By Dr. Atanu Rakshit Email:


Text Book:
 „Management

Information Systems: Managing the Digital Farm‟ by Ken Laudon, Jane Laudon and Rajanish Dass, 11/e, Pearson Publication, 2010
Information Systems‟ by James A O‟Rrien, George M Marakas and Ramesh Behl, 9/e, McGraw Hill, 2010

Reference Material:
 „Management


Reference Material (Contd.):
 „Managent

Information Systems‟ by Mahadeo Jaiswal and Monika Mital, Oxford Univ. Press, 2011  „Decision Support and Business Intelligence Systems‟ by Efraim Turban, Ramesh Sharda and Dursun Delen, 9/e, Pearson Publication, 2011  „Information Technology Management‟ by Henry C. Lucas, Jr. Tata McGraw-Hill Publication, 2011  Harvard Business Publication


Sessions Plan

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Information system and its impact in business in today‟s scenarios Classification of types of information systems in an organization: Operational, MIS, DSS, ESS, ES Information Systems, Organizations and Strategies Emerging Technologies: Virtualization, Cloud Computing, SOA, BPM, Telecommunication and Wireless Technologies Enterprise Systems – ERP, CRM, SCM, etc Data Management Systems: RDBMS, Data Warehousing, OLAP, Data Quality etc.

Information Systems and its Impact in Today’s Business Scenarios

. managerial decision making. and strategies for competitive advantage.  Give examples to illustrate how the IT Driven business applications can support a firm’s business processes.LEARNING OBJECTIVES  Explain why knowledge of information systems is important for business professionals and identify five key areas of information systems knowledge.

Information Systems in Global Business Today .

LEARNING OBJECTIVES • Understanding the effects of information systems on business and their relationship to globalization. • Define an information system and describe its management. organization. and technology components. • Explain why information systems are so essential in business today. .

.LEARNING OBJECTIVES (Continued) • Define complementary assets and explain how they ensure that information systems provide genuine value to an organization. • Explain what is meant by a sociotechnical systems perspective. • Describe the different academic disciplines used to study information systems and explain how each contributes to our understanding of them.

IPL Teams Strike Gold with Information Technology  Cricket is fast-paced. country-wise.    Problem: Lack of historical and statistical data match-wise. . player-wise hard data usable in decision-making processes. costly and competitive market. high-energy sport. high-stack with big business opportunity Each team in IPL pays their players ranging from 20 lakh to 2 crore per year Objective: Elegant performance for most of the players leads to more wins implies more money business opportunities for the team.

  Synergy Sports Technology tags video of each game with hundreds of descriptive categories and allows coaches and players to stream game footage from the Web. Illustrates how the Web has allowed businesses to use new tools to analyze critical data. Solutions: Developed a new system designed to collect and organize data using video clips of games.IPL Team Strike Gold with Information Technology  A Company called ‘Sport Mechanics’ providing the solution for requirement.   . Demonstrates IT’s role in innovation and improving business processes.

RECENT NEWS  ToI dated 02/01/2012  John Chambers. Social. Global Chairman and CEO. Visual. Mobile and Video enabled than before  ToI dated 03/01/2012  IIT‟s have allowed MIT to use their Open Courseware through NPTEL (National Programme for Technology Enhanced Learning) . CISCO  Intelligent IT Wave / Infrastructure  IT and Communication resources are more Virtual.

Web sites Resource Optimization (ERP and SCM) Shifts in media and advertising New federal security and accounting laws • Globalization opportunities • Internet has drastically reduced costs of operating on global scale • Presents both challenges and opportunities .The Role of Information Systems in Business Today • How information systems are transforming business • • • • Increase in wireless technology use.

defined as hardware. 2008. National Income and Product Accounts. and communications equipment. software. Source: Based on data in U.S. . Bureau of Economic Analysis.The Role of Information Systems in Business Today Information Technology Capital Investment Information technology investment. Department of Commerce. grew from 32% to 51% between 1980 and 2008.

Human assets etc.e.The Role of Information Systems in Business Today  In the emerging. fully digital firm    Significant business relationships with customers.. space shifting – Global work place . are managed digitally  Digital firms offer greater flexibility in organization and management  Time shifting – 24/7. IP. suppliers and employees are digitally enabled and mediated Core business processes are accomplished through digital networks within or across organizations Key corporate i. Financial.

and business models Customer and supplier intimacy Improved decision making Competitive advantage Survival .The Role of Information Systems in Business Today  Growing interdependence between ability to use information technology and ability to implement corporate strategies and achieve corporate goals Business firms invest heavily in information systems to achieve six strategic business objectives:        Operational excellence New products. services.

The Role of Information Systems in Business Today  Operational excellence:    Improvement of efficiency to attain higher profitability Information systems. technology an important tool in achieving greater efficiency and productivity Wal-Mart‟s RetailLink system links suppliers to stores for superior replenishment system .

services. Netflix‟s Internet-based DVD rentals . iTunes. and iPhone. services. delivers. and business models:   Business model: describes how company produces. business models  Examples: Apple‟s iPod.The Role of Information Systems in Business Today  New products. and sells product or service to create wealth Information systems and technology a major enabling tool for new products.

The Role of Information Systems in Business Today  Customer and supplier intimacy:  Serving customers well leads to customers returning.C.Penney‟s information system which links sales records to contract manufacturer . which lowers costs  Example: J. check-in time. frequent dialed number. and use to monitor and customize environment  Intimacy with suppliers allows them to provide vital inputs. television channels etc. which raises revenues and profits  Example: High-end hotels that use computers to track customer preferences like – room temperature.

. underproduction of goods and services Misallocation of resources Poor response times  Poor outcomes raise costs. etc. lose customers  Example: Verizon‟s Web-based digital dashboard to provide managers with real-time data on customer complaints. line outages.The Role of Information Systems in Business Today  Improved decision making  Without accurate information: Managers must use forecasts. network performance. luck  Leads to:     Overproduction. best guesses.

and business models:  Customer and supplier intimacy:    Improved decision making  .The Role of Information Systems in Business Today    Operational excellence:  Improvement of efficiency to attain higher profitability Enabled by technology Serving customers raises revenues and profits Better communication with suppliers lowers costs More accurate data leads to better decisions New products. services.

The Role of Information Systems in Business Today  Competitive advantage  Delivering better performance  Charging less for superior products  Responding to customers and suppliers in real time  Example: Toyota and TPS (Toyota Production System) enjoy a considerable advantage over competitors – information systems are critical to the implementation of TPS .

e.The Role of Information Systems in Business Today  Survival  Information technologies as necessity of business  May be:  Industry-level changes. SarbanesOxley Act . Citibank‟s introduction of ATMs  Governmental regulations requiring record-keeping  Examples: Toxic Substances Control Act.g.

Often. Changes in strategy. rules. what the organization would like to do depends on what its systems will permit it to do. and telecommunications. software. and business processes increasingly require changes in hardware.The Role of Information Systems in Business Today The Interdependence Between Organizations and Information Technology In contemporary systems there is a growing interdependence between a firm‟s information systems and its business capabilities. databases. .

EMBEDDED INFORMATION SYSTEM     Implement Business Strategies to obtain Business Goal Business Operation for optimize resources and performances Extended Business Operation for customer support and increase profitability & loyalty Business Analytics for smarter and predictive business .

store. coordination. analyze problems. new product ans services  Information vs. control operations. process.Perspectives on Information Systems  Information system:    Set of interrelated components Collect. data   Data are streams of raw facts Information is data shaped into meaningful form . and distribute information Support decision making.

.Perspectives on Information Systems Data and Information Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information. such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory.

Perspectives on Information Systems  Information system: Three activities produce information organizations need  Input: Captures raw data from organization or external environment  Processing: Converts raw data into meaningful form Transfers processed information to people or activities that use it  Output: .

Perspectives on Information Systems  Feedback:  Output returned to appropriate members of organization to help evaluate or correct input stage  Computer/Computer program vs. similar to the material and tools used to build a house . information system  Computers and software are technical foundation and tools.

interact with the organization and its information systems. competitors. and regulatory agencies.Perspectives on Information Systems Functions of an Information System An information system contains information about an organization and its surrounding environment. stockholders. such as customers. processing. suppliers. Three basic activities—input. Environmental actors. Feedback is output returned to appropriate people or activities in the organization to evaluate and refine the input. . and output—produce the information organizations need.

and information technology shaping the systems. management.Perspectives on Information Systems Information Systems Are More Than Computers Using information systems effectively requires an understanding of the organization. . An information system creates value for the firm as an organizational and management solution to challenges posed by the environment.

structure. politics and culture  Hierarchy of authority.Perspectives on Information Systems  Organizational dimension of information systems Key elements of organization are – people. responsibility  Senior  management  Middle management  Operational management  Knowledge workers  Data workers  Production or service workers . business processes.

middle management.Perspectives on Information Systems Levels in a Firm Business organizations are hierarchies consisting of three principal levels: senior management. and operational management. Scientists and knowledge workers often work with middle management. . Information systems serve each of these levels.

rewards and punishments .Perspectives on Information Systems  Organizational dimension of information systems (cont. concerns and perspective. Finance and accounting. way of doing things  Organizational politics – People occupy different positions with different specialties. Manufacturing and production etc.  Unique business processes  Unique business culture – fundamental sets of assumptions.)  Separation of business functions  Sales and marketing. Human resources. Leads to diverge viewpoints of resources.conflicts . values.

managers must act creatively:   Creation of new products and services Occasionally re-creating the organization .Perspectives on Information Systems  Management dimension of information systems     Make decisions. formulate action plan Managers set organizational strategy for responding to business challenges Allocates all resources and coordinate work for success In addition.

intranets and extranets.Perspectives on Information Systems  Technology dimension of information systems    Computer hardware and software Data management technology Networking and telecommunications technology  Networks. the Internet. World Wide Web  IT infrastructure: provides platform that system is built on Cloud Computing  .

CASE STUDY ON UPS UPS Competes Globally with Information Technology .

location while en route. The outputs also include various reports.Perspectives on Information Systems • What are the inputs. processing. . current location (while en route). Data are also reorganized so that they can be tracked by customer account. date. customer signature. and package recipient. • Processing: The data are transmitted to a central computer and stored for retrieval. time-card data. and other criteria. as well as summary reports for management. such as all packages for a specific account or a specific driver or route. • Outputs: The outputs include pickup and delivery times. and outputs of UPS’s package tracking system? • Inputs: The inputs include package information. driver. pickup. delivery. and billing and customer clearance documentation.

calculating fees.Perspectives on Information Systems • What technologies are used by UPS • Technologies include handheld computers (DIADs). maintaining customer accounts and managing logistics. • UPS also uses telecommunication technologies for transmitting data through pagers and cellular phone networks. wired and wireless communications networks. desktop computers. . barcode scanning systems. • The company uses in-house software for tracking packages. as well as software to access the World Wide Web. UPS‟s central computer (large mainframe computers). and storage technology for the package delivery data.

. • The result is an information system solution to the business challenge of providing a high level service with low prices in the face of mounting competition. efficient. and profitable. the technology described in the scenario enables UPS to be more competitive. However.” • One of the most visible aspects of technology is the customer‟s ability to track his/her package via the UPS Web site.Perspectives on Information Systems • How are these technologies related to UPS’s business strategy? • UPS has used the same strategy for over 90 years. Its strategy is to provide the “best service and lowest rates. technology also enables data to seamlessly flow throughout UPS and helps streamline the workflow at UPS. Thus.

but also for other companies. and financial services. These services include supply chain design and management.Perspectives on Information Systems • What problems do UPS’s information systems solve? • Some problems this information system solves relate directly to logistics and supply chain activities. . in addition to logistics services. not just for itself. UPS can provide these services cheaper and more efficient than most companies can create them in-house. freight forwarding. customs brokerage. mail services. multimodal transportation. • Because of the advanced integration of its technology.

weather conditions and location for each stop • Saves 28 million truck travelling and 3 million gallons of fuels in each year • Effective workflow systems seamless with business process .Perspectives on Information Systems • What are the key elements for the success of UPS systems? • Barcoded package information also ensure data quality • User friendly handheld computing device (Delivery Information Acquisition Device (DIAD)) • Most efficient delivery route for each driver considering traffic condition.

Perspectives on Information Systems • What are the key elements for the success of UPS systems? • Customer can also know the status through tracking system • Customer self service capabilities • Seamless integration of the tracking systems with back end application and also with devices • System provides the complete tracking data for effective control and improvement • Customers view UPS‟s technology as value-added services as opposed to increasing the cost of sending packages .

. bar-code scanners.Perspectives on Information Systems  Dimensions of UPS tracking system  Organizational:  Procedures for tracking packages and managing inventory and provide information  Management:  Monitor service levels and costs  Technology:  Handheld computers. networks. desktop computers. etc.

Perspectives on Information Systems  Business perspective on information systems:   Information system is instrument for creating value Investments in information technology will result in superior returns:  Productivity increases  Revenue increases  Superior long-term strategic positioning  Business information value chain   Raw data acquired and transformed through stages that add value to that information Value of information system determined in part by extent to which it leads to better decisions. greater efficiency. and higher profits .

ultimately. . information systems are part of a series of value-adding activities for acquiring. and.Perspectives on Information Systems The Business Information Value Chain From a business perspective. enhance organizational performance. transforming. and distributing information that managers can use to improve decision making. increase firm profitability.

Perspectives on Information Systems  Investing in information technology does not guarantee good returns Considerable variation in the returns firms receive from systems investments Factors:      Adopting the right business model Supportive values. structures and behavior pattern Investing in complementary assets (organizational and management capital) .

g.Perspectives on Information Systems  Complementary assets:  Assets required to derive value from a primary investment like – for Automobiles requires investment in highway. service points etc.: invest in technology and the people to make it work properly .  Firms supporting technology investments with investment in complementary assets receive superior returns  E. roads. petrol pump.

The Internet and telecommunications infrastructure  Technology standards  . e.Perspectives on Information Systems  Complementary assets include:  Organizational investments. e. e.g. Incentives for management innovation  Teamwork and collaborative work environments   Social investments.g. Appropriate business model  Efficient business processes   Managerial investments.g.

.Perspectives on Information Systems Contemporary Approaches to Information Systems The study of information systems deals with issues and insights contributed from technical and behavioral disciplines.

etc. implementation. sociology .) • Psychology. management science. economics. operations research • Behavioral approach • Behavioral issues (strategic business integration.Contemporary Approaches to Information Systems • Technical approach • Emphasizes mathematically based models • Computer science.

cultural context) . management science.Contemporary Approaches to Information Systems • Management Information Systems • Combines computer science. social. operations research and practical orientation with behavioral issues • Four main actors • Suppliers of hardware and software • Business firms • Managers and employees • Firm‟s environment (legal.

Contemporary Approaches to Information Systems • Approach of this book: Sociotechnical view • Optimal organizational performance achieved by jointly optimizing both social and technical systems used in production • Helps avoid purely technological approach .

Speed and richness Improving Collaboration and Decision making Virtual Meeting Organization Web 2.0 Collaboration and Online Community Outsourcing Production Telework in the workplace Reduce production and service cost Work from home enhance productivity . Mobile Internet Devices Effective user involvement Intelligent and Smart Decisions Accuracy.NEW IN MIS Change Technology Cloud Computing Growth of SaaS Mobile Digital Platform Dynamic and Agile Business Need Effective Business Model Solution Penetrations Business Impact Management Online Collaboration and Social Networking BI Mobile Tools – Smartphones.

Q&A .