11/5/2023

Information Systems for Managers

Session 1

The three worlds of Information

Technology

Course Instructor : Dr. Shekhar Shukla

Faculty, Information Systems Area
IIM Indore

Sunday, November 5, 2023

Course Preview
➢ M1: Information Systems: Exploring
the Business Perspective
➢ Concepts of MIS and their use in business
➢ Enterprise Systems
➢ Concepts of Business Analytics

➢ M2: IT Systems: Exploring the

Managerial Perspective
➢ Cloud Computing
➢ Alignment of IT strategy with business strategy
➢ Cyber Security
➢ Adoption of IT systems in an organization
➢ Evolution of information needs of a firm

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Group Assignment Submission and Evaluation Scheme

➢ Nomenclature Scheme of Case Analysis Group Submissions
➢ Group No_Title of the case in brief
➢ 1_Cisco (Very strictly follow the nomenclature pattern)
➢ Put the Names of members along with Roll No. , section and group no, and Title of case in first slide
➢ Exactly four hours before the class on each session the slides for all the groups will be compiled
and send to me as a zipped folder by the CR
Roll No Name of Participant Section Email ID

2020IPM086 NANDINI SETHI A i20nandinis@iimidr.ac.in

2023PGP198 MEGHNA BHOWMIK B p23meghnab@iimidr.ac.in

➢ Evaluation Scheme

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IT Investments in US Organizations
➢ Society of Information Management Survey

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Growing IT Investments

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Returns from IT Projects

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Rationale for IT Project Failures

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Most Important IT Project Challenges

➢ Alignment of IT with the Business is consistently among the two key remarkable issues
that senior IT Executives face

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Need for IT
➢ Internal Factors
➢ Efficiency
➢ Data
➢ Processing requirements

➢ External Factors
➢ Competitors
➢ External Partners
➢ Interactions
➢ Regulatory Requirements

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IT Fundamentals: Data Vs Information Vs Knowledge Vs Wisdom

➢ Data: Raw facts and figures, tech oriented, not
presented.
➢ Information: Processed form of data, presented.
➢ Knowledge:
➢ Knowledge is understanding of something.
➢ Knowledge is the ability of knitting the fragments of
information and understanding the topic and then
drawing a conclusion on the topic.
➢ It requires cognitive and analytics ability to understand
and answer the question
➢ Knowledge – e.g. prediction. It is proactive rather than
reactive
➢ Wisdom:
➢ Application of knowledge

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Illustrating the need – A price sensitivity analysis

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A holistic view to the story….

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A basic mathematical insight into the data

Average and Variance ?

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Simple exploratory analysis reveals a great deal…..

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IT vs. IS: Dimensions of Information System

➢ 3 dimensions of IS are
➢ Organization: Hierarchy, culture, employees, financial resources……
➢ Management: Decision making, decision process……..
➢ IT/ ICT (Information and Communications Technology): Hardware, software,
Internet, Intranet, communication devices etc.

➢ We intend to study IS in the organization context, not just IT

➢ Q: Can IS exist without IT in organization?
➢ Q: IS exist confirms IT exist in organization?

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Components of any Information System

➢ Input
➢ Output
➢ Storage
➢ Processing or analysis
➢ Feedback and
➢ Control

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IS Facets
➢ Nicholas 2001: Does IT matter? IT does not matter.
➢ Don’t lead IT, follow IT or just leave IT
➢ Why?

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IS Facets: The transformation journey of organizations

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IT Projects & Results

➢ Corporate IT projects- underwhelming results or been outright failures.
➢ Catastrophes
➢ Frustration, delay, and disappointment are all too common.

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The 2005 survey….

➢ By IT consultancy CSC and the Financial Executives Research Foundation
➢ 782 American executives responsible for IT
➢ 50% of the respondents admitted that – aligning business and IT strategy - was a major problem.
➢ The researchers found that 51% of large-scale IT efforts finished later than expected and ran over
budget.
➢ Only 10% of companies believed they were getting high returns from IT investments; 47% felt that
returns were low, negative, or unknown.

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Discussions
➢ Failure to understand or appreciate technology is unacceptable

➢ Executives need to stop looking at IT projects as technology installations and start

looking at them as periods of organizational change that they have a responsibility to
manage.
➢ ….. and
➢ But managers who distance themselves from IT abdicate a critical responsibility
➢ ….. and
➢ executives usually operate without a comprehensive model of what IT does for
companies, how it can affect organizations, and what managers must do to ensure that IT
initiatives succeed.

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Measuring the three worlds of IT

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Three varieties of work changing IT

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Functional IT: Primary Capabilities

➢ Enhancing experimentation capacity

➢ Increasing Precision

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Network IT: Primary Capabilties

➢ Facilitating Collaboration

➢ Allowing expressions of judgement

➢ Fostering Judgement

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Enterprise IT: Primary capabilities

➢ Redesigning business
processes. Because CVS
employees couldn’t fill
prescriptions until they had
completed the two checks in
the new sequence, the
revamped fulfillment process
wasn’t just a good idea in
theory—CVS employees had to
execute the process in that
particular sequence. EIT gives
managers confidence that
employees will execute
processes correctly.

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Enterprise IT: Primary capabilities

➢ Standardizing work flows. Once companies identify a complementary business
process, they can implement it widely and reliably along with the EIT. CVS rolled out
its new process in 4,000 outlets across the United States in less than a year.

➢ Monitoring activities and events efficiently. EITs can allow managers to get an
accurate and up-to-date picture of what’s happening throughout the enterprise, often in
something close to real time. CVS’s software lets executives know how many
prescriptions are filled every day in each location, how long it takes to fill each
prescription, and what kinds of fulfillment problems employees had to tackle.

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Summary of three types of IT capabilities

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Tasks for executives across categories of IT

➢ IT Selection
➢ IT Adoption
➢ IT Exploitation

➢ Or

➢ IT Selection
➢ IT Implementation: Buy/ Build
➢ IT Adoption
➢ IT Acceptance
➢ IT Exploitation

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IT Selection
➢ The discussion centers on the importance of clearly understanding the business
requirement first, then the technology requirement will be clearer

➢ Once the company’s business needs are clear, the technologies it requires will come into
focus

➢ Problem is endless supply of applications because of innovation and also because of

rebranding

➢ Inside out approach (1999-2001, USD 130 Billion worth of IT which was never used)
needed rather than outside in approach

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IT Adoption
➢ The biggest mistake business leaders make is to underestimate resistance when they
impose changes in the ways people work

➢ FIT and NIT are still easier to adopt, however, EIT is very hard
➢ Why?

➢ Boston based Hospital IT System for physician prescription in 2002

➢ Successful EIT adoption and implementation needs leader to build organizational

consensus

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IT Exploitation
➢ A business leader’s third IT-related responsibility is to extract the maximum benefit
from technologies once they are in place

➢ Its all good stuff, and forms the basis of a model to have an intelligent conversation with
the IT groups.

➢ EIT exploitation is often easier than its adoption

➢ Why?

➢ Best exploitation of EIT sometimes requires FIT on top of it

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The IT Dialogue
➢ CIO’s role is not to introduce new technologies but facilitate change management

➢ Financial Aspects

➢ Human Aspects

➢ Some key questions around each aspect of IT

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IT as a source of competitive advantage

➢ Product/Service Differentiation

➢ Streamlining business processes

➢ IT can change industry structures

➢ Improved customer service

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The IT Dialogue: Functional IT

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The IT Dialogue: Network IT

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The IT Dialogue: Enterprise IT

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