INFORMATION SYSTEMS

OPENING CASE
IPL
Welchs

:Balancing
Truckloads with Business
Intelligence

ROLE OF INFORMATION
TECHNOLOGY

In Asia Pacific SMBs spent around US $153 billion on IT and

telecomm.
China ,Korea and India alone make up more than 50% of Asia
Pacific spending according to the latest study by New York
based Access Markets International (AMI) Partners Inc

INFORMATION SYSTEMS AND TRANSFORMATION IN

BUSINESS

58% Americans have used a cell phone or mobile handheld

devices for activities other than voice communications such as
texting, emailing taking a picture, looking for maps or directions or
recording video
By june 2008 more than 80 billion businesses had dot com
internet sites registered ( 60 million in US alone ) ( verisign 2008 )
85% of the online users engaged in e commerce . Ireland 91%,
86% in turkey ,India and UAE jointly 84%.
67 million Americans read blog,21 write blogs .
Myspace and Facebook attract over 70 and 30 million visitors a
month
E commerce and internet advertising are booming googles online
ad revenue surpassed $ 16.5 billion in 2007 and internet
advertising continues to grow at more than 25 % a year reaching
more than $28 billion in revenues in 2008

WHATS NEW IN MIS

CHANGE

TECHNOLOGY
BUSINESS IMPACT

Cloud computing platform emerges

as a major business area of
innovation

A flexible collection of computers on the

internet begin to perform tasks traditionally
performed on corporate computers

More powerful, energy efficient

computer processing and storage
devices

Intels new PC processor chips consume 50%

less power , generate 30% less heat , and
are 20% faster than the previous models
,packing over 400 million transistors on dual
core dual core chip

Growth in software as SaaS

( Software as a service)

Major business applications are now

delivered online as Internet service rather
than a boxed software or custom systems

Netbooks emerge as a growing

presence in the PC marketplace ,
suboften using open source
software

Small , lightweight , low cost , energyefficient , net- centric notebooks use

Linux,Google Doc s ,open source tools , flash
memory , and the internet for their
applications , storage and communications

A mobile digital platform emerges

to compete with PC as a business
system

Apple opens its iphone software to

developers, and then opens an Applications
store on iTunes where business users can
download hundreds of applications to
support collaboration ,location- based
services , and communication with
colleagues

WHATS NEW IN MIS

CHANGE

MANAGEMENT
BUSINESS IMPACT

Managers adopt online

collaborations and social networking
software to improve coordination,
collaboration , and knowledge
sharing

Google Apps,Google Sites,Microsofts Windows

Sharepoint services and IBMs Lotus
Connections are used over 100 million
business decision makers worldwide to
support blogs ,project management , online
meetings , personal profiles ,social bookmarks
and online communities

Business intelligence applications

accelerate

More powerful data analytics and interactive

dashboards for providing real time
performance management to managers to
enhance management control and decision
making

Managers adopt million of mobile

tools such as smartphones and
mobile internet devices to accelerate
decision making and improve
performance

The emerging mobile platform greatly

enhances the accuracy , speed , richness of
decision making as well as responsiveness to
customers

Virtual meeting proliferate

Managers adopt web conferencing

technologies to reduce travel time , and cost ,
while improving collaboration and decision
making

WHATS NEW IN MIS

CHANGE

ORGANIZATION
BUSINESS IMPACT

Web 2.0 applications are widely

adopted by the firms

Web-based services enable employees to

interact as online communities using blogs
,wikis , email and instant messaging
services.facebook and MySpace create new
opportunities for business to collaborate with
customers and vendors

Telework gains momentum in the

workplace

The internet ,wireless laptops ,iphones , and

BlackBerrys make it possible for growing
numbers of people to work away from
traditional office

Outsourcing production

Firms learn to use technologies to outsource

production work to low wage countries

Co- creation of business value

Sources of business value shift from products

to solutions and experiences and from internal
sources to networks of suppliers and
collaboration with customers .Supply chains
and product development becomemore global
and collaborative; customer interaction helps
firms define new product and services

GLOBALIZATION
opportunities and challenges

Foreign trade as a percentage of GDP ( in rupee terms )

was over 25% in 2006 up from 14.1 percent in 1990-1991.
Indias share in global trade , including trade in
merchandise and service sector , has increased from 1.1
percent in 2004 to over 2.0 percent in 2009 .
U.S exports to India $4,101.1 million and imports from
India worth $11,818.3
Many firms derive half their revenues from foreign
operations.For instance ,revenues are about $25 million a
year and profits are several million dollars
80% of toys sold in the US are manufactured in China
,while about 90% of PC manufactures in China use
American made Intel or Advanced Micro Design (AMD )
chips

Manufacturing is now a very small part of US employment

(less than 12%)
About 300,000 service jobs move offshore to lower wage
countries

THE INTERDEPENDENCE BETWEEN

ORGANIZATIONS AND INFORMATION
SYSTEMS

Hardware

Business strategic
Objectives
Business processes

Business firm

software

Data Management

Information system
Telecommunication

ORGANIZATIONS
LEVELS IN THE FIRM

Senior
Management

Middle Management
Scientists and knowledge workers

Operational management
Production and service workers
Data workers

The Fundamental Roles Of

IS in Business

Support of business processes and

operations
Support of decision making by employees
and managers
Support of strategies for competitive
advantage
Eg IPL , Welchs ,Policing using ICT ,Walmart
etc

Computer-based Information
Formal
System
System

based on accepted and fixed definitions of data and

procedures (operating with predefined rules).
Formal system

manual

Computer-based

Manual IS => use paper and pencil technology.

Computer-bases IS => An information system that
is based on computer hardware and software
technology for processing and disseminating
information.

System
System is defined as a set of interrelated
components with a clearly defined
boundary, working together to achieve a
common set of objectives by accepting
inputs and producing outputs in an
organized transformation process

Functions of a System

Input :
Involves capturing and assembling elements that enter
the system to be processed.For eg raw materials ,
energy , data ,human effort must be secured and
organized for processing
Processing:
Involves transformation proceses that convert input into
output examples are manufacturing processes , the
human breathing process,or mathematical calculation
Output:
Involves transferring elements that have been produced
by transformation process to theor ultimate destination.
For example , finished products , human services , and
management information must be transmitted to their
human users

Feedback and Control

Feedback:
Is a data about the performance of a system.For
example , sales data,student performace data
Control:
Involves monitoring and evaluating feedback to
detemine whether a system is moving toward the
achievement of its goal.

System (oranizational
system)

Components of a system

Information System
Resources And Products
Information Systems Resources
And Products
People
Resources

Hardware
Resources

Software
Resources

Data
Resources

Network
Resourc
es
Information
Products