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INFORMATION SYSTEMS
INFORMATION SYSTEMS
OPENING CASES
 Aerosoles
 IPL
AEROSOLES
AEROSOLES SCENARIO
   Aerosoles is a 20 year old footwear company that has
    been providing high quality, fashionable shoes at
    affordable prices to department stores and specialty
    stores internationally. Aerosoles has over 700 employees
    to help design, import, distribute, and market a broad
    range of shoes such as boots, casual, dress, sandals,
    and sport alongwith accessories.
   Moving beyond its reputation as a designer brand,
    Aerosoles has evolved into a multichannel retailer with
    130 retail stores in the United States and worldwide. It
    also operates a direct channel comprised of a catalog
    and ecommerce site.

   The company launched www.aerosoles.com in 1999, but
    later Aerosoles realized the site was in need of an
    upgrade. "The site was hosted by our technology partner,
    but this presented its share of challenges," Magnus
    Gustafsson, VP of Direct Marketing, Aerosoles, told
    Chain Store Age magazine.
   The current site offered very limited marketing and
    reporting capabilities, was not scalable, and had no
    integration with their ERP system. Thus, majority of
    Aerosoles customers turned to the call center to
    check inventory, place orders, and track shipments.

   "The configuration affected data inventory upgrades
    and the company lacked insight into customer
    information. Most importantly it was merely an order
    taking vehicle," he said. We were ready for a stronger
    web presence, a better online experience, and a more
    seamless customer experience that mimicked the
    physical store experience. It was time to re-launch the
    site on a new, more flexible platform." said
    Gustafsson
Information system and business

                                          Business
•Develop team strategy                   challenges          •Lack of performance
                                                             statistics
•Evaluate players
•Coach players            Management                         •High cost of players
                                                             •Intense competitive
                                                             pressure
•Match videos of plays                   Information                                  Business
with statistical data     Organization                                                Solutions
•Tag and index plays                       system
                                                                                     •Improve performance
                                           •Analyze player
 Capture video                                                                       •Increase revenue
                          Technology       performance
 Maintain protected web
                                           •Analyze team
 site
                                           performance
 Download video to
 ipods
ROLE OF INFORMATION
    TECHNOLOGY
   In Asia Pacific SMB’s 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
   TECHNOLOGY CAPITAL
   INVESTMENT
900
800
700
600
500
                                                        IT INVESTMENT
400
300
200
100
  0
   81

           87

                   93

                           99

                                   04

                                           06

                                                   08
19

        19

                19

                        19

                                20

                                        20

                                                20
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 google’s 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
OPENING CASES
 Aerosoles
 IPL
AEROSOLES
AEROSOLES SCENARIO
   Aerosoles is a 20 year old footwear company that has
    been providing high quality, fashionable shoes at
    affordable prices to department stores and specialty
    stores internationally. Aerosoles has over 700 employees
    to help design, import, distribute, and market a broad
    range of shoes such as boots, casual, dress, sandals,
    and sport alongwith accessories.
   Moving beyond its reputation as a designer brand,
    Aerosoles has evolved into a multichannel retailer with
    130 retail stores in the United States and worldwide. It
    also operates a direct channel comprised of a catalog
    and ecommerce site.

   The company launched www.aerosoles.com in 1999, but
    later Aerosoles realized the site was in need of an
    upgrade. "The site was hosted by our technology partner,
    but this presented its share of challenges," Magnus
    Gustafsson, VP of Direct Marketing, Aerosoles, told
    Chain Store Age magazine.
   The current site offered very limited marketing and
    reporting capabilities, was not scalable, and had no
    integration with their ERP system. Thus, majority of
    Aerosoles customers turned to the call center to
    check inventory, place orders, and track shipments.

   "The configuration affected data inventory upgrades
    and the company lacked insight into customer
    information. Most importantly it was merely an order
    taking vehicle," he said. We were ready for a stronger
    web presence, a better online experience, and a more
    seamless customer experience that mimicked the
    physical store experience. It was time to re-launch the
    site on a new, more flexible platform." said
    Gustafsson
Information system and business

                                          Business
•Develop team strategy                   challenges          •Lack of performance
                                                             statistics
•Evaluate players
•Coach players            Management                         •High cost of players
                                                             •Intense competitive
                                                             pressure
•Match videos of plays                   Information                                  Business
with statistical data     Organization                                                Solutions
•Tag and index plays                       system
                                                                                     •Improve performance
                                           •Analyze player
 Capture video                                                                       •Increase revenue
                          Technology       performance
 Maintain protected web
                                           •Analyze team
 site
                                           performance
 Download video to
 ipods
ROLE OF INFORMATION
    TECHNOLOGY
   In Asia Pacific SMB’s 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
   TECHNOLOGY CAPITAL
   INVESTMENT
900
800
700
600
500
                                                        IT INVESTMENT
400
300
200
100
  0
   81

           87

                   93

                           99

                                   04

                                           06

                                                   08
19

        19

                19

                        19

                                20

                                        20

                                                20
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 google’s 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
WHAT’S NEW IN MIS
                                         TECHNOLOGY
                CHANGE                           BUSINESS IMPACT
 Cloud computing platform emerges as a       A flexible collection of computers on the internet
 major business area of innovation          begin to perform tasks traditionally performed on
                                            corporate computers


 More powerful, energy efficient computer   Intel’s new PC processor chips consume 50% less
 processing and storage devices             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      Major business applications are now delivered
 as a service)                              online as Internet service rather than a boxed
                                            software or custom systems
 Netbooks emerge as a growing               Small , lightweight , low cost , energy- efficient ,
 presence in the PC marketplace ,           net- centric notebooks use Linux,Google Doc s
 suboften using open source software        ,open source tools , flash memory , and the
                                            internet for their applications , storage and
                                            communications
 A mobile digital platform emerges to       Apple opens its iphone software to developers, and
 compete with PC as a business system       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
WHAT’S NEW IN MIS
                                      MANAGEMENT
                 CHANGE                      BUSINESS IMPACT
Managers adopt online collaborations and   Google Apps,Google Sites,Microsoft’s Windows
social networking software to improve      Sharepoint services and IBM’s Lotus Connections
coordination, collaboration , and          are used over 100 million business decision makers
knowledge sharing                          worldwide to support blogs ,project management ,
                                           online meetings , personal profiles ,social bookmarks
                                           and online communities

Business intelligence applications         More powerful data analytics and interactive
accelerate                                 dashboards for providing real –time performance
                                           management to managers to enhance management
                                           control and decision making

Managers adopt million of mobile tools     Rhe emerging mobile platform greatly enhances the
such as smartphones and mobile internet    accuracy , speed , richness of decision making as
devices to accelerate decision making      well as responsiveness to customers
and improve performance

Virtual meeting proliferate                Managers adopt telepresence video conferencing
                                           and web conferencing technologies to reduce travel
                                           time , and cost , while improving collaboration and
                                           decision making
WHAT’S NEW IN MIS
                                     ORGANIZATION
                CHANGE                        BUSINESS IMPACT
 Web 2.0 applications are widely adopted   Web-based services enable employees to interact
 by the firms                              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            The internet ,wireless laptops ,iphones , and
 workplace                                 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.
   India’s 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
DIGITAL FIRM
   A digital firm is one in which nearly all of the organization’s significant
    business relationships with customers , suppliers and employees are
    digitally enabled and mediated.Core business processes are accomplished
    through digital networks spanning the entire organization or linking multiple
    organizations.
   Key corporate assets –intellectual property ,core competencies and financial
    and human assets – are managed through digital means
   Any piece of information required to support key business decisions is
    available anytime and anywhere in the firm
   Digital firms sense and respond to their environment far more rapidly than
    traditional firms, giving them more flexible global organization and
    management
   In digital firms, both time shifting and space shifting are the norm
   Eg Cisco and Dell
Strategic business objectives of information
systems
           THE INTERDEPENDENCE BETWEEN ORGANIZATIONS AND
                        INFORMATION SYSTEMS


                                                    Hardware




  Business strategic
      Objectives                 software       Data Management
  Business processes



  Business firm         Information system
                                                Telecommunication
OBJECTIVES
   Operational excellence
       eg Walmart achieved close to US $379 billion in sales –nearly one tenth
        of retail sales in the United States.
   New products ,services and business models
       Eg online music industry
   Customer and supplier intimacy
   Improved decision making
   Competitive advantage
   Survival
Information system
Definition:
IS can be defined technically as a set of interrelated components that
   collect ( or retrieve ), process ,store and distribute information to support
   decision making and
In addition to support decision making , coordination and control
   information systems may also help managers and workers analyze
   problems ,subjects and create new products.
Information systems contain information about significant people ,places
   and things within the organization or in the environment surrounding it
Three activities in the information system :
Input
Output
Processing
Functions of an information system
                  ENVIRONMENT
                                       CUSTOMERS
   SUPPLIERS

                 ORGANIZATION


                INFORMATION SYSTEM


                     PROCESSING
        INPUT          CLASSIFY
                                        OUTPUT
                       ARRANGE
                      CALCULATE

                  FEEDBACK




   REGULATORY
                STOCK HOLDERS        COMPETITORS
   AGENCIES
DIMENSIONS OF INFORMATION
SYSTEM
 INFORMATION SYSTEMS ARE MORE THAN COMPUTERS




             organizations                 technology
                             Information
                             System




                         management
ORGANIZATIONS

LEVELS IN THE FIRM



             Senior
           Management



      Middle Management
Scientists and knowledge workers




        Operational management
     Production and service workers
              Data workers
INFORMATION SYSTEM AS A VALUE ADDITION
                    (Organization and Management)

                                                Business Process


                                     Supply chain Enterprise Customer            Knowledge
                                     Management Management Management
                                                                                 Management


                                                                                                        Firm
                                                                                                    Profitability
                                                                                                        And
                                                                                                  stategic position

Data         Transform    Dissemination
             ation into
collection
             business
And          systems
storage




                                     planning     coordinating     controlling    Modelling and
                                                    coordinating                  decision
                                                                                  making

                                          Management activities
COMPLEMENTARY ASSETS


Are those assets required to derive value from a primary investment.
   eg new business models ,new business processes ,management
   behavior , organizational culture ,or training
These investments in organization and management are known as
   organizational ad management capital.
COMPLEMENTARY SOCIAL, MANAGERIAL , AND
ORGANIZATIONLA ASSETS REQUIRED TO OPTIMIZE
  RETURNS FROM INFORMATION TECHNOLOGY
                INVESTMENT
   Organisational Assets
        Supportive organizational culture that values efficieny and effectiveness
        Appropriate business model
        Efficient business process
        Decentralized authority
        Distributed decision- making rights
        Strong IS development team
   Managerial Assets
        Strong senior management
        Incentives for management innovation
        Teamwork and collaborative work environments
        Training programs to enhance management decision skill
   Social Assets
        The internet and telecommunication environment
        IT enriched educational programs raising labor force computer literacy
        Standards ( both government and private sector)
        Laws and regulations creating fair , stable market environments
CONTEMPORARY APPROACHES TO
        INFORMATION SYSTEMS

Technical                 Computer     Operations
                          Science      Research
Approaches


             Management                             Sociology
                                     MIS
             Science



                      Psychology       Economics
CASE STUDY



CONTINENTAL AIRLINES:
THIS CALL IS BEING MONITORED
   If you’ve ever placed a call to any big company’s customer service department
    .you’ve heard the caveat “ This call may be monitored for quality assurance
    purposes” But is anyone really listening? Someone is – or atleast the computers
    are –at continental Airlines.
   To build the customer loyalty Continental enlisted the help of Witness Systems
    whose call center software does more than a eavesdrop. it records conversations
    and captures every keystroke ,so managers know whether the right actions are
    taken.And because the exchanges reveals what customer really customers really
    want, Continental is also mining the data to craft marketing plans and shape
    overall strategy
   Before the s/w was installed in 2001,Continental’s agents were unable to resolve
    about 6%of the 60 million calls they fielded annually . Instead these problems
    were routed to an internal help desk .The witness data revealed that some agents
    “weren’t attempting to look up the answers on their own” says Andre Harris
    “,director of reservations training and quality .New standards were put up in a
    place and within a year nearly 20% fewer calls were being sent to help desk
    ,saving the company $1
   Harris soon realized that the data could be a treasure trove for marketing and
    service operations too. “We thought we were just replacing tape recorders, “ she
    says ,” but it dawned on us that we could use this system to drive business
    decisions ”.Now if enough calls come in on one topic ,Continental can
    respond     .For instance ,when the company learned that as many as 14 percent of
    customers were reconfirming flights ,it ran a notice in its in-flight magazine to
    assure fliers that such calls were unnecessary
   To make the call monitoring more effective ,Continental added CallMiner ,a labor-
    saving Witness program that automatically transcribes conversations into text .”it
    gives me more time to analyze the data ,”Harris says ,”rather than just collect it”
   Tying speech system to mainstream corporate IT system, and the use of internet
    based voice system such as voice over IP (VoIP) ,are making it easier to mine
    database of voice records ,much as companies have mined other customer record
    for years .IVR analysis tools usually can keep track of the report on a caller’s
    choices based on which menu paths the caller has taken. But CallMiner and few
    other tools can go into the voice record and look for specific words or word
    combinations. Continental recorded a sample of its 5 million monthly calls and
    then used CallMiner to turn the dialogues into text and mine it for certain things
    .In doing so ,it discovered that about 10% of the calls contain the actual word
    reconfirm
   Calls to reconfirm a flight are quite frankly, low value calls,” says Harris .she
    says she used the CallMiner analysis to justify the deployment of a new IVR
    system just for flight confirmation.
   Continental currently has eight people listening to samples of calls in order to
    manually prepare a “call mix report”.which is used for analytical purposes by
    marketers and business planners at the airline.”The pilot test helped me realize
    ver quickly that I can do this with one person instead of eight,” she says

   And do it better.from the manually prepared call mix report, Continental should
    see that it make a sale on only half of all calls , but it couldn’t tell why sales were
    lost.Telephone agents do try to elicit the reasons , and soon automated call
    mining will enable the airline to analyze callers responses, Harris says .it may
    also save passengers some money the next time they book a continental flight
Case Study Questions:

   What are the business benefits of CallMiner system ? Provide some
    additional examples beyond those discussed in the case.

   How can new technologies like CallMiner help companies improve
    their customer service and gain competitive edge in the marketplace?
    Explain.

   Andre Harris refers to calls to reconfirm as flight as “ quite frankly low
    value calls “why are they classified as low value? Why do you think so
    many customers are placing such calls?

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IS Systems & Business Transformation

  • 5. AEROSOLES SCENARIO  Aerosoles is a 20 year old footwear company that has been providing high quality, fashionable shoes at affordable prices to department stores and specialty stores internationally. Aerosoles has over 700 employees to help design, import, distribute, and market a broad range of shoes such as boots, casual, dress, sandals, and sport alongwith accessories.  Moving beyond its reputation as a designer brand, Aerosoles has evolved into a multichannel retailer with 130 retail stores in the United States and worldwide. It also operates a direct channel comprised of a catalog and ecommerce site.  The company launched www.aerosoles.com in 1999, but later Aerosoles realized the site was in need of an upgrade. "The site was hosted by our technology partner, but this presented its share of challenges," Magnus Gustafsson, VP of Direct Marketing, Aerosoles, told Chain Store Age magazine.
  • 6. The current site offered very limited marketing and reporting capabilities, was not scalable, and had no integration with their ERP system. Thus, majority of Aerosoles customers turned to the call center to check inventory, place orders, and track shipments.  "The configuration affected data inventory upgrades and the company lacked insight into customer information. Most importantly it was merely an order taking vehicle," he said. We were ready for a stronger web presence, a better online experience, and a more seamless customer experience that mimicked the physical store experience. It was time to re-launch the site on a new, more flexible platform." said Gustafsson
  • 7. Information system and business Business •Develop team strategy challenges •Lack of performance statistics •Evaluate players •Coach players Management •High cost of players •Intense competitive pressure •Match videos of plays Information Business with statistical data Organization Solutions •Tag and index plays system •Improve performance •Analyze player Capture video •Increase revenue Technology performance Maintain protected web •Analyze team site performance Download video to ipods
  • 8. ROLE OF INFORMATION TECHNOLOGY  In Asia Pacific SMB’s 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
  • 9. INFORMATION TECHNOLOGY CAPITAL INVESTMENT 900 800 700 600 500 IT INVESTMENT 400 300 200 100 0 81 87 93 99 04 06 08 19 19 19 19 20 20 20
  • 10. 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 google’s 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
  • 13. AEROSOLES SCENARIO  Aerosoles is a 20 year old footwear company that has been providing high quality, fashionable shoes at affordable prices to department stores and specialty stores internationally. Aerosoles has over 700 employees to help design, import, distribute, and market a broad range of shoes such as boots, casual, dress, sandals, and sport alongwith accessories.  Moving beyond its reputation as a designer brand, Aerosoles has evolved into a multichannel retailer with 130 retail stores in the United States and worldwide. It also operates a direct channel comprised of a catalog and ecommerce site.  The company launched www.aerosoles.com in 1999, but later Aerosoles realized the site was in need of an upgrade. "The site was hosted by our technology partner, but this presented its share of challenges," Magnus Gustafsson, VP of Direct Marketing, Aerosoles, told Chain Store Age magazine.
  • 14. The current site offered very limited marketing and reporting capabilities, was not scalable, and had no integration with their ERP system. Thus, majority of Aerosoles customers turned to the call center to check inventory, place orders, and track shipments.  "The configuration affected data inventory upgrades and the company lacked insight into customer information. Most importantly it was merely an order taking vehicle," he said. We were ready for a stronger web presence, a better online experience, and a more seamless customer experience that mimicked the physical store experience. It was time to re-launch the site on a new, more flexible platform." said Gustafsson
  • 15. Information system and business Business •Develop team strategy challenges •Lack of performance statistics •Evaluate players •Coach players Management •High cost of players •Intense competitive pressure •Match videos of plays Information Business with statistical data Organization Solutions •Tag and index plays system •Improve performance •Analyze player Capture video •Increase revenue Technology performance Maintain protected web •Analyze team site performance Download video to ipods
  • 16. ROLE OF INFORMATION TECHNOLOGY  In Asia Pacific SMB’s 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
  • 17. INFORMATION TECHNOLOGY CAPITAL INVESTMENT 900 800 700 600 500 IT INVESTMENT 400 300 200 100 0 81 87 93 99 04 06 08 19 19 19 19 20 20 20
  • 18. 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 google’s 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
  • 19. WHAT’S NEW IN MIS TECHNOLOGY CHANGE BUSINESS IMPACT Cloud computing platform emerges as a A flexible collection of computers on the internet major business area of innovation begin to perform tasks traditionally performed on corporate computers More powerful, energy efficient computer Intel’s new PC processor chips consume 50% less processing and storage devices 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 Major business applications are now delivered as a service) online as Internet service rather than a boxed software or custom systems Netbooks emerge as a growing Small , lightweight , low cost , energy- efficient , presence in the PC marketplace , net- centric notebooks use Linux,Google Doc s suboften using open source software ,open source tools , flash memory , and the internet for their applications , storage and communications A mobile digital platform emerges to Apple opens its iphone software to developers, and compete with PC as a business system 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
  • 20. WHAT’S NEW IN MIS MANAGEMENT CHANGE BUSINESS IMPACT Managers adopt online collaborations and Google Apps,Google Sites,Microsoft’s Windows social networking software to improve Sharepoint services and IBM’s Lotus Connections coordination, collaboration , and are used over 100 million business decision makers knowledge sharing worldwide to support blogs ,project management , online meetings , personal profiles ,social bookmarks and online communities Business intelligence applications More powerful data analytics and interactive accelerate dashboards for providing real –time performance management to managers to enhance management control and decision making Managers adopt million of mobile tools Rhe emerging mobile platform greatly enhances the such as smartphones and mobile internet accuracy , speed , richness of decision making as devices to accelerate decision making well as responsiveness to customers and improve performance Virtual meeting proliferate Managers adopt telepresence video conferencing and web conferencing technologies to reduce travel time , and cost , while improving collaboration and decision making
  • 21. WHAT’S NEW IN MIS ORGANIZATION CHANGE BUSINESS IMPACT Web 2.0 applications are widely adopted Web-based services enable employees to interact by the firms 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 The internet ,wireless laptops ,iphones , and workplace 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
  • 22. 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.  India’s 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
  • 23. Manufacturing is now a very small part of US employment (less than 12%)  About 300,000 service jobs move offshore to lower wage countries
  • 24. DIGITAL FIRM  A digital firm is one in which nearly all of the organization’s significant business relationships with customers , suppliers and employees are digitally enabled and mediated.Core business processes are accomplished through digital networks spanning the entire organization or linking multiple organizations.  Key corporate assets –intellectual property ,core competencies and financial and human assets – are managed through digital means  Any piece of information required to support key business decisions is available anytime and anywhere in the firm  Digital firms sense and respond to their environment far more rapidly than traditional firms, giving them more flexible global organization and management  In digital firms, both time shifting and space shifting are the norm  Eg Cisco and Dell
  • 25. Strategic business objectives of information systems THE INTERDEPENDENCE BETWEEN ORGANIZATIONS AND INFORMATION SYSTEMS Hardware Business strategic Objectives software Data Management Business processes Business firm Information system Telecommunication
  • 26. OBJECTIVES  Operational excellence  eg Walmart achieved close to US $379 billion in sales –nearly one tenth of retail sales in the United States.  New products ,services and business models  Eg online music industry  Customer and supplier intimacy  Improved decision making  Competitive advantage  Survival
  • 27. Information system Definition: IS can be defined technically as a set of interrelated components that collect ( or retrieve ), process ,store and distribute information to support decision making and In addition to support decision making , coordination and control information systems may also help managers and workers analyze problems ,subjects and create new products. Information systems contain information about significant people ,places and things within the organization or in the environment surrounding it Three activities in the information system : Input Output Processing
  • 28. Functions of an information system ENVIRONMENT CUSTOMERS SUPPLIERS ORGANIZATION INFORMATION SYSTEM PROCESSING INPUT CLASSIFY OUTPUT ARRANGE CALCULATE FEEDBACK REGULATORY STOCK HOLDERS COMPETITORS AGENCIES
  • 29. DIMENSIONS OF INFORMATION SYSTEM INFORMATION SYSTEMS ARE MORE THAN COMPUTERS organizations technology Information System management
  • 30. ORGANIZATIONS LEVELS IN THE FIRM Senior Management Middle Management Scientists and knowledge workers Operational management Production and service workers Data workers
  • 31. INFORMATION SYSTEM AS A VALUE ADDITION (Organization and Management) Business Process Supply chain Enterprise Customer Knowledge Management Management Management Management Firm Profitability And stategic position Data Transform Dissemination ation into collection business And systems storage planning coordinating controlling Modelling and coordinating decision making Management activities
  • 32. COMPLEMENTARY ASSETS Are those assets required to derive value from a primary investment. eg new business models ,new business processes ,management behavior , organizational culture ,or training These investments in organization and management are known as organizational ad management capital.
  • 33. COMPLEMENTARY SOCIAL, MANAGERIAL , AND ORGANIZATIONLA ASSETS REQUIRED TO OPTIMIZE RETURNS FROM INFORMATION TECHNOLOGY INVESTMENT  Organisational Assets  Supportive organizational culture that values efficieny and effectiveness  Appropriate business model  Efficient business process  Decentralized authority  Distributed decision- making rights  Strong IS development team  Managerial Assets  Strong senior management  Incentives for management innovation  Teamwork and collaborative work environments  Training programs to enhance management decision skill  Social Assets  The internet and telecommunication environment  IT enriched educational programs raising labor force computer literacy  Standards ( both government and private sector)  Laws and regulations creating fair , stable market environments
  • 34. CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS Technical Computer Operations Science Research Approaches Management Sociology MIS Science Psychology Economics
  • 35. CASE STUDY CONTINENTAL AIRLINES: THIS CALL IS BEING MONITORED
  • 36. If you’ve ever placed a call to any big company’s customer service department .you’ve heard the caveat “ This call may be monitored for quality assurance purposes” But is anyone really listening? Someone is – or atleast the computers are –at continental Airlines.  To build the customer loyalty Continental enlisted the help of Witness Systems whose call center software does more than a eavesdrop. it records conversations and captures every keystroke ,so managers know whether the right actions are taken.And because the exchanges reveals what customer really customers really want, Continental is also mining the data to craft marketing plans and shape overall strategy  Before the s/w was installed in 2001,Continental’s agents were unable to resolve about 6%of the 60 million calls they fielded annually . Instead these problems were routed to an internal help desk .The witness data revealed that some agents “weren’t attempting to look up the answers on their own” says Andre Harris “,director of reservations training and quality .New standards were put up in a place and within a year nearly 20% fewer calls were being sent to help desk ,saving the company $1  Harris soon realized that the data could be a treasure trove for marketing and service operations too. “We thought we were just replacing tape recorders, “ she says ,” but it dawned on us that we could use this system to drive business decisions ”.Now if enough calls come in on one topic ,Continental can respond .For instance ,when the company learned that as many as 14 percent of customers were reconfirming flights ,it ran a notice in its in-flight magazine to assure fliers that such calls were unnecessary  To make the call monitoring more effective ,Continental added CallMiner ,a labor- saving Witness program that automatically transcribes conversations into text .”it gives me more time to analyze the data ,”Harris says ,”rather than just collect it”
  • 37. Tying speech system to mainstream corporate IT system, and the use of internet based voice system such as voice over IP (VoIP) ,are making it easier to mine database of voice records ,much as companies have mined other customer record for years .IVR analysis tools usually can keep track of the report on a caller’s choices based on which menu paths the caller has taken. But CallMiner and few other tools can go into the voice record and look for specific words or word combinations. Continental recorded a sample of its 5 million monthly calls and then used CallMiner to turn the dialogues into text and mine it for certain things .In doing so ,it discovered that about 10% of the calls contain the actual word reconfirm  Calls to reconfirm a flight are quite frankly, low value calls,” says Harris .she says she used the CallMiner analysis to justify the deployment of a new IVR system just for flight confirmation.  Continental currently has eight people listening to samples of calls in order to manually prepare a “call mix report”.which is used for analytical purposes by marketers and business planners at the airline.”The pilot test helped me realize ver quickly that I can do this with one person instead of eight,” she says  And do it better.from the manually prepared call mix report, Continental should see that it make a sale on only half of all calls , but it couldn’t tell why sales were lost.Telephone agents do try to elicit the reasons , and soon automated call mining will enable the airline to analyze callers responses, Harris says .it may also save passengers some money the next time they book a continental flight
  • 38. Case Study Questions:  What are the business benefits of CallMiner system ? Provide some additional examples beyond those discussed in the case.  How can new technologies like CallMiner help companies improve their customer service and gain competitive edge in the marketplace? Explain.  Andre Harris refers to calls to reconfirm as flight as “ quite frankly low value calls “why are they classified as low value? Why do you think so many customers are placing such calls?