Introduction to Information management

Information Systems in
Networked Enterprise
Emerging Digital Firm
UNIT I
Dr.K.Priya, SRM Institute of Science & Technology, Ramapuram Information Management

Dr.K.Priya, SRM Institute of Science & Technology, Ramapuram
Information Management
Business Objectives – Dimensions of Information Systems – Academic Disciplines – Technical Approach –
Behavioural Approach – Global E-Business and Collaboration – Business Processes – Relation between
Business Processes and Information Systems – Systems for different Management groups – Collaboration
- Social business – Tools and Technologies for collaboration and social Business.

How Information Systems Are Transforming
Business?
• American businesses spend over $540 billion on information systems
hardware, software, and telecommunications equipment.
• $650 billion on business and management consulting and services

Internet users
• 624.0 million internet users in India in January 2021
• The number of internet users in India increased by 47 million (+8.2%)
between 2020 and 2021
• Internet penetration in India stood at 45.0% in January 2021
• 448.0 million social media users in India in January 2021.
• The number of social media users in
India increased by 78 million (+21%) between 2020 and 2021.
• Even economic slowdown, e-commerce and Internet advertising
continue to expand.
• Internet advertising continues to grow at more than 10 percent a
year, reaching more than $39.5 billion

Most Exciting
topic
Management Information system

Management Information system
• continual change in technology, management use of the technology,
and the impact on business success
emerging
mobile
digital
platform
big data
cloud
computing

TECHNOLOGY
MANAGEMENT
ORGANIZATIONS
WHAT’S NEW IN MIS
• Cloud computing
• Big data
• mobile digital platform
• Social business
• Telework gains momentum
in the workplace
• Co-creation of business
value
• online collaboration and social
networking
• Business intelligence
applications accelerate
• Virtual meetings proliferate

“ iPhone is not a game changer, it’s an industry
changer “

WHAT IS AN INFORMATION SYSTEM?
• Information technology (IT) consists of all the hardware and software that
a firm needs to use in order to achieve its business objectives
• An information system can be defined as a set of interrelated components
that collect (or retrieve), process, store, and distribute information to
support decision making and control in an organization
• help managers and workers analyze problems, visualize complex subjects,
and create new products
• Eg.., Supermarket

Disney World uses big data
• Most Magical Place on Earth
• Disney masterminds are leveraging Big Data in innovative ways to improve the experience
• MyMagicPlus program – 2013
• bands communicate with thousands of sensors and stream real-time data to hundreds of
systems that make the entertainment venue a giant computer.
• hotel keys, credit cards, tickets, FastPasses
• how to minimize the wait times for rides and attractions?
• re-rerouting of guests makes more efficient use of the park and even allows for exemplary
customer service to be delivered.
• family pre-orders dinner
• Candid photos of your family enjoying the park
• a free voucher for your trouble.

Dimensions of information system

Organizations
• key elements of an organization are its people, structure, business
processes, politics, and culture
• Structure and levels
• Senior management - long-range strategic decisions about products
and services
• Middle management -programs and plans of senior management
• operational management -monitoring the daily activities of the
business

Organizations
Examples of business processes:
Developing a new product, fulfilling an order, and hiring a new employee

Major business functions
Eg., how a customer receives credit or how a customer is billed is often determined by an
information system that incorporates a set of formal business processes.

MIS For Data Analysis and Strategic
Direction at Amazon.com
• uses MIS systems to organize massive volumes of data into coherent reports
• Managers identify information patterns and financial patterns that can aid in strategic
planning for growth by examining the reports and statements
presentation layer- level of interaction
application layer - controlled by a company
resource planning system
Data Layer - demanding data collection
and management

Management
• many situations faced by organizations, make decisions, and
formulate action plans to solve organizational problems
• create new products and services and even re-create the organization
from time to time
• Information technology can play a powerful role in helping managers
design and deliver new products and services and redirecting and
redesigning their organizations

Information Technology
• Computer hardware
• Computer software - control and coordinate the computer hardware
components
• Data management technology
• Networking and telecommunications technology
Internet, Extranet, World wide web

Organizational Capital And the Right
Business Model
• why some firms achieve better results from their information systems
than others???????

Organizational Capital And the Right
Business Model
• supportive values, structures, and behavior patterns in the
organization and other complementary assets
• new business models, new business processes, management
behavior, organizational culture, or training, receive superior returns

Contemporary Approaches to
Information System
• multidisciplinary field
• require substantial social, organizational, and intellectual investments

BEHAVIORAL APPROACH
• strategic business integration, design, implementation, utilization,
and management cannot be explored

TECHNICAL APPROACH
• emphasizes mathematically based models to study information
systems, as well as the physical technology
• computer science, management science, and operations research.
computability, methods of
computation, and methods of
efficient data storage
Models for decision
making
transportation, inventory
control, and transaction costs.

Behavioural Approach
• Sociologists - eye toward how groups and organizations shape the
development of systems
• Psychologists -with an interest in how human decision makers
perceive and use formal information.
• Economists - understanding the production of digital goods, the
dynamics of digital markets, and how new information systems
change the control and cost structures within the firm.

Dr.K.Priya, SRM Institute of Science & Technology,
Ramapuram
Definitions: MIS
Davis & Olson: MIS is an integrated user-machine system for
providing information to support operations, management
and decision making functions in an organization. The system
utilizes computer hardware and software, manual
procedures/models for analysis, planning, control and decision
making and a database.
Kelly: A combination of human and computer based resources
which result in collection, storage, retrieval, communication and
use of data for the purpose of efficient management of operations
and for Business Planning.

Ramapuram
According to Henry C. Lucas, “MIS is a set of organized
procedures which when executed provide information
to support decision-making”.
Krober and Watson has defined MIS as “ an
organized set of processes that provide
information to managers to support the operation
and decision making within an organization”.

All these definitions show that MIS is
• A system
• It combines human and computer based resources
• It is meant to provide information to managers
• This information enables managers to make timely and effective
decisions
• For this, it must be properly communicated
In order to fulfill its functions, MIS uses
• Computer hardware and software
• Manual procedures
• Decision models
• Database

Ramapuram
Need of MIS
• necessary due to the increased Business & Management complexities.
• enables processing of data from the organization and present it in a form of
reports at regular intervals (data processing)
• capable of presenting information in a form and format that it creates an
impact on its user, provoking a decision, an action or an investigation.
• capable of handling a need based exception reporting.
• capable of keeping the data all together in such a form that it can be accessed
by anybody and can be processed to suit his needs (concept of database)
• capable of decision- making (quantitative & qualitative ) and helps to minimize
risk.
• facilitates pro-active decision making.

Ramapuram
Role of MIS in an Organisation
• Support day-to-day business operations
• Support managerial decision making
• Supports strategic decision making & competitive advantage
• Optimizing operational cost
• Provide timely & accurate information
• Provide expert advice to the mangers on selected domains

Example
• Mr. Parson is the Chief Operations Officer (COO) at Bermuda Fabrics
LLC. As part of his job, he needs to forecast the next quarterly
production plan, which includes an expected production quantity for
each of the products that the company sells. He needs a lot of
information and statistics to come up with a useful and reliable
projection that captures the current business environment the company
is facing and the company’s capacity to manufacture within those
parameters. How could a MIS help Mr. Parson to develop these
forecasts properly?

• all the different variables
• need to review production patterns, past sales, current
equipment, and current suppliers
• Mr. Parson will be able to design a forecasting model (which
can also be included on the system) that will allow him to plan
for next quarter production.

Ramapuram
Role of MIS in an Organization
• Provides information to all the levels of management
for the following purpose
• Define objectives of the organization
• Formulate strategies & policies to achieve the objectives
• To report organisation’s performance to tax authorities,
share holders, regulatory authorities and other stake
holders such as suppliers & customers etc
• To prepare future plans on short & long term basis
• To exercise day-to-day control on various operations in
different functional areas
• To allow management by exception

WIPRO OBJECTIVE
• Wipro's aim was to continue its transformation from a low
cost provider of outsourced services to become a global
information technology leader, delivering world-class
solutions to its global customers through a process of
fostering ongoing internal and external innovation.

Ramapuram
Features of MIS
• Management –Oriented: provides information to all the management
levels.
• Subsystem
• Integration
• Common database
• Information source & reporting format
• More useful for structured decisions
• Provide relevant information
• Computerized

Ramapuram
Impact of MIS
• Management becomes more efficient. Tracking & monitoring of the
functional targets becomes easy
• Better understanding of the business itself.
• Systemisation of business operations.
• MIS goals pull the entire organisation in one direction towards the
corporate goals and objectives.
• Creates an information-based work culture in the organisation.

Ramapuram
Limitations of MIS
• It is not a substitution to managerial activities but a tool for management
activities
• It is customized
• Like any other system, the quality of i/p governs the quality of the o/p.
• It takes into account mainly quantitative factors, non quantitative factors like
morale, attitude of the members of the organization, which have an important
bearing on decision making process, is conveniently ignored.
• Is less useful for making non programmed decisions
• The effectiveness of MIS will diminish in organization where information sharing
is not adopted as culture.

Ramapuram
MIS : Objectives
• Enhance communication among employees
• Deliver complex material throughout the organization
• Provide an objective system for recording & aggregating information
• Reduce expense related to labour-intensive manual activities
• Support the organization's strategic goals & direction

Computer for MIS
• Conceptually MIS can exist with computer, but it is the power of
Computer which makes MIS feasible.
• Can produce periodic results
• Comparing it with set target
• Required representation of analysis
All done in minimum time with minimum human involvement.

Dr.K.Priya, SRM Institute of Science & Technology, Ramapuram Information
Management
Advantages of using computer
• Data access from several (remote) locations
• Data security
• Data confidentiality
• Data storage
• Fast computation
• Integrates working of different Information subsystem
• Better decision making
• User friendly
• More comprehensive information –complete wide ranging information

Global E-business and Collaboration
• What are business processes? How are they related to information
systems?
• What is the role of the information systems function in a business?

Business Process
• businesses must deal with many different pieces of information
about suppliers, customers, employees, invoices, and payments, and
of course their products and service
• Information systems make it possible for firms to manage all their
information, make better decisions, and improve the execution of
their business processes
• Business processes are the collection of activities required to
produce a product or service

EXAMPLES OF FUNCTIONAL BUSINESS
PROCESSES

THE ORDER FULFILLMENT PROCESS

HOW INFORMATION TECHNOLOGY IMPROVES
BUSINESS PROCESSES
• making it possible for many more people to access and share
information, replacing sequential steps with tasks
• Downloading a Kindle e-book from Amazon, buying a computer
online at Best Buy, and downloading a music track from iTunes are
entirely new business processes based on new business models

TYPES OF INFORMATION SYSTEMS
Transaction Processing Systems
• keep track of the elementary activities and transactions of the
organization, such as sales, receipts, cash deposits, payroll, credit
decisions, and the flow of materials in a factory
• computerized system that performs and records the daily routine
transactions necessary to conduct business, such as sales order entry,
hotel reservations, payroll, employee record keeping, and shipping
• TPS failure for a few hours can lead to a firm’s demise and perhaps
that of other firms linked to

Payroll TPS

MIS
• MIS typically provide answers to routine questions that have been
specified in advance and have a predefined procedure for answering
them.
Eg.,., total pounds of lettuce used this quarter by a fast-food chain
• use simple routines, such as summaries and comparisons, as opposed
to sophisticated mathematical models or statistical techniques.

Sample MIS report

MIS FOR BANKS

Decision Support system
• focus on problems that are unique and rapidly changing, for which
the procedure for arriving at a solution may not be fully predefined in
advance.
• What would be the impact on production schedules if we were to
double sales in the month of December? What would happen to our
return on investment if a factory schedule were delayed for six
months?
• bring in information from external sources, such as current stock
prices or product prices of competitors

VOYAGE-ESTIMATING DECISION-SUPPORT
SYSTEM
• Given a customer delivery schedule and an offered freight rate, which
vessel should be assigned at what rate to maximize profits?
• What is the optimal speed at which a particular vessel can optimize
its profit and still meet its delivery schedule?
• What is the optimal loading pattern for a ship bound for the U.S. West
Coast from Malaysia?

VOYAGE-ESTIMATING DECISION-SUPPORT
SYSTEM

Executive support systems (ESS)
• help senior management and they address non-routine decisions
requiring judgment, evaluation, and insight
• ESS present graphs and data from many sources through an interface
• designed to incorporate data about external events, such as new tax
laws or competitors
• ESS that provides on his desktop a minute-to-minute view of the
firm’s financial performance
• digital dashboard

Digital Dashboard

How all these different systems can
share information and how
managers and employees are able to
coordinate their work?

Enterprise Applications
• different kinds of systems in a company to work together has proven
a major challenge
• enterprise applications- span functional areas, focus on executing
business processes across the business firm, and include all levels of
management
• more flexible and productive by coordinating their business processes

Enterprise Applications
Enterprise
system
Supply Chain
Management
System
CRM
Systems
Knowledge
Management
System

Enterprise Resource Planning
• to integrate business processes in manufacturing and production,
finance and accounting, sales and marketing, and human resources
into a single software system.
• stored in a single comprehensive data repository where it can be used
by many different parts of the business.
Customer
places an order
Triggers the
warehouse to
pick the product
Accounting dept
send the invoice
Customer
service tracks
the progress of
the order

Supply Chain Management Systems
• help suppliers, purchasing firms, distributors, and logistics companies
share information about orders, production, inventory levels, and
delivery of products and services
• can source, produce, and deliver goods and services efficiently
• to get the right amount of their products from their source to their
point of consumption in the least amount of time and at the lowest
cost

Customer Relationship Management Systems
• information to coordinate all of the business processes that deal with
customers in sales, marketing, and service to optimize revenue,
customer satisfaction, and customer retention
• attract, and retain the most profitable customers; provide better
service to existing customers; and increase sales

Knowledge Management Systems
• have better knowledge about how to create, produce, and deliver
products and services
• firm knowledge is unique, difficult to imitate, and can be leveraged
into long-term strategic benefits
• better manage processes for capturing and applying knowledge and
expertise

COLLABORATION
➢working with others to
achieve shared and explicit
goals
➢focuses on task or mission
accomplishment and usually
takes place in a business
➢short-lived, lasting a few
minutes, or longer term,
depending on the nature of
the task and the relationship
among participants.

Reasons
• Changing nature of work
• Growth of professional work
• Changing organization of the firm
• Changing scope of the firm
• Emphasis on innovation
• Changing culture of work and business

SOCIAL BUSINESS
• the use of social networking platforms, including Facebook, Twitter, and
internal corporate social tools—to engage their employees, customers,
and suppliers
• goal of social business is to deepen interactions with groups inside and
outside the firm to expedite
• Key word – Conversations
• great deal of information transparency

Applications of Social Business

Social Marketing -Nutella – Incredible content
that makes you salivate
• Each post makes you want to eat
Nutella
• Take photos of their food before
they eat it- does the same
• Nutella is just a chocolate spread
yet they manage to have fun with
it

Mercedes Benz – Repeated,
successful social media marketing
campaigns
• best Instagram marketing campaigns
• hired five top Instagram photographers
• By the end of the campaign, Mercedes has received:
• 87,000,000 organic Instagram impressions
• 2,000,000 Instagram likes
• 150 new marketing assets (stunning photos)
•

• https://www.youtube.com/watch?v=BYQL6-3Q8LI&t=65s

TOOLS AND TECHNOLOGIES FOR
COLLABORATION AND SOCIAL BUSINESS
❑E-mail and Instant Messaging (IM)
• major communication and collaboration tools for interaction jobs
• software operates on computers, cell phones, and other wireless
handheld devices and includes features for sharing files as well as
transmitting messages
• e-mail use has declined

❑Wiki
type of Web site that makes it
easy for users to contribute and
edit text content and graphics
without any knowledge of Web
page development or
programming techniques
for storing and sharing corporate
knowledge and insights
Eg., Wikipedia
English Wikipedia right now
•MediaWiki version:
1.38.0-wmf.3 (bfb4361)
•Content articles: 6,390,036
•Total pages: 54,337,527
•Uploaded files: 894,571
•Edits: 1,044,062,748
•Registered users: 42,336,766
(126,688 active in the past month)
and 1,077 administrators
•Data as of 00:35, 8 October 2021 (UTC).
•Update

• Virtual World
• Eg., Second life, IBM and Insead,
an international business school
• house online meetings, training
sessions, and “lounges

Collaboration and Social Business Platform
• S/w providing multi-function platforms for collaboration and social
business
• Google Apps/Google Sites, cyberlockers, corporate collaboration
systems such as Lotus Notes and Microsoft SharePoint, and enterprise
social networking tools such as Salesforce Chatter, Microsoft Yammer,
Jive, and IBM Connections and SmartCloud for Business

Virtual Meeting Systems
• to reduce travel expenses, many companies, both large and small, are
adopting videoconferencing and Web conferencing technologies.
• High-end videoconferencing systems feature telepresence technology,
an integrated audio and visual environment that allows a person to
give the appearance of being present at a location
• Cisco WebEx, Microsoft Live Meeting, and Adobe Connection, zoom

Google Apps/Google Sites and Cloud
Collaboration Services
• free” online services for collaboration
• Google Drive, Dropbox and Microsoft SkyDrive is an example of a
cloud-based cyberlocker

Microsoft SharePoint

Lotus Notes
• for sharing calendars, collective writing and editing, shared database
access, and electronic meetings
• platform for e-mail, instant messaging (working with Lotus
Sametime), Web browsing, and calendar/resource reservation work,
as well as for interacting with collaborative applications
• high levels of security and reliability

Evaluating and Selecting Collaboration and
Social Software Tools

Business Benefits

Management Decision Problems
• Henry’s Hardware is a small family business in Sacramento, California. The
owners, Henry and Kathleen, must use every square foot of store space as
profitably as possible. They have never kept detailed inventory or sales records. As
soon as a shipment of goods arrives, the items are immediately placed on store
shelves. Invoices from suppliers are only kept for tax purposes. When an item is
sold, the item number and price are rung up at the cash register. The owners use
their own judgment in identifying items that need to be reordered.What is the
business impact of this situation? How could information systems help Henry and
Kathleen run their business? What data should these systems capture? What
decisions could the systems improve?

Thanks for
Listening with great
patience

Introduction to Information management

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