INFORMATION SYSTEMS IN

BUSINESS TODAY

Session#2
CASES
Case#1: UPS Competes Globally with Information Technology
Case#2: Tesco: use of IT and information systems ‐Introduction to MIS
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Technical Perspectives on Information Systems

 Information system:
 Set of interrelated components
 Collect, process, store, and distribute information

 Support decision making, coordination, and control

(analysis, new product/service)

 Information vs. data

 Data are streams of raw facts
 Information is data shaped into meaningful form

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Perspectives on Information Systems

Data and Information

Figure 1.3 Raw data from a supermarket checkout counter can be processed and organized to produce meaningful
information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a
specific store or sales territory.

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Perspectives on Information Systems

Figure 1.4

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Perspectives on Information Systems

 Three activities of information systems

1. Input: Captures raw data from organization or
external environment
2. Processing: Converts raw data into meaningful
form
3. Output: Transfers processed information to
people or activities that use it

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Business perspective on information systems

 Real economic value to the business

 Instrument for creating value

 Solve Organization problems (NUST Entry test IS)

 Investments in IT will result in superior returns:

 Productivity increases
 Revenue increases
 Cost saving
 Superior long-term strategic positioning

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COMPLEMENTARY ASSETS

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COMPLEMENTARY ASSETS

Quadrant 1 represents firms that invest much less in IT but still receive
strong returns.

Quadrant 2 represents firms that invest a great deal in IT and receive a great
deal in returns.

Quadrant 3 represents firms that invest much less in IT and receive poor
returns.

Quadrant 4 represents firms that invest a great deal in IT but receive poor
returns.

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COMPLEMENTARY ASSETS:

 Investing in information technology does not

guarantee good returns
 You need (Relate to UPS case)
 Rightbusiness model
 Top Management support

 New Business processes

 Management Behavior

 Supportive culture

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Both Perspective are inter-related with each other.

 What do you think?

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Three Dimensions of Information System

Using information systems

effectively requires an
understanding of the
organization,
management, and
information technology
shaping the systems. An
information system creates
value for the firm as an
organizational and
management solution to
challenges posed by the
environment.

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Organizational Dimension

key elements of an organization

• People
• Structure
• Politics
• Culture
• Business processes

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Organizational dimension
 Different Business functions
 Salesand marketing
 Human resources
 Finance and accounting
 Manufacturing and production

 Business process
• The manner or a mechanism in which work is
organized, coordinated, and focused
to produce a valuable product or service.

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Organizational Dimension
• How Information System relate to the Organization
• Information systems fully or partially automate business
processes

• Business Process is key element of the Organization

• Changing business process have direct impact for

• People
• Structure
• Politics
• Culture

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Management Dimension

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Management Dimension

 Management’s Job
 Make decisions
 Action Plans to solve Problems
 Sense Threats/Opportunities
 Develop Business strategies

 Information Systems
 To create new products/Service
 To create or Improve Business processes
 To recreate Organization

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Technology Dimension

 Computer hardware and software

 Data management technology

 Networking and telecommunications technology

 Networks, the Internet, intranets and extranets,
World Wide Web
 IT infrastructure: provides platform that system is
built on
 Mobile and wireless technology

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Group Exercise

 Take a business problem

 Solve the problem with the help of IT using the above

framework

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UPS COMPETES GLOBALLY WITH INFORMATION TECHNOLOGY

Read the Interactive Session and discuss the following questions

 What are the inputs, processing, and outputs of

UPS’s package tracking system?
 What technologies are used by UPS? How are these
technologies related to UPS’s business strategy?
 What problems do UPS’s information systems solve?
What would happen if these systems were not
available?

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Dimensions of UPS Tracking system

 Organizational:
 Procedures for tracking packages and managing
inventory and provide information
 Management:
 Monitor service levels and costs
 Supply Chain service Providers
 Invest in IT to maintain leadership in the Industry
 Use of IT for cost saving
 Technology:
 Handheld computers, bar-code scanners, networks,
desktop computers, etc.

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Strategic Business Objectives of IS

 Operational Excellence (Walmart)

 New Product, Services, and Business Model (iTune)

 Customer and Supplier Intimacy(Hotel chain)

 Improved Decision Making

 Competitive Advantage(combination of above objectives)

 Survival(ATM, email, internet)

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Interdependence between firm’s Information System and Its capabilities

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CASE STUDY

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