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Management Information System

Management Management Information System and Information Resource
Management
 Quadrant-I

Description of Module
Subject Name Management
Paper Name Management Information System (MIS)
Module Title Management Information System and Information Resource
Management
Module Id Module- 4
Pre-requisites Basic Knowledge of Information Systems and Levels of
Management
Objectives 1. To understand the concept, definitions and Scope of
Information Resources and their Management
2. Understanding various aspect of Information Resource
Strategies for better Management
3. To understand interrelationship between various
Information Systems and their applications
Keywords Software, Hardware, Database, Information Specialists, Users

Learning Objectives:
The module provides an introduction to Information Resource Management
Learning Outcomes:
On successful completion of this module, students should be able to:
(i) Define IT infrastructure and its relationship with IT enabled business
capabilities/ applications.

(ii) To interlink various aspects of information Resource Strategies for

effective management.

Management Information System

Management Management Information System and Information Resource
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 Introduction

1. Introduction:

As we have learned in previous modules Management Information System (also

known as Information Infrastructure Management) is primarily aim to Control,
organized information and to take better business decision across carious
departments in the organization. Therefore, Management of information
becomes the principal function performed by business and information
professionals. Beside to above other stakeholders (including suppliers,
government agencies, and other beneficiaries) are also interested in information
and its management for various information activities (e.g. Knowledge
generation of Public and Private Information, Storage and dissemination of
information among stakeholder).
The concept of Information Resource Management aims to identify information
as an asset that could be processes and manageable. It requires process and
system knowledge, communication and technical expertise. The major users of
Information are knowledge workers (Middle level and top level managers) who
create and process information. The use of such information could be for
broader usage including policy/ action plan formulation, resource optimization
(land, labor, capital, technology, material etc).

Youtube animation I : What is Information Resource Management

Management Information System

Management Management Information System and Information Resource
Management
 Following YouTube link explains the Nature and Scope of Information Resource
Management/Information Infrastructure Management
https://www.youtube.com/watch?v=RhSfQqmp-9Q
The video highlights need and scope of information Infrastructure Management
for the business organizations. (Source: http://zerotoprotraining.com)

Checkbox I: The significance of Information Resource Management in the

Hospital setup

Checkbox I: A patient when consults a doctor initially tells him all possible symptoms.
With this information, the doctor examines the patient and makes a diagnosis.
Afterward, the doctor determines the treatment to heal the patient. For example, based
on the diagnosis, the doctor may write the patient a prescription for some medication.
Finally, the doctor must document the symptoms, the diagnosis, and the treatments. In
modern days, most doctors use a software system to record this information.

Definition
2.1 Information:
Before we provide our definition of an information system, we first explain the
term “information,” which can mean any of the following:
1. The communication act of one agent—the term “agent” may refer to any
entity ranging from a person or a software component to an organization—
informing another agent (e.g., by exchanging messages);

Management Information System

Management Management Information System and Information Resource
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 2. The knowledge or beliefs of agents as a part of their mental state;
3. (Data) objects that represent knowledge or beliefs.
2.2 Resource
A re-usable source of supply to produce something. Example includes human,
financial, material, and information resources. To maximize the efficient a
effective use of resources, they must classified in order to share them and
eliminate unwanted redundancy, and controlled in order to receive, store and
distribute them properly.
2.3. Management
A set of activities (including planning and decision making, organizing, leading
and controlling) directed at an organization’s resources (human, financial,
physical, and information) with the aim of achieving organizational goals in an
efficient and effective manner.
2.4. Information Resource Management
IRM can be stated simply as a process to manage information efficiently and
effectively in fulfilling the objectives of the firm.
IRM concepts rest under the premise that information, information related
activities, technologies and personnel are important organizational resources
that deserve to be managed like any other resources in the organization
(Trauth, 1989).
2.5. Adaptive Organization
An organization that modifies its business practices in response to the changing
needs of its stakeholders (customers, employees, and stakeholder).

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 It rapidly adapt to changes in its operating environment, it doesn’t take the time
to determine the underlying patterns of change within the environment.
2.6. Knowing Organization
The Knowing organization possesses information and knowledge so that it is
well informed, mentally perspective, and enlightened. Its actions are based on
shared and valid understanding of the organization’s environments and needs
(Choo, Chun Wei, 1998)
2.7. Learning Organization
An organization in which everyone is engaged in identifying and solving
problems, enabling the organization to continuously experiment, improve, and
increase its capability.
Changing employee behaviors and attitudes is key to the continuous
organizational renewal needed in today’s rapidly changing world. The
organization as a whole is committed to continual improvement of every facet of
itself, its products and its services.

3. Scope of Information Resource Management

Information Resource Management (IRM) is the management (planning,
organization, operations and control) of the resources (human and physical)
concerned with the systems support (development, enhancement and
maintenance) and the servicing (processing, transformation, distribution,
storage and retrieval) of information (data, text, voice, image) for an enterprise
(Schneyman, 1985). IRM is recognition by an organization that data and

Management Information System

Management Management Information System and Information Resource
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 information are valuable resources and the application of the same principles an
managing data and information as are used in managing physical resources
such as personnel. (McLeod and Brittain-White, 1988).Information is an asset
that should be managed rigorously (Kerr, 1991).
4. Information Resources:
Figure 1 illustrate components of IRM in Modern Organization

Software
Hardware Database

Information Information
Specialists

Users

Figure 1: The Information Resources

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Management Management Information System and Information Resource
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 5. Why we need Information Resource Management
It is necessary in Today’s Modern organization. The engine that is driving the
information economy whereby information and knowledge are intensively used.
Information resources are important resources. Therefore, it needs effective
management.

6. Benefits of IRM
 Identifies gaps and duplication of information.

 Clarifies roles and responsibilities of owners and users of information.

 Provide costs saving in the procurement and handling of information

 Identifies cost/benefits of different information resources

 Actively supports management decision processes with quality

information.

7. Significance of Information Resource Management

Any organization that wants to survive in today’s turbulent dynamic environment
need IRM in order to be adaptive, knowing and learning.
Information Resource Management (IRM) plays a significant role due to
following reasons:
 Challenge to perform better, effectively and quickly, sharing of information
and knowledge is critical for organizations

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  Wherever and whenever possible information should be stored in a form
that maximizes its inherent usefulness.

 Information is a valuable resource and requires careful

stewardship/Organizations that handle information processes with people
who regularly needs to access distributed information in course of
workflow such as data workers. Information workers, and knowledge
workers.

8. Tools for implementing Information Resource Management (IRM)

8.1 Enterprise Resource Planning: Enterprise resource planning (ERP) is the
integrated management of core business processes, often in real-time and
mediated by software and technology. These business activities can include:
 Product planning, purchase
 Manufacturing or service delivery
 Marketing and sales
 Inventory management
 Shipping and payment
 Finance
ERP is usually referred to as a category of business-management software—
typically a suite of integrated applications—that an organization can use to
collect, store, manage and interpret data from these many business activities.
ERP provides an integrated and continuously updated view of core business
processes using common databases maintained by a database management
system. ERP systems track business resources—cash, raw
materials, production capacity—and the status of business commitments:
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 orders, purchase orders, and payroll. The applications that make up the system
share data across various departments (manufacturing, purchasing,
sales, accounting, etc.) that provide the data. ERP facilitates information flow
between all business functions and manages connections to
outside stakeholders. Enterprise system software is a multibillion-dollar industry
that produces components supporting a variety of business functions. IT
investments have become the largest category of capital expenditure in United
States-based businesses over the past decade. Though early ERP systems
focused on large enterprises, smaller enterprises increasingly use ERP
systems.
The ERP system integrates varied organizational systems and facilitates error-
free transactions and production, thereby enhancing the organization's
efficiency. However, developing an ERP system differs from traditional system
development. ERP systems run on a variety of computer
hardware and network configurations, typically using a database as
an information repository

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 Sales Procurement (SRM)
 Cost saving
 Order placement
 End-to-end procurement
 Order scheduling  Logistics Processes
 Shipping and invoicing

Production
Customer
(PLM)
services
 Cost saving
 Capture and
Business e-Commerce  End-to-end
maintain
Intelligence  Focus on external procurement
customer
 Analyze data strategies  Logistics Processes
relationship
and convert
 Facilitate the use
into
of customer
information
experience

Corporate Enterprise
And Others Distribution
performance and Asset
(SCM)
governance Management
 Warehouse
 Aims to streamline  Efficiently and
Processes
and gain control of sustainably
 Stock Movement
corporate services managed entire
 Supply and
asset life cycle
Demand
Mechanism

Human Resource
 Maintaining
Accounting
complete Human  Automate financial
Resource Database Operations
  Ensuring regulatory
compliance

(Source: Shing Hin Yeung, 2014)

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 8.2 Willard Model
Identification: The discovery of information resources and the recording of their
features in an inventory
Ownership- The establishment of responsibility for the upkeep of an information
resource.
Cost and Value- Assessment of the cost of an information resource and its
value to the organization.
Development- The further development of an existing information resource to
enhance its value to the organization.
Exploitation- The processes which may allow a resource to generate further
value through conversation into an asset or an saleable commodity.

9. Applications of Information Resource Management

9.1 Operations Support Systems (OSS) produce a variety of information
products for internal and external use, such as processing business
transactions, controlling industrial processes, supporting enterprise
communications and collaborations, and updating corporate databases
effectively. They do not emphasize the specific information products that can
best be used by managers. Further processing by management information
systems is usually required.
Classification within Operations Support Systems (OSS)-
a. Specialized Processing System
b. Transaction Processing System

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 c. Process Control System
d. Enterprise collaboration System
9.2 Management Support System (MSS) is more specifically focus on the
process of providing information and support for decision-making by different
levels of responsibilities of the managers and business professionals
Under Management Support System (MSS) various Information systems are
covered as mentioned following:

9.3 Management Information Systems (MIS): provide information in the form of

reports and displays to managers and many business professionals that support
their day-to-day decision-making needs. Usually the information has been
specified in advance to adequately meet the expectations on operational and
tactical levels of the organization, where the decision making situations are
more structured and better defined.

9.4 Decision Support Systems (DSS) are computer-based information systems

that provide interactive information support to managers and business
professionals during the decision-making process. DSS use analytical models,
specialized databases, a decision maker's own insights and judgments, and an
interactive, computer-based modeling process to support semi-structured
business

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 9.5 Executive Information Systems (EIS) or Executive Support Systems (ESS)
are information systems that combine many of the futures of MIS and DSS.
Here the information is presented in forms tailored to the preferences of the
executives using the system, such as graphical user interface, customized to
the executives graphics displays, exception reporting, trend analysis, and
abilities to 'drill-down' and retrieve displays of related information quickly at
lower levels of detail.

9.6 Specialized Processing Systems (PS) are information systems

characterized as functional business systems, strategic information systems,
knowledge management systems, and expert systems.

It is important to realize that business applications of information systems in the

real world are typically integrated combinations of all these types of information
systems. In practice, all these different types and roles of information systems
are combined into integrated or Cross-Functional Business Information
Systems that provide a variety of functions.
Thus, most information systems are designed to produce information and
support decision making for various levels of management and business
functions, as well as perform record-keeping and transaction-processing chores.
Whenever you analyze or work with an information system, you probably see
that it provides information for a variety of managerial levels and business
functions.

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 Local
Applications

Shared and Standard

IT Application

IT Infrastructure

Shared Information Technology

Services

Information Technology Components

(Source: Weill and Broadent, 1998)

10. Managing Information Resources and Technologies

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 There is a real need for business end users to understand and know how to
plan and manage information systems and technology in an organization.
Information technology capability enables managers to manage organizational
interdependence to meet business needs. Information technology such as
telecommunications, networks, powerful personal computers and information
resources are now more readily available to more managers than ever before.

11. Managers and Information Technologies

Information technology presents managers with a major managerial challenge.
The competitive pressures of the business and technology environment of the
late 1990s are forcing major firms to rethink their use and management of
information technology. Many business executives now see information
technology as an enabling technology for managing the cross-functional and
interorganizational processes those business units must have to successfully
confront the competitive measures they face.
11.1 Forces that affect Information Technology investment decision
A variety of forces that seem to be causing a significant change in the structure
and distribution of managers in organizations in which information technology
plays a major role include:
1. Organizations are become more knowledge-based, “composed largely of
specialists who direct and discipline their own performance through
organized feedback from colleagues, customers, and headquarters”.

2. The Internet, intranets, and extranets and more cost-effective hardware

and software are enabling individuals, teams, workgroups, business units,
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 and organizations to be “wired together” in close business relationships
that can provide the communication and coordination needed in today’s
competitive global marketplace.

3. Decision support capability provided by information systems technology is

changing the focus of managerial decision making.

4. Managing the information systems resources of a business is no longer

the sole province of information system specialists. Instead, information
resource management has become a major responsibility of all managers.

12. Poor IS Performance:

The information systems function has performance problems in many
organizations. For example, information technology is not being used
effectively, efficiently, or economically by many organizations. Information
technology is not being used:
1. Effectively - if it is used primarily to computerize traditional business
processes, instead of using it for decision support and innovative
processes and products to gain competitive advantages.

2. Efficiently - by information services groups that provide poor response

times, frequent downtime, incompatible systems, unintegrated data, and
applications development backlogs.

3. Economically - if information technology costs rise faster than other costs,

even though the cost of processing each unit of data has decreased due
to dramatic price reductions and improvements in hardware and software
technology.

13. Governance for Information Resource Management

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 The experiences of successful organizations reveal that the basic ingredient of
high quality information systems performance is extensive and meaningful
involvement of managers and end users in governance of the IS function.

Proper involvement of managers in the management of IT requires the

development of governance structures that encourage the active participation of
managerial end users in planning and controlling the business uses of IT. By
being involved in IT decisions that affect their business units, managers avoid IS
performance problems. Without this high degree of involvement, managers will
not be able to improve the business value of information technology. Several
major levels of management involve and governance of information technology
include:
13.1 Executive Information Technology Committee - Committee of top
executives who do strategic information system planning and coordinate the
development of major information systems projects.

13.2 IT Steering Committee - Committee of business unit managers, operating

managers, and management personnel from the information services
department who oversee the progress of systems development projects

13.3 End User Management- Direct end user management of information

technology in business units and work groups, including participation in
developing key information systems.

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 14. Organizational impact of IT and Sociotechnical systems
To better understand the organizational impact of information technology, it is
useful to view an organization as a sociotechnical system. The sociotechnical
systems concept emphasizes that to improve an organization's performance,
managers must:
(i) Change one or more of these components

(ii) Take into account the relationships among these interdependent

components.

The basic components of a sociotechnical system include:

People: - Managers are individuals with a variety of preferences for information
and diverse capabilities for effectively using information provided to them.
Information systems must produce information products tailored to meet
managers’ individual needs.
Task: - Tasks in many organizations have become quite complex and inefficient
over time. Information technology can play a major role in fighting
organizational complexity by supporting the reengineering of business
processes.
Technology: - Technology of computer-based information systems continues to
grow more sophisticated and complex. However, this technology should not
dictate the information needs of end users in the performance of their
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 organizational tasks. It should accommodate the management culture and
structure of each organization.
Culture: - Organizations and their subunits have a culture which is shared by
managers and other employees. They have a unique set of organizational
values and styles which can range from informal too very formal. The designs
of information systems and information products must accommodate such
differences.
Structure: - Organizations structure their management, employees, and job
tasks into a variety of organizational subunits. The IS function must no longer
assume a hierarchical, centralized, organizational structure which it supports by
centralizing processing power, databases, and systems development at the
corporate headquarters level. This type of structure emphasizes gathering data
into centralized databases and producing reports to meet the information needs
of functional executives.

Instead, IT must be able to support more decentralized, collaborative types of

organizational structure, which needs more interconnected intranets or
client/server networks, distributed databases, downsized computers, and
systems development resources distributed to business unit and work group
levels. Thus, information technology must emphasize quick and easy
communication and collaboration among individuals, business units, and other
organization workgroups, using electronics instead of paper.

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 15. Information Resource Management and Management Decision

Information resource management has become a popular way to emphasize a

major change in the management and mission of the information systems
function in many organizations. In many organizations, IRM may be viewed as
having five major dimensions:

15.1 Strategic Management - information technology must be managed to

contribute to a firm=s strategic objectives and competitive advantages, not just
for operational efficiency or decision making.

15.2 Operational Management- information technology and information

systems can be managed by functional organizational structures and
managerial techniques commonly used throughout other business units.

15.3 Resource Management - data and information, hardware and software,

telecommunications networks, and IS personnel are vital organizational
resources that must be managed like other business assets.

15.4 Technology Management - all technologies that process, store, and

communicate data and information throughout the enterprise should be
managed as integrated systems of organizational resources.

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 15.5 Distributed Management- Managing the use of information technology
and information system resources in business units or workgroups is a key
responsibility of their managers, no matter what their function or level in the
organization.

15.6. Strategic Management: The IS function must manage information

technology so that it makes major contributions to the profitability and strategic
objectives of the firm. Thus, the information systems’ function must change
from an information services utility focussed only on serving a firm’s transaction
processing or decision support needs. Instead it must become a producer or
packager of information products or an enabler of organizational structures and
business processes that can give a firm a comparative advantage over its
competitors.
15.7. Operational Management: The IRM concept stresses that managerial
functions and techniques and organizational structures common to most
businesses can be used to manage information technology. Business and IS
managers can use managerial techniques (such as planning models, financial
budgets, and project management), and a mix of functional and process-based
work groups and business units, just as they do in other major areas of
business.

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 The information systems’ function is treated like other functions and expected to
use the managerial techniques employed by other business units to manage its
resources and activities.

Information services departments perform several basic functions and activities.

These can be grouped into three basic IS functions:
1. Systems development
2. Operations
3. Technical services

16. Structure of Information Resource Management

Modern computer-based information systems can support either the

centralization or decentralization of information systems operations and
decision-making within computer-using organizations.

Centralized computer facilities:

(i) Can connect all parts of an organization by telecommunications
networks to allow top management to centralize decision making
formerly done by lower levels of management.

(ii) Can promote centralization of operations, which reduces the number of

branch offices, manufacturing plants, warehouses, and other work sites
needed by the firm.

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 Decentralized computer facilities:
(i) Distributed networks of computers at multiple work sites can allow top
management to delegate more decision making to middle managers.

(ii) Management can decentralize operations by increasing the number of

branch offices while still having access to the information and
communications capabilities they need to control the overall direction of
the organization.

Information technology can encourage either the centralization or

decentralization of information systems, business operations, and management.

A firm’s organizational structure and information systems architecture are

influenced by:
1. The philosophy of top management
2. The culture of the organization
3. The need to reengineer its operations
4. The use of aggressive or conservative competitive strategies

Changing Trends:

Companies continue to use a variety of organizational arrangements for the

delivery of information services. Some of the changing trends include:
1. In the early years of computing, when computers could barely handle a
single department’s workload, decentralization was the only option.
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 2. The development of large mainframe computers, telecommunications, and
terminals caused a centralization of computer hardware, software, databases,
and IS specialists at the corporate level of organizations.
3. The development of minicomputers and microcomputers accelerated a
downsizing trend back toward decentralization. Distributed client/server
networks at the corporate, department, workgroup, and team levels came into
being. This prompted a shift of databases and information specialists to some
departments, and the creation of information centres to support end user
computing.
4. Lately, the trend has been to establish tighter control over the information
resources of an organization, while still serving the strategic needs of its
business units. This has resulted in a centralizing trend at some organizations,
and the development of hybrid structures with both centralized and
decentralized components at others.
5. Some organizations have spun off there is functions into IS subsidiaries
that offer information processing services to extended organizations as well as
to their parent company.

6. Some organizations have resorted to outsourcing, that is, turned over all
or part of there is operations to outside contractors known as system integrators
or facilities management companies.

Managing Systems Development:

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 Systems development management means managing activities such as
systems analysis and design, prototyping, applications programming, project
management, quality assurance, and system maintenance for all major
business/IT development projects. Planning, organizing, and controlling the
systems development function of an information services department is a major
managerial responsibility. It requires managing the activities of teams of
systems analysts, programmers, and end users working on a variety of
information systems development projects. In addition, some systems
development groups have established development centres, staffed with
consultants to the professional programmers and systems analysts in their
organizations.

Managing IS Operations:

IS operations management is concerned with the use of hardware, software,

network, and personnel resources in the corporate or business unit data
centres (computer centres) of an organization. Operational activities that must
be managed include data entry, equipment operations, production control, and
production support.

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 Many operations management activities are being automated by the use of
software packages for computer system performance management. These
system performance monitors
1. Monitor the process of computer jobs
2. Helps develop a planned schedule of computer operations that can
optimize computer system performance
3. Produce detailed statistics that are invaluable for effective planning and
control of computer capacity.
4. Supply information needed by chargeback systems, that allocate costs
to users based on the information services rendered.
5. Process control capabilities which monitor and control computer
operations at large data centres.

13-6 Resource Management

Data and information, hardware and software, telecommunications networks,

and IS personnel are valuable resources that should be managed for the benefit
of the entire organization.

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 Human Resource Management of IT

The success or failure of an information services organization rests heavily on

the quality of its people. Managing information services functions involves the
management of managerial, technical, and clerical personnel. One of the most
important jobs of information service managers is to recruit qualified personnel
and to develop, organize, and direct the capabilities of existing personnel. For
example:
1. Employees must be continually trained to keep up with the latest
developments in a fast-moving and highly technical field.
2. Employee job performance must be continually evaluated and outstanding
performances rewarded with salary increases or promotions.
3. Salary and wage levels must be set, and career paths must be designed
so individuals can move to new jobs through promotion and transfer as they
gain in seniority and expertise.

Careers in Information Systems:

Computers and their use in information systems have created interesting,

highly-paid, and challenging career opportunities for millions of men and
women. Employment opportunities in the field of computers and information

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 technology are excellent, as organizations continue to expand their use of
information technology.

13-7 Technology Management

All technologies that process, store, and deliver data and information throughout
the enterprise must be managed as integrated systems of organizational
resources. Such technologies include the Internet, intranets, and electronic
commerce and collaboration systems, as well as traditional computer-based
information processing. These "islands of technology" are bridged by IRM and
become a primary responsibility of the CIO, since he is in charge of all
information technology services.

Network Management:

The rapid growth of the Internet, intranets, extranets, and client/server networks
has made network management a major technology management function.
This function is responsible for managing a company’s Internet access, intranets
and extranets, and the wide area networks and interconnected local area
networks of client/server computing. These networks require:
1. The major commitment of hardware and software resources.
2. The creation of managerial and staff positions to manager their use.

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 Network management is responsible for overseeing the quality of all the
telecommunications services that most businesses rely on today.

Network managers:
1. Are usually responsible for evaluating and recommending the acquisition of
Internet service providers, Internet and intranet servers and web browser
suites, and communications hardware and software for workgroup and
corporate client/server networks.
2. Work with business unit manager to improve the design, operational quality,
and security of t he organization’s telecommunications networks and
servers.
3. Monitor and evaluate Internet, intranet, and other network usage,
telecommunications processors, network control software, and other network
hardware and software resources to ensure a proper level of service to the
users of a network.

Advanced Technology Management:

Developments in information systems technology have had, and will continue to
have, a major impact on the operations, costs, management work environment,
and competitive position of many organizations. Therefore, many firms
established separate groups (advanced technology groups - ATGs) to identify,
introduce, and monitor the assimilation of new information systems technologies
into their organizations, especially those with a high payoff potential. These
organizational units are called technology management, emerging technologies,
or advanced technology groups.
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 13-8 Distributed Management

Responsibility for managing information technology is increasingly being

distributed to the managers of an organization at all levels and in all functions.
Information resource management is not just the responsibility of an
organization's CIO. If you’re a manager, IRM is one of your responsibilities,
whether you are a manager of a company, a department, a workgroup, or a
functional area. This is especially true as the Internet, intranets, and
client/server networks drive the responsibility for managing information systems
out to all of an organization’s functional and workgroup managers.

Managerial End User Computing:

The number of end users in organizations who use computers to help them do
their jobs has outstripped the capacity of many information services
departments. As a result, teams and workgroups of end users must use PC
workstations, software packages, and the Internet, intranets, and other networks
to develop and apply information technology to their work activities.
Organizations have responded by:
1. Creating end user services, or client services, function to support and
manage end users.

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 2. Establish an information centres group staffed with user liaison
specialists, or “help desks,” with end user “hot-lines”.
3. Distributed end user support specialities to departments and other work
groups.
4. Establish and enforce policies concerning the acquisition of hardware and
software by end users. This ensures their compatibility with existing hardware
and software systems, and network connectivity standards. Policies ensure that
proper controls are enforced to correct performance and safeguard the integrity
of corporate and departmental networks and databases.

Managing Internet Access:

Managing Internet access within organizations is a major new management

responsibility. Providing Internet access to employees raises several
challenging managerial issues. Examples include:
1. Heavy Internet use by employees can overrun the capacity of client/server
networks. Many networks were not designed to handle the large network
loads generated by World Wide Web multimedia traffic and other Internet
uses.
2. Questions concerning legitimate work time use of the Internet by employees,
and liability for the contents of employee E-mail on the Net.

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 Exhibit I : Information Systems at Amazon
In 1995 Amazon used website system and order fulfillment system separately in
order to improve security. By 1995 amazon has huge database running on
Digital Alpha Servers. Amazon renovated the entire system in the year of 2000.
Company spent $200 million on the new system. These systems include
analysis software from “Epiphany”, logistics from “manugistics” and new DBMS
from oracle. (Gerald, 2012) For communication with supplies amazon seal deal
with Excelon for business-to-business integration system. (Konicki, 2000) .
Amazon Web Service (AWS) and Simple Storage Service (SS) are the main
system developed by amazon. Through this system amazon can maintain its
vast number of products and millions of active customers. Amazon web service
has become a global platform for individual to retailers to sell their products.
Through reliable, Scalable, and robust web service amazon creates a global
domination. The challenges of amazon.com web services are very prominent.
Every second thousands of customers are searching. For products and ordering
products, the systems have to be fast, reliable and secured. Every second CRM
(Customer Relation Management) system is taking customer information though
their searching, data mining, wish list and so on. Whatever customer buys or not
they are providing information about them. Systems are smart enough to
analysis the information and provide service accordingly. For tracking fraudsters
amazon.com built a system known as SAS( Smart Analysis Search).This
system decrease and detect fraud in the web site by analyzing behavioral

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 pattern. SAS allows amazon.com to measure and personalize customer and
help to serve customer effectively. (Kantardzic, 2003) Amazon.com is
information system based on Service Oriented Architecture (SOA). SOA is fully
distributed and decentralized service platform enables amazon‟s information
system to be robust and scalable. SOA concentrates in multiple application
rather than bigger process (Source: Al Imran, 2014)

Summary

Information Resource Management aims to identify information as an asset that

could be processes and manageable. It requires process and system
knowledge, communication and technical expertise. The major users of
Information are knowledge workers (Middle level and top level managers) who
create and process information. The use of such information could be for
broader usage including policy/ action plan formulation, resource optimization
(land, labor, capital, technology, material etc).

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 Glossary of Terms

Centralized or Decentralized Information System- Modern computer-based

information systems can support either the centralization or decentralization of
information systems operations and decision-making within computer- using
organizations.

Chargeback Systems- Methods of allocating costs to end user departments

based on the information service rendered and information system resources
utilized.

Chief Information Officer - A senior management position that oversees all

information technology for a firm, concentrating on long-range information
system planning and strategy.

Culture, Political, and Geo-economics Challenges: Differences in customs,

governmental, regulations, and the cost of living in different countries.

Data Centre- An organizational unit which uses centralized computing

resources to perform information processing activities for an organization. Also
known as a computer centre.

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 Development Centre- Systems development consultant groups formed to
serve as consultants to the professional programmers and systems analysts of
an organization to improve their application development efforts.

Downsizing - Many organizations are downsizing from the use of large

computer systems to networks of small computers.

End User Services- Consulting and training services provided to end users in
an organization

Global Business Drivers - These include global customers, products,

operations, resources, and collaboration.

Global Information Technology- The use of computer-based information

systems and telecommunications networks using a variety of information
technologies to support global business operations and management

Global IT Management- Dimensions of global IT management include: 1)

Business IT Strategies, 2) Application Portfolios, 3) Technology Platforms, 4)
Data Management, and 5) Systems Development.

Information Resource Management (IRM)- A management concept that

views data, information, and computer resources (computer hardware, software,

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 and personnel) as valuable organizational resources that should be efficiently,
economically, and effectively managed for the benefit of the entire organization.

Five Dimension of IRM- The five dimensions of IRM include: 1) Strategic

management, 2) Resource management, 3) Functional management, 4)
Technology management, 5) Distributed management

Information Services Functions- Includes systems development, operations,

and technical services

Information Systems Performance- Managers must ensure that IT is being

effectively, efficiently, and economically in their organizations

Management Involvement- The experiences of successful organizations reveal

that the basic ingredient of high quality information systems performance is
extensive and meaningful management involvement.

Systems Development Management Managing systems development

requires the planning, organizing, and controlling of systems analysis,
programming, and end user activities related to various IS development
projects, and thus requires a project management effort.

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 Technology Management- The establishment of organizational groups to
identify, introduces, and monitors the assimilation of new information system
technologies into organizations.

Telecommunications Network Management- The management of

development, administration, and maintenance of telecommunications
networks and their hardware and software.

Transborder Data Flows-The flow of business data over telecommunications

networks across international borders.

Transnational Strategy- A management approach in which an organization

integrates its global business activities through close cooperation and
interdependence among its headquarters operations and international
subsidiaries, and its use of appropriate global information technologies.

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 Progress Check Points

Question 1: Explain the term “Corporate Culture”, what is the impact of

Corporate Culture on the Overall strategy of the firm.

Question 2: What is culture function? Why Culture matters to a business firm

Question 3: How Corporate planning and market positioning is influence by the
corporate culture of the firm.
Question 4: What are the major determinants / components of corporate culture

References
P. Weill & M. Broadbent “Leveraging the New Infrastructure: How Market
Leaders Capitalize on IT” , Harvard Business School Press, May 1998. (Based
on a study of 54 businesses in 7 countries over five years).

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