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AN INTRODUCTION TO DIFFERENTIATED LEARNING TOOLS
Participants in flexible learning programs have limitations on the nature of the
time they can spend on learning. Typically they are employed fully or partially,
pursuing higher studies or have other social and familial responsibilities.
Availability of time is a great constraint to these students.
To aid the participants, we have developed four unique learning tools as below:



Bullet Notes : Helps in introducing the important concepts in each unit
of curriculum, equip the student during preparation of examinations and
placement interviews
Case Studies : Illustrate the concepts through real life experiences
Workbook : Helps absorption of learning through questions based on real life nuggets
PEP Notes : Sharing notes of practices and experiences in the Industry will help the student
to rightly perceive and get inspired to learn concepts at the cutting edge
application level.

Why are these needed?

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 Adults learn differently from B. School or college going
students who spend long hours at campus.
 Enhancing analytical skills through application related learning
kits trigger experiential learning
 Availability of time is a challenge.
 Career success increasingly depends on continuous learning
and success

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What makes it relevant?
 Practitioners can use their real life knowledge and skill to enhance learning skills.
 Immediate visualization of the practical dimension of the concept will offer a rich learning
experience.
How is it useful?
 Through these tools, the learning bytes are right sized for ease of learning for time challenged
participants.
 The content starts from practice and connect to precept making it easy to connect to industry
and retain.
 They can be connected to continuous assessment process of the academic program.
Where does this lead to?
 Helps stay motivated and connected.
 Easier to move ahead in the learning process.
 Will facilitate the student to complete the program earlier than
otherwise.
When is it useful?
 As and when you get 5 to 10 minutes you can read one of these and absorb and comprehend.
Spending more time is your choice.
 You can use the time in travel, waiting for meetings, lunch time, small breaks or at home
usefully.

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PEP Notes

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IT & Systems

used in a spreadsheet. or transmitted in any form or by any means – electronic. Hyderabad giving the above reference number of this book specifying chapter and page number. Ref. Our E-mail ID: cwfeedback@icfaiuniversity. the students may please write to The ICFAI Foundation for Higher Education (IFHE). mechanical.in ii . ITS-PN-IFHE – 042015 For any clarification regarding this book. 2015. All rights reserved IC FA I No part of this publication may be reproduced. No. Hyderabad. Hyderabad. stored in a retrieval system. April. While every possible care has been taken in type-setting and printing this book.© The ICFAI Foundation for Higher Education (IFHE). Hyderabad welcomes suggestions from students for improvement in future editions. photocopying or otherwise – without prior permission in writing from The ICFAI Foundation for Higher Education (IFHE). The ICFAI Foundation for Higher Education (IFHE).

Bain Consulting etc.  Practice : Organizations follow practices based on their past learning  Experience: Based on changing context. iii . Thoughts from leading sources. 2. The learning outcomes expected are: Real world Application based approach significantly enhances absorption and retention. Economist.INTRODUCTION Participants in ICFAI University Programs are eager to apply theory to practice. Exposure to the current trends. they face fresh experiences  Perspective: Organization learns from the experience and the practice to gain fresh perspective These notes connect the three dimensions of the real world to key concepts in the subject. experiences and perspectives from industry as appearing in articles from reputed sources such as Harvard Business Review. Picking out the principle behind real world events is critical to this learning. practices with illustrations connect back to theory. Experience and Perspective Notes) is a collection of annotative notes on practices. 3. Accenture. The PEP Notes (Practice. Each note is brief – about one to two pages and is adapted from the article referred to in the note. The concept underlying the note is highlighted in a box. FA I 1. Mckinsey Quarterly. The concept is also connected to the article through an introductory abstract in a box at the beginning. They realize that application orientation can enhance their learning and subsequent usage of management precepts and practices. IC The PEP Notes may be used for Assessment. Towards this end the institution has introduced the PEP Notes.

IT is changing the Face of Auto Industry 4 3. Block-3: Software and Database Concepts and Networks 31 16. Improving the IT Yield 21 12. Growing Indian Internet & Smartphone Markets 47 25.CONTENTS Block. Cost of inaction on Big Data 36 19. Smart Data for Better Decisions 6 4. Little Data is also useful 10 7. Digital Influence on Product Purchase Decisions in India 15 9. Telecommunications Technology Trends 49 26. How to build Analytics Capabilities? 8 6.Introduction to Information Technology and Systems 1 1. Growing Pervasive Computing 41 22. Analytics driving Business Strategy 34 18. Digital Transformation Elements in an Organization 23 13. The Advantages of Big Data 7 5. Business and IT are not Independent 27 15. Open Data as a Type of Database 32 17. Cloud Computing Insights for CEOs 17 The Growing Creation Nets Increases Open Innovation 19 11. Business Technology Trends in 2014 12 Block-2: Applications of Information Technology in Business 14 8. The Role of Analytics & Big Data in Business Growth 29 IC FA I 10. Software Complexity 25 14. Different Perspectives on Big Data & Data Analysis 38 20. SAMSUNG Eyeing Software Side 2 2. Advantages of Latest Mobile Technologies 43 23. The Digital Divide across the World 45 24. The Role of Intuition in Big Data and Analytics 40 21. Wi-Fi for Customer Satisfaction 51 iv .

The Role of IT in Coca-Cola 114 58. The Turnaround Journey at Yahoo (2012-13) 66 35. Predictive Analytics to increase Project Success Rate 90 47.Block-4: Management of MIS 53 The Role of Requirements Management in Software Product Development 54 28. The Role of IT in Healthcare 86 45. The Pros and Cons in Analytics Outsourcing 74 39. Wipro. Major Acquisition of an E-Commerce Company by an Overseas Investor 97 50. On Mission to Develop IT Product Engineers in India 63 33. World No. Leading Healthcare IT (HIT) Projects 92 48. Block-5: Enterprise Functions and E-Business 96 49. Technology Driving the Indian Taxi Services 111 57. Dealing with IT Risk 59 31. Challenges in Internet of Things Business 103 53. The Role of IT in Mergers and Acquisitions 105 54. Innovation Prowess for Growth Leadership 80 42. Growing Software Entrepreneurial Zeal in India 76 40. Innovative Project Management at IBM 84 44. ERP in the Cloud 109 56. Business Models which can be Adopted from Software Industry 78 41. Return on Investment (RoI) of Clinical IT Systems 57 30. How Analytics Changed the Business Model of a Media Organization? 72 38. IT and Lean Management at Amazon 107 55. IT Spending for Organizational Effectiveness 61 32. Measuring Clinical IT Systems Performance 88 46. Roadmap for a New CIO (Chief Information Officer) 55 29. The Success Factors of CIOs 64 34. The Growth of Open Innovation (OI) 70 37. The ignored Soft factor in Nokia Downturn: Collective Emotions 68 36. The Real Value of Data: Enhancing the Organizational Business 101 52. 3 in Energy & Utilities Vertical 82 43. The Growing Need for Unstructured Analytics 116 v . Corporate Website for Organizational Effectiveness 94 IC FA I 27. China’s Alibaba Surpassing Amazon and Ebay 99 51.

vi . Changing Dynamics of Contact Center Outsourcing (CCO) Market 127 IC FA I 59. Platform is the Core to IT Systems 123 62.Block-6: Advanced Topics in IT 118 Cloud Computing Updates 119 60. Internet of Things: The Future of Mobile Technologies 125 63. Big Data Operational Models 121 61.

Little Data is also Useful 7. The Advantages of Big Data 5. 1 . IT is changing the Face of Auto Industry 3.Block-1 Introduction to Information Technology and Systems SAMSUNG eyeing Software Side 2. How to build Analytics Capabilities? 6. Smart Data for Better Decisions 4. Business Technology Trends in 2014 IC FA I 1.

mobile devices and processors. Refrigerators. Its main competitor is Apple. both front and rare Cameras. According to Knowledge@Wharton. video pausing with respect to facial recognition. It has launched Galaxy S4 Smartphone recently. and hand signalling recognition device. TVs. Air Conditioners. Nokia and Blackberry are still struggling to find their footing in the Smartphone market. health monitoring software. Apple also procures many parts from its vendor Samsung. a language translation application and S Navigation. IC FA I World Smartphone Market SAMSUNG Galaxy S4 Features: 5” Screen.1. tilt to scroll. and is developing its own open source operating system known as Tizen for mobile phones competing with Google Android. SAMSUNG Eyeing Software Side Samsung is headed for vertical integration with an overview of hardware and software. which has capabilities both in hardware and software. About SAMSUNG:SAMSUNG manufactures PCs. Smartphones and many of the spare parts required in their making. Google Android operating system consists of: S Translate. video controls that respond to eye movement. Samsung and Apple thrive chiefly on the success of their Television. Tablets. a map application similar to Google Maps. Its Galaxy S3 has crossed the 40 million units sale in January 2013. Samsung is looking for Vertical Integration of both hardware and software. Samsung recently demonstrated using Galaxy S4 as its television remote. Samsung’s Power comes from manufacturing of screens. Phones. Now Samsung hopes to make an entry into the Software market. 2 . Apple is the main customer of Samsung. Cameras.

and peripheral devices such as keyboard and mouse. 2013. video. desktop PCs. IT & Systems Section-1. iOS. “Samsung: A Hardware Manufacturer seeking its software side”. What would Samsung have liked to do with respect to software? (Hints: combine phone and tablet-operating system development-vertical integration of hardware and software) Reference:Knowledge@Wharton. The software applications in mobile phones support audio. What were some of the features of Samsung Galaxy S4? (Hints: health monitoring software-video controls-facial recognition) 2. mobile chips. workstations.PEP Notes: IT & Systems World Tablet Market Future: I Samsung is one among 12 organizations developing the Tizen operating system.Knowledge@WhartonManaging Technology Series. The current day organizations are using mobile hardware and software technologies for business purposes by giving smartphones and tablets to its employees. It also entered the ‘Phablet’ market combining both phone and Tablet. e-mail and browsing of the Internet. printers. Discussion Questions: 1. Samsung and Apple are most likely to remain as key players in Smartphone market for long term. March 27.8: Overview of Hardware and Software. 3 . This is because. scanners. according to Knowledge@Wharton. Applicable To: Topic Course Unit-1: Computer Systems – An Overview. chatting. Windows mobile and other open source mobile operating systems. integrated circuits. photocopy machines. mobile operating systems such as Android. These mobile devices include the latest hardware. or make it less open. SMS. IC Traditionally overview of hardware and software in an organization includes servers. Google may start charging for Android in future. monitors. FA Samsung hopes to emulate Apple having both hardware and Software capabilities.

there will not be any accidents involving Japanese cars. IC  FA I  Toyoto’s innovations include rear-end collision. pedestrian accident avoidance system and lane departure prevention. ethanol and biodiesel. remote control parking and construction site assistant. Japanese car manufacturers together with Asian. Future Challenges:  Disruptive technologies face challenges from tightly integrated automobile sector as it involves many integrated stakeholders from the auto industry such as design partners. Toyota and Honda are working in that direction with many technological innovations and integrations.Block-1: Introduction to Information Technology and Systems 2. diesel. suppliers.  Many innovations which eliminate vehicle emissions are also coming up. dealers and customers who participate in product development. IT is changing the Face of Auto Industry Automobiles integration with disruptive IT technologies is changing the face of automobile industry. Automobile manufacturers.  The automobile industry has incorporated major design changes since the 1920s.  Technological Achievements: The cameras embedded in the cars can capture images 100 times faster than the human driver. direct adaptive steering and lane departure prevention. autonomous remote parking. The product has to cross all these stakeholders asintegration requires change management. suppliers. systems to process the gathered data and for ensuring rapid fire response actions. suspension. steering. By 2050. dealers and industry are tightly integrated. Microchips are embedded in each chassis and these interact with cloud based platforms having customer data. zero gravity seats.  The above innovations are being made by keeping the distinct aspects of intelligence in vehicles such as recognition of other vehicles and devices. safety related innovations include a sensor at the rear end. active engine break. These kinds of innovations are present in car models such as Altima and Infiniti Q50.  Example: Nissan has achieved autonomous car parking.  The disruptive digital technological innovations are bringing the commonality between auto industry and ICT (Information and Communication Technology) industry. autonomous lane change. Japanese auto manufacturers such as Nissan. OEMs (original equipment manufacturers). trailer assist. manufacturing data and design data. 4 . pre-crash occupant protection system.  Very structured high technology components are entering the tightly integrated automobile industry. autonomous highway exit and autonomous stop at signal light. Volkswagen’s safety innovations include park assistant. compressed natural gas (CNG). heating and AC systems. blind spot monitor. safety.  The vehicle fueling infrastructure is changing with different fuels such as gasoline. European and North American counterparts are working towards ensuring that vehicles do not harm the environment through electrification or through the use of different fuels and technological innovations as these cars are integrated with disruptive high technology components and devices. night view detection system. Innovations Coming Up: Innovations Related to Passenger Safety: At Nissan. This article consists of the insights from the Mach Institute Fall Conference 2013 on disruptive technologies getting integrated into automobiles. Batteries and electric motors are to be integrated into vehicle braking. lithium ion batteries. Integration of high technology components into automobiles is changing the face of automobile industry. The ultimate goal is to have driverless vehicles and accident free roads.

Knowledge @ Wharton. it is still debated as to who is liable.PEP Notes: IT & Systems  Legal issues: If an unmanned vehicle meets with an accident or is damaged because of any technical snag. 2014.  New vehicles with disruptive technologies have to be brought into the market at the earliest. The software programs which deal with hardware devices are known as system programs or system software. For example. which is part of the operating system.the human or the manufacturer. Discussion Questions: How is IT useful for automobile industry? (Hints: Passenger safety-intelligent vehicles-autonomous driving and parking) 2. the interaction between hardware and software is growing in the world.8.8: Overview of Hardware and Software. Operating system acts as interface between computer and the external devices or actors. Nissan has reduced fatalities and serious injuries involving their cars to 50% since 1995. Manufacturers are trying to build systems that make humans liable. Sometime in this century. monitor and key board are the hardware devices. The software which interacts with the hardware devices in the computer is the operating system. These devices interact with the software stored in the computer. Sub-Section-1. devices such as mouse. Unit-1: Computer Systems – An Overview. What did Toyota achieve with IT? (Hints: night view detection system-accident avoidance system-lane departure prevention) Reference:Knowledge@Wharton. “The Promise – and the Challenge – of Integrating IT into the Auto Industry”. By 2020. 5 . they want to reduce further 50% of the fatalities involving their cars. Operating system is also system software stored in the computer.1: Interaction between Hardware and Software. they want to make zero fatalities involving their cars. With disruptive high technologies. Course IT & Systems Section-1. DVD player. It liaisons between hardware and software. Applicable To: IC Topic FA I 1. With the increasing number of computing devices.

Smart Data for Better Decisions Smart data with quality of information can be used to make better decisions in an organization. reputation. In the MIT and SAS Institute survey. The quality of information is dependent on sources of data. Organizations require smart data in order to take better decisions. Smart data is the data from which patterns and signals can be extracted using efficient and intelligent Algorithms. Many times decisions are made with huge or sub-standard data. The characteristics of smart data are as follows:  Accurate: The smart data should be accurate and unambiguous. Smart data is useful for better organizational decisions. MIS system capabilities. business analytics and business modelling. Discussion Questions: 1.B. The quality of decisions in an organization depends on the quality of information they gather. 2014. Applicable To: Topic Course Unit-3: Fundamentals of Information Systems. R. It is not only the technologically viable but also requires strong theoretical background. building trust. FA I   IC Smart data can give implications to organizational structure.7: Quality of Information. facts and figures. organizational design and organizational strategy. That action should be scalable as well. processes and structures of an organization. trust worthiness of data. This was based on a research survey of 2. “Better Decisions with Smart Data”.  Agile: Smart data should be agile and it should change according to the changing environment. customer commitment and market share. (2014)in MIT Sloan Management Review. What are the characteristics of smart data? (Hints: accurate-actionable-agile) 2. Smart data is useful in different strategies. It should be quality data and should have precision. MIT Sloan Management Review. What matters most is the flexibility in data. Big data field requires strong theoretical background for decision makers. IT & Systems 6 . Smart data has got certain characteristics. accuracy of data. organizations are pumped with excessive data. This will have huge impact on the organization such as profitability. employee commitment. 60% of the respondents expressed that senior managers are pressuring them to use data and analytics for making decisions in the organization. reliability of data. goodwill. 42% of the respondents agree that they have the required data always or frequently to make decisions.   Smart data should be useful for business intelligence. market positioning. Organizations have to make strategic and operational decisions based on data. The quality of information can be improved by extracting data from reliable sources and with reliable and consistent MIS systems. The data could be termed in exa bytes or zetta bytes.  Actionable: The smart data should be immediately actionable. There is huge data in the market and non-market environments. February 20. R. Decision makers can make informed decisions at right time and at right place by using smart data. In current days. Making right decisions in the organization requires data to be smart. Section-3.500 professionals done by MIT Sloan Management Review and SAS Institute. How is smart data different from big data? (Hints: gives implications to organizational structure-organizational strategy-organizational design) Reference: Ferguson.Block-1: Introduction to Information Technology and Systems 3. consistency of data.. The data should be real--time and flexible. This article highlights the need for smart data for making decisions by drawing insights from the article published by Ferguson. job satisfaction. processing capabilities and skills of the individuals in the MIS team. The actions should meet the business objectives. Organizations are not having the required good quality data to make decisions.B. availability of data.

which stands for “not only SQL”. SYBASE. MS SQL. Section-3.  Big Data can identify which songs are going to be hit.8. (Hints: huge and continuous-structured vs.  Big data can identify whether Chubby baseball pitches have the right stuff.BBC Capital. An example tool which can process unstructured data is no SQL.2. S. June 13..  Big data should not be confused with big ideas. What are the advantages of big data for organizations? (Hints: identify data patterns-identify significant relationships-do not eliminate creativity) Reference: Finkelstein.  Bid data identifies significant relationships. Advantages of Big Data  Pharmaceutical companies can identify the attributes of their best sales executives. Some Insights about Big data Big Data does not necessarily eliminate creativity. Applicable To: Topic Course Unit-3: Fundamentals of Information Systems.3: Data 7 IT & Systems . The processed big data can give useful insights to the organization for its decision making and strategies purposes. The Advantages of Big Data Big data can be used to answer many types of questions. Discussion Questions: 1.2: Components of Information Systems. and my SQL.8: Basics of Information Systems. Unstructured data has to be analyzed using text processing techniques and mathematical techniques. Sub-Section-3. external to organization) 2. Sub-Sub-Section-3. unstructured-internal vs. Structured data can be managed using Relational Database Management Systems (RDBMS) such as ORACLE.8.  Big data gives the answer to whatever problem one has.  Creative people can further find the data relationships using big data. Big data consists of both structured data and unstructured data. FA I  IC Data can be in two forms.  Big data identifies the data patterns which are not identifiable through analog approaches.  Advertisers can design their Ads if they understand consumer buying behaviour. Define big data.PEP Notes: IT & Systems 4. 2013.  Apple iPod was successful because of its elegant design with MP3 quality sound. “What would big data think of Einstein?”. They are structured data and unstructured data. The data coming to organizations from both internal and external sources is growing at astronomical way to peta bytes.

For example. 66% of the organizations do not have the right technologies to store and access the data. 8 . Top management and the CEO have to explain the importance of analytics in business performance to the employees. insights and conclusions from it.  Other companies are using analytics. gathered data from the queries put on company website. to find out the relationship between their data and analytics capabilities and decision making speed and effectiveness. 38% of the companies are using any one of the above mentioned tools. These organizations combine the data. parsing.Block-1: Introduction to Information Technology and Systems 5. emails and chatting lines can give right insights and provide direction to deal with the customer. The article explains how to build capability. improving products and services and transforming business models.  It was found that only 4% of the organizations are good at analytics. The Survey Bain & Company surveyed 400 organizations whose revenues were more than $1billion each.  Organizational Intent: This consists of the processes and incentives that support the management decision making. They are using analytics for improving their products and services. business analysts who look after identifying and prioritizing solvable problems and understand patterns and anomalies provided by the data scientists. state of the art tools and organizational intent. How to build Analytics Capabilities? Big data with superior analytics can improve the organizational performance. data savvy people. 56% of the companies expressed that they do not have the right capabilities to bring out rich insights from the data. CEO and top management have to communicate the importance of analytics in reaching business performance to their employees.  Tools: Successful companies are using analytics tools such as Hadoop. correlations.  Data: Data collection and organization should be in line with the organizational strategy. tools and organizational intent for achieving excellent analytics to meet superior business performance. For example analytics are used in optimizing internal processes. people. and technical specialists who look after the required hardware and software solutions and support. analytics and drawing implications. FA  IC Best Practice in Building Analytics Capability The top performing organizations build the analytics capabilities by combing quality data. collecting.  People: A successful analytics team should consists of data scientists who look after the raw dat a.  The elite organizations using the analytics to the maximum extent are I  Three times more likely to execute decisions as they thought  Five times more likely to make quick decisions  Twice likely to be in the top 25% of the financial performers in their industries. The top performing organizations are good at capturing data. 56% of the organizations do not have the systems to capture the data. An organizational survey by Bain & Company shows how big data is becoming critical to business performance. statistics and quality. storing. NoSQL and HPCC (High Performance Computing Cluster). but not up to this extent. The organizations have to identify the relevant sources of data. customer calls.

Sub-Section-3. Bain & Co. graphs and tables useful for managerial decision making. timing. V. They can even go a step further and collect what category of flights he is booking.. Topics Course Unit-3: Fundamentals of Information Systems. What are the different application areas of analytics? (Hints: financial services-call centers-healthcare industry) Reference: Wegener.2: Components of Information Systems. FA Discussion Questions: What are some of the best practices in building analytics capabilities for organizations? (Hints: clear organizational intent-proper data collection-use data analytics tools) 2. Example: An Airlines company can attach a suitable call center executive immediately after receiving call from a frequent flier based on his ID. Applicable To: IC 1. I Data is vital in any information system.2. It uses big data and analytics to the maximum extent. Other thermostat manufacturers provide remote control facility to their customers using web interface to adjust the needed temperatures in homes.8. R. 2013. Information systems apply complex algorithms on data and generate useful information. “The value of Big Data: How analytics differentiates winners”. 9 .PEP Notes: IT & Systems Example: Nest is into home thermostats business. healthcare and technology industries. Big data is the huge data collected through both data warehouse and Internet. The sources of big data can be internal enterprise systems or the external social networking sites.3: Data.8: Basics of Information Systems. IT & Systems Section-3. type of home and adjusts the home temperatures. Application Areas  Analytics are used very much in financial services. Nest went a step ahead and using crowd sourcing intelligence. Organizations that have invested in big data and superior analytics have proved to have outperformed their peers financially.8. collects data such as weather. Whereas. time. Information systems in an organization make use of data and generate needed reports. days and then correlate it with why he is calling. Sub-Sub-Section-3. September 17.  Analytics can be used in Call Centers. The main purpose here is to increase the revenues by targeting premium customers and to detect the customer’s mood while the phone is ringing. location. and Sinha.

Today P&G uses data models. Organizations Benefited with Big Data: There are 3 types of organizations actually benefited with big data. With this they saved $30 million and avoided the Carbon Dioxide emissions by 11. Aetna reported $1. what to ask. This article brings insights from the three years of research put in byRoss.000. Very few organizations have got returns on their big data investments. IC Web Based or Internet Based Organizations: Organizations such as Google. Evidence Based Decision-Making Practices: Evidence based decision making provides performance data at finger tips every day before decision makers in the organization. Procter & Gamble (P&G) used real data analysis techniques way back in 1920s with the help of door-to-door interviews. In 2005. They benefited from big data. in oil and gas industry. Protection One. introduced score cards for warehouse workers creating a healthy competition and thereby increasing performance. FA I UPS started tracking vehicles and goods from 1980s. The CEO insisted on using single source of information for report generation. Engineering Organizations: ExxonMobil. 10 . they are using 4-D analysis. what help to offer. etc. RFID data. They are: Organizations with Fact-Based Decision Making: For example. This has eliminated the need for checkers in the warehouse. Today. Have a single source of authentic data. compare it with users using the previous web pages and draw some insights from it whether to go ahead with the product or not. the industry average revenue growth rate was just 3% to 4%. Beath and Quaadgras (2013) on understanding the business value of data in the organizations by interviewing executives from 51 organizations and 7 case studies. Little Data is also useful Evidence based decision-making is a tool of information systems in a business that help to improve organizational performance. The evidence based decision-making practices are as follows: 1. thereby saving lot of time and money. This kind of tools Google is providing to other organizations as well. computer models and simulation. a $5 billion bottling company. using big data they have reduced the left-turns of the vehicles in goods delivery. It is an efficient and cheap way of dealing with data in the organization.000 metric tons.6 billion profit. Using big data. reported losses for 5 consecutive years in 2010. not every organization has benefited with the big data investments. Currently. CIO started providing score cards to branch and regional managers every morning facilitating them to decide on who to meet that day. Give decision makers regular feedback using scorecards Pepsi America. FoxTel. social media data. geological analysis and can figure out changes in the field over time. 2. data scientists and analytical tools.Block-1: Introduction to Information Technology and Systems 6. The number of reports generated reduced from 600 to 180. Aetna in 2001 was at a loss of $300 million. data marts. As time moved on initial inconsistencies were overcome and quality of reporting improved. analytical tools. The best practice is to inculcate the culture of evidence based decision making where in all the employees make use of the available little performance data in their day to day decision making. Netflix and eBay use big data analysis extensively. They have invested lot of time and money in data warehouses. Amazon. They have driver strength of more than 100. Big data gives enormous amount of information and more human resources are required to analyze it. With this they could increase revenues by more than 10% whereas. an Australian Pay-TV company’s CFO insisted to have a single source of data for decision making. has used 3-D analysis for where to drill for oil in the 1960s. 6th largest security provider in the US. Google has come up with a model in which they keep a trail web page to certain users and analyze the feedback.

1 billion technology company. construction. Information systems organize the data in an organization and provide useful information for efficient evidence based decision making.. An Insurance company in US. Topic Course Unit-3: Fundamentals of Information Systems. A. Harvard Business Review. Counsellors coach the sales clerks on the 16. The customer does not have to wait 30 days for claims processing. workflow. With this the company changed the business rule of locking period to 24 hours in certain regions of the country.W.9: Use of Information Systems in Business.. “You may not need Big Data after all”. Train and coach the employees to improve performance At Seven-Eleven Japan. I Discussion Questions: FA 1. Information systems reduce the customer response time. Define and manage business rules for the organization Citrix Systems.000 retail stores twice a week. information distribution.M. Information systems are used in manufacturing. 11 . It was driven aboard and sold in a foreign country. (Hints: availability of performance data-quality of reporting-overcome inconsistencies) Applicable To: IC Reference: Ross. Decisions based on data reduce the destructive conflicts in an organization. collaboration. What is little data? Explain its characteristics. energy. utilities. retail. communication. IT & Systems Section-3. December 2013. time to market and support time. This increased organizational performance helped Seven-Eleven to be profitable for more than 30 years. J. engineering and consulting areas.000 customers in 100 countries defined the business rules of giving rebate to its 10. Beath. business intelligence and implementation of business processes. a $2. 4. a car that could not be recovered in 24 hours was never found. C. Uses of information systems in business include decision making. An analyst in the organization found that in a certain region. (Hints: single source of data-eliminates duplication-eliminates inconsistencies) 2. and Quaadgras. has locking period of 30 days for claims processing of a stolen car. This resulted in improved trust and performance. Explain some of the evidence based decision making practices for organizations. product development time.000 partners eliminating the earlier inconsistencies between different rebate policies.PEP Notes: IT & Systems 3. that has 250.

The percentages of organizations investing in specific technology areas are shown in following Graph. improve collaboration. mobile. 12 . collaboration and social analytics into the business processes. PricewaterhouseCoopers has done its 6th Annual Digital IQ survey of 1400 companies to find out the emerging technologies in which the organizations are going to invest in 2014. They are also using business analytics to derive insights from data useful for organizational decision making and organizational results. organizations are using new analytical. suppliers. contractors. customer satisfaction and customer loyalty. innovation. Organizations are integrating social and community features such as gaming. Organizations are using business analytics to improve productivity. customers. This article highlights the top 10 business technology trends for 2014. Organizations are assessing the threats to their organization. robotics and analytics are the top technology trends for 2014 in information system design. statistical and mathematical techniques. biometrics. community. Social technologies are not only used in marketing. sensor. Internet Security: Cyber security is a major concern for organizations. people. services and sales functions but also in HR and sourcing functions. behaviors and entities. discussion forums. Social Technologies: Social technologies are being integrated into the organizational business processes. organizations are getting large quantities of data. Technology Trends for 2014 41% 39% 39% 25% 20% 15% 15% 11% 6% I 44% IC FA 50 45 40 35 30 25 20 15 10 5 0 i. To analyze this data. Bluetooth and mobile social media. Organizations are prioritizing their cyber security investments. ii. Business Analytics: With increased smart devices. Organizations are collecting intelligence from different stakeholders such as employees. iii. iv. events. sensors and display devices to monitor customers.Block-1: Introduction to Information Technology and Systems 7. Individuals are making mobile devices to act on their behalf. achieve efficiency and interact with external stakeholders. Organizations are integrating business processes with community features in order to innovate. Organizations are investing in mobile technologies such as sensors. partners and distributors. Organizations are not only concentrating on threat prevention but also strategizing monitoring. Business Technology Trends in 2014 Social. increase productivity. reacting and identifying the threats. Mobile Technologies: Organizations are coming up with new products and services to address customer requirements in mobile sector.

On-demand Technology Services: Business organizations are procuring technology services on demand using cloud computing. Mobile screens and power consumption chips need to be advanced in mobile devices. Mention top-10 business technology trends in 2014. vi. 3D Printing: 3D printing has become interesting production technology. mobile. Sensors: Internet of Things industry is picking up. Information systems design should be done using design methodologies such as Structured Systems Analysis and Design (SSAD). titanium and aluminum. Battery industry is undergoing new business models. Aspect Oriented Design (AOD) and Service Oriented Architecture (SOA). 13 . There can be 2 to 3 iterations for design with the help of design reviews. Health insurance companies are integrating wearables in their cost and pricing models. remote medicine and cleaning. analytics and social technologies. Object Oriented Analysis and Design (OOAD). big data. web technologies and distributed technologies. Explain how these technology trends are useful in information systems design. Robotics based on open source Robot OS and Android is allowing manufacturers to concentrate on applications rather than platforms.PEP Notes: IT & Systems v.11: Information System Design. Sensor devices are being used in traffic monitoring. hospitals. Design can be done at two levels such as high level design and low level design. retail stores and media organizations. PricewaterhouseCoopers. we will have everything communicating with networks. 3D printing has undergone drastic changes and is capable of using different materials such as steel. x. ix. (Hints: anytime anywhere-evidence based decision making-on demand systems) Reference: PWC. Battery Technologies: Battery technologies became major factor in product design. Robotics: Many Internet based companies are acquiring robotics companies. insurance. Robotics can be used in eldercare. surveillance. database. IT & Systems Section-3. governments and manufacturing companies. January 2014. “Digital IQ 2014 10 Technology Trends for Business”. Applicable To: Topic Course Unit-3: Fundamentals of Information Systems. Context aware sensor devices communicate with one other. Design identifies the components and their interaction. 1. parking spaces. (Hints: business analytics-social-mobile-Internet-on demand-sensors-robotics-3D-battery and wearable) 2. viii. WearableTechnologies: Consumer oriented devices are monitoring physical activity. By 2020. CIO role is transforming from procurer to strategic counsellor to the organization. social. Cloud based business services are going to grow in areas such as banks. Component Based Design (CBD). plastic. IC Discussion Questions: FA I Information systems design should be done before implementation. Low level design should also think about the technologies suitable to the design such as cloud. vii.

Software Complexity 14.Block-2: Applications of Information Technology in Business Digital Influence on Product Purchase Decisions in India 9. 10. Cloud Computing Insights for CEOs FA I 8. Business and IT are not Independent 15. Improving the IT Yield IC 12. The Growing Creation Nets increase Open Innovation 11. Digital Transformation Elements in an Organization 13. The Role of Analytics & Big Data in Business Growth 14 .

6% Projected 4. and consumer goods. consumer durables. automobiles. and mobile phones. Boston Consulting Group’s (BCG) Recent Research (April 2013): BCG has surveyed 25. Digital Influence Internet Usage 60% of the online purchasers prefer cash on delivery rather than payment using credit cards in India. Internet Users in India (330 Million) .000 Indian consumers aged between 18 to 55 living in 26 locations in India to find the impact of digital (online) activities on a range of product categories. availability of online product portals and method of payment. Cash on delivery is going to stay in India. computers.Estimated Internet Users (in Millions) (125 Million) 2016 I 2011 FA High income Internet users have more digital influence over different product categories and they spend more than their less connected peers. Online activities were found to influence the pre-purchase. 15 .8. while it is minimal in case of product categories such as cosmetics. product features and price comparisons influence purchase decisions. Digital Influence on Product Purchase Decisions in India The usage of the World Wide Web is effecting the product purchase decisions in India.1 2010 2011 2012 2013 2014 2015 2016 Indian market is different from developing economies such as China and developed economies such as US and Europein ways of Internet using devices. Digital Influence IC Internet Usage Vs. Internet Economy‘s Contribution to Indian GDP Indian GDP (%) 5. Online product research. Digital influence is higher on product categories such as air travel. purchase and post-purchase of few categories of products.

Applicable To: Topic Course Unit-5: Enterprise Collaboration Systems.3. “Digital India: From Buzz to Bucks: Capitalizing on India’s “Digitally Influenced” Consumers”. Sub-Section-5. The behavior of individuals over the Internet is impacting the product purchase decisions in India.1: The World Wide Web. N. April 2013. Bajpai.. Majority of the people use low cost devices such as mobile phones for accessing Internet in Tier-4 areas. Jain. 16 .3: Internet. Do you think Internet has major impact on product design and development? Justify your answer.PEP Notes: IT & Systems In India. Using Internet. S. Discussion Questions: 1. the information from other parts of the world is available in seconds. (Hints: impact on product categories-online product research-product comparisions) 2. IT & Systems Section-5. (Hints: crowd sourcing-source of product ideas-innovation in design with user involvement) References: Subramanian. Boston Consulting Group. Research Report. The information distribution and communication speed have increased drastically. and Patodia. Digital Impact on Product Purchase Pre-purchase Decisions Online Purchase I Internet Usage FA Post-Purchase / Support Eureka Forbes in India has a successful online customer support system in place  ICICI Bank has successful and widely used Mobile Banking System in India IC  The World Wide Web is the network of networks known as Internet. Laptop bases Internet usage is only 9% in Tier-4 areas and 25% in metropolitans in India. S. It is impacting the offline behavior in the society. BCG Center for Consumer and Customer Insight. Digital influence is affecting the usage of the World Wide Web across the world.. online purchase and postpurchase and support activities. Online Behavior Influences Offline Behavior Online Behavior Offline Behavior Influences Internet usage among Indian consumers is impacting pre-purchase decisions. A. E-books and Kindle are very popular in US and Europe and are yet to find a proper market in India. Explain how digitization is impacting product purchase decisions in India.. 15% consumers use mobile Internet in Tier-4 areas and 20% use mobile Internet in metropolitans.

 Cloud service models are such as Infrastructure-as-a-Service.  According to a survey carried out by Microsoft. development time. For example. Thousands of employees registered for cloud based resource known as C3 in a very short time and C3 became their de-facto standard for collaboration.  Cloud computing enables collaborative work. avoiding the huge capital costs.  Cloud computing makes individuals productive. Organizations have to judiciously make the transition to cloud with skilled people. which provides storage and servers. Cloud Advantages FA I  Using cloud computing. 80%of the CEOs responded that their systems are becoming more complex day by day. Using cloud computing these costs can be reduced and spending can be diverted to new application development. CSC has used a cloud based collaboration platform known as Jive. cloud computing came into picture. Cloud computing brings lot of benefits to the organizations. For example.500 CEOs to find out the organizational computing systems complexity. Current day organizations access on-premise servers.  Developing and hosting applications is easy in cloud. For example. using cloud computing was able to share documents. Balfour Beatty. and Softwareas-a-Service. IBM has conducted a survey of 1.  Analytics are widely used in cloud computing. Employees of the organizations do not even know the locations of their data centers and servers. 3M instead of purchasing the infrastructure. even from home. which applies the analytics on data collected from point-of-sale machines. thereby improving the productivity and reducing the time taken. Data coming from different sources on clouds is being analyzed and insights are been drawn for the organization. which provides the custom off the shelf applications. collaboration and performance. large enterprises can provide access of their applications to the remote devices such as tablets.  Employees can access organizational applications from anywhere. This is because cloud computing reduces the time to market. laptops. IC  17 . only 11% of the IT spending is on new application development.  CEOs and senior executives have to take the responsibility of transition to cloud and they have to provide the required leadership. applies analytics and hosts applications. Using this cloud based system. data centers.Block-2: Applications of Information Technology in Business 9. Platform-as-a-Service. Cloud Computing Insights for CEOs Cloud computing brings the benefits of improved productivity. smart phones and desktops using Internet. Radiant System has developed employee theft prevention system for restaurants known as Aloha Restaurant Guard (ARG). It improves productivity in the organization drastically. Organizations are just renting or subscribing to these facilities. For example. Employees using Internet accessed the documents even on the move.000 per year from employee theft of food services. development costs and operating expenses and improves the organizational productivity. blue prints and architectures easily with their colleagues. The rest of the spending is on infrastructure and maintenance. enables collaborative work. which provides the needed operating systems and databases. Less than 50% of the respondents expressed that they have the needed strategies and capabilities to handle the growing complexity. Managing this gap is going to be the largest leadership challenge ever faced. To solve this gap. A California based restaurant could save around $40. a global contracting company. This article brings the insights for CEOs from a Harvard Business Review article on cloud computing written by Andrew McAfee. applications and infrastructure through cloud computing techniques. have deployed applications onto a Microsoft cloud based Azure platform for quick scalability and capacity building. In 2010.

by keeping the benefits in mind. one claiming higher costs and one supporting lower costs for setting up of data centers in cloud. Thus. Google Gmail services were available for 99. development frameworks. November 1. in 2010. IT & Systems Section-5. platforms. Applicable To: Topic Course Unit-5: Enterprise Collaboration Systems. 2011. compliers. What are the advantages of cloud computing? (Hints: work anywhere anytime-improved productivity-reduced costs) 2. (Hints: system reliability-application reliability-data security) Reference: McAfee. 18 .3: Collaborative Work Management Tools. libraries and components. FA I Collaborative work management tools provide an environment where in the developers can collaborate with their work tasks using networking technologies.  Compliance to legal and regulatory requirements is also a concern for organizations. documents.PEP Notes: IT & Systems Concerns Over Cloud Computing  There are contradictory research studies from McKinsey and Microsoft regarding cost of transition to cloud. operating systems and frameworks. IC Discussion Questions: 1. An organization can have its own private cloud for its collaborative work. A. Sub-Section-5.  Systems reliability and application reliability is a concern for organizations. For example. These tools enable developers to share the development platforms. software applications. However. On the other side. Amazon Web Services has reduced its prices a dozen times in 3 years duration highlighting the lower costs in clouds.7. Harvard Business Review. Explain the challenges arising from adopting cloud computing in organizations. when parts of Amazon Web Services infrastructure went down for 3 days. Netflix was able to operate as usual because it handled the risk using duplication technique. “What Every CEO Needs to Know About the Cloud”.984% times.  Data security is another concern for organizations using cloud. Cloud computing enables users towards collaborative work by providing shared servers. development tools..7: Types of Groupware. organizations can transition to cloud using the following steps:  Identify the constraints and grey areas  Run pilot test using Software-as-a-Service first  Execute next development project on cloud  Enquire the organization’s enterprise software vendors’ plans in cloud computing.

the participants derive or pull the activities from the required performance specifications. Example: Open Source Software Projects  The supervisors of a network decide the rules. These rules are quite informal in the early stages of the network. This allows the participants to innovate and reach the required performance levels. Many executives jump to conclusions that open innovation is just like open source software projects. The participants also join because they are able to complete the activities quickly in the network than when they do them individually. Open Innovation Open Innovation has become a buzzword in the industry.Block-2: Applications of Information Technology in Business 10. Where as in pull approach. Some of the Characteristics of Creation Nets  The creation nets are usually supervised by an individual or a small core team or a small company.  The supervisors in Creation Nets specify the performance requirements and not the individual activities in the modules. Creation networks represent a strong form of open innovation involving hundreds and thousands of participants to lead distributed innovation activities. In a push approach. The creation nets sometime give cash or contracts to their participants. Some narrow down their thinking. Open innovation emphasizes that the organizations should use external ideas. They are designed to bring out open innovation. Such efforts do not have major impact on business performance. Eli Lilly and Cisco are best successful organizations in open innovation. No formal contracts are made for participation in the network. regulations and norms of the network on ways to measure performance and how to resolve the conflicts between the participants. Two Obstacles to Open Innovation  Many people lack understanding on what open Innovation means. The main objective of open innovation is to bring the value to marketplace by connecting with different organizations. the organizers push the activities to the participants. Different people have different meanings for it. The creation nets fill the gap of the executives in finding the open innovation real potential and the actual value generated. internal paths and external paths in developing their technology products. Following are some of the open innovation initiatives: I Some Open Innovation Initiatives Finding an external specialist as contractor to solve an important and complex research problem  Looking towards external environment for ideas  Establishing a joint venture with a business partner  Licensing a technology from a University  Participating in huge networks and coordinating the innovation activities IC FA  Hundreds and thousands of participants are coming together in forming distributed creation nets organized by network organizers. The Growing Creation Nets Increases Open Innovation Creation Nets such as process networks and practice networks are increasing the knowledge management systems of the organizations. This is rather a pull approach than the traditional push approach. Example: Procter & Gamble. It can be connecting to inside parties or outside parties. These network organizers use different management techniques to create value and keep the focus on. 19 . These organizations have launched innovative products using open innovation successfully. They assume that a product launched out of a joint venture constitutes open innovation.  There is lot more confusion in deciding on management techniques that can be used to apply to open innovation when there are hundreds and thousands of business partners involved.  The participants look for long term benefits from creation nets rather than short term profits.

The different types of creation nets are i) Practice Networks and ii) Process Networks. Organizers of these networks are known as Process Orchestrators. Practice orchestrators play less active role in recruitment and creation activities. Organizations such as TCS.7. Journal of Service Science. Infosys..5: Knowledge Management Systems. Sub-Sub-Section-5. they involve in bringing together the participants in integration of creation activities. These networks join the participants diversified experiences and practices. Practice Networks Process Networks These are the networks formed based on the common practices of participants. Examples of these networks include open source software networks and extreme sports networks. (Hints: lack of understanding-confusion over management techniques-unclear impact on business) Reference: Hagel. (Hints: welcome external ideas-external path for product development-proctor & gamble products) 2. Examples of these networks include Design Networks organized by Original Design Manufactures (ODMs) in Taiwan and Production Networks organized by Li & Fung in China I Thus creation nets such as practice networks and process networks help organizations in making open innovation ssuccessful in product development. and Wipro maintain knowledge bases of the projects they have executed for further learning purposes. IC 1. Section-5. They have common sensibility and set of practices. They provide search. and Brown. Applicable To: Topics Course Unit-5: Enterprise Collaboration Systems. KMS gives useful inferences. J. However. FA Knowledge Management Systems (KMS) in an organization maintain the understood information. However there are differences in creation networks in terms of degree of diversity.PEP Notes: IT & Systems Different Types of Creation Nets There are mostly common characteristics across multiple creation nets.7.3: Collaborative Work Management Tools.3. which is known as knowledge in the organization. J. 2008.7: Types of Groupware. What are the obstacles to open innovation? Explain. Process Orchestrators play active role and assign tasks to participants. “Creation Nets: Harnessing the Potential of Open Innovation”. Sub-Section-5. inference and storage facilities for the knowledge. measure performance and provide feedback to participants. with Organizers of these networks are known as Practice Orchestrators.S. Discussion Questions: What is open innovation? Give some examples. They also define the protocols. 20 IT & Systems .

Improving the IT Yield Investments in information systems for business operations can make an impact on organizational business performance.  Not all IT investments provide equal value to the organization  Business Cases fail to mention the impact a business is going to have after IT investment  Use IT Financial Transparency  Measure business impact Performance Indicators)  Use Investment categories such as benefit-driven and compliance-related infrastructure/asset replacement  Maintain Portfolio of projects  Track each portfolios income and spending with KPIs (Key FA I 2012 IT Spending Ratios IC 15% Run Grow 20% 65% Transform According to Gartner’s Survey (2013). IT Investment Challenges Investment Recommendations  2/3rd of the investment goes in nondifferentiating capabilities. Organizations have to take different approach in IT investments to have an impact on business performance.Block-2: Applications of Information Technology in Business 11.  E-Commerce  Enhanced Business Reporting  Supply chain traceability and optimization  Cloud Business  Sustainability  Enterprise Mobility 21 . the CEOs felt the following technology enabled capabilities are very important for their business (in the decreasing order of priority).

PEP Notes: IT & Systems Stakeholders think that the IT initiatives with respect to business should be handled by: CEO – Innovation and Revenue Growth CFO – Increased Productivity and profitability. etc. Example information systems for business operations include point of sale machines. customer satisfaction and profitability of the organization. How should organizations overcome the IT investment obstacles? Explain. These are developed using different databases. customer support machines. IT & Systems Section-6. (Hints: financial transparency-key performance indicators-maintain portfolio of projects) Reference: Barbara Gomolski. Lack of Accountability for Investment Results “Orphaned” IT systems consume more. Lack of IT Involvement in Business Strategy CIO should involve in business strategy and execution. Inability of Divest IT Assets Pulling back on IT systems such as cancelling project and sun setting a project 5. 4. CIO should be involved in business strategy planning process. Discussion Questions: 1. Obstacle How to Overcome this Obstacle? Politics (Silos) CIO should play partnership role with business stakeholders. 2. What are some of the IT investment challenges and obstacles for organizations? (Hints: business cases failure-unclear value to business-investing in non-differentiating capabilities) 2. These systems are supposed to increase the productivity and performance of the organization and teams. FA I 1.Keep IT environment current and updatable Business Unit Head – Look After the Profit and Loss of the business Unit Obstacles to Wise IT Investment Sl.3: Information Systems for Business Operations 22 . 2013. technologies. cost-efficiency CIO . Poor IT Financial Transparency CIO should make better choices about where to invest 3. and frameworks. Information systems impact is traced through response time. Gartner Research Report. teller machines. IC Information systems for business operations support the organization’s day to day internal and external business operations. Applicable To: Topic Course Unit-6: Management Information Systems. No. This is to be spent elsewhere. 6. March 29. “Improve IT Yield by investing in the Right things while developing the ‘Investment Gene’”. Low Tolerance for Risk Invest in “sure” things that give quick payback. and transaction processing systems.

Each organizations is digitally transforming in few areas. In the survey it was found that organizations are digitally transforming mainly in 3 broad areas. They are customer experience. 23 . b. internal processes and business models. Some of the organizations are at the beginning in digital transformation. one hospitality company has connected Smartphone apps to customer profiles so that customer SMSs. Organizations are creating online forums and discussion boards to improve customer relationship and loyalty. For example. COOs. Top-Line Growth: Organizations are using technology for in-person sales conversations. D. This gives the doctor an opportunity to concentrate on the presentation and have a 10 minutes discussion with sales representative presentation after he views it. Managers need to have the vision for transforming to digital. For example. A. Organizations are using multiple channels to provide integrated services to the customers. For example. and McAfee. apps and social media have an integrated look. This process does not disturb the doctor. an insurance company is using analytics for deciding pricing and portfolio structures. Understanding Customer: Organizations are making use of existing digital systems in market segmentation. I The respondents of the survey expressed that their organizations are at different levels in digital maturity having different levels of successes. Digital transformation requires strong leadership and change management. summing it to a total of 9 elements of digital transformation in organizations. The best example is the media industry which changed drastically because of technological advancements in the past decade. They work one or two days from home and whenever they have meeting come to office and sit with those they have work with. G. IC 1. Some companies are also providing self-service facilities using digital tools. Organizations are using analytics to understand the customer better. 50% of the respondents interviewed were IT executives and technical leads and the rest were CEOs. Digital Transformation Elements in an Organization Information systems for business operations effect customer experience. Customer Touch Points: Organizations are making use of different customer touch points to improve customer service. Organizations are using technology to improve their performance across the globe. Bonnet. smart devices and mobile in addition to traditional ERP to change the customer experience. marketing heads and business managers. operational processes and e-business models in an organization. organizations are automating employee selfhelp and HR activities so that the HR executives can concentrate on HR strategies. b. c. Virtualized Work: Organizations allow employees to work virtually by providing needed digital technologies. Digitizing Internal Processes: Organizations are automating internal processes so that their employees concentrate on strategic tasks. social media. For example. This is improving employee relationships resulting in better customer satisfaction. operational processes and business models. (2014) have done research study by interviewing 157 executives from 50 companies having more than $1 billion sales each. The 9 elements of digital transformation are discussed below: Operational Processes (Internal Processes): The major elements getting digitized in operational processes are as follows: a. They should know what to transform..Block-2: Applications of Information Technology in Business 12. Westerman. None of the organizations surveyed have achieved digital transformation in all these 9 areas. They are using social media to know how to make customer happy. a medical devices company’s sales executives turn on an iPad with video and audio and keeps before doctor before leaving the room to make their product presentation. For example. FA Customer Experience: The major elements getting digitized in customer experience are as follows: a. in a financial services organization. 2. Organizations are using advancements in digital technologysuch as analytics. In turn each of these areas consists of 3 elements. employees including CEO do not have permanent seats to sit in the office.

January 07. thereby allowing wide vision to come in. G. I Information systems for business operations include business process management systems. customer support and competitive advantage. New Digitized Products and Businesses: Organizations are creating digital products to complement physical products. Digitization and automation are changing the business models of an organization. MIT Sloan Management Review. They can compare the statuses and adjust the production capacities. a grocery store after going digital has got 20% new customers and existing customer are spending 13% more on an average. and McAfee. Which elements of business models are getting digitized in organizations? IC (Hints: modifying businesses digitally-new digital products-digitally going global) Reference:Westerman. HR. D. 24 . Managing Performance: Transactional based systems are allowing employees to compare organizational details at different times. a medical devices company using collaboration tools involving 300 of their business managers instead of 12 in thestrategic planning process. For example. c. FA Discussion Questions: What are the elements of organizational processes getting digitized? (Hints: understanding customer-customer touch points-top-line growth) 2.PEP Notes: IT & Systems c. a manufacturing company can transform its production to another plant globally within a few days in case of any disturbances. For example. a sports apparel manufacturer is selling GPS and other digital devices in order to show the customer workout in addition to their traditional products. For example. design and manufacturing. They increase operational excellence. 2014.. Modifying Businesses Digitally: Organizations are augmenting physical with digital offerings. Business Models: The major elements getting digitized in transforming business models are as follows: a. Digitally Going Global: Organizations are going global by providing digital shared services such as finance. “The Nine Elements of Digital Transformation”. A.3: Information Systems for Business Operations. customer support systems. Bonnet. b. 1. They are using digital content to share in the organization. performance management systems and quality management systems. Applicable To: Topic Course Unit-6: Management Information Systems. These systems are increasing the customer experience and supporting both internal and external business processes. IT & Systems Section-6. For example. 3..

and difficult to program. Algorithms Programming Environment IC Programming Languages FA I  Programming Skills Program Complexity Organizational Resource Allocation Software Development Costs Domain Knowledge Task Complexity Application Knowledge Software Maintenance Costs Characteristics of MIS include complexity. 25 . MIS systems should be useful in organizational and managerial decision making. They should be available. the programmer.  The best practice is to specify and follow some acceptable level of program complexity for any software organization. MIS has to be developed by a team because of its inherent complexity.  Using Software Complexity one can estimate software development and maintenance costs. Organizations are trying to reduce the software development costs  Software Complexity impacts organizational costs. and the task. Organizations measure software complexity to reduce their software development and maintenance costs  In Recent years. Communication. manpower allocation. These parameters influence the programmer behavior in projects. algorithms. project and program evaluation.Block-2: Applications of Information Technology in Business 13. flexibility to modify. different modules interaction and control structures used.  Software Complexity depends on the program size. consistent and applicable to current business scenario in the organization. usable. domain knowledge and application knowledge impact the difficulty of task in picture. They should be give accurate and reliable output.  Software Program complexity is dependent on non-programming factors such as programming environment. programming skills. Software Complexity Characteristics of MIS such as software complexity can be used to estimate development and maintenance costs. coordination and cooperation are very much required in MIS development teams. It keeps the organizational costs at optimum level.  Experiential factors such as knowledge of programming languages.  Software Complexity is measured in terms of execution time and disk space or storage required.

.K.A.. November 1986. Gray. 29. and Adler. “Software Complexity Measurement”. Thompson.PEP Notes: IT & Systems Discussion Questions: 1. Applicable To: Topic Course Unit-6: Management Information Systems. J.. M. Vol. Communications of the ACM. W. M.2: Characteristics of MIS.6. Sedlmeyer. No.6: Management Information Systems.11.A.B. Define software complexity in your own words. Section-6. IC FA I Sub-Section-6.. (Hints: program size and algorithms-required storage space-execution time) 2.L. What factors impact program complexity in software projects? (Hints: task complexity-programming environment-domain knowledge) Reference: Kearney. R. 26 IT & Systems .

These are the common complaints every growing organization receives from both IT and business teams.  Some CEOs think that IT does not matter and they spend less time in hearing to IT problems and issues. It is simply not possible. To handle this situation. which should be considered at a very early stage of the merger. This puts CIOs and IT teams in trouble during mergers leading to over spending time and money on integrated systems. economy. IT is asked to improve data quality. For example. step (ii) builds the trust between them. In an organization. employees. Organizations should invest in IT for strategic and long term benefits. suppliers. This article brings the insights from Redman. and they do not like to use it or do not accept the change. the integration of different IT systems is looked at last. organizations have to invest in IT for long term and for strategic advantages. their systems will phase out in 3 to 5 years. It operates under many constraints. IT does not allow innovation in business.  Executives expect IT team to modify the data formats easily.Block-2: Applications of Information Technology in Business 14. CMO. in case of business mergers. ii. Half-hearted efforts do not result into better outcomes for the organization. CFO’s requirement of reducing costs and CMO’s requirement of coming up with innovative products. They are given applications to work on without being trained. Following are the steps for using IT for competitive advantage and to fill the gap between IT and business. CEOs have to look at IT as a strategic function. marketing and business intelligence teams. 27 . CIO. B. They should find out some common middle ground to work on for both IT and business teams. IT teams are not provided the chance to explain. IC FA I i. Thus. Technology is changing rapidly and it is touching every part of life. These systems should give strategic advantage and competitiveness to the organization. They think that IT is little strategic opportunity and devote less time to it. competition and sustainability. Find out the common ground to work on: Organizations should build trust in dealing with different stakeholders. COO’s requirement of reliable system versus product manager’s vision of providing online (web) interface to the users. Business divisions complain that IT does not understand the business well. COO and CEO should strategize these systems based on market conditions. How IT can help organization to compete?: IT is treated as a cost center and organizations should understand that one size does not fit all. programs and projects which give an edge over competitors. Information systems for strategic advantage should be developed by taking feedback from customers.  Smart CEOs and leaders try to fill this gap and use IT for its competitive advantage. This is a tedious task for IT team. They add value to the organizational enterprise systems and fulfil stakeholder expectations.  Organizations fail to derive better services from IT and make disservice to businesses. They are asked to understand the business processes without it being explained to them.  The technological advancements and the growing data in the organizations have made IT to play a key role in the organization.C and Sweeney. The explained step (i) improves the relationship between IT and business. If the organizational investments are less in IT. Do not repeat the same mistakes: In some organizations. build trust and make them business partners can result into information systems for strategic advantage. technological scenario. They overpromise and under deliver. The job of IT in an organization is very difficult. and step (iii) makes both of them as business partners. there are competing priorities such as CEO’s interest on going for cloud and legal department’s concern over data security. iii. T. (2013) discussed on Harvard Business Review Blog Network. both sides should acknowledge their mistakes and ensure that it does not repeat in future. They include strategic portfolios consisting of products. Business teams say that IT has dumped some application on them to use. Business and IT are not Independent Making IT and business improve relationships. The idea is to accept on the commonality and find out all areas of agreement and work on them initially.

2013. How do you fill the gap between business and IT? (Hints: do not repeat the same mistakes-have common ground-use IT for competitive advantage) 2.. How can relationship between business and IT departments be improved in an organization? (Hints: build trust-make IT and business as business partners-transfer of domain knowledge) Reference: Redman. “Bridging the Gap Between IT and Your Business”. IT & Systems IC FA I Section-6. T.PEP Notes: IT & Systems Discussion Questions: 1. October 01.C and Sweeney. Applicable To: Topic Course Unit-6: Management Information Systems.10: Information Systems for Strategic Advantage. 28 . HBR Blog Network. B.

 Analysis of data should not stop at “What?” but it should also ask “Why?” and “What next?”. Big Data can give organizations Competitive Advantage Provided they follow certain timelines. they could exceed the expectations of sales.  It is recommended to organizations to start with pilot analytics projects instead of taking huge analytics projects all at once. develop holistic view of customers and marketers and learn by doing  Starting point for analysis is developing hypothesis regarding the needs of customer  After gathering data. analysis should take place to test the hypothesis  Superior segmentation and clustering customers can help in analysis Example: one Pharmaceutical company trying to increase the sales of a specific drug reduced the sales force and thought of utilizing the remaining sales force strategically. The Role of Analytics & Big Data in Business Growth Big data and data analytics can give strategic advantage to organizations. Figure: Big Data – Input Sources and Output Reports Analysis Reports Sort. and physician’s loyalty to this drug. After analysis of this data. volume of prescriptions. Model IC Social Media FA I Internet  Big Data can be a big game changer for marketing people because of the analytical tools available today. In that direction they collected the data from Physicians prescribing that specific drug with information such as how many times they prescribe the drug per year. 29 .Block-2: Applications of Information Technology in Business 15. Filter. organizations should go to the basics such as theory based approaches.  For leveraging full potential of big data.  What is required today is to find the customer path to purchase.

PEP Notes: IT & Systems

Developments in Analytics
Online
Shopping
Behavior
Price Promotions

Bar Codes

Ask People What They Buy

1970

1980

1990

2010 - Present

They should select a product, geography or problem for analytics project.

FA

I

Example: A Global Energy Company would like to improve their return on marketing investment
through analytics. They have considered 2 business units in 3 countries as a pilot run. Sample includes
operating gas stations in Europe and selling motor oil in Asia. The diversity of data has given them an
opportunity to explore a wide set of approaches for analysis resulting into solutions to handle in
different situations.

Organizations need Socialists to gather this data, find hidden patterns, interpret them and turn them into
insights for organizations.

Further, Analytics become a self-funding way for organizations to position them better in the market.

IC

Current day information systems for strategic advantage include the big data systems which process
huge amounts of both structured and unstructured data using analytics techniques. An example big data
platform is Hadoop which has distributed data processing and analytics facilities. Information systems for
strategic advantage are using technologies such as cloud computing, mobile and social technologies,
business intelligence and data analytics. These IT systems in organization are differentiating the
organization from its competitors by providing market intelligence and usable insights.
Discussion Questions:
1. How is big data analysis useful for current day organizations?
(Hints: market analysis-hypothesis proving-business insights)
2. What is the role of analytics in big data analysis?
(Hints: provide statistical techniques-apply correlation and regression-provides inferences)
Reference: Meer, D., “The ABC’s of Analytics”, Strategy + Business, Spring 2013.
Applicable To:
Topic

Course

Unit-6: Management Information Systems;

IT & Systems

Section-6.10: Information Systems for Strategic Advantage;

30

Block-3:

Software and Database Concepts and Networks
16. Open Data as a Type of Database
17. Analytics driving Business Strategy

I

18. Cost of inaction on Big Data

FA

19. Different Perspectives on Big Data & Data Analysis
20. The Role of Intuition in Big Data and Analytics

IC

21. Growing Pervasive Computing

22. Advantages of Latest Mobile Technologies
23. The Digital Divide across the World
24. Growing Indian Internet & Smartphone Markets
25. Telecommunications Technology Trends
26. Wi-Fi for Customer Satisfaction

31

16.

Open Data as a Type of Database

“Open data” as one among the types of databases, can provide insights to the
organization, which is not possible only with internal and proprietary data.
Open data is the publicly available and usable data. Not every data in the organization is proprietary to the
organization. Not every data should be kept as private and internal to the organization. Countries such as US,
Singapore and Mexico are opening up the channels to open data. G8 countries have formed an open data
charter to publish government data. In this article, the sources of open data, advantages of open data,
application areas and the challenges with open data in current days are discussed.
Sources of Open Data:

Organizations started sharing information and data with customers and business partners.

Data aggregators are gathering data from different sources, aggregating it and selling to 3rd parties.

Open data is widely available from social networking sites such as Facebook and Twitter.

Advantages of Open Data:
Organizations can combine their proprietary big data and analytics with publicly available open data and
can get insights which they won’t be able to get using only internal data.

Different types of data such as demographic data, health-care data, real-time location data and financial
data from open data can be used in creating new products and services.

Sharing of product data related to manufacturing conditions and materials used can be useful in
premium pricing of the products for the organizations.

Open data can generate different new areas of consumer value.

i.

Application Areas of Open Data: According to a research carried out by McKinsey Global Institute,
McKinsey Business Technology Office and McKinsey Center for Government, the annual worth of
open data is $3 trillion in seven domains such as education, consumer products, health-care, consumer
finance, transportation, electricity and oil and gas (Figure 1).

IC

FA

I

ii. Oil and Gas Industry: The increasing complexity in reservoirs is increasing the costs and risks at the
rate of 50 to 1. Using open data, it is easy to find the dry holes. Sharing the seismic data among different
companies can help the oil and gas industry. Sharing data between companies in this industry can reduce
the project costs by 15% to 25%.
iii. Consumer Products: Sharing data between manufacturers and retailers can avoid the exchange of
important information with competitors in consumer products area. With open data, new marketing
approaches can be devised which were not possible earlier with company’s proprietary data.
Example: Nectar, an UK based loyalty cards company, gathers information from Sainsbury’s grocery
stores, Hertz car rentals and BP gas stations using its cards. Sharing this information among these three
companies can protect the companies competitive positioning and can provide better understanding of
consumer behaviour.

32

I Challenges with Open Data: Open data can give away competitive advantage and there is possibility for loss of intellectual property. Types of databases include relational databases. data warehouses and data marts. Discussion Questions: 1.5. and Kuiken.180 1. Applicable To: Topic Course Unit-8: Database Management. Manyika.2: Types of Databases. Data can be of two categories such as internal and external or open and closed.Block-3: Software and Database Concepts and Networks Figure 1: Open Data Economic Value ($3-$5 billion) 2500 2000 1500 1. public data bases and social media. industrial bodies. hierarchical databases and network oriented databases. FA  IC Overall open data can generate new opportunities and competitive complexities for the organizations in different industries.5: Database Management Approach. 33 . January 2014.470 920 1000 500 0 280 210 580 510 240 520 340 450 300 720 890 iv. In hierarchical database. In the case of network oriented databases. journals. legacy systems. What is open data? What are different sources of open data? (Hints: available from social media-networking sites-customers and business partners) 2. In relational databases. trade publications. What are different advantages of open data for organizations? (Hints: competitive positioning-sharing data across companies-new opportunities and complexities) Reference: Chui.. External data sources are Internet. Agriculture: San Francisco based Climate Corporation combined 60 years on data on crop yield and 30 years of data on weather information to provide fee based solutions to formers and agricultural industry using complex algorithms. IT & Systems Section-8. J.. Internal data sources are the organizational enterprise systems. McKinsey Quarterly.V. This company has been acquired for $1 billion by Monsanto. S. “What executives should know about open data”.  There are concerns about information security and privacy of data. data is organized in the form of connected/linked nodes arranged in the form of a network or a graph. data is organized in the form of rows and columns. Sub-Section-8. M. data is organized in the form of tree like structure. discussion forums.

store and analyze the huge data coming from the industrial Internet. This analysis may be related to cost reductions. A Sprint is a short release cycle of 2 to 4 weeks. This Sprint backlog is implemented in a Sprint release cycle. a Sprint backlog is derived. aviation. They prioritize the projects based on return on investment. driving the business strategy improvements. According to it. analytics are helping in achieving process innovation and in turn driving the commercial change. From product backlog. GE’s application of analytics is leading to innovation.PEP Notes: IT & Systems 17. i. business and home appliances. oil & gas. Data is received from specified data points of customer assets. Analysis: How analytics can be used to derive commercial value? The analytics team uses the available data and makes it useful for commercial purposes. and published in MIT Sloan Management Review. This article brings insights from an interview with Philip Kim. which helps in sales growth.  The factors such as scale and complexity of the problem impact the data analysis. They have sprint cycles and sprint meetings. water. They make use of data visualization techniques and Lean Six Sigma and drive change in behavior. former marketing operations leader of measurement and control division of Oil & Gas business at GE. Jeff Sutherland and their team. The model they are working on is shown in the following figure. Analytics driving Business Strategy Data centric organizational culture combined with analytics can manage big data resulting in innovation and business strategy improvement for an organization. Oil & Gas business of GE has revenues of $15 billion. It has a division known as measurement and control working on business analytics extensively supporting the GE head quarters. They use very result-oriented analytics.  The feedback from different departments is to simplify the models instead of complicating them. Analytics Project Life Cycle:They follow agile approach in analytics project.  Using data. which are used in SCRUM methodology. ii. energy. They apply analytics tools to big data and derive some strategic outcomes useful for the organization. 34 . they identify growth segments for GE with the help of data modelling and multivariate analysis techniques. transportation. Schwaber.  They compute the return on investment (ROI) of big data projects. healthcare. which is into power. At GE. SCRUM is an agile project management methodology. It was developed by K. Big Data I Innovation Business Strategy IC Organizational Culture Strategic Thinking FA Analytics Organizational Strategy GE divides analytics work into two major categories. Big data: It is the massive data coming from big machines and industrial Internet. GE has announced its cloud platform which is going to gather. productivity improvements or growing sales. Data analytics helped them in innovating and driving business strategy. General Electric (GE) is a conglomerate. entire product requirements are kept as product backlog.

P. GE’s culture of data centric decision-making is helping the organization in dealing with big data.5. The unstructured data should be analyzed using analytical tools and techniques. The GE’s culture adopts the analytics in organizational strategy. Managing big data involves analysis of both structured and unstructured data. natural language processing and text processing techniques. January 27. MIT Sloan Management Review. Sub-Section-8. How did GE use analytics for its strategic advantage? (Hints: productivity improvements-commercialization-cost reductions and sales growth) Explain the typical analytics project life cycle. The data centric organizational culture combined with big data and analytics can drive strategic thinking and innovation in an organization in turn improving business strategy of the organization. Managing big data involves a discipline and culture in extracting. IT & Systems Section-8.4: Managing Data. At the end of 3 to 4 weeks. I 2. Discussion Questions: 1. 2014. They follow iterative approach in analytics projects. They do very fast prototyping and delivery. IC Applicable To: Topic Course Unit-8: Database Management. artificial intelligence. They take anuser story and implement a Sprint cycle for that story. The organization which makes early investments in big data can have the competitive advantage over its rivals. statistical. These analytical techniques include mathematical. analyzing and transforming the data. 35 . (2014). cleansing. The structured data is to be analyzed using relational database management systems. FA (Hints: agile project management-sprint cycle-sprint meetings) Reference: Kim. integrating. Analytical tools.5: Database Management Approach. “GE and the Culture of Analytics”. they have useful outcomes which can be used by different departments or for commercial purposes.Block-3: Software and Database Concepts and Networks Sprint meeting happens every day. They answer specific questions to check the feasibility of an analytics project at the very beginning of the project. RDBMS tools and business intelligence tools can be applied on big data in the organization for analysis purpose.

Cost of inaction on Big Data Big data projects. According to Gartner. which bring specific insights and outcomes for an organization.  Big data has to handle peta bytes of unstructured data. Majority of organizations remain at thinking about big data.  Example: Netflix. According to him.  The barrier to implement big data projects in the organizations include noise coming from vendors. Cost of inaction on big data would be expensive for organizations.  Big data is not a just another IT initiative. They have the perspectives and practices such as :  Big data requires a holistic way. They even get responses for their 80. made use of big data very extensively.  Several organizations are acquiring. large organizations are yet to make their mark in big data.000 moves based on certain color combinations from consumers. This article brings perspectives of Phil Simon (2014) on big data discussed on Harvard Business Review Blog Network. It is different from regular relational database or business intelligence projects.PEP Notes: IT & Systems 18. an online movie seller. 58% of the organizations were deploying or planning to deploy big data projects in 2012. 64% of the organizations are planning on deploying big data projects. 36 .  They have invested on database tools. One cannot overnight reach the level of Netflix in analyzing big data. Netflix and Twitter. Apple. Otherwise. are distinct from regular relational database projects or business intelligence projects. In 2013.  They deal with their internal structured data properly. storing. Amazon. and analyzing data for more than a decade.  Some of the CIOs are still confused to go either small or large on big data projects. Organizations just should not think about the routine return of investment of big data as they think in routine projects. They may lose competitive advantage to its competitors. Organizations Having Big Data Projects 64% I 58% 2013 IC 2012 FA 65 64 63 62 61 60 59 58 57 56 55 Organizations which are widely using big data include Google. It is successful in big data usage. This is because big data brings entirely different insights and discoveries for the organization. Facebook. It is not same as ERP and CRM projects where in return on investment can be calculated immediately. consultants and media. there is no transformation application of big data which was taken to masses in the last three years time.

Each table consists of different columns for attributes. Relational databases store data in the form of rows in tables. MS SQL Server and MySQL. Give some examples. Topic Unit-8: Database Management. There are different normal forms supported by the relational database management systems. The inaction on big data may lead to loosing competitive advantage of organization to competitors. Hence. There is relationship between key attribute or primary key and other attributes in the table.. February 24. “How to Get Over Your Inaction on Big Data”. (Hints: Netflix-GE-Google and Facebook) 2. the organizations whose decisions are based on data and information and those who can manage small data well can get into big data. FA Applicable To: IC Section-8. Discussion Questions: 1. 37 Course IT & Systems . What is the cost of inaction on big data for organizations? (Hints: business loss-losing competitive advantage-lack of right business insights) I Reference:Simon. 2014. HBR Blog Network. Relational database model is based on relationships between different attributes of an entity. The design process of relational database tables is known as normalization.Block-3: Software and Database Concepts and Networks  They agree that big data involves everybody in the organization and it requires commitment from the top management of the organization.7: The Relational Database Model. Which organizations are using big data extensively. Example RDBMS include Oracle. The organizations which cannot analyze their regular structured data may not be able to analyze big data as well. The relational databases are to be designed in such a way that data duplication and redundancy are avoided. P. Sybase.

organizations should cultivate a culture of evidence based decision making. updating business rules and encouraging every decision maker in the organization to use the data. While the business unit heads provide training to the managers and users. cleanses.  Susan Fournier of Boston University and Bob Rietveld of Oxyme were skeptical if big data would serve the purpose of their organization or not. stores.  According to Tom Davenport of Babson College and MIT. SCM. organizations should rethink how the data analysis is going to create value for themselves and their customers. instead of concentrating on quantity and type of data. That is. data is slippery. It presents the insights from different perspectives of well-known researchers across the world on big data and data analysis. That is. Data comes from different enterprise systems such as ERP. The current day terminology for data warehousing is ‘business intelligence system’.  Organization should check whether they need data visualization. However. but which one to pick is what matters most. customers may find that one set of data may give them reasons to pursue it. giving real time feedback. they should make use of analytics and tracking tools which can transform the organization into a data-driven organization. other internal systems or external sources such as Internet and social media. then paying money for big data is questionable. transforms. schemes and plans such as sales representatives. they do not give any information about individual customers when talking about different products. data analysis and big data. This article highlights the importance of data. integrates. and transmits the data to different enterprise systems in the organization. Otherwise the routine managers will think of ways to get to the kernels of knowledge through huge data.  Organizations should reflect if they are ready for the Chief Data Officer (CDO) position. there is aneed for understanding of the data and understanding of the numbers.  According to Jeanne W. legacy systems. Data can be raw data or structured data. Data is stored in data marts of the data warehouse. while the other set may not. This is a real challenge that customers face with the data. Ross and Anne Quaadgras of MIT and Cynthia M. The data mining techniques are applied on the data stored in data warehouse. The data is open to interpretation whether it belongs to customers. Different Perspectives on Big Data & Data Analysis Analysis of big data complemented with data warehousing can impact the organizational strategy. 38 . Organizations maintain data warehouses for business intelligence purposes. The different perspectives are as follows: According to Andrew O’Connell and Walter Frick.PEP Notes: IT & Systems 19. According to them. Beath of University of Texas. It makes use of data marts. employees or products. Researchers and practitioners are focusing on the landscape of data and thinking on ways to transform knowledge to bottom line improvements. CRM. if organizations are not changing according to the insights from big data.  McKinsey stressed the involvement of everyone in the organization in making use of big data.  Scott A. IC FA I  Going ahead  The organizations should have leadership roles with knowledge of Statistics to lead the consumer data teams. providing all decision makers with undisputed performance based database. As the big data is penetrating into several parts of the organization.  Joël Le Bon of the University of Houston expressed that organizations overlook the small source of information pertaining to competitors’ strategies. Data warehouse extracts. two-faced and cryptic. He emphasizes that the organizations should cultivate the culture of intelligence which will have a major impact on organizational strategy. Neslin of Dartmouth College expressed that numbers can tell us many stories. According to them the aggregate numbers are exhaustive.

2013. (Hints: customer and product related insights-impact on organizational strategy-decision making) 2. What roles in organization structure help the organizations in handling data? (Hints: chief data officer-data scientist-business analyst) Reference: Andrew O’Connell and Walter Frick. Justify. Applicable To: Topics Course Unit-8: Database Management.9: Data Warehousing.Block-3: Software and Database Concepts and Networks Discussion Questions: 1. HBR Blog Network. 39 . November 19. “You’ve Got the Information But What Does it Mean? Welcome to “From Data to Action””. IT & Systems IC FA I Section-8. Data analysis adds value to organizations.

maps. Example: Google’s self driving car is made of data. The Role of Intuition in Big Data and Analytics Intuition plays major role in big data and data analytics for data mining.  In analytical companies. What is the role of intuition in analytics? (Hints: hypothesis proving-which analytics projects to consider-what areas require analytics?) 2. The right mix of intuition with data analysis leads the path to success.automation of mechanical tasks) Reference: Devenport. Data mining involves extracting structured data and text mining as well.. organizations such as Google. Caesars (formerly Harrah’s) was running low on customer loyalty among nationwide casinos. Section-8. Role of Intuition in Analytics Intuition plays major role in analytics in data driven organizations. According to Principle Scientist at LinkedIn creativity and intuition are very much important for new product development. 2013. Then. One has to develop their creativity with both data and analysis. Example: Hypothesis is an intuition.HBR Blog Network. Intuition plays major role in big data and analytics for data mining. Only intuition or only data analysis without the other one may not help the organizations. when there is massive data. intuition may not be applicable. association.  IC FA Definitely. “Service Profit chain” theory indicates that better financial results can come from better customer satisfaction. It involves discovering the unseen data patterns in the data needed to prepare useful information. multi variate analysis and other statistical techniques.  Organizations intuitively think about what areas require rigorous analytics. “Big Data and the Role of Intuition”. (Hints: new product development-new services development. regression. Example: LinkedIn’s most successful product PYMK (People You May Know) is also developed based on intuitive process. Those projects gave better return of investment. It is related to what is going on in data.PEP Notes: IT & Systems 20. Data mining is the process of extracting the useful data patterns from different data sources such as organizational data warehouses. Applicable To: Topic Course Unit-8: Database Management. T. Facebook and LinkedIn having huge data used intuition in their new product and services development. we test the hypothesis to prove whether the intuition is correct or not. Explain the role of intuition in big data analysis in organizations. However. IT & Systems 40 . Data mining uses different techniques such as correlation. Role of Intuition in Big Data Intuition plays major role in big data as well. Discussion Questions: 1. It works on cases like deciding which analytics projects to take up. infrastructure and the intuition of the project leader at Stanford.December 24.  I CEO of Caesars applied intuition to decide which analytics projects to implement first at Caesars.  In analytics. another application of intuition is the choice of analytical initiatives of the organization. Example: Caesars Entertainment is an early user of analytics. Business intelligence tools such as SAP Business Object and Microsoft Dymanics use these data mining techniques to extract the data from different databases and data warehouses.10: Data Mining. the CEO of Caesars applied rigorous analytics and ‘service profit chain’ theory to regain the customer loyalty.

Block-3: Software and Database Concepts and Networks 21. On the other side.7 FA 355 180 50 45 65 68 IC 700 600 500 400 300 200 100 0  Pervasive computing drives a major architectural shift.  Designers and developers have to solve complex problems related to multiple layers and multiple interfaces of thousands of devices. Pervasive computing provides can create high value solutions to the customers by making use of mobile technologies. They need to provide cost effective and less complex solutions. This article presents insights from this discipline and from Internet of Things The Pervasive computing market by 2017 is shown in the following Figure.  Recently Google has acquired an Internet of Things company known as Nest Labs for $3. All the example applications discussed above are already up and running at some place in the world. These devices exchange information. Communication and integration between devices is creating the pervasive computing discipline. Pervasive Computing: It is a computing discipline where in microprocessors are embedded in devices so that these devices communicate with one another using wireless technologies and Internet. The objective of pervasive computing is to make the device smart. Only direct investments in hardware.2 billion. Example: Smart Electricity meters transmit power consumption details remotely to the control center. 41 . Smart Cars can drive themselves and park themselves. Growing Pervasive Computing Pervasive computing an example of computer network applications create an Internet of Things. They create new sources of value for customers. software and solutions comprise $70 billion by 2017. Pervasive Computing Market by 2017 (in $ Billions) I 605. cloud computing and data analytics. Thermostats at home turn on as soon as the owner arrives at home or he is within a reachable distance.  Application Areas: Utilities such as Electric power supply industry are already using smart meters.  The organization providing cost effective end-to-end solution can drive this discipline. smart grids and smart thermostats.4 trillion by 2017. Pervasive computing solutions may not be provided by the traditional hardware and software companies. healthcare industry has challenges such as data privacy and industry fragmentation in implementing this pervasive computing. It could reach $1.

They need to develop machine-to-machine applications such as Sales force 1 and GE’s Predix. etc. Internet. Internet of Things uses wireless technologies to enable the communication between devices. Discussion Questions: 1. Sub-Section-9. T.PEP Notes: IT & Systems  The challenge before these organizations is to acquire the huge unstructured data from thousands of devices and to analyze it. chatting. The modern applications of computer networks include the Internet of Things. software or data?  How to provide cost affordable solutions?  How to meet customer requirements while dealing with complexity? In the coming 3 to 5 years time. and Intranet. The organizations have to try for the leadership position in this area. Pervasive computing is an area where embedded computing devices communicate with each other. Applicable To: Topic Course Unit-9: Computer Network. which is an application of computer networks. SMS. February 05.3.Bain & Company. 2014. “Is your company ready for the Internet of Things?”..  The questions before the senior management regarding pervasive computing are as follows:  What standards are to be followed in developing Internet of Things?  Who can be the partners across different layers of the spectrum?  What skills. That is. The future can be all devices communicating with one other. C. 42 .3: Computer Network Applications. and Pearson. discussion forums. IT & Systems Section-9. FA I Computer network applications include e-mail. pervasive computing and Internet of Things are coming into mainstream. devices with embedded computing processors communicate with each other without wire. What are the different features of pervasive computing? 2. Devices communicate with each other by transforming both data and control information. They provide guidance and useful information to the consumers. competencies and capabilities are required in delivering solutions?  Where does the value lie in? Is it hardware. (Hints: utilities-energy and power-healthcare industry) Reference: Brahm.3: Basic of Computer Networks. IC (Hints: embedded microprocessors in devices-drive smart-remote transmission of data) Name a few application areas of pervasive computing. It becomes like general power supply. We just feel the absence of them.

not just as an advertising channel. by scanning a bar code.  To capture the mobile opportunities. 2G. those products which are not available on the shop floor can be ordered using mobile by the customer from the store itself. access product recommendations. for product purchases such as mobiles. seamless omni channel customer experience is within our reach.  In Kmart. This is to create integrated customer experience. The research findings are IC FA   79% of them are using mobile phones atleast once a month for shopping related activities  50% of them use mobile devices for 15 minutes or more per store visit. 3G and 4G networks. print. wallets. insight development. 40% more appliances.  Treat mobile as a connector between digital and physical life. the organizations have to develop capabilities in content marketing. US. activate mobile  Approach mobile as a team sport I  Organizations can generate market strategies.  Google in association with Google Shopper Marketing Agency Council has carried out a survey of 1500 US based smart phone owners with over 18 years of age.  Using these devices. Mobile commerce systems are very useful in remote and unreachable places. The 4G mobile networks are very fast.  High frequent smart phone owners were carrying 50% more health and beauty products. but start building today  Don’t just advise. They transmit microwaves over the air. spending and segmentation using consumers data  Traditional way of look at organizations is “digital first”. 43 . online.  These smart phone devices are used in accessing product reviews. Every team needs a general manager to take decisions on people and resources. for online chat purposes. audio and data over mobile networks.Block-3: Software and Database Concepts and Networks 22. transmit high quality streaming video.  Using these devices. we can link all other market touch points such as TV. Mobile commerce systems work without physical wire between communicating devices. Advantages of Latest Mobile Technologies Mobile commerce systems using unguided media are useful in omni channel marketing. one can get the product details. and 25% more household care products. Now we have to move towards the trend of “mobile first”. wordof-mouth and in-store channels.  With the latest mobile technologies such as Smart phones.  Four principles to achieve omni channel marketing within our reach are: Realize that Mobile is Personal  Think three years ahead. for posting pictures and videos and basically for sharing. outdoor.  53% of the smart phone users are comparing product prices  Smartphone market share in US is 54% among mobile phones Mobile commerce systems make use of mobile networks such as CDMA and GSM. technology integration and data analytics.  Every team needs a Coach to provide the vision. There are different generations of mobile networks such as 1G.

IT & Systems Section-10. Seelbach.New York. T. (Hints: online chatting-product purchases-sharing pictures and videos) 2. IC FA I Sub-Section-10. 2013. and Sayani.June 10. Strategy + Business. Booz & Co. N.4: Telecommunications in Business. What were the findings of the Google research survey on mobile technologies? (Hints: using mobiles for shopping-comparing product prices-purchasing healthcare and household products) References: i. H.. 2013. K.New York. M. Applicable To: Topic Course Unit-10: Telecommunication Networks. and Madden. Egol.June 10. Strategy + Business. ii.PEP Notes: IT & Systems Discussion Questions: 1. Manikas.. 44 ..4. Explain few. “Mobile Now”. Booz & Co.. What are the advantages of mobile technologies?. F. Froseth. “Smartphone to Aisle Nine”.4: Mobile commerce systems...

Russia. INSEAD and World Economic Forum have jointly surveyed 15. developed economies such as Nordic Nations.Block-3: Software and Database Concepts and Networks 23. 2 3 4 FA 1 I Networked Readiness Index (NRI) 5 7 8 9 10 IC 6 India. The digital connectivity improvement is also slow in Africa and Latin America. competitiveness. developed and developing nations with respect to making IT investments useful for development. Europe can give more spectrum to operators. Hong Kong. Unlike Europe. and restrict wholesale access. Low investments in Telecom infrastructure is putting at risk the region’s competitiveness and also the consumer benefits. China and Brazil stood at 50th position in Networked Readiness Index. Taiwan (China).000 executives across the world and prepared Global Information Technology Report known as “Growth and Jobs in Hyper connected World”. employment and well-being. create incentives for investments. but the divide is in the usage of ICT for business purposes. North Africa and Levantine nations which are undergoing some political changes. especially the small and medium size enterprises who create the jobs and help improve the standard of living in developing nations. The State of the art infrastructure is also available in developing economies. High digital divide is present in Israel and GCC Countries. 45 . Singapore. it is about how we use them all together. According to this report. The Digital Divide across the World There is digital divide in technology scope in business across the world. There is a great divide between Northern European and Southern European. According to this report. it is not about the infrastructure. the home to most digitized and innovation economies in world is least connected. and the Republic of Korea are converting IT investments into tangible benefits in innovative ways. reduce the number of operators by giving more price flexibility. hardware or the link. Asian governments lead the digital initiatives. Asia.

product development processes.5: Scope of Telecommunication Networks. Business organizations use Internet.5. by 2015. “Closing Knowledge@INSEAD. Sub-Section-10. 46 the start”.4 million big data jobs globally) Topic Divide: Connectivity is just Course Unit-10: Telecommunication Networks. the Digital IC Applicable To: FA (Hints: unlocking hidden data-operational cost reductions-4. Earlier only organizations such as Google and Wal-Mart used to deal with huge data and collected the data at enormous costs. Explain the impact of big data on different organizations. May 07. big data is going to provide 4. Discussion Questions: What is the impact of digitization on different parts of the world? (Hints: development-competitiveness-employment generation) 2. Now-a-days majority of organizations are able to do this with the concept of big data and they are unlocking the hidden information from the data sources. They manage big data and use analytics for business and market intelligence purposes.4 million IT jobs globally and each of these jobs is going to create 3 more jobs indirectly in other sectors.5 billion are marginally employed. Business organizations use technology in product design.PEP Notes: IT & Systems Impact of Big Data Current Unemployment is 200 million people globally and 1. . 2013. mobile and networking technologies for communication purposes. According to Gartner’s research. Reference: Jane Williams. customer support and customer contact centers. IT & Systems Section-10.2: Technology Scope. online marketing. I 1. Technology Scope is wide in business organizations. architecture.

Block-3: Software and Database Concepts and Networks 24. computer processors double their complexity in every two years. If not them. Wi-Fi hotspots market is growing at 40% annually in India. This was expressed by the Chairman of Google. This is because India is proactively addressing the competition among service providers in the telecommunications industry for more LTE layers.  There are 120 million Internet users in India. They provide broadband Internet to mobile phones and handheld devices with roaming facility. Inc. LTE networks come under 4th generation wireless communication networks. FA I  Some More Insights IC Moore’s Law: “In computer hardware.. 47 . Eric Schmidt in an interview. This article gives insights from that interview.  Indian technology sector has made a big impact on the world. However one has to concentrate on the regulatory environment. high growth and transform the country. That is. the number of transistors and integrated circuits double in every two years”. They will have life changing experience of access to world’s information.  Technology is reducing mobile phone costs. This reduces the Internet costs and makes it mobile. somebody in their village is using mobile phone.  In 5 to 10 years’ time.  Indian Internet connections are still behind its real potential. 50%. 70% of the population use Internet in India?  India can very much depend on technology and can build powerful 4th generation LTE (Long Term Evolution) networks. It has experienced an extensive growth in the Indian technology sector. Some Insights from the Interview Technology can play a major role in Indian development. Growing Indian Internet & Smartphone Markets Google chairman Eric Schmidt is optimistic about technology scope in India.  India has got the talent. They will pay higher salaries.  Local culture and local languages drive local solutions. we will get Android phones for much less that $50  India has very high data transmission rates. Indian Technology Sector  Local firms will have unique talents and skills. many Indians will have access to Internet.  What happens if 40%. Google has started its office in India a decade ago. This is following Moore’s law. Only thing is they need to work on the regulations and the way capital is formed. Indian technology organizations should give priority to domestic excellence over global dominance. A $400 mobile phone is available for $200 after 2 years and the same phone is available for $100 after two more years.  The advantages for India are the quality of people and the education system.  People who do not have televisions and refrigerators use mobile phones in India. 60%.  There is growth for Wi-Fi hotspots in India. This is less than 10% of the Indian population.  In next five years.

What was the status of the Internet market in India? (Hints: 4th generation LTE network-technology reducing mobile costs-growing in rural India) 2. 40% of the entrepreneurs in Silicon Valley are of Indian origin.2: Technology Scope. FA Applicable To: IC Section-10. “Reimagining India: A Conversation with Eric Schmidt”. There are some domestic mobile phone companies such as HTC and Micro Max which have launched smart phones in India. 2. 3. With the growing economy and need for access of remote places there is lot of scope for technology in mobile and telecommunications sector in India. The mobile networks in India are heading to the 4G mobile networks.5: Scope of Telecommunication Networks. Topic Unit-10: Telecommunication Networks. the cell phone market is growing at a double digit rate in India. December 2013. 48 Course IT & Systems . (Hints: Wi-Fi hotspots-reduced data transfer rates-need to work on regulations) I Reference: Schmidt. Co-founder of Sun Microsystems is educated in India.PEP Notes: IT & Systems Example: 1.. Explain the impact of the Internet on Indian technology sector. McKinsey & Co Insights & Publications. With the reduced device costs. E. Discussion Questions: 1.5. The growing number of mobile and smart phones in India is increasing the technology scope in India. Sub-Section-10. The quality of people and education system in India is helping the Indian Technology Sector. The competition is leading the companies to come up with innovative solutions and products.

Customer service is going to be more effective. large corporations may use the combination of both public and private clouds. Organizations use big data and analytics for finding the right customers. IC FA I  49 . It can be achieved through firewalls. Telecommunications Technology Trends The emerging technology trends in telecommunications and mobile communications can increase the industry scope in India. It is going to be the revenue generating area by utilizing the spectrum to the maximum extent and providing better services to customers. Data protection is top priority for organizations. M-Health deals with providing patient details.  M-Commerce/M-Health/M-Education: Mobile commerce. Using this technology learners can learn from anywhere by connecting to the wireless networks.  Better Utilization of Spectrum: Utilization of spectrum indicates the different services the customer is going to use such as SMS. transmission and retrieval of data. data. Organizations can achieve mobility between HR and customer service using IT centric technologies such as HTML5 and mobile apps. They can also take better decisions at organization level using these technologies.  Growing IT Centric Technologies: IT centric technologies are the technologies used in web based systems development and mobile application development. privacy. access.  Smart Homes and Smart Offices: Smart home consists of many electronic home appliances that can communicate with one another.  Usage of Big Data and analytics: Big Data deals with access to the huge chunks of data available not only in database but also on Internet using extensive deep search techniques.Block-3: Software and Database Concepts and Networks 25. 2014 is looking very promising for Indian telecommunications sector. Similarly. health information and prescriptions to the remote patients over the mobile devices. goods purchases.. network security and data encryption. They make extensive use of data mining and search techniques to interpret the data. Organizations are going to use encryption in storing. Analytics applies the statistical and business research techniques to the big data. M-Education deals with providing learning solutions to the learners over the mobile and handheld devices. The technology trends for 2014 are as follows: Launch of LTEs (Long Term Evolution) Networks: LTE networks provide broadband Internet with roaming facility not only to mobile phones but also to handheld devices. A Cloud is a logically connected network of computers and devices with storage and virtualization facilities. efficient and loyal. Service operators can provide more bandwidth to customers on both fixed lines and mobile devices. etc. Mobile commerce deals with making financial transaction. They achieve capacity excellence and operational excellence with lower costs using public clouds. For achieving cost reductions and flexibility. The mentioned technologies in this article are going to generate new value added services to customers in the industry in the coming years. and video. The emerging technology trends are going to have positive impact on the Indian telecommunications industry. smart office consists of office equipment that can communicate and interact with one another through wireless or wired technologies. and protection to the data and information of the organization. Machine to machine communication can also be used in handhe-1` health devices. These are 4th generation mobile networks.  Information Security: Information security is providing authentication. One machine communicates with other machines and exchange data and information using IT infrastructure. voice. authenticity. mobile health and mobile education are going to grow in India and they are going to reach remote places in India.  Public Clouds: Public clouds are the clouds in which any organization can access the cloud by subscribing to that vendor.  Integration with OTT Players: OTT (Over-The-Top)players provide voice and data communication services over the IP (Internet Protocol) networks without any service providers’ intervention. bank account accesses and online shopping using mobile phones and handheld devices. Organizations are going to use public clouds for enterprise purposes. Telecom service providers are going to launch these 4th generation LTE networks in India. Smart homes and smart offices are possible with machine to machine communication using IT infrastructure. This is going to be used widely in agriculture. Organizations are going to integrate with OTT players for value added services such as billing. utilities and consumer electronics industries. analytics and information security.

February 10. m-health. m-education.5: Scope of Telecommunication Networks. “Technology Trends in 2014”.3: Industry Scope.. Developments in telecommunications are leading to the growth in areas such as cloud computing. The advancements in telecommunication technologies are reducing travel expenses.5. Explain how telecommunications is relevant for M-commerce. These are the emerging areas that are using telecommunications and mobile communications widely. FA Section-10. What were the telecommunication technology trends for 2014? (Hints: long term evaluation networks-smart homes and smart offices-public clouds) 2. speed of data. smart offices and information security. 50 . I Unit-10: Telecommunication Networks. A. The increased speed of Internet. saving time and reducing lodging expenses for the organizations. audio and video transfer is enabling the industrial teams to communicate effectively and quickly with their global partners. Applicable To: Topic Course IT & Systems IC Sub-Section-10. (Hints: making financial transactions-purchasing products-mobile shopping) Reference: Pachory. mcommerce. smart homes. Discussion Questions: 1.PEP Notes: IT & Systems Information technology is going to be the driver from front for the organizational business growth and efficiency. The advancements in telecommunications networks are increasing the industry scope in India. Business Standard. 2014.

There are over 80 million Wi-Fi networks in US. Organizations such as JCPenny. Target. Sam’s Club. Wi-Fi improves employee efficiency and customer satisfaction. Wi-Fi for Customer Satisfaction Unguided media such as Wi-Fi technologies improve employee productivity and customer satisfaction. 63% of the respondents expressed that providing free Wi-Fi will enhance their shopping experience. In a recent survey conducted by Sapient Nitro and GfK Roper. Macy’s. FA I Figure 1: Impact of Wi-Fi on Employee Productivity and Customer Satisfaction Query Info Customer IC Wi-Fi Server Employee Productivity Sales Executives Customer Satisfaction Important Questions to ask before Wi-Fi Implementation: Whom do you want to locate using Wi-fi: Employees or Customers? Will the proposed network support simple web queries or streaming high definition videos? Will the employee network work as VPN (Virtual Private Network) within the public customer data? 51 .Block-3: Software and Database Concepts and Networks 26. Saks Fifth Avenue and Nordstrom have implemented Wi-Fi networks for the purpose of either employees or customers.

Unguided media is nothing but the wireless communications media. Applicable To: Topic Course Unit-10: Telecommunication Networks. Planning mistakes cost millions of dollars Have Sufficient Project Time: Six months is ideal time for Wi-Fi Planning.1: Communication Media.6: Telecommunication Network Components. Unguided media works without a physical wire connected between communicating devices.  Consider Wi-Fi as business project rather than only as IT project  Wi-Fi projects involve all parts of company such as marketing.2: Unguided Media. wireless LAN systems. “Wi-Fi for Your Customers: The toughest Challenge of the decade”. 52 IT & Systems .6.  Take required outside help for skills not available in-house. Wi-Fi. 2013. legal. Section-10. March 13. and facilities management.PEP Notes: IT & Systems Advantages of Wi-Fi       Employees Check product availability Voice over IP (VoIP) Find another employee Spend more time with customer on floor Instant Checkout Instant call to inventory            Customers Find products Product Information Product reviews Usage of Store Map Check discounts. business development. It includes cellular phone systems. infra red systems and terrestrial microwave technologies.1.6. Discussion Questions: 1. finance. Bain & Co. They communicate through the frequencies over the air with distributed spectrum. What is the impact of Wi-Fi on business organizations? (Hints: improved customer satisfaction-improved employee productivity-sharing videos and images) 2. IT. operations. Sub-Section-10. rewards and loyalty programs Order online Find a sales executive Check product availability Price search Price comparison Entertainment for Kids        Organization Single Channel experience In-store marketing Efficient Inventory management Customer identification Personalization of Service Catch nearby Customers Identify maximum spent area in store I Questions to Ask while Building Business Case:  What business benefits does Wi-Fi bring?  Will Wi-Fi increase revenues?  Will W-Fi reduce Costs?  Does it increase the sales?   IC FA Lessons Learned in Wi-Fi Implementations:  Wi-Fi projects are more complex than expected. communication satellites. Sub-Sub-Section-10. What are the challenges faced in Wi-Fi implementations? (Hints: support for streaming video-who will locate employee/customers?-project planning) Reference: Rudy Puryear and Rasmus Wegener.

42. 33. 38. 48.Block-4: Management of MIS FA I The Role of Requirements Management in Software Product Development Roadmap for a New CIO (Chief Information Officer) Return on Investment (RoI) of Clinical IT Systems Dealing with IT Risk IT Spending for Organizational Effectiveness On Mission to Develop IT Product Engineers in India The Success Factors of CIOs The Turnaround Journey at Yahoo (2012-13) The ignored Soft factor in Nokia Downturn: Collective Emotions The Growth of Open Innovation (OI) How Analytics changed the business model of a Media Organization? The Pros and Cons in Analytics Outsourcing Growing Software Entrepreneurial Zeal in India Business Models which can be adopted from Software Industry Innovation Prowess for Growth Leadership Wipro. 3 in Energy & Utilities Vertical Innovative Project Management at IBM The Role of IT in Healthcare Measuring Clinical IT Systems Performance Predictive Analytics to increase Project Success Rate Leading Healthcare IT (HIT) Projects Corporate Website for Organizational Effectiveness IC 27. 53 . 32. 29. 34. 31. World No. 30. 40. 45. 37. 35. 46. 28. 44. 41. 39. 43. 36. 47.

complete. consistent. accessibility. Sub-Section-11.27. CCB is a group of experienced designer.2. 70% to 85% of the rework costs in software projects are because of requirements errors. senior management. performance. localization. test team. Why. modifiable. 54 Course IT & Systems . White Paper of The Westfall Team. if requirements change request comes from different stakeholders. organizations end up in software products which they don’t need. accuracy and reliability of the system.2: Design Process. CCB (Change Control Board) in software projects does impact analysis and takes accept or reject decision. security. Requirements Development and Requirements Management are two different things. measurable. team members.8: Specification of information requirements. programmers and Project Manager in the project. Requirements should be unambiguous. 2006. project sponsor. Requirements Engineering Consists of Requirements Development and Requirements Management. It is best practice to number the information systems requirements and document them in System Requirement Specifications (SRS). “Software Requirements Engineering: What. Non-functional requirements of the product include usability. Functional requirements of the product concentrate on the features to be developed for the product. When and How”. vendors.4: MIS Design.4. specification and review – change management of requirements) Reference: Linda Westfall. Requirements Management deals with change management of requirements. It is best practice to have requirements sign-off by all the stakeholders of the project such as customers. support team and QA team. Requirements Development deals with requirements elicitation. and testable.requirements analysis. and requirements review. Discussion Questions: 1. project manager. traceable.4. suppliers. Business Requirements (Customers) Analysis System Requirements Specifications (SRS) User Requirements (End Users) IC FA Non-Functional Requirements Requirements Elicitation Design I Functional Requirements RequirementsA nalysis Requirements Specification Coding Testing Software Product Requirements Review Specification of information requirements includes specifying both functional and non-functional requirements. That is. authorization. requirements specification. Applicable To: Topic Unit-11: MIS-Planning and Design. Section-11. Sub-Sub-Section-11. Who. How is requirements development different from requirements management? (Hints: requirements elicitation. requirements analysis. The Role of Requirements Management in Software Product Development Specification of information requirements and requirements management comprises requirements engineering in software projects. availability. If requirements are not correct. What are different types of requirements of an IT product? (Hints: business and user requirements-functional requirements-non-functional requirements) 2.

According to a survey. weaknesses. quality of legacy systems and IT strategies in mind to achieve IT effectiveness. Pressure on CIO is from fixing what is broken and underperforming in IT systems. Roadmap for a New CIO (Chief Information Officer) Identifying and establishing relationships among tasks and expectations can keep the CIO on new job. 55 . CIOs have to spend lot of time initially listening to sources of frustration and understanding current context. New CIOs have to balance between fixing old problems related to legacy systems and building new IT capabilities with social. 85% of the IT budget goes into operating and maintaining legacy systems with 15% remaining for new IT initiatives. new CIO was on a 100-day fact finding machine. organizational effectiveness. CIOs have to do Balance between fixing old problems and developing new IT capabilities  Legacy systems are not robust  Build the fact base  IT governance does not support quick decision making  Set Appropriate Expectations  IT is not aligned with business strategy  Handle High priority initiatives   Do SWOT analysis of IT (strengths. and thereby. and quick solutions causes 25% of the total IT budget. At AXA Belgium. Found dozens of applications running on obsolete platforms. What is Shadow IT? Shadow IT. which is the hidden pocket of improved IT capabilities. Shadow IT increases the complexity and costs on the one hand and undermines the already existing in-house IT systems on the other.Block-4: Management of MIS 28. cloud and mobile technologies.  Carefully documented sources or reasons of cost overruns and schedule overruns  Redirected IT spending from low value projects to high value projects IC  High impact projects can increase the organizational effectiveness. a new CIO found that 60% of the servers supporting the main business line are obsolete. Expectations from a new CIO are very high. opportunities and threats) IT organization’s strong capabilities are in legacy systems not in new technologies  Shadow IT I  Root causes for IT Underperformance FA At one computer manufacturing company. CIO has to balance between short-term and long-term IT goals by keeping team capabilities. On the new Job.

Cornish. Identification of these relationships is important for project and program scheduling. tracking and execution.4. 2013. finish-to-start. R. FA 2. The possible relationships between two tasks of any project or program can be start-to-finish. April 03.1: Identifying and establishing relationships among tasks 56 IT & Systems .. N. Topic Course Unit-12: MIS-Implementation. Mention the root causes for IT underperformance in an organization. and Van Der Vleugel. I (Hints: balance between short term and long term IT goals-IT strategies-quality of legacy systems) (Hints: obsolete platforms-spending on low value projects-project schedule and cost overruns) Applicable To: IC Reference:Puryear. Discussion Questions: 1. M . Section-12. Sub-Section-12. “The new CIO’s quick start manual”.. Explain how IT is impacting the organizational effectiveness.PEP Notes: IT & Systems IT Department IT Team Capabilities IT Effectiveness Short Term Goals Legacy Systems Long Term Goals Organizational Effectiveness New IT Initiatives/Strategies Identifying and establishing relationships among tasks is very important in the planning and development of Information Systems. Evaluation and Maintenance. start-to-start and finish-to-finish.4: Planning the MIS Implementation. Bain & Co. These relationships can be represented in network diagrams.

The observations from the research study are as follows: Most of the respondents expressed that their organizations do not measure the success of EMR systems.  Performance measures are considered not just to find return on investment.  51% of the respondents expressed that performance measures are to be decided much early.  Performance measures are implemented at EMR system’s planning. strategic planning.  76% of the organizations are rated at level 3 or above in measuring the maturity of EMR systems adoption model.  78% of the organizations collect data from physicians and nurses to measure the satisfaction with clinical IT systems.  EMR systems performance measures are taken into consideration by the IT department and Quality management department.  36% of the respondents were satisfied with their organization’s efforts on measuring RoI of clinical IT systems. The EMR adoption model and its 7 levels are as shown below: IC FA I  57 .Block-4: Management of MIS 29.  EMR system performance measures are included in organizational balanced scorecards. This article brings out the following insights from this research. IT systems improvement. a healthcare consulting company. in balanced scorecard.  Most respondents are not satisfied with their organization’s measurement of return on investment of clinical IT systems. implementation or testing stage.  EMR systems performance measures initiate clinical quality improvements. such as in EMR system’s planning stage. rollout planning and for cost savings purposes.  Effectiveness of EMR systems is an asset to the organization.  Performance measures of EMR systems are used for quality management.  The challenges faced in EMR systems implementation include the tight deadlines and limited resources. Beacon Partners. determine training needs. systems improvement. Return on Investment (RoI) of Clinical IT Systems Very few healthcare organizations have evaluation of MIS implementation to find the return on investment of their clinical IT systems.  Most healthcare leaders and clinicians are unsatisfied with their efforts of finding return on investment of their EMR systems.  40% of the respondents expressed that they use performance measures at some stage or other of EMR system.  The feedback taken from physicians and nurses is used for planning of further systems. carried out a survey of 300 professionals working in healthcare industry in 2012 to find out whether healthcare organizations and hospitals use clinical system performance measures in order to find return on investment of EMR (Electronic Medical Records) systems. budget reports and employees performance bonuses.

58 IT & Systems . This is part of organizational performance evaluation.PEP Notes: IT & Systems EMR Adoption Model Level Capability Level -7 Data warehouse is used.  In healthcare organizations. Research Report of Beacon Partners. executive members and governing boards are slow in establishing performance measures to find out the RoI of their clinical IT systems. IC Evaluation of MIS implementation involves finding return on investment. (Hints: EMR systems-clinical quality parameters-balanced score cards) 2. Flow sheets and error checking is present. Common vocabulary is used. employee incentives and for including in the organizational balanced scorecards. How do you measure the return on investment of clinical IT systems. Level-3 Clinical documentation exists. team feedback. CFOs. It is important to evaluate the MIS implementation to further direct the funds. top management feedback. “Finding the ROI in Clinical IT Systems”.  The respondents are from community hospitals. 2012. stakeholder feedback. Evaluation and Maintenance. Among the 300 executives surveyed. Section-12. Clinical data repository is present. Level-1 Pharmacy. CPOs. I  FA Performance evaluation of EMR systems is useful for quality management. 42% are CIOs and rest are CEOs. Applicable To: Topic Course Unit-12: MIS-Implementation. Radiology – are installed Level-0 Level-1 capabilities are not installed. COOs. ambulatory clinics. Discussion Questions: 1. Impact of MIS on operations. CMO and other administrative staff.6: Evaluation of MIS Implementation. Level-2 Clinical Decision Support System and document imaging are present. Level-6 Structured templates are used for physician documents Level-5 Closed loop in medication administration Level-4 Clinical protocols such as CPOE and CDSS are used. What are the different levels in EMR adoption model? (Hints: Level 0 to Level 7-from diagnostic lab to data warehouse-structured documentation) Reference: Beacon. multi-hospital systems. Healthcare leaders have to make use of these systems for long-term strategic benefits and to evaluate organizational performance. marketing and finance can be evaluated in an organization. and multi-specialty practices. customer feedback and patient satisfaction in case of healthcare industry. academic medical centers. IT systems improvement. Lab. Medical records are fully electronic. services.

Information Security people think about all 4A’s. funding issues. Business and IT executives agreed on the relative importance of access and availability. leadership issues. one can take better decisions and fix wrong assumptions. FA I  IC IT System Agility Business Executives Accuracy Organizational Effectiveness Availability Access IT Executives Challenges in MIS implementation include lack of domain knowledge. and third party dependencies. and timely In a survey of 258 executives. lack of commitment from top management. lack of coding and design standards. lack of technical skills of team members.  When one talks about 4A’s openly. communication gaps. In Best Companies. correct. incompatible or outdated systems and integration with legacy systems. Dealing with IT Risk IT risks as challenges in MIS implementation impacting agility and access can impact organizational effectiveness. lack of knowledge of appropriate design methodologies. The other challenges in MIS implementation include rushing to implementation rather than designing the systems. Business executives gave more importance to agility and accuracy than IT executives.Block-4: Management of MIS 30. IT Risk impacts 4 main Objectives (4A’s): Agility: Modifying business processes at minimal cost and time Access: Provide timely information for needed people and keep away the wrong people Availability: Keep the business running and keeping recovery from failure time minimal Accuracy: Making sure that information is complete. lack of resources. 59 .  Discuss about all 4A’s when you make a Big IT Decision. non-matured technologies.

60 IT & Systems . Evaluation and Maintenance. Applicable To: Topic Course Unit-12: MIS-Implementation. What objectives of IT system get impacted by IT risks? (Hints: agility and access-availability-accuracy) Reference:Westerman. HBR Blog Network. IC FA I Section-12.PEP Notes: IT & Systems Discussion Questions: 1..7: Challenges in MIS Implementation. June 23. “How to Have the IT Risk Conversation”.2013. G. What are the challenges faced in IT systems implementation? (Hints: lack of technical skills-communication problems-lack of domain knowledge) 2.

IC Steps to manage volume of IT Resources Use IT Tracking Tools to monitor IT usage Reinforce Budgetary Controls Use actual usage data in making outsourcing contracts and agreements Centralize IT procurements which are not strategic to business. 80% of the respondents felt that their IT strategy is away from business strategy. It is observed that the difference between IT supply and business demand is costing the companies 20% more on IT spending. 70% of the senior managers felt that IT spending is very much needed for their organizational growth.Block-4: Management of MIS 31. Key Questions to Ask for Managing Complexity Are the new IT systems. infrastructure and changes are easy and efficient to implement? Is there any reuse of IT solutions and is there any work around? 61 . Are all IT projects mapped to IT strategy and business strategy together? FA I 1. Bain & Co has done a survey of senior managers from 350 organizations. Organizations whose IT spending is more efficient and whose new IT investments are on high impact projects follow the following four steps: Align IT Strategy with Business Strategy Manage Volume of IT Resources Eliminate IT Resources Redundancy Balance between IT Supply and Business Demand Key Questions to Ask for Strategic Alignment of IT Is there a clear IT strategy which is aligned with Business Strategy? 2. IT Spending for Organizational Effectiveness Managing information resources and technology efficiently can make an organization effective.

acquiring resources. Information systems technology management responsibilities include planning for technology. technology assessment. Information systems resource management includes planning resources. project planning. allocating resources. project execution. Applicable To: Topic Course Unit-13: Information Resources Management and IT Governance. Typical resources include people.PEP Notes: IT & Systems Key Questions to Ask for IT Governance and Demand Management 1. software. IT project manager is responsible for both technology and resources management. project deployment and operational support. Discussion Questions: 1. Bain & Co. Section-13. feasibility studies. 2014.3: Managing Information Resources and Technology 62 IT & Systems . tools and devices. What are the steps involved in effective IT investments? (Hints: align IT strategy with business strategy-eliminate resource redundancy-manage volume of IT resources) 2. procuring resources. Are there any procedures and systems in place being followed and enforced in IT spending? 2. How do you manage IT system’s complexity? (Hints: reuse components-proper IT infrastructure-change management) Reference: “How to make IT spending more effective”. tracking usage of resources and releasing resources. hardware. Does organizational decisions encourage IT usage and IT spending? IT Strategy Organizational Strategy IT Resources Organizational Effectiveness/ Performance IT Governance FA I Project Complexity IC Managing information resources and technology is responsibility of project manager or MIS manager.

00.000 students as Product Engineers.000 people Graduate in Computer Science and IT in India Every Year  Among this only few hundred are suitable for Product Development Roles  Product Companies pay Rs 7. product strategies. (Hints: make 1000 students as product engineers-online and industry based faculty-expand to major cities of India) Reference: Kurmanath. PayPal.4. Human resources are assets to any organization. Would like to expand to Bangalore.500 of 12 colleges in Hyderabad. Discussion Questions: 1. Cisco. software services.1: People.V.5 lakhs/year on average to fresh graduates  Product Development companies have shortage of Workforce Ex-Microsoft – India Managing Director (SriniKoppolu) and his team are on a mission to produce Product Engineers in India. Explain the highlights of the mission on developing software product engineers for India. Later Physical Interaction with faculty. To make 1.. “Mission R&D to churn out product engineers”. Mention some of the facts about Indian IT industry.4: Information Technology and Organizational Needs. Accomplished Mission  Trained 41 students in 2012  Conducted Six weeks Summer camp  Students are already placed in companies such as Microsoft. a registered company. Human resources in IT industry work in areas such as product development. product support. Some Facts:  More than 3. program management. 11-July-2013. Sub-Section-13. IC FA I  The modern terminology for People is human resources. They established Mission R&D. software support. K. (Hints: product companies-software services companies-300.5 lakhs/year on average to Fresh graduates  Services Companies pay Rs 3-3. Applicable To: Topic Course Unit-13: Information Resources Management and IT Governance. 63 IT & Systems .000 CS and IT graduates every year) 2. product and services marketing. On Mission to Develop IT Product Engineers in India Grooming IT resources such as people as product engineers is relevant to India.Block-4: Management of MIS 32. Mumbai and Delhi   Online mechanism from Industry based faculty. Section-13. and Sethu on campus   This Year they selected 105 students from 2. software testing. The Hindu-Business Line. half of them would be Women. project management. Make them ready for Product Development Roles.

 Direction of CIOs focus. competition and technology are keeping the IT in front row of the business. Otherwise they look for CIO from outside. He or she has to coordinate between internal and external capabilities and resources. I  FA The Survey Findings Majority of CIOs came from outside instead of internal promotion.  If IT and digitization are in right path in an organization. services failures.  He has to meet the requirements and demands of different parts of the organization. LinkedIn and Other Social Networking sites are reducing the need for head hunters.  The IT architecture in the company also decides the CIO reporting structures and reporting lines. sales. Digitization is part of the business model. operations. The increasing consumerization. IT department is responsible for digitization in the organization. whether to CEO. CIO Responsibilities CIO role is multifaceted and highly demanding. What CIOs should do?  CIOs should have strong partnerships in work with stakeholders to ensure that complex IT projects succeed. energy and IT resources depends upon who they report to.  Upon joining. 64 .  More than 50% bring members into their organization from their previous companies/teams  Only 30% of CIOs are recruited through head-hunters.PEP Notes: IT & Systems 33. poor cost control and poor business impact.  For more than 50% of the respondents.  80% of the CIOs have Bachelor degree and 12% have MBA degree  All the respondents (60 CIOs) happened to be male. then they look for CIO internally.  He has to control the IT costs  He has to assess the emerging new IT technologies. The Success Factors of CIOs Proper management of needs of people combined with vision and strategic thinking can make a CIO successful in the organization. which effects the marketing. such as. IC  CIO Considerations  Active succession planning takes place in IT function in organizations. supply-chain. Booz & Company surveyed 60 CIOs of MNCs in 2013 to find out success factors. CEOs should ensure that the IT function and the CIO are positioned properly in the organization and they are able to respond to the changing needs and demands. it is their first job in IT  More than 70% worked in management consulting or enterprise system integrator earlier. Average CIO age is 48 years. COO or CFO. CIO role is evolving rapidly and he or she is unlocking the competitive advantage and business benefits.  He has to ensure the on-time and on budget delivery of IT projects. customer interaction and the employee interaction. failing IT programs. Here. major IT programs and the IT function itself. CIOs priorities should be people and skills. success trends and career paths of CIOs. Reasons for CIO failures  The reasons for CIO failures include not proper partnering with business. embrace and exploit them.  Majority of the CIOs coming from outside have revamped the industries.

project managers. “Memo to the CEO: Are you getting the best out of your CIO?”.Block-4: Management of MIS  CIO should be a visionary with strategic thinking capabilities for bringing in a competitive advantage through IT. program managers.  Top management position.. Section-13.4. (Hints: failing IT programs-improper partnership with business-poor cost control and service failures) 2.  Visionary with strategic thinking capabilities.  Business understanding.. The CIO has to manage the expectations of the stakeholders to make the IT successful in the organization. IT Function Success Measures Cost effectiveness  Flexibility  Scalability  Sourcing and quality  Responsiveness  Innovation FA  I The success measures for IT function in an organization include: 90% of the CIOs moved into the current CIO role because of dissatisfaction in their previous employment and for taking up new challenges in the current CIO position.Booz & Company. Roets. The stakeholders for CIO can be business teams. Sub-Section-13.  Having resources such as people and money. Stakeholder expectations management is one of the critical success factors for IT in business organizations. N. C-level executives and the board..1: People. 2013. R. (Hints: stakeholder management skills-strategic thinking capabilities-better understanding of business) Reference:Bahnap. Majority of CIOs wants the profit & loss responsibility in CIO role and some other minority does not want it in the CIO role. Discussion Questions: 1. Bernnat. suppliers. Why do CIOs of organizations fail? Explain the reasons. Applicable To: Topics Course Unit-13: Information Resources Management and IT Governance. vendors. R. functional heads. and Bieber. 65 IT & Systems .  Having technical background and expertise. CIO’s Success Factors The success factors of CIOs are:  Higher order stakeholder management skills.4: Information Technology and Organizational Needs. Some of the CIOs do not want to be held responsible for profit and losses made in the organization. IC People also mean the stakeholders. Specify some of the success factors for CIOs. M. customers (internal and external).

Yahoo mail. The Turnaround Journey at Yahoo (2012-13) Product orientation and organizational need such as culture have helped Yahoo in turnaround. A graduate from Stanford with Computer Science and Symbolic Systems degrees. Stamped (mobile recommend). OnTheAir (video chat start up). 66 . Hulu (Online video streaming service)  Broadening the product range rather than shrinking the services  Identity and vision articulation  Setting culture and direction aligned to current trends  Focusing on personalization of the Internet on mobile  Replacing employees Blackberry’s with iPhone and Android to align to current technologies  Free food to employees  Ending telecommuting  Updations/ Refresh of Yahoo homepage. Currently Yahoo and Tumblr together can reach more than a billion users. search and Flickr  Yahoo mail apps launched for iOS.it (social content curator). Snip. Marissa Mayer joined Yahoo in July 2012 as the youngest woman CEO in any Fortune 500 company. Jybe (personal recommendation site). Ashid (to-do app). her 13 years stint at Google took her to heading Search.  The CEO’s first Sprint was to “Bring Excitement back to Employees”  The CEO’s Second Sprint was to“Build Beautiful Products”  Gave away Terabytes of space to store photographs According to recent Piper Jaffray survey. Android and Windows 8  Flickr support for high resolution photos and Android application  No more new professional accounts at $25 a year  Focus on the four pillars for generating  Eyeballs: • Search • Social • Photos • Mail  Improving user experience FA I  IC Changes Made Progress Report Stock prices 70% ↑ since last year On site interaction ↑ 25% in one quarter New job applicants ↑ 100% in a year Mobile usage ↑ 50% in one quarter Active mail users’ ↑ 30% after launch of  Yahoo mail apps Attrition rate of top talent ↓ 50% Ex-employees returning: One in seven new hires In one year. Earth and Street View.PEP Notes: IT & Systems 34. engineering. Rondee (conference calling service). Playscale (games software provide). Key Contributions Working on Building ‘beautiful’ products which enhance user experience  Added eyeballs through purchases such as Tumblr (micro-blogging and social networking site) Summly (news summation site). She was instrumental in products such as Maps. among teens fascination with Facebook declined to 33% from 42% last year. Ghostbird (photo app maker). design and strategy. being accountable for product management. Alike (mobile recommendations app).

Explain the Yahoo culture which helped the turn around.“Yahoo continues its search for a new Identity”. sharing videos. Climate may change according to the situation in picture. Knowledge@Wharton. Culture has strong roots.4. Organizational climate is the collective perceptions of employees on that specific incident. Facebook and Amazon. Applicable To: Topic Course Unit-13: Information Resources Management and IT Governance. How could the CEO of Yahoo turn around the situation? (Hints: enhanced user experience-many acquisitions-increased product range) 2. It should be driven by top management in the organization. playing games and Focus on User. the strategy appears to be broad based rather than cutting down. Better cultured organizations get better customer satisfaction ratings. instead of moving to a partial subscription platform? In a highly competitive market dominated by Google. June 19. news. beliefs. Personalization of Internet (Yahoo wants to the leader in this area). Discussion Questions: 1. Mobile WebPortals Internet 1990 2000 2010-Present Yahoo wants to regain its identity as fit to Digital Revolution by Concentrating on Consumer Internet. Yahoo Mobile Monthly Users (in Millions) 400 100 0 FA 200 I 300 2013 IC 2012 Is Yahoo attempting to be a great player in advertising. Organizational culture includes employee’ values.Block-4: Management of MIS Technology Trends Search. sports scores. 67 IT & Systems .4: Information Technology and Organizational Needs. (Hints: bring excitement back to employees-ended telecommuting-free food to employees) Reference:Wharton. going Mobile supporting e-mail. photos.Sub-Section13. Organizational culture is more static in nature when compared with organizational climate. Section-13. and combined attitudes. Organizational culture has positive correlation with organizational performance. weather. Social Networking.4: Culture. 2013. stocks. The excitement appears to be growing.

However it lost the race of Smartphone market to its competitors. Internet.  Top managers believed that the company was progressing like Apple iPhone. IC FA I  What could have saved Nokia?  Proper management of employee emotions by top management could have made middle managers to report the facts and figures instead of optimistic reporting. culture and structure posed challenges for strategy implementation at Nokia.  There was pressure from shareholders to increase quarterly earnings and sales revenues.PEP Notes: IT & Systems 35.  Adopting a culture of “telling bad things is a good thing” might have saved the organization. applications and media industry. software and related applications. Lessons Learned: During 2006-2010. troubles and problems.  Nokia ignored the emotions in competition for resources by different departments.  Individuals were interested in their social status and internal promotion in the organizations rather than cooperating with other departments.  There was fear of losing external sales and internal momentum. It became a very competitive environment. the lack of management of collective emotions of the employees in strategy implementation was the main reason for Nokia loosing Smartphone market.  Middle managers might have interacted with top managers to address healthy external competition. The ignored Soft factor in Nokia Downturn: Collective Emotions Factors such as people.  There was an unhealthy emotional climate of fear in the organization. Some have said that software was the reason for Nokia’s failure and some others said that it was complacency. There was a need to integrate hardware.  Middle managers might have used competitors’ products extensively to know the features and usage as is done in Samsung. Google announced its Android mobile phone operating system.  Nokia faced internal competition from different departments for resources to launch products in different markets. This is based on the research carried out by Huy and Vuori (2014) by interviewing 50 of Nokia’s key managers and its former CEO OlliPekkaKallasvuo [2006-2010].  By the time Nokia realized in 2007.  Top managers put more pressure on middle managers to deliver fast and more. They were integrated with mobile computers.  Middle managers were reporting optimistic status reports and senior and top management ignored the validity of information provided by the middle managers. Nokia was having half of the global mobile market share in 2007. Complacency is a state of achieving satisfaction by ignoring threats.  It was more fear of loss of social status or of competition rather than fear of loss of job for the top executives. This might have avoided the unnecessary fears in the organization. mobile technologies underwent drastic changes. 68 . However. To this Nokia could not respond because of internal pressures to deliver fast and more from different departments. “What went wrong? What were the lessons learnt? What could have saved Nokia from this downturn?”are some of the points discussed in this article.

T. What are the lessons learned from Nokia downturn? 2. Managing collective emotions is one of the critical success factors in organizational strategy implementation. cooperation and humility in the organization. March 13. Also any process. intelligence and ideas. product or system change in the organization has to deal with culture change in the organization. Again structure and culture are something to do with people.. Organizational culture has to be changed or transformed to manage change. Strategy implementation leads to change in organizational structure.4. Hence.4.4: Information Technology and Organizational Needs.5: Structure. Large organizations have resources. Collective emotions of the employees determine the success of strategy implementation. Topic Course Unit-13: Information Resources Management and IT Governance. Strategy implementation involves change management in the organization. Sub-Section-13. integrity. Strategy implementation is 5% technical and 95% people oriented. 2014. Sub-Section-13. Change management in turn involves people or human resources in the organization. Section-13. Q. Discussion Questions: 1.  Organization might have inculcated the culture of honesty. Leaders understand the employee emotions in order to make top strategies a reality.4: Culture. Organizational culture involves values. beliefs.4. 69 IT & Systems . However. collective attitudes and behaviors of individuals. people. and What can other companies learn?”. There should be a well-defined change management process and the change should be supported by the top management. and Vuori. FA I (Hints: internal competition from different departments-ignored emotions-need to integrate hardware and software) How Nokia might have avoided the down turn situation? (Hints: proper management of employee emotions-managers to use competitors’ products-culture of honesty) Applicable To: IC Reference:Huy. Sub-Section-13.1: People. they need a strategy to execute complex things. “What could have saved Nokia. culture and structure are interrelated in an organization.Knowledge@INSEAD.Block-4: Management of MIS  Organization might have built emotional capital by managing collective emotions of employees. Strategy is 5% planning and 95% implementation.

ideas flow from both directions. This article discusses the insights given by Henry Chesbrough on open innovation in an article of Deloitte Review. 70 . when the need arose the software was developed and business models were changed accordingly by the organizations. The History of Open Innovation The initial work on open innovation wasthe result of Henry Chesbrough’s research on 35 projects at Xerox’s Polo Alto Research Center (PARC) in 1980s. Figure 1: “Open Innovation” Search Results on Internet 60000000 568. This indicates the rapid growth of the concept in both research and the industrial communities (Figure 1). some became publicly traded companies. Open Innovation as a concept originated in 21st Century. Later on the open innovation movement picked up in the organizations and now organizations are managing innovation by managing their intellectual property and bringing new ideas from outside or from 3rd parties. invested money and ideas poured in. They have made real social impact. The Growth of Open Innovation (OI) Workforce mobility combined with flow of ideas and intellectual property protection can increase open innovation in organizations.I ncase of open innovation. big organizations and policy makers manage innovations in their organizations. He was interested and curious about these projects because the internal funding for these projects was stopped by Xerox.000 links in 2011. Among these 35 spin offs.PEP Notes: IT & Systems 36. That is. Open innovation is a two way process and not one-way. both through inside-going-out and outside-coming-in components. In November 2013 this key word search in Google resulted into 568. 2003). Henry Chesbrough wrote a book on open innovation entitled Open Innovation: The New Imperative for Creating and Profiting (Harvard Business School Press. A search on “open innovation” on Internet resulted into 200 links in 2003 and the same key words resulted into 20.000.000 50000000 40000000 FA I 30000000 20000000 0 20.000.000 links.000 IC 10000000 20 2003 2011 2013 In 2003.000.000. The Meaning of “Open” The word “Open” has got many meanings. Unlike open source software. Open innovation involves flow of ideas. organizations got involved. This made the professor to reflect on how small organizations.

year after year. In the mobile industry. We need to join the parts and make an integrated system. (Hints: need based software development-flow of ideas-inside going out and outside coming in of ideas) 2. FA I  IC So organizations have to reflect whether to retain the current architecture. setup a new architecture or design an alternative solution. design diagrams. papers. Example: China has mobility of workforce advantage. . fresh graduates join one organization and work there for the rest of their lives. This systems integration skill is much needed.Block-4: Management of MIS Success Factors of Open Innovation Following are the success factors for open innovation in organizations. The important property of an organization is its intellectual property. It is very much important during scaling up and making investments.3: Property. 2012. instead of building blocks of technology. modular and architectural and asis the summation of several parts.  Human Resources Moving Between Organizations: Ideas come in when human resources move between organizations and work as interpreters between insiders and outsiders. new architectures and new models replace the existing architectures and models respectively in a very short span of time. The organizations or countries without right strategies for intellectual property won’t be able to achieve open innovation. Taiwan is well-managed and well-respected in Intellectual Property issues now-a-days. It includes design documents. How to Build Innovation Ecosystem? When there is distributed knowledge across. 71 IT & Systems. The same situation was there in Taiwan in 1960s. Example: In Japan.  Mobility of workforce: Workforce mobility is crucial for open innovation. September 24. Outside ideas may come in but the people are the same.  Manage Intellectual Property: Having right strategies to manage intellectual property is crucial for open innovation. However it is facing the challenge of lack of IP protection. radical. Discussion Questions: 1. patents. copyrights. Section-13.6. R & D institutions in China have 20% to 25% attrition rates. Sub-Section-13. CIO Journal (from Wall Street Journal). However with increased IP protection. The organization has to protect its intellectual property based on the law of the land. it is better to design the systems architecture with the available building blocks.  We should consider innovation as incremental. Applicable To: Topics Course Unit-13: Information Resources Management and IT Governance. trademarks and logos. “Henry Chesbrough on Open Innovation”. What is open innovation? Explain.6: Ethical and Social Dimensions of Information Technology. What are the some of the success factors of open innovation? (Hints: workforce mobility-manage intellectual property-human resource moving between companies) Reference: Deloitte. The R &D team is brand new for every 4 to 5 years.

It specialized in offering localized programs to different cities/regions in US. Application of analytical models on data creates value. Extravision Communications Corporation is a Spanish language media company. Extravision’s customers were asking for analytics results other than their media purchases. Culture lens is getting useful insights from data by using software components and algorithms and through the seasonality. Analytics developed insights for Extravision and they have transformed their business model. This extract focuses on how Extravision used differentiation for adopting glocal strategies. How Analytics Changed the Business Model of a Media Organization? Businesses can use analytics for customer segmentation and modelling for customer profitability. President of Luminar Insights has given insights into how analytics transformed the business model for Extravision. markers and other industry customers on 52 million Latinos with a purchasing power of $1. When we look at data using Cultural lens(See Figure 3). radio and digital platforms. In order to provide insights to marketers based on its operations. data is core asset.PEP Notes: IT & Systems 37. 72 . Figure 2: The Outcomes of Analytics Organizational Efficiency Analytics Business Model Market Penetration Big Data services business is based on technology platforms and professional services. gaining new customers. increased organizational efficiency and this led to customers asking for more insights. rather than appearing just like raw figures. In Analytics business. Franklin Rios. It is connected to 96% of the Latino audience in the US through Television. I Figure 1: Factors Influencing the Analytical Insights FA External Data Behavioral Insights IC New Platforms New Algorithms Analytics helped Extravision in transforming their business model. It uses analytics and big data to create value for media buyers. data appears more than insightful.5 trillion. it created ‘Luminar Insights’ as a division. This increased customer demand for analytics made Extravision to start an Analytics business.

B.3: Information Technology in Global Business. economic. April 16. Prove that the model works in different categories of selected DMAs. After Proof of concept. Applicable to: Topic Course Name Unit-14: Global IT Management. Section-14. Sub-Section-14. 6.Block-4: Management of MIS Figure 3: The Culture Lens Data Culture Lens Algorithms (Steps in solving a problem) Components Seasonality (parts of a system) (data under goes changes) Insightful Information Luminar has followed the following steps to get into the big data services business. 7. R. Engage the Head of Research into the big data services unit 2. What factors are impacting analytical insights? (Hints: new platforms-new algorithms-external data) Reference: Ferguson. Choose Couple of Designated Market Areas (DMA) 4. Discussion Questions: 1.. What is the impact of analytics on business organization? (Hints: organizational efficiency-increased market penetration-changing business models) 2. managing human resources. These factors impact local socio. “How analytics can transform business models”. Continuously Evolve IC FA I 1.1: Glocal Strategies. Do Proof of Concept in Selected DMAs 5. expand it to other DMAs. MIT Sloan Management Review. Glocal strategies convey strategies that think globally and act locally.3. The glocal strategies should include the global product development and marketing strategies and at the same time. 2013. Make General managers and Sales staff of Extravision to use the big data solutions (Pilot Run) 3. organization culture and organizational structure should be according to the local strategies. political and legal conditions. 73 IT & Systems . Glocal strategies include both global and local strategies in organizing and directing the organizational business.

 The analytically challenged MNCs have hired offshore analytics providers for gaining external analytics capabilities. This article brings the insights from the research done by Fogarty. For example. Hence. The growing big data leads to the need for strong analytics capabilities in an organization. Dell has established its analytics division known as Dell Global Analytics in India. BPOs have started as call center providers for MNC organizations and later on added other services such as IT services. application processing. It is a challenge to managers in MNCs to find out the right analytics BPO which meets their requirements and deciding on what they want from them and managing inherent risks. has built its strong capabilities in analytics to become world’s largest retailer. Organizations having strong analytics capabilities have a competitive advantage and long term benefits over their competitors.  MNCs have to build relationships with off-shore BPOs to use analytics for their strategic advantage. a retail chain. Analytical capabilities are critical for their survival in the competitive market. Having internal analysts is time consuming and expensive process to the organization. Majority of Fortune 500 companies are either outsourcing or off-shoring analytics work to India. With this analytics BPOs providing offshore services express that their capabilities are not utilized to the full extent. the MNCs are not having any issues with intellectual property and relationships. There is also a concern from MNC clients regarding intellectual property management. to gain quick analytics capabilities.  The analytically superior MNCs have strong internal analytics capabilities. Many organizations do not have the internal capabilities. Organizations outsourcing analytics work are required to build a strong relationship with the vendor. IC FA  Questions to Consider while Off-shoring Analytics: The following questions are to be asked while offshoring analytics work: i. India is also becoming home for Analytics BPOs. In this scenario. D. and Bell.PEP Notes: IT & Systems 38. For example. Organizations have to decide who does what ii. The Pros and Cons in Analytics Outsourcing Analytics as an IT-enabled service can be outsourced or offshored for organizational competitiveness. knowledge and experience in analytics. to train their internal staff. Ensure how intellectual property is protected offshore iv. legal research. MNC clients express that the off-shore providers provided analysts who are inexperienced. (2014) on four multinational customers and four analytics BPOs operating in India. MNCs have to ask the BPOs regarding their specific capabilities which they do not have internally or other BPOs are not providing. to compete and for cost advantages analytically challenged MNCs are off-shoring work to analytics BPOs. Two of the multinationals studied have sophisticated analytics capabilities and other two multinational organizations have challenged analytics capabilities. The MNCs outsource low level work and they concentrate on advanced analytical techniques. iii. They are using offshore providers to build their capabilities to gain competitive advantage. They hope to expand their internal analytics capabilities and develop their own intellectual property and capabilities because their competitors are doing so. WalMart. Building highly skilled analytics teams is very difficult for organizations. FedEx used analytics extensively to reduce costs and increase its revenues. They out-source low level analytics work to their off-shore vendors. which has the core Mathematics or Statistics strength. I Analytics is the latest addition to the BPOs portfolio. These organizations have off-shored their analytics work to Indian analytics BPOs. The lack of skilled analysts in the market or in-house is driving the organizations to outsource the analytics work. Observe the work culture and employee satisfaction at off-shore vendor organizations 74 . accounting and computer programming to BPOs portfolio. Fortune 500 organizations are off-shoring work to BPOs in India and Philippines. straight from college and with very little business knowledge.C. P. In the early 1990s.

IT enabled services make use of IT applications in serving the customers. If an organization builds internal analytics capabilities. it can protect its intellectual property. if offshore BPO merges with another BPO? vi. D.3. What is the BPO’s analyst retention rate? vii.Block-4: Management of MIS v. “Should You Outsource Analytics?”. insurance claims processing. December 19. IT enabled services outsourcing gives strategic advantage to the organization. 24/7 availability and quality. 2013. analytics services and market research services. Be vary about what happens to work. payroll processing. (2014). What are the advantages come with outsourcing analytics for an organization? (Hints: increased intellectual capital-competitive advantage-reduced costs) 2. Sub-Section-14. Is it possible for the MNC to hire the analysts from BPO after a certain time period? The benefits of having offshore vendor should go beyond cost advantages and tax savings. and Bell.2: IT-enabled Services. What are the challenges in off-shoring analytics work of an organization? (Hints :the way intellectual property is managed-offshore provider work culture-retention rate) Applicable To: Topic Unit-14: Global IT Management.3: Information Technology in Global Business. FA I Reference: Fogarty. knowledge processing.MIT Sloan Management Review. the organizations have to calculatedly decide on outsourcing or off-shoring its analytics work for its competitive advantage. IT-enabled services include outsourcing of business processes. P. Thus. recruitment process.C. financial accounting. 75 Course IT & Systems . Discussion Questions: 1. IC Section-14. contract center operations. An organization can concentrate on its core competencies and outsource the supporting services for cost advantages.

Currently India is producing more engineers than US and China combined. NASSCOM (National Association for Software and Services Companies) has received 4.PEP Notes: IT & Systems 39. Israel has 800 and US has 15. NASSCOM had commenced the 10.000 Start-ups program with the support of Microsoft.000 applications for their recently launched ‘Start-ups’ programs.000 start-ups over a period of 10 years. This Year they have invited software entrepreneurial applications from these start-ups.000 software startups. NASSCOM wants to encourage 10. Growing Software Entrepreneurial Zeal in India Entrepreneurial zeal is growing in global management information systems with support from NASSCOM. Kotak and Verisign. India has 450. IC FA I Profile of Application Domains Diversity of Technologies 76 . In 2012. The diversity of the start-up applications is interesting. Google. 70% of the applicants are under 30 years of age and 15% are women applicants.

are start-up ventures coming up in India? (Hints: retail startups-healthcare startups-education and media startups) Reference: Madaan. the business of organizations is becoming more global. They should be useful for decision making at global level. Applicable To: Topic Course Unit-14: Global IT Management. Global management Information systems are being developed using technologies such as mobile.000 applications for start-up programme”. 77 IT & Systems . “Nasscom receives 4. N. The current trend in global management information systems is cloud computing. and parallel computing. transparent and consistent.  Does this create momentum in budding entrepreneurs in India? IC FA I  With globalization and liberalization. 2013. Times News Network.  Building Ecosystem is the key to industry success.  NASSCOM has taken the lead to build the ecosystem  The aim of this program is to fund 20 to 25 start-ups and rigorously mentor around 150 of them. big data and analytics tools. social. Section-14. agent computing. In what application domains. Internet. The management information systems supporting the global organizations should be available.4: Global Management Information Systems. June 24.Block-4: Management of MIS Geography of Applications  Contribution of Emerging Technologies:  16% of applications are based on Cloud computing  11% are from Big Data based start-ups Software Industry remains as largest employer for fresh young engineers in India. cloud. Traditionally global management information systems were developed as distributed systems. Discussion Questions: 1. What kind of diversified technology start-ups are coming in India? (Hints: internet technologies-mobile technologies-diversified technologies) 2.. grid computing. reliable.

Quick Revenues with New Business Models: Instead of just traditional licensing models. and Developers Kits for a long time. forecasting. too little use. connect routes and connect with fellow runners. It created a win-win situation with customers and suppliers in managing budgets. Manufacturing organizations are embedding information assets into their products. inventory and revising supply-chain processes and production processes. Nike created Nike+ which embeds Apple iOS devices in to the shoe. software organizations are using LinkedIn and Skype as no cost platforms for organizational purposes. Other revenue models include as-a-service (Example: Software-as-a-Service). 78 .PEP Notes: IT & Systems 40. I Software Spending Dominates IT Spending IT Investments (2011) IC FA IT Investments (1990) What can We Learn from Software Industry? 1. add-ons. APIs (Application Programming Interfaces). plug-ins. use of software has moved from limited transaction based systems around data centers to pervading every function. Using sensor based technology. Business Models which can be Adopted from Software Industry The software industry offers many strategies for managing IT globally and business models which can be adopted for competitive advantage. Platform Orientation instead of Product Orientation: Software product development was influenced by developers’ ecosystem. upload data into website and can manage his workouts. Over the last two decades. pay-as-you-use and integrated services. Hugo Sarrazin and Johnson Sikes (2013) of McKinsey & Co extract the learnings from software industry for business as a whole and for the IT function in specific. The new trend is to involve consumers and vendors into the new platform. The challenges include  Faster customer cycle time  Rapid application development and real-time testing  Customer reluctance to switch platforms  Too much data. 2. Procter & Gamble (P&G) has opened a platform that invited 1000 partner agreements into their innovation. the runner can check running habits.

Ford made an upgrade to its Sync communications and entertainment platform by providing USB keys to customers without personal visits to retail stores. and Sikes. Applicable to: Topic Course Name Unit-14: Global IT Management. McKinsey Insights and Reports. partners. Make an Agile Organization: Software companies increased their productivity using Agile approaches and programming. How is crowd sourcing useful for managing IT globally? Explain. “Competing in a Digital World: Four lessons from the Software industry”. 24/7 services. and make software as their competitive advantage by inducting business and operational models from software industry. It also includes customization and localization of products to specific countries. reduce costs. e-commerce. I Organizations can increase their performance. differentiation. Apple launched its first iPhone without Appstore.6. Onsite-offshore model. global human resources and financial strategies. Early Delivery: Software Organizations have reduced learning curves and are fastening cycle times with simulation.up. and global delivery models are some of the delivery models. Kickstarter provided a platform for budding entrepreneurs to enter their pre. GE used crowd sourcing in its green business ideas. (Hints: involves customers. which are part of these strategies. 3. 79 . IC FA Strategies for Managing IT Globally include off-shoring. After one year it upgraded the software. community-involves in product processes-generates pre-product ideas) Reference:Sarrazin. virtual products and mock-ups. product diversification. and people rather than process is important. Intuit is building benchmarking and reporting services for small businesses from the data it got from its QuickBooks software.. It also used crowd sourcing for marketing ideas of its product Coke Zero in Singapore.1: Strategies for managing IT globally. Sub-Section-14.Block-4: Management of MIS Organizations are mining huge data coming from business operations for creating new products. Global IT management strategies also include global talent management. Crowd sourcing is the process of involving customers. partners and community into the development process using social media. Organizations are delivering minimum viable product to customer quickly. H. feature development and competitive advantage. out-sourcing. near-shoring. February 2013. customer involvement from beginning. This enables quicker market entry. quick return to customer.product ideas so that they can get the required funding for their new start. and global product development. Global relocations and expatriate management are a part of it. Agile approaches are based on short release cycles.6: Managing Information Technology in the Global Business Environment. Coca-Cola used crowd sourcing in designing their bottle creates in Germany. What can we learn from software industry with respect to business models? (Hints: platforms instead of products-agile organization and early delivery-new business models) 2. 4. J. Discussion Questions: 1. IT & Systems Section-14.

IC FA I 1. wants. GE CEO Jeff Immelt has a vision for breakthrough innovations. Day are: What Distinguishes Growth Leaders from Growth Laggards? 1.  Example: Proctor & Gamble was well known for breakthrough innovations historically. 2. Inside-out Thinking: Outside-in perspective brings in ideas from the market place. They are required to stay competitive in the current market and in the same business. frustrations and problems. invest time on it.). repeat it and make a discipline out of it. However.  Allocating resources to these innovations has to be done both on short-term and long-term basis. Cisco. They have entered into new projects such as batteries which they have never entered before. What distinguishes these growth leaders having experienced organic growth with their internal resources from the growth laggards? Some insights on innovation prowess in firms by Professor George S. they do not have breakthrough innovations in the recent past. lack of discipline. They try different things. They have studied the customer experience very well. They have the discipline. There will be 85% to 90% failures in these innovations. production skills and supply-chain skills.  Example: General Electric. Areas of Growth: Technology base and production prowess are the real adjacencies for growth.  Organizations should not suck investments for riskier adjacencies from funds of Big-I innovations. Apple. has mastered in it. ability and focused approach leading to the innovation prowess. Example: GE getting into Battery projects. Outside-in vs. Samsung. Innovation Ability: Growth leaders have the innovation ability which combines the experimentation with risk tolerant ability. Just technical skills are not sufficient to reach the solution. 80 . Inc. They have high level of top management commitment for breakthrough innovations. Apple and GE are the growth leaders. That is because P&G has given the authority of innovation funds to operations managers and divisional general managers in the recent past. Example: Apple’s breakthrough Innovation I-Pod has replaced the problem of 15 MP3 players with 15 different manufacturers. They do not look at the short term issues.PEP Notes: IT & Systems 41. These are combined with other adjacencies such as brands. Innovation Prowess = Discipline + Innovation Ability Going away from Growth Engine: The reasons for going away from growth engine include the need for short term performance and pulling in the resources from long term investments of customers and sales force for short term benefits. engineering skills. markets and channels for consistent growth of the organization. Organizations should have both the inside-out and outside-in thinking in making breakthrough innovations. Innovation Prowess is the combination of Discipline and Innovation Ability. Procter & Gamble. Growth Seeking Discipline: Growth leaders have the growth seeking discipline. They start as small units and think big. Growth leaders understand the markets in which they operate. LEGO. If they fail. They practice open innovation with partnerships (Open innovation is bringing outside-in and inside-out ideas into the organization. they fail quickly. Innovation ability comprises of the organizational ability to innovate. Example: Microsoft launching different versions of innovative products. reaction and leads to making long-term investments. Big-I innovations are blue ocean break through innovations. competitors. They provide needed resources. however they scale up quickly. With this pressure on short-term performance increased resulting into fewer number of breakthrough innovations. Proper allocation of resources and capital to Big-I vs. The need for short term performance leads to lack of leadership commitment. Innovation Prowess for Growth Leadership Organizations with great innovation prowess can balance the strategies for managing IT globally. 2. Small-i innovations are the new versions. IBM. Small-i innovations: 4.  Inside-out capabilities include technological strengths. 3. Growth leaders practice innovation. He has established a strategic fund to invest in breakthrough innovations such as big and huge projects. upgrades and next generation technological innovations. customers needs.

Example: IBM is the organizations which has made acquisitions as its organic growth strategy. a jewelry maker in Austria making innovative ornaments through partnerships. 6. Section-14. Knowledge@ Wharton.  Acquisitions are also sources of organic growth strategy. global positioning. divergence.6: Managing Information Technology in the Global Business Environment. Example: IBM developing Messaging Software (MQ) products. Sub-Section-14. and global delivery. Innovation Pathways: Innovation Pathways include aggressive growth strategy. Open innovation is achieved through partnerships with external venture partners and venture groups. Example:Swarovski.Block-4: Management of MIS 5. Example: Cisco is an example of both organic and inorganic growths through building the spectrum of offerings and buying the spectrum through mergers and acquisitions respectively. How are business growth leaders different from growth laggards? 2. open innovation-organic vs. It includes IT programs and projects for the organization. They help organizations in driving their innovations. 81 IT & Systems . Closed Innovation vs. FA I Strategies for managing IT globally include global investments.6. Organizations with discipline. Organic growth is the growth achieved through internal resources. Day on What Distinguishes Growth Leaders”.1: Strategies for managing IT globally. and convergence. Organic Growth Vs In-organic Growth: Both organic and in-organic growths are complementary for an organization. Convergence indicates selecting the best and screen out the rest. Divergence indicates looking for diversified growth opportunities. innovation ability. 7. profit sharing. inside-out thinking) What are GE’s strategies for managing innovations and projects? (Hints: strategic fund for innovations-top management commitment-focused approach) Reference:Wharton. Aggressive growth strategies comprise of value proposition and business model innovation. In-organic growth is the growth achieved though external mergers and acquisitions. global funding. This is possible by entering into new markets or by getting new technology the organization is not having currently. venture capital. IC (Hints: closed vs. CIO and CTO in association with other C-level executives prepare the global IT strategies for the organization. They should be available anywhere any time to the employees. global sourcing. Applicable To: Topics Course Unit-14: Global IT Management. Global IT systems in an organization should provide benefits to the organization and they should add value to the organizational global strategy. 2013. January 01. “’Innovation Prowess’: George S. inorganic growth-outside-in vs. outside-in and inside-out thinking can make breakthrough innovations balancing the organic and in-organic growth of the organization. Discussion Questions: 1. Open Innovation: Closed innovation is through internal resources and it is done entirely internally. The CEO.

 Reoriented the organization to earn revenues from Healthcare. Retail and Consumer Products need some momentum.  Reported 2%-4% revenue growth guidance for second quarter.  3rd Largest IT Exporter from India. Wipro. World No. The clients in this vertical make long term investments. new CEO T. not like investment banking sector. Energy & Utilities. Energy & Utilities  Became World No. FA  I Growth Strategies  Investment Cycles in Energy & Utilities are much longer. and Banking.  Insurance.PEP Notes: IT & Systems 42. 2013.3 in Energy & Utilities Vertical from No.  More Focus is going to be on Healthcare.K. 3 in Energy & Utilities Vertical Balanced portfolio as one of the approaches to global IT management made Wipro successful. IC  Balanced Portfolio Customer Commitment Portfolio Growth Long –Term Investments (by Customer) 82 Organizational Growth .Kurien took up the job. Healthcare is another growth driver. 9th position Success Secrets of Energy & Utilities  Balanced the Portfolio  Kept target of being among top 2 players in any vertical they are in business. Banking. Wipro: Some Facts  Early 2011.

It includes the governance using enterprise project office (EPO) or project management office (PMO) in the organization.6: Managing Information Technology in the Global Business Environment. What parameters of project portfolio impacted Wipro’s growth? (Hints: long-term customer investments-customer commitment-balanced portfolio) Reference: N. The Economic Times. 2013.Shivapriya&Akansha Prasad. Global IT management involves assessing existing IT systems. innovation. reduced processing times. Discussion Questions: 1. increase in sales and increase in individual and team productivity. IT & Systems I Section-14. upgrading existing systems and evaluating or appraising the MIS implementations. developing new solutions. 83 . July 29. Applicable To: Topic Course Unit-14: Global IT Management.6. “Wipro CEO TK Kurien: We’ve worked extremely hard in a tough market”. programs. The return on investment of IT is evident from increase in customer satisfaction. The benefits delivered by the IT programs should meet the program objectives. IC FA Sub-Section-14. What are the growth strategies of Wipro? (Hints: balanced portfolio-be top-2 player in any vertical-concentrate on healthcare) 2.2: Approaches to Global IT Management.Block-4: Management of MIS Approaches to global IT management include managing IT portfolios. projects and other operational work.

1/3rd of the projects did not meet the set objectives. The applications were developed in multiple languages on multiple platforms. Conflicting responsibilities of the vendors was also a challenge. platforms. System integration testing. in organizations having less project success rate. Scope creep is nothing but doing unlimited changes to the project or uncontrolled changes to the project without adjustment to cost. design.  Applications were rated as high. The increasing complexity is increasing the risks of the project and it is making risk management a challenge. Unknown pieces of software were found which were never before encountered.  Challenges Encountered: One of the technical challenges was compatibility issues of operating systems of different applications. IT project success can be defined as a project meeting the given requirements. functionality. According to PMI’s “Pulse of the Profession” (2011). test and deploy the applications. Factory model defines 14 operations or milestones for any migration project. architect. Many unknown situations were encountered. Regulatory requirements were to be complied with.   IC FA I  Scope Creep: Scope creep was the major challenge or risk encountered. Schedule delays from different vendors were a concern. Innovative Project Management at IBM Innovative project management and manage scope creep can be used as approaches to Global IT Management. plan. The applications were migrated to new platform and the customer appreciated the efforts. It was difficult to estimate schedules and costs under these circumstances. Example 1: Large Automobile Company based in US. which was followed here. The objective was to achieve the better or same performance. resilience.  Based on the complexity of each project. performance testing and user acceptance testing were to be conducted for all the applications. The risk amount is much higher. New technologies. code. This large auto manufacturer gave a project to IBM India to upgrade their 253 applications to one version older than the latest version. Security scans and disaster recovery exercises were to be performed. Example 2: A Global Consumer Products Company. Project Scope: The project work involved define. and integrating business processes and assets are making software development more complex in current days. Innovative Project Management Devised:  Each application was treated as a separate project under the same program.  Factory model. Organizations on an average are risking $135 million for every $1 billion spending. medium and low complex projects. contract priorities and server maintenance teams were challenges. These were to be ported or migrated to Linux platform. sustainability and availability. Test all the applications on new architecture for performance. milestone durations were estimated.  Factory model was followed to manage the program. security. It was a fixed price and time project.  A master plan was prepared for the entire program  Both the parties agree to baseline the plan and re-baseline it at a future date based on progress of work. business initiatives. Some Solaris applications were developed with more OS dependency. 84 . sustainability while retaining the same functionality. and meeting organizational business and technological objectives. equivalent to 14 times. Conflicts between different vendors. schedule or quality. became a best practice in the organization. This article brings the innovative project management approach followed by IBM India in dealing with recently executed huge projects managing the scope creep. Critical paths for all 14 operations were found out for each project. Application platform was to be re-architected.PEP Notes: IT & Systems 43.

entire transition was done leading to the better customer satisfaction. Discussion Questions: 1. What challenges were faced by IBM in project implementation? (Hints: managing scope creep-sharing resources across projects-compliance to legal requirements) Reference: Thakur.6. Taking customer and user feedback at regular intervals is required in iterative and agile approaches of IT management. Issue 2. in a gradual approach. travel expenses and sharing different objects among different projects were major challenges encountered.  Innovative Project Management Devised:   Change control process was made strong  Distinguished between ‘needed requirements’ and ‘good to have requirements’  Accommodated legal requirements  If any existing product issues came up. customer teams involved as shadow resources in support activities. product quality reviews and process quality reviews ensure the project and product success. They have conducted training workshops. deployment plans. quality and communication aspects of the project. Requirements reviews. Training the users in a phased manner is also an approach of delivering solution to global customers. Project Management Institute (PMI) India. What was the innovative project management approach of IBM? (Hints: each app as project-master plan for project-factory model) 2. they were sent to support teams for redressal. transition plans and training plans. Thus. Sub-Section-14. The approaches in managing human resources should be innovative. project planning. Manage India. Middle East and Africa (EMEA) to create a global data. compliance to legal requirements. schedule. IBM team provided support for medium and low complex defects during 3rd week of transition. By 4th week.  Challenges Encountered: Managing scope creep.Block-4: Management of MIS This global organization gave a project to integrate all their businesses in Europe.2: Approaches to Global IT Management.  Project Scope: was to manage the cost. Transition Approach: IBM team took the ownership of the issues. IC FA I Approaches to global IT management include managing projects with global teams.6: Managing Information Technology in Global Business Environment. phase end reviews. P. availability of resources. European Operating Company (EOC) in 6 countries and 14 plants and integrated supply-chain management in 41 locations of the company. global delivery. Applicable To: Topic Course Unit-14: Global IT Management IT & Systems Section-14. 85 . milestone reviews. project plan reviews. scope.. June 2013. “At eye for detail keeps surprises at Bay”.

They maintain Electronic Medical Records (EMR) system. They focus on providing services over Internet. They have newly opened an affiliated hospital in Abu Dhabi and planning to open a new one in Singapore. iii. Second. nurses.  They maintain confidentiality and security of patient medical records. focus is on patient.  The technology provides useful information to patients. With this the physicians have information about the patient even before the patient is admitted into the hospital. Cleveland Clinic’s Care Model: i. CIO of Cleveland Clinic. Martin Harris also serves as health technology adviser to US President Barack Obama. This data has been generated by the physicians who are not employed by the clinic directly. It has an entrepreneurial branch known as Cleveland Clinic Innovations (CCI). delivery model is led by physician. More than 35 organizations have spun off from CCI. CCI develops products and spins them as separate business organizations. Cleveland Clinic is well known for using IT in an innovative way. IT and Healthcare evolved together at Cleveland Clinic in Ohio. It has developed robots helpful in heart surgeries. links patient involvement with medical records and helps in healthcare practice improvement. It is known for its research and practice in innovation and reduced costs. FA I  IC ii.  They worked with Microsoft to allow patients to upload their records into clinic systems in order to provide better services.  The clinic is also experimenting with social media and data analytics. The clinic was founded in 1921. This article brings the insights from an interview with CIO of Cleveland Clinic. They built tools to access the data generated externally to the clinic. Since 1990s. It is a non-profit organization. group culture or team work is a key ingredient at Cleveland Clinic. Cleveland Clinic sees more than a million patients in a calendar year. administrative staff and allied health professionals work as team in order to provide best services to the patient. The Role of IT in Healthcare IT can be used in healthcare for clinical and operation benefits as MIS in non-profit organizations.  They achieved information exchange between different departments such as laboratories and radiology department. Third. It is accessible both in physicians’ office and in hospital.  They first built ambulatory practice rather than hospital information system as was done by other clinics. it has been rated Number 1 in cardiac care by US News and World Report. Role of IT in Health Institution: IT plays a strategic role.  They have developed tools to collect data about the patient no matter where he comes from. First.  Adoption of IT is helping the patient outcomes at the clinic.  They are thinking of delivering services to patients in different ways which were not thought about earlier. IT affects the care delivery model.PEP Notes: IT & Systems 44. 86 . First it happens at Ohio state level and later at their national level. Physicians. Cleveland Clinic has a 41 building campus and 10 associated hospitals in Ohio. IT transforms care delivery model.

MIS in non-profit hospitals. IT plays a strategic role in healthcare providing better delivery models at reduced costs with better patient satisfaction. precision. Strategy + Business. IT & Systems Section-15. MIS in healthcare industry should be in compliance with regulations of FDA (Food and Drug Administration) in US. a process is designed based on the desired outcome for the patient using IT. MIS in healthcare institutions are useful for storing patient medical and health records.  They are launching self-service model for patients using IT as is available in other industries. place orders and see the responses immediately. “IT and Healthcare: Evolving Together at the Cleveland Clinic”. FA (Hints: reduced costs-better patience satisfaction-clinical and operational integration) Explain the care model of Cleveland Clinic.4: MIS in Non-Profit Organizations. program management.. Benefits of IT in Healthcare:  Clinical Integration: Using clinical tools.Block-4: Management of MIS  They use analytics tools in order to find the patterns in patient diseases and to find the better processes to serve group of patients having same disease.  Operational Integration: It is beneficial to the patient.services over Internet) Applicable To: IC Reference:Shehadi. E. Tohme. Using this. and Baker. How did they use IT for strategic advantage? (Hints: patient focused and team work-delivery model by physicians. W. MIS in healthcare require accuracy. community service.. Discussion Questions: What are the benefits of IT in healthcare? I 1. Thus. Topic Course Unit-15: MIS in Specialized Areas. maintaining disease history and transmit patient data electronically between different institutions in case of need. education. governance.H. R. doctors can write prescriptions in computers. August 06. 2. 2012. social security and healthcare. behavioral change. clinics and ambulatory services are used for both clinical and operational services. consistency and reliability. 87 . MIS in non-profit organizations are useful in social transformation.

PEP Notes: IT & Systems 45. In majority of healthcare organizations. The types of healthcare organizations involved in this study include community hospitals. Stage-5 Closed loop administration of medication.  In 40% of the organizations. academic medical centers and critical access hospitals. more than 50% of the clinicians and healthcare leaders are not satisfied with their organizational efforts on finding return on investment or value from Clinical IT systems. strategic planning and for rollout planning. Beacon Partners has conducted a survey of 300 healthcare leaders in 2012 to find out whether healthcare organizations are using clinical systems performance measures in order to find the return on investment of electronic medical records systems. there exist clinical systems’ performance measures. However. analysis and reporting of clinical performance measures.  41% of the respondents expressed that their clinical performance measures are directly associated with their ROI efforts. data collection. measuring electronic medical records (EMR) drives quality improvement in clinical initiatives. for IT systems improvement. In healthcare. quality department and in 31% of the organizations. 88 . Stage-4 Clinical protocols such as CPOE and CDSS are in use. Full electronic medical records. cost savings.  In 48% of the organizations. ambulance clinics. CIOs are responsible for determining performance measures for clinical IT systems. multi-hospital systems. determination of clinical performance measures is done at the time of planning for EMR systems. Stage-6 Templates for physical documentation. Stage Cumulative Capabilities Stage-7 Data warehouse in place. Measuring Clinical IT Systems Performance Performance of clinical IT systems in healthcare organizations and community hospitals can contribute to MIS in Managing Corporate Performance. How Performance Measures are used? The clinical systems’ performance measures are used:  to improve clinical quality  to enhance IT systems  to incorporate in organizational balanced scorecard system  to incorporate in organizational budget and  to give performance bonuses. This article brings in insights from this research study of clinical systems performance measures and returns on investment. FA I  Why Performance Measures are collected? IC Majority of the healthcare organizations collect clinical system’s performance measures from nurses and physicians to find out the training needs. IT department are responsible for measurement. Different Stages in EMR Adoption: It was found that 76% of the surveyed healthcare organizations are at Stage 3 or above in IT deployment or EMR adoption. 42% of the respondents for this survey are CIOs. 51% of the respondents expressed that there is need or urgency for determining performance measures very much early such as in the EMR systems planning stage.

clinical decision support systems and controlled medical vocabulary in use.Block-4: Management of MIS Stage-3 Error checking. Organizational performance appraisal systems evaluate the performance of individuals. Quality management systems in the organization evaluate the organizational product development processes and compliance to quality standards. quality management systems.5: MIS in Managing Corporate Performance. Stage-2 Clinical data repository. Discussion Questions: 1. Healthcare organizations have to concentrate on measuring their clinical IT systems for better return on investment or for better value addition. How can the performance measures of a clinical IT system be used? I (Hints: to improve clinical quality-to enhance IT systems-for organizational balanced scorecard) Applicable To: IC Topic FA Reference:BeaconPartners. 89 . MIS in managing corporate performance include organizational performance appraisal systems. Customer relationship management systems can be used to evaluate the customer satisfaction. 2012. Rad and Lab are present Stage-0 None of the ancillaries such as Pharmacy. “Finding the ROI in Clinical IT Systems: A study on clinical performance measures and maximizing return”. Unit-15: MIS in Specialized Areas. Document imaging is also in place. How do you measure the performance of a clinical IT system? (Hints: from nurses and physicians-use performance measures-return on investment) 2. teams and divisions in the organization. customer relationship management systems and audit systems. clinical documentation in place. Beacon Partners Research Report. flow sheets are used. Course IT & Systems Section-15. Audit systems include financial. Stage-1 Ancillaries such as Pharmacy. project and operational audits. Rad or Lab are present. which also indicate the performance of organizational components.

Decision makers in organizations look for hidden patterns in data which are undetected. verified or authentic. insights and foresight. Predictive Analytics to increase Project Success Rate Application of predictive analytics on the data from project management information systems can improve the project success rate in organizations.  46% of the projects were experienced cost overrun. Energy and Resources. 90 . Predictive analytics provide hindsight. usage of predictive analytics can improve the project outcomes. Benchmarking helps in organizational learning and competitive advantage. The projects in case of mergers and acquisitions are more complex and face many challenges. Predictive analytics help in identifying the key risks of the project.  37% of the projects were successful meeting time and cost limits.  21% of the projects were simple failures. The foresights which can be provided by predictive analytics include economic.  Project data is not standardized across different organizations. Comparing similar projects is difficult.  Resistance from the employees in using past projects to predict the future project success. Project Success Statistics: In a survey of 5.  Project data may not be valid. project type and project industry. Predictive analytics can be used in indentifying the project risks and serves to warn the project teams ahead of time to take corrective actions leading to better project outcomes. it was found that: 71% of the projects slipped project deadlines. Predictive analytics enable organizations to make decisions in economic. schedules or scope. Financial Services and Insurance).  63% of the projects were challenged by cost. The reasons for project failures include unclear requirements. the more is the probability of failure of the project. Challenges in Using Predictive Analytics: The following changes are faced in usage of predictive analytics in predicting project outcomes. accurate and objective ways. The success rate of post-merger integration projects range from 20% to 78%. contracting. This article brings insights from usage of predictive analytics in increasing the project success rate. Benchmarking projects help the organizations in deriving foresights using predictive analytics. This is possible with predictive analytics. FA I  IC The more complex is the project. leadership.  Project status reports are not prepared from organizational project management information system. Project Failure Factors: The major project failure drivers are related to business. By 2010.  Inconsistent project data requires different analytics techniques.500 IT projects done in 2010. Projects in different industries such as BFSI (Banking. market and environmental information. competitive advantage. customer satisfaction and regulatory compliance issues. resourcing and delivery. lack of specialized resources and varying project priorities. They would like to make informed and responsive decisions. Many organizations still did not use previous project data in predicting the future project outcomes. project costs.PEP Notes: IT & Systems 46. The project failure factors impact operational outcomes. The project common failure factors include risk management. Healthcare and Public sector have different project failure drivers. Instead of traditional project management measures. governance. 74% of the organizations are either using analytics or planning to use analytics in their organizations. project complexity. 31% of the organizations are even using predictive analytics. mitigate them and reduce the project failure. Technology. Different organizations have different formats. risk. financial.

vision and strategic direction challenges. trend reports. Select set of analytical tools to support predictive analytics. Level of executive involvement could have been used to deal with leadership. cost estimations. They could have dealt with predictive analytics technique such as assumption management.6: MIS in Managing Projects. Implement the predictive project analytics program. PMO has to develop supporting processes to deal with data and analytical tools. The challenge faced in this project was to develop a common platform for all car models.6. project crashing and project resource management. Discussion Questions: 1. bar charts and network diagrams. Project team familiarity could have been used here. Identify the resource to lead the predictive project analytics in the organization. They also provide task schedules in different forms such as Gantt charts. Educate the employees and communicate the benefits of the program to them. 2014. The other challenge faced was in the management of different cultures from different countries. graphs and tables. Project management information systems are the software systems which are useful for project planning. iii. Deloitte &Touche LLP Report. cost projections. Clarity and other open source project management tools. One can find the critical path in the network and track the critical path throughout the project. Lack of commitment and alignment with objects could have been dealt through executive sponsor alignment. project management information systems include Microsoft Office Project. Example: A large Car manufacturer’s merger and acquisition integration project could have avoided failure with predictive analytics. For example. earned value analysis. progress reports. They are also useful to generate status reports. Continuously evolve the predictive project analytics program.Block-4: Management of MIS Adapting Predictive Analytics in PMO: Organizations can adapt predictive analytics in Project Management Office (PMO) using the following steps: i. What are some of the project success rate statistics? (Hints: 21% are failures-63% are challenged-37% experienced schedule and cost delays) 2. What are the challenges faced in using predictive analytics in an organization? (Hints: resistance from employees-project data inconsistencies-required different analytics) Reference: Deloitte. ii. Primavera. Devise predictive project analytics strategy including governing strategy. vii. vi. v. “Get out of your analytics comfort zone: Unconventional approaches to predict project outcomes”. resource estimations. project estimations. project fast tracking. Applicable To: Topic Course Unit-15: MIS in Specialized Areas. project progress tracking. network diagrams. Predictive analytics could have avoided the project failure. Section-15. Sub-Section-15. iv. IC FA I Project management information systems use can increase the project success rate in an organization. resource levelling.1: Project Management Information Systems (PMIS) 91 IT & Systems .

Key Stakeholders in HIT Projects: The healthcare IT project’s organization should involve the following key stakeholders: Executive Board: consists of CEO. In healthcare IT projects.PEP Notes: IT & Systems 47. 92 . deploy and upgrade the HIT systems.  Planning the Project: Every IT project is unique. According to Standish Group Chaos report only 32% of the IT projects are successful in meeting time. This article highlights the importance of strong leadership and project management in healthcare IT projects. COO. Project leader should act as interface between project team and the vendors. A gap analysis has to be conducted to find out the needed skill set and competencies required to execute the project and the project leader has to try to acquire the resources with those skill sets. Incorporating new technologies and processes. FA I  Key Elements in Making HIT Project Successful: Setting Expectations: The project leader at the beginning of the project has to set the expectations clear to all the stakeholders. There should be proper project risk management in place in the project. This avoids the future chaos and risks. Hence. operations.  Transition Planning: Project leaders should have proper transition plans at every stage of the project to take it to the next level. can create chaos to the organizations. physician practice and financial committees. All end users should be involved in project test plan preparation. clinical. These practices enhance the success of the project.  Project Leader  Technical Teams  Project Leadership Committees: consist of IT. Rest of the projects either failed or did not meet the set expectations. Communication should be effective throughout the project structure.  Steering Committee: consists of project sponsor. Healthcare organizations continue to plan.  Project Governance Structure: HIT project should have a proper governance structure which includes the project sponsor and key stakeholders. it requires separate planning and approach for development. It is better to test the entire project product before it goes live. Leading Healthcare IT (HIT) Projects Successful healthcare IT project implementation requires strong project leadership and project management. There should be some dedicated resources for the project. design. cost and quality targets. cost and scope limits. The project leader can be an internal stakeholder of the project or an external consultant who can communicate effectively with all the stakeholders. IC  Strong project leadership coupled with proper project planning and risk management can increase the likelihood of healthcare IT project success. around 70% of the projects failed or did not yield the set expectations.  Project Test Planning: It is best practice to involve stakeholders from all levels in the organization in project test planning. CIO and CFO.  Strong Project Leader: The return on investment for organizations having strong project leader is very clear and their projects meet the time. CMIO (Chief Medical Informatics Officer). Continuous knowledge transfer and knowledge sharing increases the project success rate. There should be a well-defined project organization structure. executive sponsor and medical sponsor. There should be continuous knowledge transfer in the project involving the core staff of the organization. develop. It is the same case with healthcare IT (HIT) projects. test. if not handled well.

newsletters and status reports. The project was executed in 4 months because of the priority of succeed projects such as patient portal. communications. risks ad stakeholders of the project. The project manager has to manage his time. human resources. executing. cost. planning. Beacon Partners Research Report. procurements.2: Project Management. NMC decided to upgrade their MEDITECH system to version 5. The maturity of project management in an organization can increase its project success rate.6: MIS in Managing Projects.000 emergency department visits take place at NMC.66 in order to comply with Meaningful Use Stage 2 and to improve clinical outcomes. 2014. The objective of project management is to make the project a success by meeting time. IT & Systems Section-15. First team consists of 70 NMC employees from all departments and second team consists of IT focused NMC analysts and Beacon consultants. FA (Hints: executive board-steering committee-project leader and team) Reference:BeaconPartners. “What should you expect from a project leader?: Keys to successful implementation. Every year 2.000 test notes to be tested on MEDITECH system. 93 . monitoring. Strong project leadership coupled with effective communication made this project a success. IC Applicable To: Topic Course Unit-15: MIS in Specialized Areas. It has 230 physicians. cost and quality parameters and also get better customer satisfaction. There were more than 7. As part of the project two teams were formed. All these test notes were broken down into weekly deliverables and other 20 integration test scenarios were tested on the product.6. Sub-Section-15. controlling and closing the project. quality. upgrade and integration projects”. Beacon Partners was the healthcare management consulting company executed this project for NMC. optimization.700 births and 47.Block-4: Management of MIS Example: Natividad Medical Center (NMC) MEDITECH System Natividad Medical Center is a 127 year old and 172 bed acute care hospital in California. Discussion Questions: 1. CPOE and PDOC. What are the key elements in making healthcare IT project successful? (Hints: setting expectations-project planning-project governance structure) Who are the key stakeholders in healthcare IT projects? I 2. Project Management is about initiating. Successful project management contributes to organizational performance and productivity. In 2013. The Beacon Partners provided NMC with dashboard.

the CMOs felt that corporate websites are very important in digital marketing. In this survey the 3 most important performance factors identified for websites are Information: Which enables decision making  Relationship Building: Which brings repeat customers  Commerce: Which enables instant purchasing I  FA Case Studies: Apple has efficient. and service oriented approach to customers in delivering product information. 60% of the respondents felt that the investments in website content and website maintenance will increase. targeting e-customers. simple navigation.PEP Notes: IT & Systems 48. customer support and purchases. Figure 1: Website Success Factors Navigation Commerce Website Effectiveness Communities Information Organizational Effectiveness Customer Service Branding Relationship Building 94 Customer Satisfaction . clear. and relationship building. In 2013. a TV manufacturer provides streamlined commerce solutions which is unique among TV manufacturers. IDC has done a survey of Chief Marketing Officers (CMOs) to find out the effectiveness of corporate websites. The survey participants include Smartphone. engaging. Accenture has done a survey of 15 consumer electronics companies in US. Also online forums and self help groups are supported in their website. SAMSUNG. Corporate Website for Organizational Effectiveness Corporate websites serve as MIS in online market places by providing information. IC DELL has distinct product information which enables customer to customize the product online. TV and PC/Laptop manufacturers.

These systems receive customer requests and queries from organizational website over Internet and respond to customer queries through e-mail or telephone. June 2013. M. 95 .7: MIS in Online Marketplaces. What are the success factors of any organizational website? (Hints: commerce-negotiations and relationship building-customer service) 2. (Hints: online product customization-online forums-self-help groups) Reference:Lewren.. No.Accenture Outlook Point of View.2.Block-4: Management of MIS Current day organizations are using organizational websites and portals as MIS in online marketplaces to interact with customers as part of CRM system of the organization. IT & Systems IC FA I Section-15. “How effective is your corporate website … really?”. How has Dell presented its website? Explain. A. and BjÖrnsjÖ. Thus organizational websites can be used as MIS in online marketplaces for current day organizations. Discussion Questions: 1. R. ERP and SCM. Applicable to: Topic Course Name Unit-15: MIS in Specialized Areas. The organizational website which interacts with external customers is internally connected to the organizational databases and enterprise systems such as CRM. Mitra.

Technology Driving the Indian Taxi Services 57. IT and Lean Management at Amazon 55. China’s Alibaba Surpassing Amazon and Ebay I 51. The Real Value of Data: Enhancing the Organizational Business FA 52. The Role of IT in Coca-Cola 58. ERP in the Cloud 56. Major Acquisition of an E-Commerce Company by an Overseas Investor 50. The Role of IT in Mergers and Acquisitions IC 54. The Growing Need for Unstructured Analytics 96 . Challenges in Internet of Things Business 53.Block-5: Enterprise Functions and E-Business 49.

But its main business is selling train tickets. a B2C business model is expected to accelerate the e-business in India. According to a Credit card company’s survey in 2009 in India. This is a great motivation for Indian Internet Industry and budding young entrepreneurs. More technical entrepreneurs are expected to initiate ebusiness models as opposed to traditional models. Net Profits of $80. RedBus was started by 3 students from BITS Pilani who were not able to get bus tickets to go to their home towns during vacation from college. IC FA Internet Market Growth 2012 Red Bus Revenues (in $millions) 97 .in has been acquired by Ibibo Group (for $125 million).49. Lunch orders over Internet in this site were around $70 million a month. An Indian Internet Company (e-business) RedBus. RedBus is India’s largest Internet based bus ticket booking company.000 in 2012-13. This start up has reached revenues of $100 million in 2012-13. Major Acquisition of an E-Commerce Company by an Overseas Investor The high value acquisition of Red Bus. Indian Railway Catering and Tourism Corporation (IRCTC) found to be the biggest ecommerce site in India. I Indian has 850 million domestic tourists annually. which is a joint venture of South African Naspers and China’s Tencent.

(Hints: millions of user across china. Us and India-double digit growth rate in India and china-growing entrepreneurship) 2. Applicable to: Topic Course Name Unit-16: Basics of E-Business and Enterprise Application Integration. travelyaari. How did RedBus use Internet as part of its business model? (Hints: online ticket booking-volume of transactions-for e-business purpose) Reference: Wharton (2013). online market place Tradus.PEP Notes: IT & Systems Online Ticket Bookings (India) Bus Tickets in India Air Tickets in India FA I RedBus is the leader in Online Bus Ticket bookings. The customer support was drastically improved through electronic channels. Travel Boutique online. 2013. DELL.com. Organizations such as Microsoft. Discussion Questions: 1.com. Also in traditional businesses.com. chatting. The reverse direction was not present. It is one among the top e-business companies in India based on volume of transactions and value of transactions. and SMS is increasing rapidly in the world.com.3. Explain the growth of Internet across the globe. Amazon. IC It is first time a foreign venture capitalist has acquired an Indian Internet Company. Section-16.3: Traditional Business vs E-Business 98 IT & Systems . ORACLE. social media.3: Evolution of E-Business. the business done using electronic channels such as e-mail. July 03. Traditional Business vs E-Business indicates that traditional businesses did not use electronic channels for customer interaction. and payment site PayU India. Knowledge@Wharton. which is now possible with e-business models. according to its CEO. and IBM are earning significant share of their business through the electronic channels. With the increasing number of users on Internet. Traditional businesses did not use technology for product development. auto transaction site Gaadi. Its Competitors are MakeMytrip. “The redBus Acquisition: A Boost for India’s Startup Ecosystem”. The acquired company (Ibibo) has travel company Goibibo. and AbhiBus. organizations manufactured the product and sold it to consumers. Sub-Section-16.

Its competitor Tencent has $62bn market capitalization. It has potential to cross $1trillion sales through its platforms. IC How did Alibaba make a business model which stood competition from eBay and Amazon?  Recent reorganization has 25 separate business units  Mr Jack Ma continuing as Executive Chairman  Amazon with market value $117bn and no profits  Can expand into Finance and Supply chain services  Made all basic services free of cost to both sellers and buyers  Chinese won’t Trust strangers. China’s Alibaba Surpassing Amazon and Ebay e-business models and organizational culture for e-business create competitive advantage for organizations. 99 . It operates in both business-to-consumer (Tmall) and consumer-toconsumer (Taobao) markets.  Both Culture and Trust factors made Alibaba to Capture online retailing market in china  To Build trust.  Helps Buyers and Sellers overcoming lack of information and reduces the search costs  Chinese e-commerce market is growing. Alibaba is dominating Internet retailing in China. Where as.aprivately owned company since itsinception in 1999. which is based on trust. this market is just 10% in China in 2011. 90% are sold through market place. This has made Alibaba to gain trust on online selling. It provided third party verification services  Taobao can block “Spiders” in China.Block-5: Enterprise Functions and E-Business 50. China’s Alibaba. Yahoo owns 40% of Alibaba. an online listing services company surpassed both Amazon and eBay combined together in gross merchandise volume. In China. This is the major marketplace model Alibaba has incorporated.000 employees. which Google and China’s Baidu use to find out what is on a website. It is based in Hangzhou.  76% online retailing in America is from individual merchants. China with 24. companies.  Alibaba turns loans given away to merchants as products which can be sold to investors  Expanding into giving loans to Individuals and Insurance sector  Growing in Chinese Smartphone market. FA I Planning for IPO with expected market capitalization between $55bn to $120 bn. Chinese consumers. tourists are going global creating new opportunities. which is the world’s biggest Smartphone market. In 2012.

PEP Notes: IT & Systems  It is not having any warehouses or tangible assets  Recently it was removed from America’s government list of “notorious markets”  Cultivating Chinese Culture. (Hints: $283b in 2013-$2b loans to merchants in 2013-e-commerce companies are going global) 2.4: Organizational Culture for E-Business. They should maintain positive customer relationships. Organizational culture for e-business consists of trust. customer oriented and proactive. Values. customer satisfaction. March 23. Applicable To: Topic Course Unit-16: Basics of E-Business and Enterprise Application Integration. Team work and Making up of performance reviews remain key factors for Alibaba’s Success 2012 Revenues ($billions) 2012 Net Profit/Loss ($billions) IC FA I 2012 Gross Marchandise Volume ($billions) Organizational culture for e-business should be more responsible. The Economist. “The World’s Greatest Bazaar”. effectiveness and efficiency. teamwork and core values. The values of the Chairman and CEO impact the organizational culture in e-business organizations. Describe the highlights of Chinese E-Commerce Market. Culture affects the quality. Explain the impact of Alibaba’s culture on its growth? (Hints: top brass became partners-increased trust-improved supply chain) Reference:The Economist (2013). integrity. Section-16. The culture has to be inculcated by the top management in the organization. Integrity. 2013. quick. 100 IT & Systems . Discussion Questions: 1. organizational productivity. Values by Executive Chairman who spend 1/3rd of his time in that  Reorganized top brass in the organization into partnership structure  Culture. response time.

the huge data at Facebook and LinkedIn are useful not only for individual members for social networking purpose but also for recruiters and different industries as valuable information. 4. Evaluate the Model and Learn from Experience a. IC 2. This is true in some cases and it is not true in other cases. customer and external third party Plan the business revenue model. 1. The e-business models expect quick and accurate response from participants. 101 . Information security is a concern to many stakeholders in these models. For example. Organization should define the success criteria for new business c. Organizations which understand the real value of data execute properly by avoiding expensive technology and implementation programs which reduces their revenue potential.Block-5: Enterprise Functions and E-Business 51. b. For example. Some of these systems are also connected to the financial institutions. Take potential customer ratings to different datasets and metrics as high. Analytics and Content Innovation. People with given roles and responsibilities should execute the program The test program results indicate whether to go ahead of big data business or not. businesses and governmental organizations to communicate with each other and transact or commerce over the Internet. The value of real data can be understood using the following 4 steps. banks and payment gateways. Organizations should reflecton whether data belongs to them a. Organization has to test the perceptions of the user by giving different datasets d. Many organizations today think of creating new businesses and sources of revenues using Big Data. medium and low value offerings. Find out who are the owners of the data with the help of legal advisors and content experts  b. Devise the strategy to achieve the set target c. The Real Value of Data: Enhancing the Organizational Business Big data stores could create new e-business models. Generate and have test programs to assess the revenue model b. E-business models over the Internet enable consumers. a. Organization has to have suitable target to achieve b. The transactions using e-business models can update the participants’ accounts instantaneously. What the value is and why? a. The organization has to realize that the target client may be different from the organization’s regular client. the huge data with IRCTC (Indian Railway Catering and Tourism Corporation) can be used as passenger information for Indian Railways as well as for the product marketing and profiling purposes of consumer goods and retail industries. The organization has to identify target clients by using the probable users c. Find out the value edition of derived data over the original base data in quantitative terms. 3. Check whether data gives better value than the new earnings. FA I Identify those who value the data. A more informed understanding of the data is more effective than unverified assumptions. Classify the existing data into three types such as data owned by the company.

September 20. 102 IT & Systems . Applicable to: Topic Course Unit-16: Basics of E-Business and Enterprise Application Integration.5: E-Business Models.PEP Notes: IT & Systems Discussion Questions: 1. “Stop Assuming your data will bring you riches”. How to use data for organizational strategic advantage? (Hints: classify the data-find out value addition of derived data-usefulness for business model) Reference: SunandMenon. HBR Blog Network. 2013. IC FA I Section-16. What is the value of data in a business organization? (Hints: useful for recruitment purposes-check perception of users-find customer ratings) 2.

for any product to be successful. buy or partnerships. E-business models are combining these traditional business models. wearables. connected cars.  Any disturbance in product development leads to three times schedules delays. Google has acquired Nest Labs recently. the e-business organizations and Internet of Things organizations have to combine and operate these models for selling their products. 103 . This is because hardware design and engineering takes a lengthy product life cycle and software development life cycles takes a modular and loops based approach.  Finding both hardware and software skills in one company is very rare. integration of analog and digital). who would like to get into Internet of Things. Both hardware and software require good design. The Internet of Things is creating new challenges and changing the business models of the organizations.  Examples of Internet of things include automated homes. insurance and repair. One year earlier Nest Labs was valued at $800 million. Business Models IC FA I   Internet of things is changing the business models of the organization. organizations have to face the challenge of running a robust hardware company along with a services oriented software company. Hardware business model is based on products and software business model is based on services and solutions. fulfilment and manufacturing. This can confuse organizations. Hence. have to transition out of their traditional business models. It connects the services such as roadside assistance. They face the transition of business models with challenge to integrate both hardware and software (that is.  Traditionally hardware business model depends on making profits based on costs related to materials. Software companies have to think about manufacturing equipment and distributing physical products.Block-5: Enterprise Functions and E-Business 52.  Organizations have to figure out how to provide integrated solution of both hardware and software. a roadside car assistance company in US. and trouble shooting. Currently. Software business models are based on service oriented models with recurring revenues.  Organizations have to concentrate on the customer who is looking for the better solution. One has to remember that the outcome of this effort is business and not the products.  Now hardware companies have to think about charging for services and costs of tracking data. E-business models for mobile phone or Internet of Things organizations include hardware business model and software business model. Google paid $3.  Developing integrated solution requires entirely different skill set and processes for the organizations. Now.  Example: AAA Club Partners.2 billion in cash for this transaction.  Organizations. has developed a connected car platform known as SMARTtrek. refrigerators. It provides services such as location assistance. Nest Labs is an Internet of Things company which has products for connected homes. This technology helps in finding their members (customers) on roadside and provides better needed services for them. vehicle diagnosis. thermostats and connected products and services. Challenges for the Organizations Organizations have to design for convergence of both analog (hardware) and digital technologies (software). services and solutions. many large organizations are trying to get into the Internet of Things business either through make. Challenges in Internet of Things Business The Internet of Things needs new e-business models.

HBR Blog Network.5: E-Business Models. “So You Want to build an Internet of Things Business”. January 22. 2014. Applicable To: Topic Course Unit-16: Basics of E-Business and Enterprise Application Integration.PEP Notes: IT & Systems Discussion Questions: 1. 104 IT & Systems . IC FA I Section-16.. G. What are the challenges in Internet of Things business? (Hints: integrate hardware and software-converge between analog and digital-concentrate on customers) 2. (Hints: hardware business model-software business model-charge for services and data) Reference:Hui. Describe different business models adopted by the Internet of Things organizations.

they decided to stop multi-million dollar CRM project because of integration issues. Characteristics of Successful Integration The characteristics of successful integration include:  Successful integrations focus on revenue generation rather than cost savings. Europe and Asia-Pacific.3%). By end of three months. they have decided to continue using Kraft Foods systems because of their modern and advanced technologies. IT integration is the major challenge when two organizations merge. FA iv.8% higher shareholder return than the organizations operated independently (3. This article brings the insights from the Bain & Company’s research on the role of IT in mergers and acquisitions. future of integrated application platforms and where to invest the money. revenue synergies are more important than the cost savings. I iii. then the integration becomes easy.  One advantage here is. 105 . which undergo mergers and acquisitions have 4. By the end of two to three years. they have decided to retain their auxiliary systems. Both these points are important for a merger to be successful. i. Executives are busy with low priority tasks such as merging emails. Cost of reconnecting these systems outweighs the benefits to be gained. They take long time to decide on critical and priority projects.  Example: In case of an airline merger. which systems operate independently.  IT teams have to choose best of breed systems from both the organizations. entire systems integration is to be completed. they should decide which systems are to be integrated. IC  Example: When Kraft Foods merged with Cadbury in 2010. By the end of the year. First month. Intranets and web portals during early weeks of merger. The organizations have to follow the following process in integrating their IT systems: i. People tend to think that they have limited scope and opportunities in the merged entity. they have to decide on IT goals and hypothesis. if one of the merged entities is a dominant partner. ii. They can decide on whether one company’s systems are going to be used or hybrid systems are going to be used or all the systems are going to be used independently. IT teams need time and effort by keeping long-term view in mind to effectively integrate the systems. Kraft Foods systems can operate in multiple modes. they should have half the value delivered in terms of costs and revenues. They have platforms specific to North America. In taking key decisions on integration of IT systems.Block-5: Enterprise Functions and E-Business 53. organizations. Mergers and acquisitions create two major challenges for the organizations.  Align IT decisions with organizational strategy. Business teams want the integrated IT systems to be operational quickly for selling combined products and services to increase the revenues for the merged organization. not only the IT teams are responsible but also the CEO and senior managementaretobemadeaccountable.  Example: In one case where a beer company acquired another. According to Bain & Company research. The decisions have to be quick.CEO and senior management have to make key decisions. The Role of IT in Mergers and Acquisitions Organizational mergers and acquisitions create need for enterprise application integration (EAI).  Organizations have to retain the talent during mergers and acquisitions. ii.  Example: In Airline mergers.

Bain & Co. During merger time. Describe some of the characteristics of successful IT integration. (Hints: revenue generation vs. February 12. S. Thus. V..6. the merging company actually would like to utilize them in their projects instead of their own employees.PEP Notes: IT & Systems  Example: When two companies merge.6: Enterprise Application Integration. Lino. 106 IT & Systems . the IT team should not deviate from their long-term journey and the main growth ambitions of the organization. “IT in M&A: Increasing the odds of a successful integration”. top talent has to be retained in case of mergers and acquisitions. 2014. Instead of all teams concentrating on system integration.. How does IT impact mergers and acquisitions of organizations? (Hints: business teams need quick integrated IT systems-IT teams need time-decision making) 2. Discussion Questions: 1. They should develop applications for growth using new technologies such as cloud computing and data analytics. cost savings-cost vs. and Padmanabhan.2: Need for EAI. M. FA Section-16. IC Sub-Section-16. benefits derived-align IT with business strategy) Reference: Shah.. IT executives in merged entity were actively looking for job opportunities outside. it is better to dedicate one IT team to think beyond mergers and acquisitions and develop applications and platforms in line with the new merged company’s strategy. Applicable To: Course I Topic Unit-16: Basics of E-Business and Enterprise Application Integration. However.

This was done at Amazon. That is. This has increased the trust among customer service agents and also the customers. The Challenge: Amazon is facing challenge in implementing lean principles in their software development.  Amazon has more number of front-line workers in their fulfilment and customer support centers than they have the number of computer engineers in their technology centers. they have limited automation to selected products and goods. now looked as a technology company. executives and engineers. According to this principle.  Kaizen teams at Amazon consist of front-line workers. Executives just ask open-ended questions without any pre-conceived ideas. an online book seller. Kaizen means continuous improvement.  They have selectively automated the activities and processes at fulfilment centers. That’s implementation of just-in-time principle. Writing software code cannot be stopped as soon as error is found in previous line. However. Thus. This information was useful in continuous process improvement and in measuring workers’ performance. human beings are meant to do the complex and non-repetitive tasks and machines are meant for doing repetitive. some of the Amazon computer scientists are working on this.Block-5: Enterprise Functions and E-Business 54. Founder of Amazon used to sit one day per year in fulfilmentcenters and take the role of senior management. This made lot of impact on the customers. machines can be used in the organization in reaching Sig Sigma level. To fill this 7%. Scanners used to take lot of time while scanning the bar codes of the products when their batteries were low. while packing shoes with automation. FA I Autonomation: Amazon has implemented lean principle of autonomation. it cannot be tested. low-complex and routine tasks. For example. shoes used to come out of boxes. This was identified and also how many scans can be done with a set of batteries is also identified. This article brings the lean principles Amazon has followed in their business with the help of automation (IT). Using technology. has practiced lean management since 2007. 107 . Machines only support the human beings in doing complex tasks. According to this principle. IC Kaizen: Workers performance was improved using kaizen principle.  As part of Kaizen. if the customer service agent receives a repetitive complaint on certain product. Abnormalities were identified and addressed in the process. The goods transportation method is chosen accordingly. For example.  Amazon involved front-line workers in continuous process improvement. Then. That is on-demand products are printed and delivered to the customer. Andon Cord: It is a lean principle. Amazon is a customer-centric organization. A human being works at 3 sigma level. The product is sold only after the defect is rectified in the product. This helped in making improvements in different packing styles to different types of products. Amazon. The IT capabilities at Amazon understand the customer requirements very well. IT and Lean Management at Amazon Amazon defines future of e-supply chain with automation and lean management principles. It helped in productivity improvements in stowing products. It follows the lean principle of avoid the wastage. a human being does the work with 93% accuracy and 7% errors. then he or she can stop the product from the line and he updates the information on the website. He puts the product under quality checking list on the website. They have not automated everything as they thought of doing it initially. This is because unless entire software is developed. They maintain list of products under quality check on the website. Amazon could print some of the books in just 4 hours and deliver it to customer. Amazon delivers the goods within the time mentioned to the customer on the website. Amazon follows the lean principle such as look at the lower cost option only if the organization meets the on-time delivery of goods.

It also includes the principles such as make-to-stock. Otherwise organizations have to invest in entirely new IT systems.. Unit-17: Supply Chain Management and E-Business. Discussion Questions: 1. Section-17. That is. This has to be done with proper planning. operational. Future of the e-supply chain is based on lean. The supply chains can also be outsourced. 108 Course IT & Systems . M. surplus inventory and time to sell the product for an organization. There were cases of failed mergers because of their inability to merge two different systems. “When Toyota met e-commerce: Lean at Amazon”. Explain the features of Kaizen. traffic control systems and bio metrics devices are being used in e-supply chain management. McKinsey Quarterly. When two organizations merge. production and support systems. routing tools and clouds are also used in e-supply chain management.7: Future of the E-Supply Chain. RFID (Radio Frequency Identification) devices. on-demand and just-in-time principles. there is a need for integration of their financial. E-supply chain management is reducing the transport time. feasibility of integration of different IT systems is important for an organizational merger.PEP Notes: IT & Systems Organizational mergers. computer based transport systems. Scheduling. February 2014. alliances and partnerships create need for enterprise application integration (EAI). acquisitions. What challenges are faced by Amazon in implementing lean principles in its supply-chain? I (Hints: implementation of software-idea generation-different packaging styles to different products) Applicable To: IC Topic FA Reference:Onetto. (Hints: continuous process improvement-identification of abnormalities-productivity improvements) 2. Mobile communication devices are used in e-supply chain management. build-to-order and continuous replenishment. Hence. HR. organizations have to think ahead on technical aspects before taking a business decision.

This article also discusses the advantages and disadvantages of moving ERP into cloud. reduced development and operational costs. ERP in the Cloud Deploying ERP in the cloud is one of emerging trends in the ERP industry with advantages of add quick functionality. social media. Deploying ERP in cloud. Cloud based ERP provides limited functionality such as accounting. challenges and limitations of ERP in cloud? This article gives insights from an article of Booz & Co regarding whether to go for ERP in cloud or not. accounts payable and accounts receivable. FA I Example: SAP made its ERP based on HANA platform over cloud. iii.Block-5: Enterprise Functions and E-Business 55. payroll. The cloud based ERP requires changes to the organizational business processes and converts the needed data. What are the benefits. Factors such as industry type. solution complexity. Oracle made available its ERP based on cloud including budgeting and planning functionality.  Because clouds are provided by the third party vendors. The operating costs of ERP in cloud are also lower. Limitations of ERP in Cloud: Cloud based ERP systems pose perceived risk to data. this requires installation of software on users’ machines. finance management and collaboration. ERP Deployment Models: There are basically 3 types of ERP deployment models. the solution complexity and capital costs are low and operating costs are medium. Cloud based ERP implementation costs are lower compared with traditional ERP systems.  Cloud based ERP solution provides basic configuration. For example. customer. What are the points to consider and monitor in this scenario. purchasing.  Cloud based ERP provides limited facilities for customization. capital requirements and operating costs vary with each deployment model.  Cloud based ERP provides scalability and flexibility to the system. product management and constraint based planning. organizations are concerned about their data on the cloud such as HR. company size and information security requirements effect the decision to deploy ERP in cloud. ERP applications can scale up quickly in cloud environment based on organizational growth. Hosting ERP off-site the company location. sales and financial data. 109 . However. Cloud vendors provide hardware.  Cloud based ERP may not be able to handle the tailored processes of the organization. IC Benefits of ERP in Cloud: There are several benefits of having ERP in cloud. Majority of IT services have been moved to the cloud. Organizations need not go for traditional software delivery processes in order to add new functionality.  It may not be able to integrate with highly customized software packages. The implementation size.  Cloud based ERP allows the organizations to add quick business functionalities to the system with availability and disaster recovery facilities. ERP system complexity.com provide applications for analytics. In case of cloud based ERP. SAP and SalesForce. patches. Functionality such as sales lead generation can be added easily. Organizations can redeploy their support staff to the work where they cannot outsource. ERP services are available as online services accessible from anywhere using Internet browser. Having ERP on company premises by owning and operating by itself ii. upgrades and refreshes. software. implementation time. They are i. However. It supports rapid deployment of applications. they do not provide specialized functionality such as statistical forecasting. limited functionality and customization.

Discussion Questions: 1. the probability of success with cloud based ERP is high. The less the system complexity and the more the implementation size. Connecting organizational ERP systems with social media is getting explored. IT & Systems Section-18. 2013. QAD and Microsoft provide ERP solutions in cloud. What are the advantages of having ERP on cloud? FA 2. Because. D.. M. Horvath. The more the system complexity and the more the implementation size. Emerging trends in the ERP industry includes integration of ERP systems or deployment of ERP systems on to the cloud. cloud vendors have invested millions of dollars to have state-of-the-art security capabilities in their platforms.Booz & Co. the probability of success with cloud based ERP is low. Applying analytics tools on ERP systems is also growing. in organizations where employees feel pride about ownership of technology and platforms. I (Hints: ERP on company premises-ERP on off-site-ERP on cloud) (Hints: provides basic configuration-easy addition of business functionality-scalability and flexibility) Applicable To: IC Reference:Utzig. Enabling ERP systems with mobile technologies is an emerging trend. Microsoft Dynamics ERP solution on their Windows Azure cloud platform even meets the requirements of enterprise level customers. Whether to go for ERP in Cloud or Not? : Organizations have to have a comprehensive look while deciding whether to go for ERP in cloud or not. Describe a few ERP deployment models in organizations. M. Topic Course Unit-18: Enterprise Resource Planning. C..PEP Notes: IT & Systems  Organizations face internal resistance for deployment of ERP in cloud. Big companies are looking for standardization and lower costs in order to go for ERP in cloud. The organizations have to evaluate the decision of going for ERP in cloud based on system complexity and implementation size.12: Emerging Trends in the ERP industry. Organizations such as SAP. Holland.. Cloud based ERP provides facilities such as business continuity and disaster recovery. “ERP in the Cloud: Is it ready? Are You?”. Oracle. 110 . and Manohar. organizations can take a calculated decision regarding their data security.

taxi drivers are getting more business and waiting time is less now. TaxiForSure having branches in New Delhi and Bangalore has 18 operators and 1. Ola Cabs having branches in New Delhi.  For customer. radio taxis. call center and mobile apps to the customers. there is no exact figure on number of taxis in India.  Aggregator model is based on less capital investment and minimal assets. which are mobile and reusable all the time. Then the aggregator passes the customer requirement to the partners online. Earlier they have invested in MakeMyTrip and redBus.com and MakeMyTrip. 111 . This business is in addition to the partners owned taxi business.  Lack of transparency in taxi charges is a major challenge  This sector is lacking standardization FA Aggregator Model of Taxi Business I  IC The aggregator model brings in the number of operators having cars and drivers as partners and provides services through their website.  Investment is less because the GPS device to be fixed in Taxi costs $100. Bangalore based Savaari has 150 operators and 3. IRCTC made online Train ticket booking possible in 2005. drivers and customers on to the single platform through technology.  The companies such as Ola Cabs. Technology fills the existing gap and adds lot of value to the business. Examples: i. This figure includes cruising taxis. iii. Few years ago. Yatra. or aggregator pays for it depending on the business agreement. many start ups in India are venturing into aggregator model of bringing taxi operators. Mumbai.com have made online air ticket booking possible. This they charge it to the partner. How it Works? The partner (operator/driver) whenever he wishes logs onto the aggregator’s platform. Or owner-driver cars. taxis for outstation and taxis of corporate. The current trend is online booking of taxi services in India. This model suits the taxi services because the assets in this model are taxis. iv.  Technology used by these organizations is the accurate and affordable GPS technology. ii. road taxis. Bangalore and Pune has 1. its advantages. Savaari.000 estimated taxis. invested in Mumbai based startup company Bookmycab.500 cabs in their network. This summary discusses this aggregator model of taxi services.Block-5: Enterprise Functions and E-Business 56.  YourNest.  Many players have 1. and TaxiPixi have adopted this aggregator model by connecting the supply with demand through technology.750 cabs. challenges. TaxiForSure. key success factors and some of the players in this fragmented segment – The Online Taxi Services. Bookmycab.500 operators and 4.000 owner-driver cabs in their network. Because this is mostly unorganized sector.000 cars in their network. With this. an angel fund.000 to 1. Some Facts about Taxi Services in India In India there are around 500. Bookmycab based in Mumbai has 3. 2 or 3 cars. Technology Driving the Indian Taxi Services Online taxi services companies with new business models using CRM for ecustomers are changing the trend of taxi services in India.000. then the customer and drive details are exchanged. If the partner accepts the requirement. the aggregator appears like a car rental company. YourCabs. Venture Capitalists Investments  Helion Venture Partners has invested in Bangalore based online taxi services company TaxiForSure. The customer who needs a cab books cab through multiple channels of aggregator. For this.

PEP Notes: IT & Systems

Drivers are being given training on soft skills such as maintaining hygiene, customer handling, money
handling and dealing with tough customers.

Advantages for the Aggregator Company

Taxi maintenance and servicing are taken care of by the partners themselves.

The aggregator company can concentrate on technology, marketing and brand building.

It creates a win-win model for operators, service providers and customers.

Aggregators can build strong business networks

Challenges for Online Taxi Services
The aggregator companies have very narrow margins. They get 10% to 20% commission on each trip
from their partners.

The operations have to be very tight in this business because the margins are very thin.

New entrants are entering into the business thinking of replicating the model

In case of local point-to-point services, customers have complaints

Many drivers don’t know the routes

Confirmed bookings are getting cancelled

Taxis are not available on demand

Sometimes taxis arrive late

Customers book many cabs and take the first one that comes

Maintaining consistent customer experience while managing scale is a challenge

Finding operations team having experience in robust technology is difficult

Roads, technology, pricing sensitivity and weather conditions are also challenges

The biggest challenge is providing cabs on demand for local point-to-point travels within the cities

FA

IC

Partnerships

I

To provide one stop solution to customer, TaxiForSure has tied up with redBus and MakeMyTrip to
provide taxi services to passengers coming and going by buses and airplanes so that door to door service
can be provided to the customer.

Key Success Factors for Online Taxi Services

Technology plays an important role.

Identification of partners, terms and conditions and service value addition are key success factors.

Looking Forward

More commitment is required from the operators

In cab, advertising can be introduced if operator is more committed.

More owner-driven cabs can rely on this model, whose waiting time for customers was very high
earlier.

State Governments are giving licenses to aggregators. For example, Bookmycab is a licensed
aggregator in Mumbai who has yellow, black and cool cabs on its fleet. New Delhi government is also
thinking of implementing it.

112

Block-5: Enterprise Functions and E-Business

Aggregator companies are going towards more Analytics with parameters such as variable pricing,
loyalty points, discounts, vehicle upgrades, noting pickup time and drop backtime.

Customer retention with the online taxis service provider comes with the increased services levels

Operators and drivers retention with online taxis service provider comes with more predictable business
for them

There are global players as well in this segment such as Hailo (UK), Uber (UK), MyTaxi (Germany)
and Get Taxi (Israel).
CRM for e-customers stands for customer relationship management system for e-customers using
electronic channels such as Internet, chatting, e-mail, SMS, and social media. It should maintain details
about customer, products purchased and transactions made. It is useful to provide online services to
customers. It can be used to take feedback on customer satisfaction. CRM systems are part of enterprise
management information systems.

Discussion Questions:
1.

What technologies are used by taxi service providers in India?
(Hints: technology platforms-GPS technology-CRM and analytics tools)

2.

Mention some of the challenges faced by online taxi services.
(Hints: very narrow margins-threat of new entrants-experience in technology)

Applicable to :
Topic
Unit-19: CRM and E-Business;

IT & Systems

IC

Section-19.7: CRM for E-Customers

FA

I

Reference: Wharton, “Indian Entrepreneurs are redefining India’s Taxi Service”, Knowledge@Wharton,
July 18, 2013.

113

Course

PEP Notes: IT & Systems

57.

The Role of IT in Coca-Cola

IT with e-customer relationship management is transforming the IT function into a
business partner function for the organization.
IT function has grown from a back-office function to strategic business partner function at Coca-Cola. IT
function tried to develop direct relationship with customers. It also managed demand driven supply-chain at
Coca-Cola. Coca-Cola made technology driven innovations in consumer packaged goods industry. This
summary brings insights from an interview with Coca-Cola Vice President and CIO, Ed Steinike published
in McKinsey Insights (March 2013).
Investments
Coca-Cola invested hundreds of millions of dollars on technology driven digital marketing. Their
investment in IT continues to rise.

They started thinking about digital marketing 5 years ago and developed mobile apps and pushed them
to consumers through the social media sites and Coca-Cola loyalty programs such as “My Coke
Rewards”.

Hired intelligent people in digital and interactive marketing area.

Recruited talented entrepreneurial IT people who could connect better with marketing.

Started recruiting 5 new interns every year who can bring in new culture into organization and who can
make IT as business partner

I

FA

Steps of Transformation

Initially IT was not looked at as a business partner at Coca-Cola. It was looked as a back-office support
system. For transforming IT function into a business partner and revenue generator function, Coca-Cola
designed the following:
Provided security, hosting and operating services for consumer sites developed by agencies. Coca-Cola
has supported 600 such sites on a single host platform with security.

Increased customer relationships by developing cool mobile apps and interacting with customers.

Assigned experienced people to large system applications and entry level people to software-as-aservice application development.

Developed mobile apps for more than 100 countries for 2012 Summer Olympics and made them
available on iPhone and Android. These are other than the traditional TV and advertising channels.

Now Coca-Cola has mobile distribution systems, content management systems, digital access
management systems and digital rights management systems in their IT portfolio.

2 years were spent on integration of plant and distribution systems to make demand driven supply chain
management in consumer packaged goods industry.

Technologies such as RFID (Radio Frequency Identification) and electronic tagging were used in their
products.

IC

Returns

The CIOs function has transformed from back-office, process oriented CIO converting support functions
to business partner and revenue generator CIO.

Usage of Technology

To know the stock level needed for a store in UK, they used to send the photographs of coolers and
shelves of the retail store to a company in India. Indian company computes and sends the required stock
level with counts of different products in less than a minute time to the UK counterpart. This happens
over the network using technology.

114

Block-5: Enterprise Functions and E-Business

Developed Coca-Cola Free style is an inbuilt computer in fountain dispensers. It works as an inbuilt
complex ERP (Enterprise Resource Planning) system. Using this one can try different combinations of
drink compositions and can come back to the one they like to increase the store sales. Coca-Cola
Freestyle at the retailer can directly send orders to the server system at Coca-Cola manufacturing plant.
It optimizes the order costs as well.

The statistics given by Coca-Cola Freestyles are useful to find what product is moving fast at different
timings of the day and what product is moving fast at different cities, regions and countries.

Going Forward

Coca-Cola has over 50 million fans on Facebook and 18 million customers on their ‘My Coke Rewards’
program. They would like to bring these 18 million consumers onto their Coca-cola Freestyle which can
give more insights into their business.
CRM for e-customers stands for customer relationship management for e-customers. The e-customers of
the company use channels such as e-mail, Internet, chatting, telephone, fax and other electronic devices.
The organization should have consolidated information about customer communication to provide proper
customer support. The CRM systems maintain all the customer conversations, customer databases,
transaction details, products purchased, requests and complaints made.

Discussion Questions:
1.

How did the IT function transform in Coca-Cola?

How did IT use in Coca-Cola’s customer relationship management?

FA

2.

I

(Hints: from back office and process oriented-to support function as business partner-revenue
generator)
(Hints: knowing stock levels-optimize order costs-which product is moving fast)

Applicable To:
Topic

IC

Reference: Levin, R., “Driving the top line with technology: An interview with the CIO of Coca-Cola”,
McKinsey Insights, 2013.

Unit-19: CRM and E-Business;

Course
IT & Systems

Section-19.7: CRM for E-Customers;

115

116 . Unstructured data can be text. detect fraud and to predict the stock market. weather forecasting and chat rooms. customer care representative notes. call center logs. The internal or organizational sources of unstructured data include marketing flyers.0 and Web 3. query processing and reporting tools.PEP Notes: IT & Systems 58.  Text analytics work on social media to understand the customer sentiments. audio analytics.  The major vendors of unstructured data analytics tools include IBM (SPSS) and SAS Institute. The external sources of unstructured data from Internet include journals. internal documents. audio. The Growing Need for Unstructured Analytics Unstructured analytics can be used for CRM for e-customers. unstructured data gives insights about why customer has done something? What he wants to do? What problems he or she has?  Sources of Unstructured Data: The sources of unstructured data can be internal or external sources such as Internet. unstructured analytics use text processing or text mining and keyword search techniques. call center logs. Structured data gives information about what customer has done. fraud detection and stock market prediction.  Select the needed blogs from social media  Find out the sentiments of bloggers  Measure the influence on key bloggers  Measure the authority of key bloggers  Find the topics of interest on the forum  Social media analytics products are available from companies such as IBM. images or video. Social media analytics are part of text analytics. Unstructured data constitutes 80% of the business today. analysts reports. Whereas. The unstructured data can be analyzed to understand the customer. and trading rooms. Whereas. Financial services industry is rapidly adopting unstructured data coming in social media to understand the customer. FA I Unstructured analytics: is the application of analytical techniques on unstructured data to derive useful and actionable insights for the organization. Radian6. video analytics. Usually unstructured analytics include text analytics. Structured analytics use business intelligence. uninformed decisions and inherent risks. social media. Unstructured Data: It is the data which cannot be stored in a relational database management system. SAS and Scout Labs. Ignorance of unstructured data can lead to missed opportunities.  Text Analytics Process: It is as given below:  IC   Collect data/text from both internal and external sources  Apply data cleansing and duplication techniques  Select attributes and discover patterns in data using analytics  Report results using dashboards  Store the enriched information Social Media Analytics Process: The social media analytics process has the following steps. wikis. prevent fraud and predict the future business. Financial services industry is looking for solutions from vendors for combining unstructured analytics with structured analytics to understand the business well. This article brings the insights from an Infosys whitepaper on unstructured data and unstructured analytics. The unstructured data includes blogs. legal documents.0. sales reports.  Text analytics for transforming unstructured data into insights is gaining popularity in the industry with the advent of Web 2. and social media analytics. breaking news. surveys and tweets.

A fraud in insurance company can be detected using combination of structured predictive analytics. CRM for e-customers should integrate all the electronic channels coming to the organization. S. FINSights. and combining text analytics with predictive analytics. B. this issue can be resolved using structured analytics (business intelligence) and social media analytics. iii. Application Areas: Unstructured analytics can be widely used in Banking. i. “Structured and Unstructured Data: The Convergence of Structured and Unstructured Analytics”.Block-5: Enterprise Functions and E-Business  The challenges to these vendors include transforming unstructured information into structured data.. Financial Services and Insurance (BFSI) Sector. They should predict customer intention as well. fraud detection and stock market prediction. In Financial Institutions. speech analytics and social media analytics. transactions and purpose. and Aggarwal. unstructured analytics can be used to understand the customer relationship management. K. I (Hints: cannot be stored in RDBMS-can be video. They are useful in finding fraud detection. Stock market prediction can be done using combination of structured and unstructured analytics.. This unstructured data has to be analyzed using unstructured analytics. They manage data coming from different open sources such as Internet and social media. CRM for e-customers maintains details about customers. IT & Systems Section-19. They should have consolidated information irrespective of the channel customer uses. Describe the characteristics of unstructured data. 2010. Kalmadi. integration of text analytics with social media analytics.7: CRM for E-customers. Topic Course Unit-19: CRM and E-Business. audio-analysis provides insights) (Hints: for text analysis-for social media analysis-along with predictive analytics) Applicable To: IC Reference:Venkatesh. Discussion Questions: 1. images. If a bank is having poor public relations. FICO and Infosys. How analytics are used in unstructured data analysis in an organization? FA 2. ii. customer intention and customer attitude. 117 .

Cloud Computing Updates 60. Big Data Operational Models IC 61. Changing Dynamics of Contact Center Outsourcing (CCO) Market 118 . Internet of Things: The Future of Mobile Technologies 63. Platform is the Core to IT Systems 62.Block-6 I Advanced Topics in IT FA 59.

and Partnerships:  IBM and AT&T joined together to develop network enabled cloud. Service Providers are making joint ventures. agreed to acquire DataRaker (cloud based analytics co.). Red Hat.  Hitachi is going to open a VMware competency center in Japan. Telstra and Colt are expanding their portfolio of services.  Fijitsu deployed its cloud services to Watami Co.  Amazon started cloud services to end-users across different geographies. Significant increase in cloud adaption is observed in public sector in US and SMBs segment in Asia Pacific region. British Telecom.). EMC are increasing their efforts in marketing their cloud products and services. Cognizant. IBM. Alliances. FA Update on New Cloud Offerings: I  IC New Cloud Offerings  British Telecom launched its cloud services to BT Trace.. Deals Made:  US General Services Administration (GSA) has selected Unisys and CSC for providing EaaS (Email-asa-Service). DELL.  T-Systems is going setup Germany’s largest data center with cloud facilities. Cloud Computing Updates Mergers & acquisitions and joint ventures are growing in the commercial cloud sector.) and invested partially in EngineYard (cloud development platform co.  AT&T. which connects 71 restaurants outside Japan. Mergers & Acquisitions.  SAP and Oracle toped in new cloud offerings among enterprise application providers.  Half of the cloud transactions in the market are related to Software-as-a-Service (SaaS).  Oracle acquired Eloqua (cloud based marketing automation software co. alliances and partnerships in Cloud computing area to capture more cloud market. SAP. DELL. Fijitsu and T-Systems are increasing their investments in data centers.59.  Oracle.  Microsoft is going to serve Toyota in their communications and collaboration Infrastructure.) and Instantis (cloud based onpremise project portfolio management solutions co.  CGI is going to upgrade John Hancock’s data centers and provide cloud facilities.  T-Systems got its contract renewed for 5 years with Shell.  Red Hat delivered its on-premise PaaS for enterprises having Enterprise Linux and OpenShift Origin. 119 .  HP. and Fijitsu got several contracts in cloud area in 4th quarter of 2012. Fijitsu have major new offerings.

which is into cloud integrated storage solutions. IT & Systems Section-20. They provide platforms. 2013. 120 .Q4 2012”. they can use cloud services from these service providers. Current Trend:  Paas service providers such as Microsoft and Google are moving down the stack to provide IaaS. Describe some of the features of cloud computing. (Hints: work anywhere anytime-data and storage facilities-on-demand infrastructure) 2. SAP.  Citrix and CA joined together to speed up cloud adaptation process.PEP Notes: IT & Systems  DELL acquires Gale Technologies.Service) App1 Commercial clouds in the industry include Amazon. Document No: EGR-2013-4-O-0823. (Hints: infrastructure as a service-platform as a service-software as a service) Reference: Everest Group. orchestration and automation capabilities in hybrid and on-premise clouds  Microsoft to acquire StorSimple. They provide public and private cloud solutions for the organizations.  IaaS service providers are moving up the stack to provide PaaS services. and solutions for the customers. Small and medium size organizations do not have to spend heavy seed money on IT infrastructure. which is into IT management. “Enterprise Cloud Quarterly Review. Discussion Questions: 1. Everest Group Cloud Vista. etc.  IaaS providers are thinking that infrastructure providing is low margin business and would like to move up the value chain  PaaS providers are thinking of growing into IaaS segment either through organically or through partnerships BPaaS (Business Process-as-a-Service) Cloud Platform IaaS (Infrastructure-as-a-Service) FA I Programming Tools Programming Languages IDEs Loaders Linkers Compilers Operating System App2 App3 SaaS (Software-as-a-Service) IC PaaS (Platform-as-a. Explain different service models of cloud providers.8: Commercial Clouds in the Industry. Microsoft. Instead. applications. Applicable To: Topic Course Unit-20: Cloud Computing.

Many organizations are joining the forces of making use of big data and data analytics. Big data should help the business units and functions to share the information and insights from data. 2. Analysis of peta bytes of big data provides the insights into customer behavior.Block-6: Advanced Topics in IT 60. 3. Big Data Operational Models Big data and data analytics capabilities are used to solve operational problems leading to better performance. It was found that:  The leaders using analytics are 2 times most likely to be in the 1st quartile of financial performance in their sectors. an insurance company is using big data of claims processing to find out the future hospitalizations for avoidable reasons and takes early action. Progressive Causality. has new ‘Snapshot’ device useful to observe the driver behavior and identifies whether the driver is right customer or not to the company. privacy laws and knowing value of data sources IC 1. 2. Advanced Analytical Tools such as Hadoop and NoSQL 3. Requirements for Big Data For big data implementation. Bain & Company conducted a survey of 400 large corporations to find out the relationship between analytics usage and organizational performance. the organizations should have: Large Quantities of Data 2. Analytics Application Areas The analytics can be applied in 1. LexisNexis Risk Solutions identifies the individuals and their family relationships using big data and helps the customers know these details. Improving internal processes and 4. 121 . They should think how big data is going to help the organizational performance. Developing new products or services 2. FA I 1. an insurance company. It is a business program with technology touch. Hamuna. to decide on pricing and to determine customer risk profile. organizational performance and supply chain efficiencies.com to expand its business from purchased software to ad-supported software. 3. Progressive Insurance uses big data to find out the driver behavior. Improving existing products and services 3.  3 times more likely to executive intended decisions  5 times more likely to make faster decisions than their peers in the industry  2 times more likely to use data when making decisions Examples: Samsung uses big data to power the content recommendation engines in their Smart TVs. They found that the organizations using analytics outperformed their competitors in large margins. People Capabilities and Expertise such as data science. Intuit’s acquired Mint. A big question that comes to our mind is: Is the huge investment of analytics worthy for the organization? To answer this question. The senior management team should have the ambition for big data. They have banks and financial institutions as their big data customers. Big data is not a technology initiative. Transforming business models Examples: 1.

Scaling up a center of excellence takes 12 to 18 months. Example: AT & T and Zynga 2. compare with competitors and make necessary investments in analytics for its better performance. What are the application areas of analytics in an organization? (Hints: transform business models-develop new products and services-improve internal processes) Reference: Pearson. Business Unit Lead with Centralized Support: There is collaboration on specific initiatives of big data between the business units.  Organizations work on expanding horizontal analytical capabilities. Operational problems can be solved with the usage of big data and analytics in the organization. Example: Nexflix I 1. vendor over commitment and non-compliance to contracts. It can be used in decision making. Applicable To: Topic Course Unit-21: Business Intelligence and Big Data. T. team leaders and legal experts. Example: 1. Big Data Operational Models There are four models in which big data capability can be incorporated into the organizational business. access its current big data capabilities. and market intelligence. business managers. Section-21. They are: Business Unit Lead: Independent business units lead their own big data decisions with limited coordination. Bain & Company. and Wegener. (Hints: business unit lead-center of excellence-business unit lead with centralized support) 2. not being able to proceed. 2. Example: Google and Progressive 3. September 11. resolving conflicts. analytics engineers. IT & Systems 122 . lack of trust between parties. processing conflicts.12: Big Data. IC Operational problems include non-availability of resources. Operational problems can be overcome with proper business processes in place and data oriented decision making from trusted sources in an organization. FA Center of Excellence requires PhD level data scientists. Centralized Support: Fully centralized big data support is provided by the organization. An organization has to benchmark its current position in the industry. Explain the big data operational model. operational excellence. Center of Excellence: Independent center of excellence provides guidance and support on big data to business units. Big data can be used in business process design (both internal and external processes).PEP Notes: IT & Systems Best Practices in Dealing with Big Data  Assign clear owners and sponsors for analytics initiatives. R.. “Big Data: The Organizational Challenge”. Example: Amazon and LinkedIn 4. Nordstrom assigned analytics responsibility to senior management and made it part of strategic initiatives. Discussion Questions: 1.  Organizations provide incentives for using big data and analytics in their decision making. lacking in data for decision making. 2013. Global Consumer Electronics major has given incentives to senior executives for capturing and using big data capabilities.

Open APIs (Application Programming Interface)  Social These reduce amount of risk in developing new and legacy systems. software. which is very cost effective. These technologies move at competition.  Platform consists of functions for search. one-click sales. front-office. The choice for hardware and software acquisition and software design approach depend on the expectation of support by customers.  Platform resides on top of Hardware.  Platform is more than Service Oriented Architecture. market demand. facilities. These are customer facing.   Analytics. communications.  Standards Based Technologies  Mobile Communication Protocols  Internet Protocols Sensors. FA I  IC IT Infrastructure includes hardware. Platform is the Core to IT Systems The platform forms the basis for effectiveness of IT in firms. They need shorter Infrastructure and application cycle times. 123 . data centers. devices. Platform is a collection of common resources that support multiple business IT applications of the organization. These functions treat information as their specialization rather than business logic or code. and are demand creating technologies. employees and vendors.  Platforms make use of diversified digital technologies and can be updatable without disturbing one another. and customer expectations. operations and other technical resources.  Digital economy companies such as Facebook and Google also have these kinds of Platforms. Communication and Internet Infrastructure.  Financial Services organizations develop new business applications on these platforms without replacing their existing infrastructure. pricing and description presentation.  Mobile.Block-6: Advanced Topics in IT 61.  Communication Protocols such as TCP/IP  Big Data. Digital Technologies  Cloud.

Applicable to: Topic Course Name Unit-22: Current Trends in Software Design and Architecture. (Hints: cloud. and component based design (CBD). bulk hardware and software acquisitions can be avoided resulting into saving of huge capital expenditure for the organization. 2013. August 01. object oriented analysis and design (OOAD). high level architecting and low level designing the system. The design has to be extendable and modifiable. Traditionally acquiring hardware and software for the project is through project procurement process by making formal contracts with the vendors. Discussion Questions: 1. What is a platform of an IT system. Section-22. MIS systems involve hardware and software acquisitions.PEP Notes: IT & Systems Figure 1: Impact of IT Infrastructure on Organization Technology Decisions IT Organization Structure IT Infrastructure IT Budgets Market Entry Figure 2: The Platform Presentation Logic User Interface Presentation Logic Business Logic PLATFORM Pricing I Description Presentations FA Search One Click Sales Service Oriented Architecture Operating System Network Network IC Hardware Software Design Approach involves selecting appropriate design methodology. social and mobile technologies-sensor technologies-big data and analytics) Reference: Mark P. Some of the design methodologies include structured systems analysis and design (SSAD). HBR Blog Network. McDonald. (Hints: collection of common resources-hardware and OS-service oriented architecture. service oriented architecture (SOA). It identifies the components in the system and their inter connections. With the advent of software-as-a-service in cloud computing. business logic and user interface) 2.3: Software Design Approaches. 124 IT & Systems . “Platforms are the New Foundation of Corporate IT”. Explain its layers. Mention a few prominent design approaches used in software industry.

Internet of Things: The Future of Mobile Technologies `Internet of Things’ as the future of mobile technologiesis changing the information security and control aspects of organizations and individuals. Attackers are tampering the valuable data of the companies. there are more than 20 crore people connected to the Internet in India. In current days. The possible risks because of internet of things include:  Attackers can attack every possible ‘use case’ of the organization.  Example: Attackers are attacking the information of energy companies because their industrial control systems are outside their traditional security walls. the wirelessly connected devices are growing as shown below. Internet is available over different devices and at fingertips. globally. 125 . According to ABI research. This kind of scenario is creating a threat to security both physical and logical to the data of individuals over the network. ‘Internet of Things’ connects different devices including smart devices over the network for scalability and utility. As soon as the car enters into specific radius of the home. the power at home can be switched on and the signals can be transmitted to activate the devices at home. The article highlights the potential security risks in internet of things and how to handle those risks.  Smart devices can be used for unplanned tasks.  Example: A GPS device in a car can get connected to the power controller at home of an individual using wireless technologies. The devices at home can perform the scheduled tasks.Block-6: Advanced Topics in IT 62.  The devices are not designed by keeping security concerns in mind. How to Handle Potential Risks? Potential risks can be handled using the following three strategies:  Device manufacturers have to keep embedded security software in devices to handle any intrusion. According to Internet and Mobile Association of India (IAMAI). Internet and connectivity is bringing 360 degree change in people’s lives.  Employees can become a possible threat to information and become gateways of risk.  Potential Risks: Organizations are getting impacted in many ways. Wirelessly Connected Devices (Global) 30 billion I 10 billion 2020 IC 2014 Wirelessly Connected Devices FA 35 30 25 20 15 10 5 0  Internet is making devices smarter with embedded sensors and smart refrigerators.

. Section-23. organizations. What is the Internet of Things? Explain some of its features. They need to provide patches for the vulnerabilities.5: The Future of Mobile Technologies. S. which includes governments. Information security and control is the major concern for organizations in an Internet era. FA Topic IC Sub-Section-23.3: Mobile Technologies. “Securing the Internet of Things”. `Internet of Things’ became the future of mobile technologies. Discussion Questions: 1. (Hints: connects smart devices over network-for scalability-for utility) 2.PEP Notes: IT & Systems  Device manufacturers have to find ways to notify customers regarding security threats. I Applicable To: Unit-23: Mobile and Social Technologies.  There should be strong regulatory environment. 126 Course IT & Systems . Business Standard. homes and individuals. Organizations using big data. Internet. February 03. How can the risks pertaining to the Internet of Things be handled? (Hints: embedded system software-provide patches for vulnerabilities-strong regulatory environment) Reference:Ghosh. 2014.3. external data sources and Internet of Things are showing significant concern over information security. Instead of exploiting the technology. clouds. it is better to pay attention to information security in the connected world. Many new generations of mobile technologies such as 4G and 5G networks are coming into the world. Mobile usage is growing in emerging markets.

IC FA I  CCO Global Spending CCO Market Services of CCO Providers Value Added Services Operational Services Analytics Customer Service Performance Management Payment Processing Channel Management Transaction Processing Retaining Customer Sales Service (Inbound and Outbound) 127 .$70 billion. Global CCO spending is around $300-$350 billion  Out of it. They are Global Internal Contact Centers and third party CCOs. Third party CCO industry is growing steadily for the past two to three years. Changing Dynamics of Contact Center Outsourcing (CCO) Market Communications Enabled Business Proces ssuch as customer interaction is being optimized through outsourcing of contact management systems or by aggregation to global internal contact centers. Collaborative technology is pushing such IT.  The demand for CCO is growing in Europe. Sykes.  After a dip in 2009. Middle East Asia (EMEA) and Asia Pacific (APAC) regions. Third Party CCO is the external organization providing contact center services to the global customers.  CCO in US and UK markets has stabilized. (Example CCO providers in India: Genpact. Contact Center Outsourcing (CCO) is about outsourcing of customer service. Convergys. Third party CCO market has reached at $65 .  Third party CCO industry has seen 7%-8% growth in 2012.enabled services up the value chain. transaction processing and channel management to another organization.Block-6: Advanced Topics in IT 63. payments. CCOs are of two types. Aditya Birla Minacs) According to EVEREST Group’s Contact Center Outsourcing (CCO) Annual report 2013.

processing accounts.  English is widely used language and next is Spanish in CCO segment. B2B sales. Contact management systems are part of IT enabled services. Sitel.347 Million Euros Atento Customer relationship management.. They maintain the details of all customer transactions.9: Communications Enabled Business Processes. processing payroll. Webhelp. Teleperformance. Mahindra Satyam. It is expected to grow in Asia Pacific (APAC) region in coming 2 to 3 years time. Sykes. E-mail. Describe top-3 performers in CCO market. Contact systems using these processes include technologies such as Internet. Sutherland. insurance. July 2013. Government.005 million IC FA I Tele-performance Communications Enabled Business Processes areused to interact with customers. Menzigian. vehicle financing. Atento. Transcom Worldwide. mortgages. Aditya Birla Minacs. (Hints: Teleperformance-Atento-Convergys) Reference:Bhargava. Everest Group Research Report. Healthcare. Applicable to: Topic Course Name Unit-24: IT and Business Process Management. Retail. However hybrid pricing models are also present. FirstSource. K. A. Menon.  Full-Time Employee (FTE) model is the dominating pricing model in CCO.PEP Notes: IT & Systems The CCO service Providers participated in the survey include TCS. Alorica.  The growth of CCO industry in Europe is because of cost advantage.  CCO providers are balancing between scale and skills to meet customer requirements. HP. Collection Management. etc. What is Contact Center Outsourcing (CCO)? Explain the process. Xerox. Some of the intelligent contact management systems even predict why the customer might have called and respond accordingly. and Convergys. B2B Solutions and Customer Interaction Technology $2. EPABX. They provide voice and non-voice based services to the customers in providing recruitment services. Fax. (Hints: outsourcing customer service and payments-global CCOs-third party CCOs) 2. Telephone. Discussion Questions: 1.. manufacturing and utilities 2. emerged as top-3 performers in CCO industry. transportation. “Contact Center Outsourcing (CCO) – Annual Report 2013: Focus on Customer Experience Management”. S. WNS. and NCO-APAC. 128 IT & Systems . Genpact. fraud and complaints management 7% revenue growth since 2011. analytics. processing insurance claims and processing patent applications. logistics. and snail mail. Convergys Customer care solutions. The Findings of the survey:  Teleperformance. Aegis.. Serco. insurance. Section-24. Top-3 Performers in CCO Market CCO Provider Organization Earnings (2012)/ Earnings Growth Rate Services Managing customer transactions in Financial Services. Teletech.  CCO industry is highly fragmented with no major top players.

Since its establishment. ICFAI Group alumni contribute significantly to the growth story of India. the ICFAI Universities. the ICFAI Business Schools and the Flexible Learning Programs (Distance Mode). strongly believes in developing an 'entrepreneurial FA Subsequently. IC ICFAI Group has 3 Strategic Institutional Units. mindset' among its graduating students. I The ICFAI Group's culture of teaching and learning supports and fosters intellectual and personality development among its graduating students. ICFAI practices the value of academic integrity at all levels.The ICFAI Group ICFAI was established in 1984 as a not-for-profit society with the broad objective of empowering citizens through world class quality education. The delivery takes place with the use of hi-tech learning management system at campus programs and content delivery for distance learning through online medium. Since its inception. Flexible and tech enabled learning also plays an important role in ICFAI's teaching methodology. the emphasis is on adherence to academic rigor and differentiated curriculum that bridges the industry –academia gap.DOERS. Collectively. there was a big leap when ICFAI Group started its chain of business schools (IBS) across India in 1995 to offer management program. ICFAI Group system. IBS has been consistently ranked among the top ranked B-Schools of India providing excellent academic delivery and infrastructure to its students and transforming them into leaders for the future. The alumni of ICFAI Group are working in renowned companies world-wide. ICFAI Group has made a significant mark in the Indian educational field with a pan Indian network and presence. They carry an attitude of ownership of their work. In all the programs offered across these units. Awards won by ICFAI Group . ICFAI Group strives to make the students .

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