Information System for Managers

Prof. SHRINIVAS S SHIKARIPURKAR

Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved.
Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved.
3
Tell me and I forget.
Teach me and I
remember. Involve
me and I learn.
- Benjamin Franklin
Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved.
PROGRESSIVE OVERLOAD

INCREMENTAL APPROACH
Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved.
 A few Questions Plaguing your mind

• Why do you need to study Information Systems ?

• How will this course help me ?

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 Topics to be covered

• Organizations and Information • Cloud Computing and Internet-of-

Systems Things

• Concepts of Management • Information Systems Security and

Information Systems Control

• Electronic Commerce, Electronic • Information Systems Development

Business, Electronic Governance and Project Management

• Managing Green IT and Smart

• Managing Data Resources
Cities

• Information Technology • Business Process Integration and

Infrastructure and Choices Enterprise Systems

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Organizations and Information Systems

Chapter 1

8
 Objectives

• Overview of the modern organisation

1

• Understand information systems in organisations

2

• Managing information systems in organisations

3

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 CASE STUDY – TATA MOTORS

• NETWORK OF OVER 2,000 VENDORS

• IS = SUPPLY CHAIN MANAGEMENT SYSTEM
– HELPED REDUCE PAYMENT PROCESSING TIME FROM 48 HOURS
TO 24 HOURS
– 100 PASSENGER CARS
• DOOR HANDLES
– 1) INFORMS PRODUCTION SCHEDULE
» PRODUCTION PLAN (HOW MANY ITEMS NEEDED?)
– 2) SUPPLIER WILL EVALUATE HIS OWN INVENTORY
– 3) SUPPLIER DESPATCHES TRUCK (SHIPPING INVOICE)
– 4) RECEIPT OF TRUCK & CROSS CHECKING
– 5) QUALITY CHECK ON RECEIVED PARTS
– 6) ALERT TO ACCOUNTING SYSTEM TO RELEASE
PAYMENT
– 7) PAYMENT SYSTEM ALERTS BANKS TO RELEASE
PAYMENT
– IS TO MANAGE MARKETING CHANNEL
• 2000 DEALERS (30,000 COMPUTERS CONNECTED TO SYSTEM)

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 Introduction

– An organized set of seemingly related data

– Method, or process of grouping things together

What is What is a
Information ? System ?

What is an Information System ?

• A set of interrelated components that collect, manipulate, store, and disseminate data and information and provide a
feedback mechanism to meet an objective.

• Information Systems (IS) are collections of computers, networks, software and people who create, store, modify and
distribute data and information in any organisation.
 What is an Information System ?

Definition :
Components of a computerized Information system :
• A computer-based information system
(CBIS) is a single set of hardware,
software, databases, telecommunications,
people, and procedures that are
configured to collect, manipulate, store,
and process data into information
• Information Technology (IT) are the
artefacts such as computers, software
and networks that constitute the IS.

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 Types of Organizations

• IT Enabled Organization
1

• Networked Organization
2

• Dispersed Organization
3

• Knowledge Organization
4

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 IT - Enabled Organizations
• Organisations are collections of people with shared goals
• Has people or members who are engaged in activities for a common purpose
• Organisations have many purposes
 Make cars
 Inform citizens
 Ferry passengers

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 Networked Organization

• Organisations are collections of people with shared goals

• Organisations are on digital networks linking them to others : Internet, Telecommunication
• Requires sensing and responding to information flowing on the network
• Responding to the continuous flow of information also requires the organisation to adjust to meet the challenge

Source: https://www.livemint.com/Politics/1P3kQo6cvnIGytjQHsWbWP/Schools-bet-big-
on-virtual-classrooms.html

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Food Delivery Apps

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 Dispersed Organization

• Organisations are highly dispersed: they have

operations and offices in many cities within the
same country and also abroad

• Firms disperse their operations to best meet

customer needs or locate where resources are
available

Apple iPhone’s Global Supply Chain

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 Knowledge Organization

• Modern organisations consist of knowledge

workers – whose main job is to access and
deal with knowledge and information

• A major task of modern organisations is to

process information

• Knowledge Base :- Information stored,

processed and converted in to a form that
can be used by organizations

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 Managing in the Internet Era

• Organisations have to create a presence on the Internet

• Challenge for organisations – find and use most relevant and useful data

• The Internet presents many security challenges

https://blogs.vmware.com/euc/2017/04/mobile-apps-steal-data-
https://www.bbc.com/news/business-48905907
appthority.html

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 The IT Interaction Model

• Challenge of managing IS in organisations

– Organisations do not remain static; they
have to change to respond to the
environment
– IS too continuously evolves
• Important to understand how IS and
organisations interact
• When an organisation builds an information
system, the system may be
– Used or not used
– Which may lead to positive or negative
outcomes e.g. payroll system)

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 The IT Interaction Model (Contd)

• Outcomes will have

– First-order effects :
• Outcomes that arise as a direct consequence of the introduction of a new IS are known as
first order effects
• Increased speed in data processing, increased volume of processing, gain the firm incurs on
using this IS
– Second-order effects :
• Outcomes that are not immediately visible as they require years to become visible or
measureable are known as second order effects
• HR example: hiring new employees is easy, retaining them is easy, new incentive schemes
can be planned for the employees
– Third-order effects :
• Large scale benefits of using an IS

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 The IT Interaction Model

• Whether an IS is successful is largely dependent on

– The competitive environment of the firm (e-commerce)
– The competitive strategy that the firm follows (DELL)
– The work culture of the firm (Google)

• Information systems may impact the organisation by

– Changing work processes and functions
– Automate manual processes
– Eliminate some work processes

• Building an IS requires choices to be made : MAKE v/s BUY

– Build the system, if internal skills are available
– Buy the system

• Initiation requires understanding the need for the IS

• Analysis is required to understand the specifications for the system

• A new system has to be introduced and integrated within the organisation

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 Challenges for the Manager

• A manager who has to manage the IS of an organisation faces many challenges

• What systems to build?

• New IS or make IS, competitors,

• How much to spend on IS?

• See what competitors are doing

• What level of capabilities should be created with the IS?

• Support one department or many departments

• Primary partners or all stakeholders

• Use internet or intranet

• How centralized should the services be?

• The systems should be both scalable and flexible

• What security levels are required?

• Security has to be adequate without being cumbersome and expensive

• What is the technology Road Map for the organisation?

• Plan for the evolution of the IS in the organisation

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 Smart Hospitals

Personal
Injury and trip
Registration Information
to the hospital
Into the System

Assigned a Bed, Diagnosis : X- Final Diagnosis,

Doctor ,Nurse rays, CT Scans Cure, Discharge,
Follow up,
Insurance

Smart Hospitals :- https://www.youtube.com/watch?v=siCDVpmg4Xs

 Banking Revolution

• Reason for Revolution :

– Faster work, to face competition, secure data transfer, make banking easy, automate all the branches
across the country
– Team Involved : Finacle of Infosys and Boston consulting group
• Solution :
– CORE = “Centralized on-line Real time exchange”
– Core banking functions include recording of transactions, passbook maintenance, and interest calculations
on loans and deposits, balance of payments and withdrawals
– Banks makes these services available across different channels such as ATM , internet banking and
branches
• Impact of the project :
– Operations are carried out fast and customers are happy
– Operational excellence due to technological advancement
– Account opening is done on the same day
– SMS banking available
Test Yourself !

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 Questions !

Fill in the blanks

1. A(n) ______________ consists of hardware, software, databases, telecommunications, people, and procedures

True or False
1. A major task of modern organizations is to process information.

2. First term effects of the introduction of information systems in organizations are designed outcomes that are
visible or measurable immediately

Select the right option

1. An essential component of modern day organization is an information system.
a) Which binds the organization
b) Which enables its interactions with the world through the Internet
c) Both a and b
d) only b
 Answers

1. Information system

2. True

3. True

4. C
 Suggested Reading for Reference

1. Management Information System new approaches to Organization and Technology, 14e, Kenneth
C. Laudon , Jane P. Laudon.

2. Essentials of MIS: Jane P . Laudon, Kenneth C Laudon

3. Management Information Systems, 9e, James O’brien, George M Marakas, Ramesh Behl

4. Principles of Information Systems, 10e, Ralph Stair, George Reynolds

5. Management Information Systems, 6e, Effy Oz

 Additional IT related Resources

• QR Scan QR code to make cashless payment: https://www.youtube.com/watch?v=lPfe7AwNStI

• Stadiums go High-Tech :- https://www.youtube.com/watch?v=wL0A38O74lU

• The Power of Data:- https://www.youtube.com/watch?v=xq3DVDyshTc

• The future cars :- https://www.youtube.com/watch?v=vtgAx11yOzg

• IT in healthcare by SAP :- https://www.youtube.com/watch?v=LjsvkRJrZZA

• Smart Taxi Stands :- http://www.attsystemsgroup.com/wp-content/uploads/2014/11/Traffic_NewspaperClip-

low-res.jpg
Thank you !