MIS – Lecture-1

N P Singh
Lecture -1: Contents

 Data & information

 Information Systems – Components and
resources
 Role & Functions of Information Systems
 MIS & Changes of Importance
 Globalization Challenges & opportunities
 A flattened world
 Emerging Digital firms
 Business Perspective of Information Systems
Data and Information

Data are facts and figures about the organization

and its business transactions. Most data items have
little meaning and use by themselves.
Five types: Numeric , Text, Audio, Video, graphics-
Multi Media Data

Information is data that has been refined and

organized by processing and purposeful
intelligence. The latter, purposeful intelligence, is
crucial to the definition People provide the purpose
and the intelligence that produces true information.
Information

 Information is a processed data

 Converted in to desired format.
 Information is used in decision making by
managers
Example of data-information –
Knowledge- Wisdom
Information System
Perspectives on Information Systems

 What is an information system?

 A set of interrelated components that
collect (or retrieve), process, store,
and distribute information to support
decision making and control in an
organization
Information Systems

 Components
 Input
 Output
 Process
 Feedback
 ?????? (Control)
Information Systems

Resources
 ????????? (People)
 Hardware
 ??????? (Software)
 ??????? (Data Base)
Role of Information systems
Role & Functions of an Information
System
Information Systems & Technology

An information system (IS) is an arrangement of

people, data, processes, communications, and
information technology that interact to support and
improve day-to-day operations in a business as well
as support the problem-solving and decision making
needs of management and users.
Information technology is a contemporary term that
describes the combination of computer technology
(hardware and software) AND communications
technology (data, image, and voice networks).
Management Information Systems

A management information system (MIS) is

an information system application that
provides management-oriented reporting.
These reports are usually generated on a
predetermined schedule and appear in a
prearranged format.
MIS
• Management Information Systems
• Use of computer-based information systems in business
firms
• Combines work of CS, management, operations research,
and other related disciplines toward developing system
solutions to real word problems
• Concerned with behavioral issues of development, use
and impact of IS
• Main actors : Suppliers of hardware and software,
Business firms, Managers and employees, Firm’s
environment (legal, social, cultural context)
 Changes of Importance
 IT Innovation
 Examples: emergence of cloud computing, Mobile business platform, big
data, IoT, AI, ML, DL etc.
 New Business Models
 Examples: emergence of online video services for steaming & downloads
 Ad-supported Model (Free Model): Google Drive and Gmail, Facebook and
Instagram. They offer free social networking services and use user data to
serve personalized advertising.
 Freemium Model (SaaS Business Model): Dropbox , SaaS Model.
 Ecosystem Model: Apple’s ecosystem includes hardware (iPhones, iPads,
Macs), software (iOS, macOS), and services (App Store, iTunes, iCloud).
 Google offers an ecosystem that includes Android, Chrome, Google Search,
Google Docs, and the Google Play Store.
 Microsoft’s ecosystem includes Windows, Office 365, and Azure Cloud
 Changes of Importance
 E-Commerce Expansion
 Examples: world wide sales amounted to nearly $ 3,6
trillion in 2019 & expected to touch $ 5 + trillion in 2021.
 India’s e-commerce market is projected to grow from
$83 billion in 2022 to $150 billion in 2026, according to
Fidelity National Information Services Inc. (FIS) 2023
Global Payments Report.
 Cash use declined from 71 per cent of POS transaction
value in 2019 to just 27 per cent in 2022.
 Main factor is UPI.
Continued….

 Management Changes
 Examples: new mobile smartphones, high speed
wireless Wi-Fi networks, & tablets , remote salespeople
on the roads are only seconds away from their
manager’s questions and oversight
 Changes in Firms & Organization
 Examples: Less emphasis on hierarchy & structure,
more emphasis on employees taking multiple tasks &
roles and collaborating with others on a team.
 Importance of competencies & skills rather than
position in hierarchy.
 Globalization Challenges &
Opportunities
 High Cost of IT Systems including its waste
 Emerging Digital Firms
 A Flattened world
 Internet heightened the competition among
nations & trade, and dislocation of labor markets.
 Internet allows the developing world to collaborate
and doing business which puts the pressure on
developing world as well.
 Along with trade jobs are also moving.
 IT Systems are used as weapon of w
The Emerging Digital Firms-1

 A digital firm is one in which nearly all of the

organizational significant business
relationships with customers, suppliers, and
employees are digitally enabled and
mediated.
 Core business processes are accomplished
through digital network spanning the entire
organization or linking multiple organizations
The Emerging Digital Firms-2
 Business Processes: Set of logically related tasks and
behaviors that organizations develop over time to
produce specific business results and the unique
manner in which these activities are organized and
coordinated.
 Developing a new product, generating and fulfilling an
order, creating a market plan, and hiring an employee
are example of business processes.
 These business processes can be source of competitive
strength depending on ways firms accomplish these
processes
 Continued…
 Following Key firm assets are managed using digital
tools.
 Intellectual property
 Core competencies
 Financial & human assets
 Digital firms sense and respond to their environments
more rapidly than traditional firms, that makes them
more flexible to survive in turbulent times.
 Two common features- time shifting & space shifting.
 Time Shifting – 9 AM to 5 PM to 24 X 7
 Space shifting: work place to anywhere within and
out side country.
 Examples of Digital Firms- Payment
banks
Name of the Website Date of Reach (No. of Reach (No. of Source
Banks incorporation states) Districts)

Airtel Payment www.airtel.in/b January 2017 29 states All Kulkarni (2021)

Bank ank/

Indian Post ippbonline.com 1st September 29 states All Kulkarni (2021)

Payment Bank 2018

Fino Payment www.finobank. 4th April, 2017 28 states 499 Kulkarni (2021)
Bank com

Paytm Payment paytm.com/ November 2017 29 states All Kulkarni (2021)

Bank bank/

Jio Payments www.jiopayme 3rd April, 2018 29 states All Kulkarni (2021)
Bank ntsbank.com

NSDL Payments nsdlbank.com 29th October, 29 states All Kulkarni (2021)

Bank 2018
 P2P Platforms
Name of Interest rate (% in Loan Repayme Registrati Website Source
the P2P P. A.) amount nt tenure on fee
platform (₹ in (months) (INR for
millions) borrower
)
Lendbox > 12 0.025 – 0.5 6 - 24 ₹ 500 https://www.lendb Bhakta (2019)
ox.in
i2ifundin > 12 <1 3 - 36 ₹ 118 www.i2ifunding.co Bhakta (2019)
g m
Faircent > 9.99 0.010 – 0.5 6 - 36 ₹ 500 www.faircent.com Bhakta (2019)

OMLP2P > 10.99 0.025 - 1 3 - 36 ₹100 www.omlp2p.com Bhakta (2019)

i-lend > 15 0.025 – 0.5 6 - 36 ₹ 500 www.i-lend.in Bhakta (2019)

Lenden > 6.5 0.025 – 0.5 3 - 24 ₹750 www.lendenclub.c Bhakta (2019)

club om

Finzy >10.99 < 0.5 6 - 36 Nil www.finzy.com Arya (2018)

 A Flattened world: Example

 The company founders have decided to adopt a

flat company structure where there are no middle
managers.
 The three company founders are part of the
company executive team where one is the CEO,
one the COO, and the other the CTO.
 Reaktor + GitHub Inc + Treehouse + The Morning
Star Company + Square Space
 Valve Corp +37signals + Zappos
Communication in Flat organization
 Hierarchical structures
 Companies that use hierarchical structures
include:
 Indian Public Sector Undertakings
 Amazon
 Barclays
 Walmart
 Other companies that have incorporated radical
managerial innovations into their hierarchies
include GE, Sony, and IBM.
 Strategic Business Objectives of
Information Systems (IS)
 Today entire sectors of economy are inconceivable with out
investment in information systems.
 To mention, E-Commerce firms such as Amazon, eBay,
Google, E*trade, Flipkart, etc. should not exist.
 Today, Service Industry-finance, insurance, and real estate,
personal services such as travel, medicine, and education
will not operate with out IS.
 Retail firms such as Walmart, Reliance Smart,
 Manufacturing companies such as GE, Ashok Leyland, Tata
motors can not run without IS.
 IS can be compared with office, telephones, filing cabinets,
buildings, elevators.
 Continued….
 In the present era there is a complete dependency
between firm’s ability to implement and use information
technology and its ability to implement corporate
strategies and achieve corporate goals.
 Firms invest in IS to achieve six strategic business
objectives ..
1. Operational Excellence
2. New Products, Services, and business models
3. Customer & Suppliers intimacy
4. Improved decision making
5. Competitive advantage
6. Survival
1.Operational Excellence

 IS/IT are important tools to achieve high

efficiency and productivity in business
operations in an environment of changing
business practices and Behaviour of
management.
 Walmart: in fiscal 2019- sales of $ 524 billion.
 The major component of supply chain are
connected digitally
2. New Products, Services, and
business models
 A business model describes how a company
produces, delivers, sell product or service to
create wealth.
 IS/IT’s are enabling tools to create , new
products, services, and business models.
 Example
 Apple : transformation of old business model of
music distribution based on vinyl records, taps,
and CDs in to a online, legal distribution model
based on technology platform
3. Customer and supplier intimacy

 Communication is the key in business for knowing and

serving customers.
 Best communication enhances sales and profitability.
 Similarly better engagement with suppliers with suppliers
can provide vital inputs.
 Example: With IS/IT hotel industry keep track of guests
preferences such as room temperature, check in time,
frequently dialed numbers, television programs, etc., and
store this data for remote analysis, monitoring and
controlling the service infrastructure.
 Sales data can be passed on manufacturers to plan the
schedule of production
4. Improved Decision making

 IS / IT have made possible to use real time

data from market place when making
decision.
 Verizon corporation uses web based digital
dashboard to provide precise information on
customer complaints, network performance
etc. for each area served in addition to other
needed information
5. Competitive Advantage
 When form achieve one or more following objectives
 Operation excellence
 New product, service and business models
 Customer/supplier intimacy
 Improved decision making
 May be firm have achieved competitive advantage.
 Doing things better than competitors, charging less for
superior services& products, responding to customer /
suppliers in less time adds to higher sales and profits.
 Apple, Walmart, UPS – Knows better than other how
to use information.
 What is new in MISs?
 Whole world is doing business with new
technologies (IT/OT) .
 It makes MIS study most exciting due to
continuous changes
 Technology
 Management
 Business Processes
6. Survival

 IT/IS investment is the need to do business

survival.
 Can you do bank business without ATM?
 Answer is no.
 Citibank introduced first ATM in 1977, in New
York Region to attract customers though
higher service levels, its competitors rushed
to provide ATMS.
Employment of the IT-BPM industry in India
from financial year 2009 to 2023(in millions)
Year Employment year Employment
FY 2009 1.96 FY2016 3.70
FY 2010 2.30 FY2017 3.86
FY 2011 2.50 FY2018 3.97
FY 2012 2.80 FY2019 4.10
FY 2013 3.00 FY2020 4.36
FY 2014 3.29 FY2021 4.50
FY2015 3.52 FY 2022 5.10
FY 2023 5.45 (Estimate)
Source: https://www.statista.com/statistics/320729/india-it-industry-direct-indirect-employment/
BPM (Gartner)
 Business process management (BPM) is a discipline that
uses various methods to discover, model, analyse,
measure, improve and optimize business processes.
 A business process coordinates the behaviour of people,
systems, information and things to produce business
outcomes in support of a business strategy.
 Processes can be structured and repeatable, or
unstructured and variable.
 Though not required, technologies are often used with
BPM.
 BPM is key to align IT/OT investments to business
strategy
 What are the key differences between
OT and IT?
 IT is necessary for monitoring, managing, and securing core
functions such as email, finance, human resources (HR), and other
applications in the data center and cloud.
 OT is for connecting, monitoring, managing, and securing an
organization's industrial operations. Businesses engaged in
activities such as manufacturing, mining, oil and gas, utilities, and
transportation, among many others, rely heavily on OT.
 Examples of OT: Robots, industrial control systems (ICS),
Supervisory control and data acquisition (SCADA) systems,
programmable logic controllers (PLCs), and computer numerical
control (CNC).
 ATMs and kiosks, connected buses, trains, and service fleets,
weather stations, or a system that allows a city to manage
chargers for electric vehicles.
Continued… Summary Difference

 The key difference between IT and OT.

 IT is centered on an organization's front-end
informational activities,
 OT is focused on their back-end production
(machines).
 What are the characteristics of IT and
OT devices?
 IT devices are usually off-the-shelf, replaceable,
generally have a lifespan of ….. years, and are relatively
easy to maintain. They typically run on common
operating systems like Windows, iOS, and Linux.
 OT devices tend to be purpose-built, so they generally
have specialized software and may run proprietary
protocols.
 They have life span of ………….
 OT devices may need to operate 24/7 without failure, as
they control critical infrastructures.
 Updating
 Changes
 Reasons IT and OT teams must
collaborate
 Enhanced performance and productivity.
 Reduced costs
 Increased security
 An array of opportunities to add value
 Examples:
 Age : 20 to 40 Years
 The rate of failure of distribution transformers in India is
higher (12-17%) as compared to developed countries (2-3%).
 This high failure rate is cause of concern to all the
Distribution Companies (Discoms) in the country. Every year,
nearly 200 Crore of Indian Rupees (INR) are spent by the
Discoms for repair and replacement of distribution
transformers (2015).
Content of three lectures as per the
syllabus for first three lectures
 The Role, Perspectives and Types of Information Systems
 The Role of Information Systems in Business Today --
Globalization Challenges and Opportunities: A Flattened
World --The Emerging Digital Firm --Strategic Business
Objectives of Information Systems --Perspectives on
Information Systems and Information Technology --
Dimensions of Information Systems --A Business
Perspective on Information Systems --Organizational
Capital and the Right Business Model --Contemporary
Approaches to Information Systems --Business Processes
and Information Systems --Types of Business Information
Systems