Information Systems for

Managers S01

1
 Objectives
• Explain why information technology matters
• Define digital information and explain why digital
systems are so powerful and useful
• Explain why information systems are essential to
business
Does Information Technology Matter?

• Hackett Group study: “Does IT Matter? Hackett

Concludes the Answer is Yes”
– World’s best performing companies spent 7%
more per employee on IT than typical companies
– They recouped the investment fivefold in lower
operational costs
• Today’s business professionals must know how
to develop and use IT
 The Power of Digital Systems

• Binary counting system uses only two digits:

0 and 1
• Digital systems:
– Computers and devices that use the binary
system
– Can represent any information as a combination
of zeros and ones
• Information can be represented, stored,
communicated, and processed digitally
 The Power of Digital Systems
(continued)
• Digital information is stored and communicated
by means of electromagnetic signals
– Extremely fast
– Digital copy is an exact copy of the original
• Accuracy and speed make digital systems
powerful, useful, and important
 The Purpose of Information Systems

• Businesses use information systems

– To make sound decisions
– To solve problems
• Problem: any undesirable situation
• Decision: arises when more than one solution to
problem exists
• Both problem solving and decision making
require information
 The Purpose of Information Systems
(continued)
• Keys to success in business:
– Gathering correct information efficiently
– Storing information
– Using information
• Purpose of information systems is to support
these activities
 Data, Information,
and Information Systems
• “Data,” “information,” and “system” are
commonly used terms
• Important to understand their similarities and
differences
 Data vs. Information

• Data: a given or fact

– Can be number, statement, or picture
– Is the raw material in the production of
information
• Information: facts or conclusions that have
meaning within context
– Composed of data that has been manipulated
 Data Manipulation

• Data is manipulated to make useful information

– New information can be generated from data,
such as averages, trends, etc.
• Survey is common method of collecting data
• Raw data is hard to read
• Information is more useful to business than data
 Generating Information

• Process: the manipulation of data

– Usually produces information
– May produce more data
• A piece of information (output of a process) in
one context may be considered data (input to a
process) in another context
Generating Information (continued)
 Information in Context

• Not all information is useful

• To be useful, information must be:
– Relevant
– Complete
– Accurate
• In business, information must also be:
– Current
– Obtained in a cost-effective manner
Information in Context (continued)
 What Is a System?

• System: array of components that work together

to achieve goal or goals
• System
– Accepts input
– Processes input
– Produces output
 What is a System? (continued)

• System may have multiple goals

• System may contain subsystems
• Subsystem: component of a larger system
• Subsystems have subgoals that contribute to
main goal
• Subsystems can receive input from and transfer
output to other subsystems
What is a System? (continued)
 What is a System? (continued)

• Closed system: has no connections with other

systems
• Open system: interfaces and interacts with
other systems
– Often a subsystem of a bigger system
– Subsystems by definition are always open
• Information system (IS): components that work
together to process data and produce
information
 Information and Managers
• Systems thinking: thinking of an organization in
terms of subsystems
– Powerful management approach that creates a
framework for problem solving and decision
making
– Helps keep managers focused on overall goals
• Database: collection of electronic records
• Information systems automate exchange of
information among subsystems
Information and Managers (continued)
• Information map: description of data and
information flow within an organization
– Shows a network of information subsystems that
exchange information with each other and with
the outside world
• Information technology: technologies that
facilitate construction and maintenance of
information systems
 The Benefits of
Human-Computer Synergy
• Humans are relatively slow and make mistakes
• Computers cannot make decisions unless
programmed to do so
• Synergy: combining resources to produce
output that exceeds the sum of outputs of the
separate resources by themselves
• Human-computer combination allows human
thought to be translated into efficient processing
of data
 The Benefits of
Human-Computer Synergy (continued)
Information Systems in Organizations

• Information system consists of data, hardware,

software, telecommunications, people, and
procedures
• Computer-based Information system: system
with one or more computers at center
• Organizations lag behind and lose
competitiveness if they do not use information
systems
 Information Systems in Organizations
(continued)
• Trends that have made information systems
important in business:
– Growing power and decreasing cost of computers
– Growing capacity and decreasing costs of data
storage devices
– Increasing variety and ingenuity of computer
programs
– Available, reliable, affordable, and fast
communications links to the Internet
– Growth of the Internet
– Increasing computer literacy of the workforce
Information Systems in Organizations
(continued)
Information Systems for
Managers S02

26
 Objectives
• Describe how computers process data into
useful information for problem solving and
decision making
• Identify the functions of different types of
information systems in business
 Objectives (continued)

• Describe careers in information technology

• Identify major ethical and societal concerns
created by widespread use of information
technology
 The Four Stages of Processing

• Input: collect and introduce data to system

– Transaction: a business event, usually entered
as input
– Transaction processing system (TPS): a
system that records transactions
– Input devices include keyboards, bar code
readers, voice recognition systems, touch
screens
• Data processing: perform calculations on input
 The Four Stages of Processing
(continued)
• Output: what is produced by the information
system
– Output devices include printers and speakers
• Storage: maintaining vast amounts of data
– Storage devices include optical discs
 Computer Equipment
for Information Systems
• Different technologies are used to support the
four data processing functions:
– Input devices: receive input
– Computers: process data
– Output devices: display information
– Storage devices: store data
– Network devices: transfer data
• Telecommunications: communication that
takes place between computers over great
distances
 Computer Equipment
for Information Systems (continued)
 From Recording Transactions to
Providing Expertise:
Types of Information Systems
• Different types of information systems serve
different functions
• Capabilities of applications have been combined
and merged
• Management Information System: a system
that supports planning, control, and making
decisions
 Transaction Processing Systems

• Transaction processing system (TPS): most

widely used type of system
– Records data collected at point where
organization transacts business with other parties
• Point-of-sale machines: record sales
– Include cash registers, ATMs, and purchase
order systems
 Supply Chain Management Systems

• Supply chain: sequence of activities involved in

producing and selling products or services
– For products, activities include marketing,
purchasing raw materials, manufacturing and
assembly, packing and shipping, billing,
collection, and after-sale services
– For services, activities include marketing,
document management, and monitoring customer
portfolios
 Supply Chain Management Systems
(continued)
• Supply chain management (SCM) systems:
systems that support these activities
• Also known as enterprise resource planning
systems
• SCM systems eliminate the need to reenter data
that was captured elsewhere in the organization
• An SCM is an enterprise application
 Customer Relationship
Management Systems
• Customer relationship management (CRM)
systems: systems for managing relations with
customers
– Used in combination with telephones to provide
customer service
– Often linked to Web applications that track online
transactions
• Retaining loyal customers is less expensive than
acquiring new ones
 Business Intelligence Systems

• Business intelligence (BI) systems: systems

that glean relationships and trends from raw
data to help organization compete
– Often contain statistical models
– Access large pools of data
• Data warehouse: large database that usually
store transactional records
Decision Support and Expert Systems

• Decision support system (DSS): supports

decision making
– Relies on models to produce tables
– Extrapolates data to predict outcomes
– Helps answer “What if?” questions
• Expert system (ES): supports knowledge-
intensive decision making
– Uses artificial intelligence techniques
– Can preserve the knowledge of retiring experts
 Geographic Information Systems

• Geographic information system (GIS): ties

data to physical locations
• Represents data on a map in different formats
• May reflect demographic information in addition
to geographic information
• May use information from global positioning
system (GPS) satellites
– Examples: Google Earth, Mapquest
Geographic Information Systems
(continued)
 Information Systems
in Business Functions
• Functional business area: services within a
company that support main business
– Includes accounting, finance, marketing, and
human resources
– Part of a larger enterprise system
 Accounting

• Accounting information systems:

– Help record transactions
– Produce periodic statements
– Create required reports for law
– Create supplemental reports for managers
– Contain controls to guarantee adherence to
standards
 Finance

• Finance systems:
– Facilitate financial planning and business
transactions
• Tasks include organizing budgets, managing
cash flow, analyzing investments, and making
decisions
 Marketing
• Marketing’s purpose is to pinpoint likely
customers and promote products
• Marketing information systems:
– Analyze demand for products in regions and
demographic groups
– Identify trends in demand for products/services
– Help analyze how advertising campaigns affect
profit
• Web provides opportunity to collect marketing
data as well as promote products and services
 Human Resources

• Human resource management systems aid

record-keeping
– Must keep accurate records
– Aids recruiting, selection, placement, benefits
analysis, requirement projections
• Performance evaluation systems provide
grading utilities
 Web-Empowered Enterprises

• E-commerce: buying and selling goods and

services through Internet
• Internet is a vast network of computers
connected globally
• Web has a profound impact on information
systems
– An emerging advertising medium
– A place to conduct e-commerce
 Careers in Information Systems

• Information technology professionals are

increasingly in demand
• Network administrator, system administrator,
system analyst, software engineering, data
communications analyst, and database
administrator jobs are increasing in demand
 Help Desk Technician

• Help desk technician:

– Supports end users in their daily use of IT
– Often provides help via telephone
– May use software that gives them control of the
user’s PC
– May need to have knowledge of a wide variety of
PC applications
 Systems Analyst

• Systems analyst:
– Researches, plans, and recommends software
and systems choices
– Responsible for developing cost analyses, design
considerations, implementation timelines, and
feasibility studies
• Involves analyzing system requirements,
documenting development efforts, and providing
specifications for programmers
• Requires communication and presentation skills
 Database Administrator

• Database administrator (DBA): responsible for

databases and data warehouses
– Develops and acquires database applications
– Must adhere to federal, state, and corporate
regulations to protect privacy of customers and
employees
– Responsible for securing the database
 Network Administrator

• Network administrator: acquires, implements,

manages, maintains, and troubleshoots
networks
• Implements security
– Firewalls
– Access codes
 System Administrator

• System administrator: manages an

organization’s computer operating systems
– Must ensure that operating systems work
together, support business requirements, and
function properly
– Responsible for backup and recovery, adding and
deleting user accounts, performing system
upgrades
 Webmaster

• Webmaster: creates and maintains Web site

– Must be familiar with Web transaction software,
payment-processing software, security software
– Manages both the intranet and extranet
• Demand for Webmasters grows as more
businesses use Web
 Chief Security Officer

• Chief security officer (CSO): supervises

security of information system
• Position exists due to growing threat to
information security
• Usually reports to chief information officer (CIO)
 Chief Information Officer and
Chief Technology Officer
• Chief information officer (CIO): responsible for
all aspects of information system
– Often a corporate vice president
– Must have technical understanding of information
technologies as well as business knowledge
• Chief technology officer (CTO): has similar
duties as CIO
 Chief Information Officer and
Chief Technology Officer (continued)
Information Systems for
Managers S04

58
 Introduction
• Management, functions of
management
• Levels of management
• Framework for information systems
• Stages of new information
technology growth
•Business process reengineering

59
Importance of information
systems
•Information Technology supports
every business function
•To be a successful manager, one
should understand how information
technology can provide better
products, enhance existing services
and create new business
opportunities
60
 Management
• Management is the process of
directing tasks and organizing
resources to achieve organization
goals

61
Functions of Management
• Planning
• Organizing
• Leading
• Controlling

62
 Planning
• Establishing organization goals
• Developing strategies to achieve
goals

63
 Organizing
• Developing the structure of the
organization
• Acquiring human resources

64
 Leading
• Motivating and managing
employees
• Forming task groups

65
 Controlling
• Evaluating performance
• Controlling the organization
resources

66
 Levels of management
• Top management
• Middle management
• First line management

67
 Top management
• Establishing the goals of the
organization
• Interacting with representatives of
the external environment, such as
financial institutions, political figures
and important suppliers and
customers

68
 Middle management
• Allocating resources so that the
objectives of top management are
accomplished

69
 First line management
• Supervising day-to-day operations

70
Activities of an organization
• Strategic planning (Long range
plans)
• Tactical (Budgets tactical plans)
• Operational (Day-to-day
transactions)

71
Framework for information
systems
• Each level (Operational, tactical and
strategic planning – requires specific
information systems)

72
 Operational systems
characteristics -1
• Repetitiveness – daily, weekly,
monthly
• Predictability
• Emphasis on the past – past
activities of an organization.
• Detailed nature – information is
very detailed e.g payslips

73
 Operational systems
characteristics -2
• Internal origin – data comes from
internal sources. E.g. Payslip data
comes from timesheets
• Structured form – format of input
and output data is highly structured
• Great accuracy – data input and
output are carefully checked

74
 Tactical systems
• Provide middle level managers with
the information they need to
monitor and control operations and
to allocate their resources effectively
• Generate a variety of reports

75
Tactical systems characteristics -1
• Summary Reports – provide
management with important totals,
averages, key data and abstracts on the
activities of the organization
• Exception Reports – Warn managers
when results from a particular
operation exceed or do not meet
expected standard for the organization

76
Tactical systems characteristics -2
• Adhoc Reports – Reports that
managers need, usually quickly, that
may never be needed again. E.g.
Overtime hours based on timesheets
• Periodic nature – information from
a tactical system is often produced
periodically e.g. Issues status in the
maintenance of systems
77
Tactical systems characteristics -3
• Unexpected findings. E.g. Billing
alerts in a cloud computing
environment due to hacking
• Comparative nature – Information
is usually comparative in nature
rather than merely descriptive. E.g.
Comparison of project metrics with
organizational baselines or averages
78
Tactical systems characteristics -4
• Summary form – The information is
usually not detailed, but in summary
form
• Both internal and external
resources – Data used for input to
the system may extend beyond
sources internal to the organization

79
Strategic planning systems
• Designed to provide top managers
with information that assists them in
making long-range planning
decisions for the organization.
• Top management usually uses
strategic planning information
systems for setting long-term
organizational goals. E.g. RTLC
80
Strategic planning systems
characteristics -1
• Adhoc basis – Information may be
produced either regularly or periodically.
• Unexpected information – The system may
produce unexpected information
• Predictive nature – The information is
usually predictive of future events rather
than descriptive of past events. Long range
planners choose a route that will improve
the organization’s level of success.

81
Strategic planning systems
characteristics -2
• Summary form – Information is usually not detailed,
but in summary form. Long range planners are not
usually interested in detailed information; they are
usually concerned with more global data and trends.
• External data – A large part of the data used for
input to the system may be acquired from sources
external to the organization. E.g Gartner reports
• Unstructured format – Data used for input to the
system may contain data that are unstructured in
format.
• Subjectivity – The data used for input to the system
may be highly subjective

82
Stages of new information
technology growth
• Phase1: Investment / Project
initiation
• Phase2: Technology learning and
adaptation
• Phase3: Management Control
• Phase4: Widespread technology
transfer

83
 Business Processes
• Business processes refer to the manner in
which work is organized, coordinated and
focused to produce a valuable product or
service.
• They are the collection of activities required to
produce a product or service.
• Performance of a business firm depends on
how well its business processes are designed
and coordinated.

84
 Order Fulfillment Process

Sales Generate Submit order

order

Accounting Check credit Approve credit Generate Invoice

production
Assemble product Ship product

85
Claims Process
 How IT improves Business Processes
• Information systems automate many steps in
business processes that were formally
performed manually. E.g. Leave management
System
• Business processes can be improved by using
information technology to achieve greater
efficiency, innovation and customer services.
E.g. core banking system

87
 Impact of IT - 01
• Efficiency
• Effectiveness
• Transformation

88
 Impact of IT - 02
Efficiency
• Efficiency can be defined as doing things right
• Computer based information processing
systems have supported efficiency by
automating routine paperwork processing
tasks.

89
 Impact of IT - 03
Effectiveness
• Effectiveness is defined as doing the right
things
• E.g. An effective sales manager focuses on
tasks that pay off in increased sales volumes

90
 Impact of IT - 04
Transformation
• Transforming the way a functional unit or an
organization does business using information
technology.
• E.g. Improvement of sales using a CRM
package

91
 Impact of IT - 05
How do applications that achieve the objectives
of efficiency, effectiveness and transformation
affect the individual, functional unit and the
organization?

92
 Impact of IT - 06
Applications that have an impact on individual
Efficiency Task Mechanization Word processing.
Using a
spreadsheet to do
budget plan

Effectiveness Work improvement Using a prospect

database to
generate sales
letters

Transformation Role expansion Using a portable PC

to do “what-if”
analysis for
investment clients

93
 Impact of IT - 07
Applications that have an impact on functional
unit
Efficiency Process Automation Order-entry; credit
checking

Effectiveness Functional Computer aided

enhancement design, computer
aided
manufacturing

Transformation Functional CD-ROM disks for

redefinition business search

94
 Impact of IT - 08
Applications that have an impact on the
organization
Efficiency Boundary extension Online order entry
linking customers
and suppliers

Effectiveness Service Online diagnostic

enhancement database for
electrical
appliances

Transformation Product innovation Holiday Inn’s video

conferencing

95
Framework for application of IT
Individual Functional Unit Organization

Efficiency Task Process Boundary

Mechanization Automation extension

Effectiveness Work Functional Service

improvement enhancement enhancement

Transformation Role expansion Functional Product innovation

redefinition

96
 Reengineering of work
• Process of reengineering of work
– Organize around outcomes, not around tasks
– Have those who use output of a process to
actually perform the process
– Treat geographically dispersed units as if they are
centralized
– Link parallel activities during the process, rather
than at the end of the process
– Capture information once at the source
97
Business Process Reengineering and
Business Process Redesign

98
 IT and Business Process Redesign
• Steps in business process redesign
– Develop business vision and process objectives
– Identify processes to be re-designed
– Understand and measure existing processes
– Identify IT levers
– Design and build prototype of the process

99
 Management challenges in Business
process re-design
• Guidelines to manage transition
– Create task force with people from cross functional
groups
– Have re-design teams work closely with managers and
staff
– Explain through the information systems group wrt
power offered by technology
– Build a team of industrial engineers with strong
interpersonal skills, understanding of multiple
functions, process measurement etc.
– Build IT technology platforms that support cross
functional applications.

100
 Summary
• Management, functions of
management
• Levels of management
• Framework for information systems
• Stages of new information
technology growth
•Business process reengineering

101
Information Systems for
Managers - 06

102
 Topics covered
• Business Processes
• Impact of IT
• Reengineering of work
• IT and Business Process Redesign
• Management challenges in Business Process
Redesign

103
 Business Processes
• Business processes refer to the manner in
which work is organized, coordinated and
focused to produce a valuable product or
service.
• They are the collection of activities required to
produce a product or service.
• Performance of a business firm depends on
how well its business processes are designed
and coordinated.

104
 Order Fulfillment Process

Sales Generate Submit order

order

Accounting Check credit Approve credit Generate Invoice

production
Assemble product Ship product

105
Cashless Claims Process
Claims Process
 How IT improves Business Processes
• Information systems automate many steps in
business processes that were formally
performed manually. E.g. Leave management
System
• Business processes can be improved by using
information technology to achieve greater
efficiency, innovation and customer services.
E.g. core banking system

108
 Impact of IT - 01
• Efficiency
• Effectiveness
• Transformation

109
 Impact of IT - 02
Efficiency
• Efficiency can be defined as doing things right
• Computer based information processing
systems have supported efficiency by
automating routine paperwork processing
tasks.

110
 Impact of IT - 03
Effectiveness
• Effectiveness is defined as doing the right
things
• E.g. An effective sales manager focuses on
tasks that pay off in increased sales volumes

111
 Impact of IT - 04
Transformation
• Transforming the way a functional unit or an
organization does business using information
technology.
• E.g. Improvement of sales using a CRM
package

112
 Impact of IT - 05
How do applications that achieve the objectives
of efficiency, effectiveness and transformation
affect the individual, functional unit and the
organization?

113
 Impact of IT - 06
Applications that have an impact on individual
Efficiency Task Mechanization Word processing.
Using a
spreadsheet to do
budget plan

Effectiveness Work improvement Using a prospect

database to
generate sales
letters

Transformation Role expansion Using a portable PC

to do “what-if”
analysis for
investment clients

114
 Impact of IT - 07
Applications that have an impact on functional
unit
Efficiency Process Automation Order-entry; credit
checking

Effectiveness Functional Computer aided

enhancement design, computer
aided
manufacturing

Transformation Functional CD-ROM disks for

redefinition business search

115
 Impact of IT - 08
Applications that have an impact on the
organization
Efficiency Boundary extension Online order entry
linking customers
and suppliers

Effectiveness Service Online diagnostic

enhancement database for
electrical
appliances

Transformation Product innovation Holiday Inn’s video

conferencing

116
Framework for application of IT
Individual Functional Unit Organization

Efficiency Task Process Boundary

Mechanization Automation extension

Effectiveness Work Functional Service

improvement enhancement enhancement

Transformation Role expansion Functional Product innovation

redefinition

117
 Reengineering of work
• Process of reengineering of work
– Organize around outcomes, not around tasks
– Have those who use output of a process to
actually perform the process
– Treat geographically dispersed units as if they are
centralized
– Link parallel activities during the process, rather
than at the end of the process
– Capture information once at the source
118
Business Process Reengineering and
Business Process Improvement

119
 IT and Business Process Redesign
• Steps in business process redesign
– Develop business vision and process objectives
– Identify processes to be re-designed
– Understand and measure existing processes
– Identify IT levers
– Design and build prototype of the process

120
 Role of IT in Business processes
(re-design)
• Entities
– Inter-organizational processes
– Inter-functional processes
– Inter-personal processes
• Activities
– Operational activities
– Managerial activities

121
 Management challenges in Business
process re-design
• Guidelines to manage transition
– Create task force with people from cross functional
groups
– Have re-design teams work closely with managers and
staff
– Explain through the information systems group wrt
power offered by technology
– Build a team of industrial engineers with strong
interpersonal skills, understanding of multiple
functions, process measurement etc.
– Build IT technology platforms that support cross
functional applications.

122
 Summary
• Business Processes
• Impact of IT
• Reengineering of work
• IT and Business Process Redesign
• Management challenges in Business Process
Redesign

123
Information systems for managers –
S06

Global e-business and collaboration

124
 Previous Session
• Meru Cabs case study
• Business process at Meru Cabs
• How IT enabled transformation of business

125
 Introduction
• Types of information systems
• Systems for linking enterprise
• e-business, e-commerce, e-governance
• Collaboration
• Systems and tools for collaboration
• IS department and functions

126
 Types of Information Systems
• Transaction Process Systems(TPS)
– For operational managers. e.g Payroll transaction processing system
• Business Intelligence Systems(BI)
– For middle level managers and will help in decision making
– It is normally in the form of reports and dashboards
– TPS supply summarized date to the BIS or MIS.
– E.g. Informatica
• Decision Support Systems(DSS)
– Support non-routine decision making
– DSS bring in information from external sources such as current stock
prices or product prices of competitors
– Systems use a variety of models to analyze data.
• Executive Support Systems(ESS)
– For senior level managers who use these along with BI
– Reports and dash boards in form of charts and graphs
– They are reviewed periodically( weekly ,monthly, quarterly etc.)
127
 Transaction Processing System
A transaction processing system collects and
stores data about transactions and sometimes
controls decisions made as part of a
transaction. The transaction is the activity
that changes stored data, examples of such an
activity would be using a credit card, making a
reservation or making a cash withdrawal at an
ATM.

128
Transaction Processing System

129
Business Intelligence System

ETL - Extract, Transform and Load

130
 Decision Support System
A decision support system (DSS) is a computer
application that analyzes business data and
presents it so that users can make business
decisions more easily.

131
 Executive Support System
Executive Support System (ESS) is a reporting tool
(software) that allows you to turn your
organization's data into useful summarized
reports.
An executive information system (EIS), also known
as an executive support system (ESS), is a type of
management information system that facilitates
and supports senior executive information and
decision-making needs. It provides easy access to
internal and external information relevant to
organizational goals.

132
 Systems for Linking Enterprise
• Specific to that organization
• ERP( Enterprise Resource Planning) systems
• Supply Chain Management (SCM) Systems
– Inter organisational system
• Customer Relationship Management(CRM) Systems
Used to optimise
– Revenue and profits
– Customer satisfaction
– Customer retention
– Customer expansion

133
Enterprise Resource Planning (ERP)

134
Supply Chain Management (SCM)

135
Customer Relationship Management
(CRM)

136
 Systems for Linking Enterprise(contd.)
• Knowledge Management (KM) Systems
– Knowledge acquisition
– Knowledge retention
– Knowledge dispersion/distribution
– Proficiency building
– Continual improvement
– Customised knowledge building
• Intranet and Extranet for information sharing

137
Functional areas of processes

Suppliers and customers

business partners

Enterprise sys.

Supply chain processes

Customer
management
relationship
management

Knowledge mgmt sys

Sales and Mktg production Finance HR

138
 E-business
• Use of digital technology and the internet to
execute major business processes in the
enterprise. E.g. Alibaba.com
it includes
– Activities for the internal management
– Coordination with suppliers
– Coordination with customers and also
– E-commerce

139
 E-commerce
• It is that part of the e-business that deals with
buying and selling goods and services over the
internet. E.g. Flipkart, Amazon
It includes market transactions
Advertising
Marketing
Customer support
Security
Delivery
payment

140
 E-governance
• Application of internet and networking
technologies to digitally enable government
and public sector agencies’ relationship with
citizens, business and other groups of
government

141
E-governance

142
 Collaboration
• In simple term it is team work
• It is working with others to achieve shared goals
or/and explicit goals
• Ranging from “one to one” to “many to many”
• It is dovetailed in all processes
• The extent and magnitude varies depending on
task
• Could be internal to organisation or external or
mix of both

143
 Relevance of Collaboration
• Changing nature of work
• Growth of Professional work
• Changing organization of the firm
• Changing scope of the firm
• Emphasis on innovation
• Changing culture of work and business

144
 Business benefits
• Improved productivity
• Improved Quality
• Innovation
• Improved customer service
• Improved customer base

145
 Requirements for effective
collaboration
• Collaboration capability
– Open culture
– Decentralized structure
– Breadth of collaboration
• Collaboration Technology
– For implementation and operations
– For strategic planning
Other extreme of good collaboration is “command
and control”

146
Tools and Technology for Collaboration
• e-mail
• Instant messaging
• Social network
• Blogs
• WiKi
• Virtual worlds

147
 Internet based collaboration
environment
• Virtual meeting systems(skype)
• Google apps and sites
• Microsoft sharepoint
• Lotus notes

148
 Time Space Matrix
Same time Different time

Same Team rooms,

Place Face to face displays etc.

Different Audio or video Asynchronous

place conferencing conference groups

149
 Evaluation of Collaboration Tools
• Requirement analysis
• Cost factor
• Feasibility analysis
• Time space matrix study
• Software requirement analysis wrt cost
effectiveness
• Security considerations

150
 Information Systems Department
• Also called IT department in some forms
– Programmers
– System analysts
– Information system managers
– Chief information officer
– Chief security( information) officer
– Chief Privacy officer
– Chief knowledge officer
There is no fixed organisation structure for IS.

151
 Summary
• Types of information systems
• Systems for linking enterprise
• e-business, e-commerce, e-governance
• Collaboration
• Systems and tools for collaboration
• IS department and functions

152
Information systems for managers –
S08

IT Infrastructure and emerging

technologies

153
 Topics Covered
• IT Infrastructure
• Infrastructure components
• Current hardware trends
• Current software trends
• Open source software
• Cloud computing

154
 Infrastructure
– The basic facilities, physical and organizational
structures and facilities needed for the operation
of a society or organization or a function.
– Transportation, communication, sewage, water,
electric systems etc. are examples of
infrastructure.
IT Infrastructure is the shared technology resources
that provide the platform for the firm’s specific
information system applications. IT infrastructure
include hardware, software and services.

155
 IT Infrastructure
• Computing platforms
• Telecommunication services
• Data management services
• Application software services
• Physical installations/facilities
• IT management services
• IT standards services(compliance)
• IT education services
• IT research and development services

156
 Evolution of IT Infrastructure
• General purpose mainframe (1959 to present)
• Minicomputer computing (1965 to present)
• Personal computers (1981 to present)
• Client server networks (1983 to present) – 2tier,
3tier, n tier, web server, application server
• Enterprise computing (1992 to present) – TCP/IP
networking standard
• Cloud and mobile computing (2000 to present)

157
Mainframe

158
Mainframe - 02

159
Minicomputer

160
Cloud Computing

161
 Other Classification
• Based on capacity and size
– Super computers
– Mainframe computers
– Minicomputers
– Microcomputers
– Personal devices like laptop, notebook etc.
– Personal digital assistants
– Smart phones
Size varies from a large room/hall to palmtop

162
 Technology Drivers
• Chip design to cater for large scale
integration(VLSI)
– to increase computing power( MIPS)
– PCBs with populated transistors and circuits
– Nano technology
– Mass storage devices
• Efforts to reduce cost and size of computing and
storage devices
• Efforts to reduce power consumption and
peripherals
• Reduce communication costs and internet
163
 Standards
• General purpose usage(OSI Layers, protocols
etc.)
• Flexibility in choosing elements in a network
– (restrict monopoly)
• Following standards ensuring compatibility
• Scalability through integration
( different elements from different companies)
• Certifications and audits to ensure compliance
164
 IT infrastructure Components/ Eco
Systems
• Computer Hardware platforms
– Dell, IBM, Sun
• Operating systems platforms
– Unix, windows etc.
• Enterprise software applications
– SAP, MS Project
• Networking/Telecommunications
– AT&T, Nortel, CISCO
• Consultants and system integrators
– IBM, Infosys, TCS etc.
• Data Management and storage
– SQL Server, DB2, SAN (Storage area networks connect multiple storage
devices on a separate high speed network dedicated to storage)
• Internet platforms
– Java, .NET

165
 Hardware Platform trends -1
• Mobile digital platform – smartphones have taken on
many functionalities of PCs – surfing of internet, email,
messaging, exchanging data over extranets, kindle.
• Grid computing – connecting geographically remote
computers into a single network to create a virtual
supercomputer by combining the computational power
of all computers on the grid.
• Virtualization – is the process of presenting a set of
computing resources so that they can all be accessed in
ways that are not restricted by physical configuration
or geographical location.

166
 Hardware Platform trends - 2
• Cloud computing features
– on demand self service (individuals can get
computing capabilities on their own)
– Network access from anywhere on internet
– Location independent resource pooling
– Rapid elasticity
– Measured services

167
 Hardware Platform trends - 3
• Green computing – minimize impact on the
environment (reducing power consumption)
• Autonomous computing (develop systems
that can heal themselves, optimize and tune
themselves, protect from intruders).

168
 Software Trends
• Open source software – software produced by a
community of several programmers which is free. E.g.
Linux, Apache web server, MySQL database, Mozilla firefox
browser
• Software for the Web
– Java: OS independent object oriented programming language
– Ajax (Asynchronous javascript and XML): client and server
exchange data without reloading the entire page, HTMl for
presentation, XML for data transfer
• Web services and service oriented architecture
• Enterprise applications
• Off the shelf applications
• Cloud based software services and tools (Mobile Apps)

169
 Other features
• Multimedia
• Graphics
• Animation
• High resolution
• Customised applications

170
 Input Output Devices
or peripherals
• Keyboard
• Display screen (CRT, LCD, LED, etc)
• Printers( dot matrix, inkjet, laser, etc)
• Disk drives
• Voice and video ( mike, speaker, camera etc.)

171
 Cloud Computing Services
• Infrastructure as service
• Platform as a service
• Software as a service

172
 Components for decision making
• Demand in the market for the organization
– Need analysis
– Feasibility analysis (cost, time, utility etc.)
• Business strategy
• IT strategy and infrastructure strategy
• Information technology
• Competitor’s IT services
• Competitors IT infra investments
• Cost affordability and effectiveness
173
 Other considerations
• Compatibility
• Expandability
• Reliability
• Maintainability
• Timing of acquisition
• Rent/lease or buy decision
• Vendor selection
• Installation, training and maintenance
• Operating cost and associated costs

174
 Summary
• IT Infrastructure
• Infrastructure components
• Current hardware trends
• Current software trends
• Open source software
• Cloud computing
• Components for decision making

175
Trends in Software and Service Distribution
• Recent trends in software and service
distribution include:
– Pull and push technologies
– Application service providers
Pull and Push Technologies
• Pull technology
– User states a need before getting information
– Entering a URL in a Web browser to go to a certain
Web site
• Push technology (Webcasting)
– Web server delivers information to users who have
signed up for this service
– Supported by many Web browsers
– Also available from vendors
– Delivers content to users automatically at set intervals
or when a new event occurs
Pull and Push Technologies (cont’d.)
• Examples of push technology:
– “A newer version of Adobe Flash is available. Would
you like to install it?”
– Research In Motion (RIM) offers a new BlackBerry
push API
– Microsoft Direct Push from AT&T
Application Service Providers
• Application service providers (ASPs)
– Provide access to software or services for a fee
• Software as a service (SaaS), or on-
demand software
– Model for ASPs to deliver software to users for a fee
– Software might be for temporary or long-term use
– Users don’t need to be concerned with new software
versions and compatibility problems
Application Service Providers (cont’d.)
• Users can also save all application data on the
ASP’s server
– Software and data are portable
• The SaaS model can take several forms:
– Software services for general use
– Offering a specific service
– Offering a service in a vertical market
Application Service Providers (cont’d.)
• Advantages:
– Similar to outsourcing
• Less expensive
• Delivering information more quickly
• Other advantages and disadvantages
• Vendors:
– Google, NetSuite, Inc., and Salesforce.com
Virtual Reality
• Goal of virtual reality (VR):
– Create an environment in which users can interact
and participate as they do in the real world
• VR technology
– Uses computer-generated, three-dimensional images
to create the illusion of interaction in a real-world
environment
Virtual Reality (cont’d.)
• VR terms:
– Simulation
– Interaction
– Immersion
– Telepresence
– Full-body immersion
– Networked communication
Types of Virtual Environments
• Egocentric environment
– User is totally immersed in the VR world
– Most common technology used with this environment
is a head-mounted display (HMD)
• Exocentric environment
– Data is still rendered in 3-D
– Users can only view it onscreen
– Main technology used in this environment is 3-D
graphics
Exhibit 4.1 Egocentric VR Technologies
Components of a Virtual Reality System
• Visual and aural systems
• Manual control for navigation
• Central coordinating processor and software
system
• Walker
Exhibit 4.2 VR Components
CAVE
• Cave automatic virtual environment
(CAVE)
– Virtual environment consisting of a cube-shaped room
in which the walls are rear-projection screens
• CAVEs
– Holographic devices that create, capture, and display
images in true 3-D form
CAVE (cont’d.)
• People can enter CAVEs in other locations
– No matter how far away they are geographically
• High-speed digital cameras capture one user’s
presence and movements
– Then re-create and send these images to users in
other CAVEs
• Used for research in many fields:
– Archaeology, architecture, engineering, geology, and
physics
Exhibit 4.3 An Example of a CAVE
Virtual Reality Applications
• Military flight simulations
• Medicine for “bloodless” surgery
• Entertainment industry
• Will one day be used for user interfaces in
information systems
• Current applications:
– Applications for the disabled
– Architectural design
Virtual Reality Applications (cont’d.)
– Education
– Flight simulation
– Videoconferencing
– Group support systems
Obstacles in Using VR Systems
• Not enough fiber-optic cables are currently
available for a VR environment capable of re-
creating a conference
• Problems must be solved:
– Confusion between the VR environment and the real
environment
– Mobility and other problems with HMDs
– Sound representation
– Additional computing power
Virtual Worlds
• Simulated environment designed for users to
interact via avatars
• Avatar
– 2-D or 3-D graphical representation of a person in the
virtual world
– Used in chat rooms and online games
• Gartner Group predicts that 80% of active
Internet users will interact in virtual worlds by
2011
Virtual Worlds (cont’d.)
• With avatars, users can:
– Manipulate objects
– Experience a limited telepresence
– Communicate using text, graphical icons, and sound
Virtual Worlds (cont’d.)
• Widely used virtual worlds:
– Active Worlds
– Club Penguin
– EGO
– Entropia Universe
– Habbo
– Runescape
– Second Life
Virtual Worlds in Action
• Second Life
– Several million members from all over the world
– Some companies use Second Life to establish or
enhance their image, generate sales leads, and
increase sales
• Some experts believe that groups work together
better in virtual worlds than in face-to-face
meetings and teleconferences
Radio Frequency Identification: An Overview
• Radio frequency identification (RFID) tag
– Small electronic device consisting of a small chip and
an antenna
– Provides a unique identification for the card or the
object carrying the tag
– Don’t have to be in contact with the scanner to be
read
– Can be read from a distance of about 20 feet
Radio Frequency Identification: An Overview (cont’d.)
• Two types of RFID tags:
– Passive
• No battery
• Best ones have about 10 years of battery life
– Active
• Usually more reliable than passive tags
• Technical problems and issues of privacy and
security
Table 14.1 RFID Applications

RFID Applications
Category Examples
Tracking and identification Railway cars and shipping containers, livestock and
pets, supply-chain management (tracking merchandise
from manufacturers to retailers to
customers), inventory control, retail checkout and POS
systems, recycling and waste disposal

Payment and stored-value systems Electronic toll systems, contactless credit cards (require
no swiping), subway and bus passes, casino tokens,
concert tickets

Access control Building access cards, ski-lift passes, car ignition

systems

Anticounterfeiting Casino tokens, high-denomination currency notes,

luxury goods, prescription drugs

Health care Tracking medical tools and patients (particularly

newborns and patients with Alzheimer’s), process
control, monitoring patient data
Biometrics: A Second Look
• Current and future applications of biometrics:
– ATM, credit, and debit cards
– Network and computer login security
– Web page security
– Voting
– Employee time clocks
– Airport security and fast check-in
– Passports and highly secured government ID cards
– Sporting events
– Cell phones and smart cards
Trends in Networking
• Recent trends in networking technologies
• Many are already used in many organizations
– Wireless technologies and grid computing
• Newer but attracting a lot of attention:
– WiMAX and cloud computing
Wi-Fi
• Wireless Fidelity (Wi-Fi)
– Broadband wireless technology
– Based on the 802.11a, 802.11b, 802.11g, and
802.11n standards
• Information can be transmitted over short
distances
– In the form of radio waves
• Connect via:
– Computers, mobile phones and smart phones, MP3
players, PDAs, and game consoles
– Wi-Fi hotspots
WiMAX
• Worldwide Interoperability for Microwave
Access (WiMAX)
– Broadband wireless technology
– Based on the IEEE 802.16 standards
• Designed for wireless metropolitan area
networks
• Theoretically has faster data transfer rates and a
longer range than Wi-Fi
• Disadvantages:
– Interference from other wireless devices, high costs,
and interruptions from weather conditions
Bluetooth
• Can be used to create a personal area network
(PAN)
• Wireless technology for transferring data over
short distances
• Specifications are developed and licensed by the
Bluetooth Special Interest Group
• Uses a radio technology called Frequency
Hopping Spread Spectrum (FHSS)
Bluetooth (cont’d.)
• Used to connect devices such as:
– Computers, global positioning systems (GPSs), mobile
phones, laptops, printers, and digital cameras
• No line-of-sight limitations
• Limited transfer rate
Grid Computing
• Connecting different computers to combine their
processing power to solve a particular problem
• “Node”
– Each participant in a grid
• Processing on overused nodes can be switched
to idle servers and even desktop systems
• Advantages:
– Improved reliability
– Parallel processing nature
– Scalability
Utility (On-Demand) Computing
• Similar to the SaaS model
• Provides IT services on demand
• Users pay for computing or storage resources on
an as-needed basis
• Main advantages
– Convenience and cost savings
• Drawbacks
– Privacy and security
Cloud Computing
• Platform incorporating many recent technologies
under one platform, including:
– SaaS model, Web 2.0, grid computing, and utility
computing
• Variety of resources can be provided to users
over the Internet
• Example:
– Editing Word document on an iPhone
• Same advantages and disadvantages as
distributed computing
Cloud Computing (cont’d.)
• Services typically require a fee
• Some are free
• Google Apps
– Includes Gmail, Google Talk, and Google Docs,
– Provides commonly used applications accessed via a
Web browser
Table 14-2
Cloud Computing Categories and the Top Players

Categories Top Players

Foundations (tools and software that Vmware, Microsoft, Red Hat

make it possible to build cloud
infrastructure)
Infrastructure Amazon, IBM
Network services (the Level 3 Computing Services ,
communication components Amazon, Cisco, Citrix
that combine with cloud
foundation and infrastructure to
form cloud architecture)
Platforms Amazon, IBM
Applications Google, Salesforce.com, Oracle,
DROPBOX
Security EMC/RSA, Symantec, IBM
Management IBM, Amazon
Cloud Computing in Action
• Amazon.com
– Established a computing platform that companies can
use, regardless of their location
– Provides storage and processing power on demand
– Companies pay only for the resources they use
• Google Apps
– Introduced in February 2007
– Competing with Microsoft’s Office Suite
Nanotechnology
• Incorporates techniques that involve the
structure and composition of materials on a
nanoscale
• Nanometer is one billionth of a meter (10-9)
• Current technology for making transistors and
other components might reach their
miniaturization limits in the next decade
• Some consumer goods incorporating
nanotechnology are already on the market
– Nanomaterials
Summary
• New trends:
– Software as a service
– Virtual reality
– RFID
– Networking
– Grid, utility, and cloud computing
– Nanotechnology