: NHS Hospitals adopt co-operative WiFi

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Royal Hospitals 77 access points in accident and emergency department; Network will be
used for three classic health service applications
Vocera active badges provide location services and voice telephony for staff;
Active RFID tagging for important clinical equipment using active WiFi tags from Aeroscout
Mobile Clinical Assistant (MCA) special purpose WiFi connected PDA from Philips to
support medical staff
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Ch 2. Information Technologies:
Concepts, Types and IT Support

Information Systems: Concepts and Definitions

Classification and Types of Information Systems
How IT Supports People
How IT Supports Supply Chains and Business
Processes
Information Systems Infrastructure,
Architecture, and Emerging Computing
Environments
Innovative and Futuristic Information Systems
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Chapter 2. IT in Practice
Opening Case: Mary Kays IT systems BSM

Founded in 1962; 1.8 million consultants selling its cosmetics and fragrances ; The
consultants faced an increasing demand for internet use .; IT department split into
three divisions: e-c, SC and back office support; First IT project: BSM Maryville
Technologies; Study of business processes and workflow; Three core areas significant
impact on business- identified - Downtime associated with incident and problem
management; Changes to the IT application systems and other infrastructure
components; Management of the IT assets
Solution an e-service desk that ensures consultants in 30 countries are served
uniformly; global e-ordering system Atlas; a data repository that dynamically maintains a
logical model ;
Use of social computing - Posts job openings on several sites; Movies and videotapes
about co. is available on Youtube; Blogs are available for for and against comments;
Auctions and fixed price items are available for sale on eBay; For millions of shoppers, a
consultant locator on the internet is provided

IT at work 2.1 Western Petroleum $62 m

WP buys petro products in bulk and sells them in smaller chunks to over 2000
customers; Controlling purchasing costs determines profitability; In 2003, management
capped the number of employees at 58. This generates almost $62 million per employee;
Basic idea: to automate processes wherever possible, and outsource all noncritical
functions; Key piece of automation strategy is a software called PetroMan; includes a
trading application, contract management, risk management, accounting programs and
pipeline scheduler; Fin software: Global Financials

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IT in Practice
Closer Look 2.1 BI for competitive advantage

Closer Look 2.2 What is RFID System? An application

In 2003, demand for computing was increasing; began use of grid computing at a cost of $4.5
million; System saved $1 m in computing costs in 2003, and $5 m in 2004; Major success factor
was the emphasis on problem solving rather than on pushing a new technology

IT at work 2.3 Wireless Pepsi increases productivity

RFID readers use radio waves to interact with tags; major benefits are: Quick tracking of where
items are in real time, Finding extensive information about items and Enabling quick inventory
taking of items; Nokia: security guards employed a Nokia carry a mobile phone handset with
RFID tag.

IT at work 2.2 Grid computing at JP Morgan

An umbrella term software architectures, databases, analytical tools, applications, graphical

displays, and decision making methods; Components: DW, BA, BPM & GUI

In 2002, technicians were given handheld devices hooked into a wireless wide area network
(WWAN); A mobile database application allows wireless communications around the US in real
time; able to locate any truck in real time (GPSs);

Closer Look 2.3 How useful traffic lights can be next slide
Ending Case: Airbus improves productivity with RFID

RFID infrastructure also integrated with ERP system; Flyable category and Non-Flyable category

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Eight ITS Services in Taiwan

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Ch 4. Networks and Collaboration

as Business Solutions

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Networks, network standards, and compatibility

issues.
Impacts of collaboration on business
performance.
Explanation on fixed, wireless, and mobile
network infrastructures.
Influence of search engines and enterprise
search.
Fundamental principles and capabilities of group
work technologies.
Managerial, social and ethical issues related to
the use of network computing
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Chapter 4. IT in Practice
Opening Case: Networks, Collaboration, and Super Bowl
XXXIX

NFL (national football league) designated Floridas Jacksonvilee Sheriffs office (JSO)
as the lead agency for coordinating and securing local operations for Super Bowl
XXXIX.
Solution: IS Management department implemented a real time Web based
communication and collaboration portal, called e-Sponder, from Convergence
Communications. More than 1900 laptop users were connected to the portal; ESponder can be accessed through a browser and runs on the MS office platform

Closer Look 4.1 Network crash at LAX

In August 2007, more than 20000 international travellers were stranded; Malfunctioning
NIC data storm crash of LAN; Later a switch also failed

IT at Work 4.1 Mobile phones as ticket machine

88 per cent just prior to departure rest over internet; Very high reliability of networks and
servers is expected

Closer Look 4.2 VoIP for competitive advantage

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Virtualization, customization & Intelligence

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IT in Practice
IT at Work 4.2 Thrifty uses IP Telephony

Too many enquiries about pricing online reservation requests were growing rapidly web
site lacked high quality customer service Objective: improve web based customer service
and differentiate from other rentals; Its new customer contact solution blended human help
with automated, self help services across all channels of interaction, including phone, web,
chat, email. For integrating, Cisco IP Communications was implemented; Unified Messaging
(UM), For web collaboration, it deployed Ciscos Intelligent Contact Management (ICM) - with
an automatic call distributer (ACD), private branch exchange (PBX), interactive voice response
(IVR), database an desktop applications.

IT at Work 4.3 Mobile developments

In 2008 mobile world congress at Barcelona debate on future of wireless services and how
best to serve mobile users; Mobile handsets: The 3 Skypephone mobile is a small handset
with Skype functionality built in; Grameenphone CellBazaar is a virtual marketplace accessible
via mobile phone; mChek on Airtel offers instantaneous anytime anywhere mobile bill
payments

IT at Work 4.4 Browsers compete for business

Communication & Collaboration

IT at Work 4.5 Virtual Teams at Sabre Inc.

40% of travel reservations worldwide; Travelocity.com Sabres B2C travel site; GetThere worlds leading supplier of B2B online travel reservation systems of Sabre;

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IT in Practice
IT at Work 4.6 Life in connected world internet
Google is a testament to the power of the individual in the connected age a better
research tool than major corporation had in the 1990s; Other empowering tools such
as VoIP and wikis enable anyone to call or share files for free; Marginal cost of
collecting, storing, accessing, and transmitting information is approaching zero;

Ending Case: Wikis, Blogs and Chats support Collaboration at

DrKW
Because of cultural and geographical diverseness, DrKW installed a full set of
collaboration tools not only email and telephones; Blogs, wikis, instant messaging,
chat and audio/video conferencing; workers can select and switch communication
modes, depending on which is appropriate at the time. DrKW installed a primitive open
source wiki in 1997. The co. reviewed Socialtext products in March 2004 and ran a
small pilot in July 2004. Based on test , DrKW decided to upgrade to Socialtext
Enterprise in third quarter of 2004
Reason: Because DrKW needed strong authentication, permissions, information
sharing, and communication among company silos; DrKW is highly regulated requiring
that their communications be recorded, archived, searchable and retrievable for
investigators;
Usage and benefits: Information Strategy team was the first group to use Socialtext on
the hosted service, followed by IT security; use it as a communications tool, collective
discussion tool, storehouse for documents and information.
The User Centred Design (UCD) team uses external facing applications; Wiki allows

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Ch 5. Securing the Enterprise

and Business Continuity

06/09/14

Recognize the business and financial value of

information security.
Understand IS vulnerabilities, threats, attack
methods, and cybercrime symptoms.
Factors that contribute to risk exposure and
methods to mitigate them.
Key methods of defending information systems,
networks, and wireless devices.
Describe internal control and fraud and related
legislation.
Importance of business continuity and disaster
recovery planning methods.
Role of IT in defending critical infrastructures.
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Chapter 5. IT in Practice
Opening Case: ChoicePoint

ChoicePoint is a leading data broker and credentialing service; it maintains 19 billion

public records on more than 220 million US citizens;
It buys personal data, names, social security numbers, birthdates, employment data,
and credit histories, and then sells the data to businesses and government agencies.
Disclosure: in Feb. 2005, ChoicePoint has reported that personal and financial data of
145,000 individuals had been compromised; Without verifying the claims of one
Nigerian national living in California, Olatunji Oluuwatosin, he was allowed to set up
over 50 bogus business accounts; arrested in Feb 2005 and sentenced to 10 years;
By May 2008, it had cost the co. over $55 million in fines, compensation to potential
victims of identity theft, lawsuit settlements, and legal fees; in June 2008, the co. also
paid $10 million to settle a class action lawsuit; the company was hit with the largest
fine in Federal Trade Commission (FTC) history - $15 million;

IT at work 5.1 $100 million data breach - $10 m to inform

USDVA - Data on 26.5 million veterans and spouses were stored in plain text (without
encryption) and the laptop was stolen from the home of a senior level IT specialist;

CL 5.1 IT governance best practices

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Aligning IT & business strategies, dissemination, measuring and monitoring, Proper

organizational structures & enforcing IT control framework

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IT in Practice
CL 5.2 Money laundering, organized crime and terrorist funding

Transnational organized crime groups rely on money laundering to fund their operations

CL 5.3 Mobile workers and handheld devices

CompTIA Report: 80% human cause 32% companies implemented security

awareness training

CL 5.4 Global IT security efforts

Zimbabwe, China & In 2006, US Dept. of Homeland Security (Cyber Storm)

CL 5.5 1.4 Gigabytes of stolen data and email - Crime server

In April 2008, Finjan Software researchers found compromised data from patients, bank
accounts, business email messages, and Outlook accounts on a Malaysia based server

CL 5.6 War driving - a vehicle, a computer or PDA, a wireless card and some kind of an
antenna that can be mounted on top of or positioned inside the car

IT at work 5.2 How Watson Wyatt recovered from a disaster?

Virtualized desktop environment (separating the desktop environment and

associated application software from physical device)

Case: Weak internal controls contribute to Nasdaq delisting

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NEC (Nippon Electric Company) 1999-2005 September 2007

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Ch 6. E-Business and ECommerce

Describe electronic commerce, its scope, benefits,

limitations, and types.
Major applications of business-to-consumer commerce,
including service industries and the major issues faced by
e-tailers.
Explanation business-to-business applications.
Intrabusiness and B2E
Describe e-government activities and consumer-toconsumer e-commerce.
Identify the e-commerce support services, specifically
payments and logistics.
Increasing importance and activities of online advertising.
Issues relating to e-commerce.

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Chapter 6. IT in Practice
Opening Case: Dell is using E-Commerce for success

Founded in 1984; First company to offer PCs via mail order; By 1993, one of the top five
computer makers worldwide, threatening Compaq, which started a price war making Dell lose
money; Losses exceeded $100 million by 1994.
Solution: Direct marketing on-line; this enabled Dell to better Compaq, and in 1999 Dell
became number one;. By 2008, it was selling about $62 billion a year in computer related
products online, from network switches to printers, employing over 65000 people; 100,000
business customers; B2B; B2C; E-Collaboration; E-Customer Service; Intrabusiness E-C;

Closer Look 6.1 Interesting student targeted web sites

Facebook, Swook, Finaid,

Closer Look 6.2 Blogger.com Web 2.0 Social commerce of Google

06/09/14

Google embodies many of the concepts of web 2.0; one of the most basic uses of web
technologies is collaborative interfacing with others; collaborative editing technologies such
as Wiki, and collaborative content technologies such as social networking sites, share a
common heritage of belief in the power of team work and individual contribution
Blogger.com was acquired in 2002; technologically sound; it offers its own Application
Programming Interface (API) and Web services for developers allowing for extension and
creation of entirely new applications within boundaries;
20% of the time for private projects;
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IT in Practice
IT at work 6.1 eBay Worlds largest auction site
It has millions of unique actions in progress and over 500,000 new items are
added each day. Company collects a submission fee upfront (based on level of
exposure), plus a commission as a percentage of the sale amount; Seller
specifies minimum opening bid; Seller and buyer negotiate the payment method,
shipping detail,s warranty and other particulars.
Later started B2C (e-tailing); A special feature is eBay stores. These are rented to
individuals and companies; stores can be used to sell from catalogs or conduct
auctions. In 2002, it introduced Business Marketplace.

IT at work 6.2 Amazon.com: King of e-tailing

Started in 1995 by Bezos ; Initially started selling books and then later expanded to include
all other products; In the early states of business, it invested huge amount of money in
building large warehouses to store goods.

IT at work 6.3 Victoria university uses e-marketing

06/09/14

Conversion rate, 16% international, increase PG programmes

Discovered an effective solution with RightNow; Use of WWW is a must;
Universitys interaction with prospective students from overseas typically begins
electronically via Web. Initially student opts to enter Universitys email program.
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IT in Practice
IT at work 6.4 Chemical companies bond at ChemConnect

Large vertical commodity exchange; Chemicals and plastics; 9000 members in 150 countries
3 market places: commodities market, sellers market & buyers marketplace; In all the three

places, it provides logistics and payment options

Global chemical leaders such as British petroleum, Dow Chemical, BASF, and
Sumitomo are reducing trading cycle time and cost and can find new markets and
trading partners around globe; In 2006, it expanded its offerings in the petroleum
coke marketplace

Closer Look 6.3 E-Money: future currency

Jan 2006 NTT DoCoMo & EJR Mobile Suica (RFID

In Jap, e-money represents 20% of consumer spending (300 trillion yen $2.8 Trillion)

End of chapter case: Stormhoek Vineyards excels with Web 2.0 tools

Situated in SA; Co. devised a marketing campaign called 100 Geek Dinners in 100 days Each
dinner was to be hosted by one person and used for wine tasting by several dozen guests in UK
and US.
Answer: use of web 2.0 technologies; Blogging: CEO of Orbital Wines (co.s parent co.) wrote
dozens of blog entreis about the events soliciting volunteer hosts.; Wiki: each colnteer was
provided with contact and location information on a wiki. Wiki used for CRM; Podcasts: web
content feed (RSS) was used to push information to participants ; Video and Photo links:
corporate blog supported vide links; Shopping: supported order placement ; Mashups: an
interactive map ; Social networks:

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Ch 7. Mobile Commerce

06/09/14

Characteristics, attributes, and drivers of mobile computing and

m-commerce.
Understand the technologies that support mobile computing.
M-commerce applications in financial, advertising, marketing, and
providing of content.
Describe the applications of m-commerce within organizations
(mobile enterprise, intrabusiness).
Understand B2B and supply chain applications
(interorganizational) of m-commerce.
Describe consumer and personal applications of m-commerce.
Describe location-based commerce (L-commerce).
Key characteristics and current uses of pervasive computing
Describe the major barriers of mobile computing and mcommerce.
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Chapter 7. IT in Practice
Opening case: Food Lion excels with wireless innovations

Supermarket chain Bloom

Mobile checkstand mobile checkout POS terminal
Cartmounted tablet PCs, Personal scanners, tablet PCs for employees,
Handheld device that is a POS terminal emulating the IBM checkout system;
Mobile manager: this is a cell phone sized portable device used to improve communication
and supervision
WiFi access: in store Wireless LAN that supports all the mobile/handheld devices

Closer Look 7.1 Wireless advertising in action Examples

Vindigo.com: Known as permission marketing; users download special software on their

PDAs that allows Vindogo.com to deliver timely accurate information about places to go and
thing to do in their area targets ads by city
MyavantGo.com: has 250 major marketing brands targeting over 7 million registered users
(as of 2008); content is delivered to PDAs and handsets running Palm or PocketPC offer mbusiness channel and direct promotions to deliver ads from some of the worlds top
brands.
Go2Online helps mobile travellers find everything from lodging to stations; can give nearest
location for a particular brand or product

IT at work 7.1 Wearable devices for Bell Canada workers

06/09/14

Xybernaut (2002); Computer Screen, Camera, Touch-panel display, Keyboard, Speech

translator, watch-like device, etc.
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IT in Practice
Closer Look 7.2 Mobile applications in sports related applications

In May 2006, Nike and Apple introduced an iPod shoe called Nano that can provide real
time feedback on distance, time and calories burned during a workout; In winter 2006,
Levi Strauss introduced a new line of jeans geared toward iPod users; ESPNs Sports
Centre with Sanyo offers a cell phone dedicated to sports; Fitsense technology

IT at work 7.2 Avoiding gridlock: reducing traffic congestion

through use of IT Two advanced forms of technology
SRA put I place a complete roadside technical infrastructure including cameras,
RFID readers a data network and a solution to handle roadside transactions and
external interfaces between the bank and payment locations; a transponder is
placed in citizens vehicles automated license plate recognition system (OCR
system)
SRA has also implemented back end processes and systems needed to manage
the roadside information, including billing uses a fibre network to connect all of
the points to this central back end data system;
Results: 100,000 cars off the roads during peak business hours in a single month,
and public transit use was boosted by 40000 riders per day

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Chapter 7. IT in Practice
IT at work 7.3 NextBus: a superb customer service

Bus riders carrying an internet enabled wireless device such as a cell phone or
PDA can quick find out when a bus is likely to arrive at a particular stop; system
tracks buses in real time; traffic pattern is also taken into account along with
weather conditions; NextBus dynamically calculates the estimated arrival time of
the bus to a stop;

IT at work 7.4 Follow the money: using RFID for

reducing waste in Pharmacies

Mexico Farmacias Del Ahoroo 7500 items through 750 stores

IT at work 7.5 Examples of RFID use

Circuit City Store using RFID in loyalty cards, hospitals, Defense, Tracking
vehicles, people & animals, supply chains

End of chapter case Hertz goes wireless

06/09/14

M-Commerce applications: Quick rentals, Instant returns, In-car cellular phones,

NeverLost Onboard, Car Locations, WiFi connection,
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Ch 9. Transaction Processing,
Functional Applications and Integration

Characteristics of a functional management information

system.
What is a transaction processing system and how it is
supported by IT.
What are the support provided by IT and Web to
production/operations management
Support provided by IT and the Web to marketing and sales.
Support provided by IT and the Web to accounting and
finance.
Support provided by IT and the Web to human resources
management.
Benefits and issues of integrating functional information
systems.

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Chapter 9. IT in Practice
Opening Case: Dartmouth-Hitchcock Medical Center

Wireless inventory management system, 30,000 items, par-level inventory order

time, re-stocking requests, Express PO (Purchase Order)

IT at work 9.1 Modernizing the TPS cuts delivery time

and saves money example places such as Dominos Pizza, Kinkos, Carnival
IT at work 9.2 Automatic vehicle location and dispatch
system in Singapore Three taxi companies with 50,000 taxis
IT at work 9.3 TIAA-CREF computerized reporting
failed Open Plan Solutions Sept. 2005 to April 2006
IT at work 9.4 Build your Jaguar online 1250 combinations
360 degree virtual garage

IT at work 9.5 Internet MR expedites time-to-market at

P & G From 5 years to 3.5 years 35% brand awareness - online research
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Chapter 9. IT in Practice
Closer Look 9.1 Expense and Spend Management
Automation SOX compliance, Ariba Diebold, Ketera Technologies
Closer Look 9.2 Using intelligent software and social
networks to improve recruiting process

1 million vs. 9000 Trovix Social Networking Sites

Closer Look 9.3 Using interactive simulation in training

VIS Static or Dynamic (evolution through animation) SimMAGIC

IT at work 9.6 Software helps Cirque du Soleil

4 continents 20,000 performers, 4000 management employees & 250 tractortrailers 5 permanent shows in Las Vegas IBM WebSphere Business Integration
65 tickets to 200 tickets per employee

End of chapter case Dollar General uses integrated

software

Competitor to Wal-Mart Financial Suite (Lawson S/w) Sales and Auditing

System (STS Software) EDI

End of mid-sem portion (Chapters 1, 2, 4, 5, 6, 7 & 9)

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