KNOWLEDGE AREA 2: INFORMATION SYSTEMS

BY:
DEVYANI KHARE ILA JOSHI

INFORMATION SYSTEMS
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It is the totality of technological and human components that work together to produce the information systems and services that a business needs, and that processes information for some organisational purpose.

Knowledge Area 2: Information Systems

11/26/2012

Information systems can be classified on the basis of:

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Degree of formality Degree or extent of automation applied to them In relation to decision making Its value to the organization

Knowledge Area 2: Information Systems

11/26/2012

Maturation of Information Systems

IS has evolved over years on the basis of benefits and scope of systems. Benefits in the beginning are seen as simple efficiency benefits, later an organisation will seek effectiveness and ultimately it will seek to evolve through the more advanced use of information systems. Scope is initially within the single organisation, but soon will seek to link its systems with key partners, especially suppliers and customers - a community effect. Ultimately, systems are seen to be important at the national level.
Knowledge Area 2: Information Systems 11/26/2012

Knowledge Area 2: Information Systems

11/26/2012

Combination of Benefits and scope reveals about management thinking development over the years. Different stages depicting the evolution of information systems. Stage 1 internal efficiency Stage 2 internal effectiveness Stage 3 internal evolution Stage 4 external efficiency Stage 5 external Area 2: Information Systems 11/26/2012 Knowledge effectiveness

Stage 6 Industry evolution Stage 7 National and international efficiency Stage 8 National and international effectiveness Stage 9 National and international evolution

Knowledge Area 2: Information Systems

11/26/2012

Life cycle of Information Systemsapplication portfolio

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Four stages of IS as a product: High potential IS(Applications that are critical to sustaining future business strategy) Strategic IS (Applications that are critical to sustaining future business strategy ) Key operational IS (Applications on which the organisation currently depends for success) Support IS (Applications that are valuable but not critical to success)
Knowledge Area 2: Information Systems 11/26/2012

Classifying Applications
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Value of application should be assessed in terms of future potential, ability to extend, integrate, develop and transfer. A decision will emerge from a management discussion about an application, its current and future potential. Key factors are High Potential, strategic, Key operational and support application.

Knowledge Area 2: Information Systems

11/26/2012

Strategic analysis in complex businesses

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Corporation Groups or divisions Business units Functions or department

Individuals

Knowledge Area 2: Information Systems

11/26/2012

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A business unit is one that has a single family of products with like characters and identifiable competition is at a known point in its business maturity lifecycle. The role of systems evolve over time and they will need to be migrated from one portfolio segment to another, require a change in style of management over time. ATM is a good example. Initially, this idea was met with derision and later it was accepted seriously.
Knowledge Area 2: Information Systems 11/26/2012

Relationships with benefits

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There is a life-cycle to most systems ideas and management recognition of lifecycle is critical to exploit the benefits of an idea. High potential- understanding Strategies- competitive advantage Key operations-improved efficiency Support- Benefits are localized, vanishingly small.
Knowledge Area 2: Information Systems 11/26/2012

Information System Project Management

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1.
2. 3. 4.

Information system have to be developed and implemented by means of project management. Four quadrants of the portfolio areManagement style Project style Risk management Funding
Knowledge Area 2: Information Systems 11/26/2012

Communicating Information Systems Ideas

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1. 2.

3.

We need some means to communicate our ideas, to specify the requirement in order that a solution can be designed and built. A more considered approach to business modeling deals withOrganizational elements Jobs that people do Information that people work with
Knowledge Area 2: Information Systems 11/26/2012

Business and System Analysis

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There are two principle ways to visualise an information system: Process Analysis and Information Analysis. Terminology is not universally agreed and there are conflicting uses of terms such as 'process', 'function', 'information' and 'data'.

Knowledge Area 2: Information Systems

11/26/2012

HORSES FOR COURSES

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There cannot be and must not be a singular view of the way of managing information systems. There should be managerial flexibility. Profile of each system implementation project and its management can be specified individually.

Knowledge Area 2: Information Systems

11/26/2012

Key words used

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'Entity' refers to any element of a business about which we wish to keep information (for example: customers, suppliers, products, employees, sales, problems). 'Information' refers to the aggregation of data that - when it is interpreted and understood - provides systems users with knowledge of some kind (for example: invoice, pay slip, stock exception report). Activity refers to a task that accomplishes the processing of information at a low level, and delivers an output (for example: check customer credit, process sales order, deal with stock enquiry). 'Process' refers to that collection of activities that delivers not output but an outcome typically something that is valued by an organisational stakeholder (for example: sales order fulfilment, new product design, employee management, and so on).
Knowledge Area 2: Information Systems 11/26/2012

IS/IT Partnerships
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Transactional relationship Partnership relationships

Risk and profit sharing relationship

Knowledge Area 2: Information Systems

11/26/2012

Outsourcing
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Reasons for outsourcing:

Reduction in operational costs Access to scarce specialist skills Improvement in reliability of service Deployment of the latest technologies with real economies of scale.

Risks in outsourcing:

Chosen service provider might fail. Their key staff might relocate elsewhere, where they could inform your competitors about critical aspects of your plans and strategic activities.

Knowledge Area 2: Information Systems

11/26/2012

Managerial issues in IS
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System development capability Relationship management Investment justification Benefits management Performance management Encouraging new thinking
Knowledge Area 2: Information Systems 11/26/2012