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01 Information Systems in Business PDF
01 Information Systems in Business PDF
Unit I
Information Systems in Business
Chapter I, O'Brien
Overview of IS
Impact of IS in Business
Transformation to Digital Economy
Digital Divide
Concept of Systems
Components of IS
CBIS (computer based information system)
LastAre
yearorganisations
Answers ..able
. to
achieve all these objectives?
Your views???
Consequences of using IT
Intended
Consequences
Misuse of IT
Refuse to use IT
Data overload
Increase in
Speed
Increase in
Volume of
transactions
Increase in
Accuracy
Unintended
consequences
Positive/ Negative
Information System in Business
G P Kurien
Types of Consequences
1.
2.
3.
IT as a tool
IT as a medium for doing business
IT as business
Motivation
1. Large number of jobs today creating
information systems for managing
organizations.
2. As managers, you should be able to interact
effectively with IT service providers and
system analysts.
3. Know what IS can do for your organisation and
what it cannot.
4. The one technology that impacted businesses
maximum in 21st century.
Information System in Business
G P Kurien
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FINANCE
SUPPLIERS
MANUFACTURER
DISTRIBUTORS
RETAILERS
INFORMATION
MATERIAL
PAYMENTS
CUSTOMERS
FINANCE
Source: Hau L. Lee; 2000, Creating Value through Supply Chain Integration, September/October 2000 issue of Supply
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Chain Management
Review
Information
System in Business
G P Kurien
Better Decision
Making
IS
IS
Increase Efficiency
Facilitate Functions
Marketing
Increase Efficiency IS
Facilitate Functions
HRM
IS
Increase Efficiency
Facilitate Functions
IS
Finance
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Ubiquity
Global reach
Universal standards
Information richness
Interactivity
Information density
Personalization/customization
Social technology
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Roles of IS in Business
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EXAMPLE OF INFORMATION
NEEDED BY A SHOPKEEPER ?
1.
2.
3.
4.
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TYPES OF INFORMATION
1. OPERATIONAL : Needed for day to day
operations of the organization. Eg: Daily
Sales, Billing.
2. TACTICAL : Needed to take short range
decisions to improve profitability and
performance.
3. STRATEGIC : Needed for long range planning
and directions. This is less structured.
4. STATUTORY : Needed by law to sent to
government authorities. Eg: Sales tax return.
Information System in Business
G P Kurien
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Decision Structure
1. Structured (operational)
The procedures to follow when decision
is needed can be specified in advance
2. Unstructured (strategic)
It is not possible to specify in advance
most of the decision procedures to follow
3. Semi-structured (tactical)
Decision procedures can be pre-specified,
but not enough to lead to the correct decision
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Roles of IS in Business
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Discussion
1. Can we classify the B TRAC (Banglore Traffic
Management System) into the different types
of information systems?
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1. INFORMATION : Processed
data
2. Data processed by
machines giving
information
3. Information is used to run
an organization efficiently
4. Information used by
managers to initiate
actions
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Motivation - 2
1. The IS function is
A major functional area of business
An important contributor to operational efficiency,
employee productivity, morale, customer service and
satisfaction
A major source of information and support for decision
making
A vital ingredient in developing competitive products and
services in the global marketplace
A dynamic and challenging career opportunity
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A Business as a System
What is Business? An organization where goods and services are
created and exchanged for one another or for money.
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A Business as a System
What is Business? An organization where goods and services are
exchanged for one another or for money.
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A Business as a System
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A Business as a System
Systems exists in an
environment.
A system can be a sub
system of a larger
system.
Adaptive systems
survives.
Systems share
boundaries Supply
Chains
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Components of an IS
IS Resources
People Resources
Specialists
End users
Hardware Resources
Machines
Media
Software Resources
Programs
Procedures
Data Resources
Product descriptions,
customer records,
employee files,
inventory databases
Network Resources
Communications media,
communications
processors, network
access and control
software
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IS Activities
Input of data resources
Components of
an IS
IS Resources
People Resources
Specialists
End users
Hardware Resources
Machines
Media
Software Resources
Programs
Procedures
Data Resources
Output of information
products
Messages, reports,
forms, graphic images
Product descriptions,
customer records,
employee files,
inventory databases
Network Resources
Control of system
performance
Monitoring and
evaluating feedback
Information System in Business
G P Kurien
Communications media,
communications
processors, network
access and control
software
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1. Information
technologies can
support many
competitive
strategies such as :
cost leadership,
differentiation,
innovation,
Growth
Alliance.
Becoming a low-cost
producer of products and
services
Finding ways to help
suppliers and customers
reduce their costs
Increase costs of competitors
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1. Information
technologies can Developing ways to
differentiate a firms
support many
products and services
competitive
strategies such as : from its competitors
cost leadership,
differentiation,
innovation,
Growth
Alliance.
Reduce the
differentiation
advantages of
competitors
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1. Information
technologies can
Development of
support many
unique products and
competitive
strategies such as : services
cost leadership, Entry into unique
markets or market
differentiation,
niches
innovation,
Growth
Alliance.
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1. Information
Significantly expanding a
technologies can
companys capacity to
produce goods and
support many
services
competitive
strategies such as :
cost leadership,
differentiation,
innovation,
Growth
Alliance.
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1. Information
technologies can
support many
competitive
strategies such as :
cost leadership,
differentiation,
innovation,
Growth
Alliance.
Establishing new
business linkages and
alliances with
customers, suppliers,
competitors,
consultants, and other
companies
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2. IT can help
Build customer-focused
businesses
Reengineer business
processes
Businesses become agile
companies
Create virtual companies
Build knowledge-creating
companies
can anticipate
customers future
needs.
responds to customer
concerns.
provides top-quality
customer service.
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2. IT can help
Build customer-focused
businesses
Reengineer business
processes
Businesses become agile
companies
Create virtual companies
Build knowledge-creating
companies
Fundamental rethinking
and radical redesign of
business processes to
achieve dramatic
improvements in cost,
quality, speed, and
service.
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2. IT can help
Build customer-focused
businesses
Reengineer business
processes
Businesses become agile
companies
Create virtual companies
Build knowledge-creating
companies
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2. IT can help
Build customer-focused
businesses
Reengineer business
processes
Businesses become agile
companies
Create virtual companies
Build knowledge-creating
companies
An organization
that uses
information
technology to link
people,
organizations,
assets, and
ideas.
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2. IT can help
Build customer-focused
businesses
Reengineer business
processes
Businesses become agile
companies
Create virtual companies
Build knowledge-creating
companies
Consistently creating
new business
knowledge,
disseminating it widely
throughout the
company, and quickly
building the new
knowledge into their
products and services.
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