Scribd
Upload
67 views

Lecture - 1 - Introduction of Information Systems

The document discusses the role and importance of information systems in business. It defines information systems and their components, examines perspectives on information systems including the organizational, management, and technology dimensions, and explores how information systems can help businesses achieve strategic objectives like operational excellence, new products and services, improved decision-making, and competitive advantage. Contemporary approaches to information systems combine technical and behavioral aspects to create business value through effective use of data, information, and technology.

Uploaded by

nitesh tekriwal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
67 views

Lecture - 1 - Introduction of Information Systems

The document discusses the role and importance of information systems in business. It defines information systems and their components, examines perspectives on information systems including the organizational, management, and technology dimensions, and explores how information systems can help businesses achieve strategic objectives like operational excellence, new products and services, improved decision-making, and competitive advantage. Contemporary approaches to information systems combine technical and behavioral aspects to create business value through effective use of data, information, and technology.

Uploaded by

nitesh tekriwal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 32

Information Systems for

Business (ISB)

Dr. Mary Jeyanthi P


Class Etiquettes

No late arrivals


No cell phones
Strictly following seating plan
Session 1
Information Systems in
Business Today
Learning Objectives

• Define an information system and its components


– Management
– Organization, and
– Technology

• Business information value chain

• Contemporary approaches to information systems

• Explain why information systems are so essential in business


today
– Strategic business objectives
Why Managers needs the extensive
Knowledge of Information Systems?
 Research – To identify the right
customer

 Development of products –
Producing Innovative products

 Promoting the products –


Advertisement etc..

 Create the awareness of the


products among the Consumers
Information Systems

• Information System:
Set of interrelated components
Collect, process, store, and distribute information
Support decision making, coordination, and control

• Information vs. data


Data are streams of raw facts
Information is data shaped into meaningful form
What will be the Role of
Information Systems in Business
Today?
The Role of Information Systems in
Business Today

• How information systems are transforming business


Increase in wireless technology use, Web sites
Increased business use of Web 2.0 technologies
Cloud computing, mobile digital platform allow more distributed
work, decision making, and collaboration

• Globalization opportunities
Internet has drastically reduced costs of operating on global
scale
Presents both challenges and opportunities
Information Systems

Data and Information

Figure: Raw data from a supermarket checkout counter organized to get meaningful
information
Perspectives on Information Systems

• Information systems have three activities:

Input: Captures raw data from organization or external environment

Processing: Converts raw data into meaningful form


Output: Transfers processed information to people or activities that
use it

• Feedback:
Output returned to appropriate members of organization to help
evaluate or correct input stage
Perspectives on Information Systems

Figure: Activities of an Information System


Perspectives on Information Systems

Business organizations are


hierarchy of authority and
responsibility consisting of
three principal levels:
- senior management
- middle management
- operational management

Figure: Management Levels in a Firm


Perspectives on Information Systems

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.

Figure: Information Systems are More than Computers


Perspectives on Information Systems

• Organizational dimension of information systems


Separation of business functions
 Sales and marketing
 Human resources
 Finance and accounting
 Manufacturing and production
Unique business processes
Unique business culture
Perspectives on Information Systems

• Management dimension of information systems

Managers set organizational strategy for responding to business


challenges

In addition, managers must act creatively:


 Creation of new products and services

 Occasionally re-creating the organization


Perspectives on Information Systems

• Technology dimension of information systems


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


Business Perspectives on Information
Systems
Business perspective on information systems

Information system is instrument for creating value

Investments in information technology will result in superior returns:


 Productivity increases; Revenue increases; Superior long-term
strategic positioning

Business information value chain


Raw data acquired and transformed through stages that add value to
that information

Value of information system determined in part by extent to which it


leads to better decisions, greater efficiency, and higher profits
Business Perspectives on Information
Systems
From a business perspective,
information systems are part
of a series of value-adding
activities
for
acquiring, transforming, and
distributing information
that managers can use

to
improve decision making,
enhance organizational
performance, and
ultimately,
increase firm profitability. Figure: The Business Information Value Chain
Contemporary Approaches to Information
Systems

Figure: Contemporary Approaches to Information Systems


Contemporary Approaches to Information
Systems

• Information Systems Combines computer science, management


science, operations research and practical orientation with
behavioral issues

• Four main actors:

Hardware and software

Business firms

Managers and employees

Firm’s environment (legal, social, cultural context)


The Role of Information Systems in
Business Today

• In the emerging, fully digital firm


Significant business relationships are digitally enabled and
mediated
Core business processes are accomplished through digital
networks
Key corporate assets are managed digitally

• Digital firms offer greater flexibility in organization and


management
Time shifting, space shifting
The Role of Information Systems in
Business Today

• Growing interdependence between ability to use IT and ability to


implement corporate strategies and achieve corporate goals

• Business firms invest heavily in information systems to achieve


six strategic business objectives:

Operational excellence
New products, services, and business models
Customer and supplier intimacy
Improved decision making
Competitive advantage
Survival
The Role of Information Systems in
Business Today

Operational Excellence

Improvement of efficiency to attain higher profitability


Information systems, technology an important tool in achieving
greater efficiency and productivity

Walmart’s RetailLink system links suppliers to stores for


superior replenishment system
The Role of Information Systems in
Business Today

New Products, Services, and Business Models


Business model: describes how company produces, delivers, and
sells product or service to create wealth

Information systems and technology a major enabling tool for


new products, services, business models
 Examples: Apple’s iPod, iTunes, iPhone, iPad, Google’s Android
OS, and Netflix
The Role of Information Systems in
Business Today

Customer and Supplier Intimacy

Serving customers well leads to customers returning, which


raises revenues and profits
 Example: High-end hotels that use computers to track customer
preferences and use to monitor and customize environment
Intimacy with suppliers allows them to provide vital inputs,
which lowers costs
 Example: J.C.Penney’s information system which links sales
records to contract manufacturer
The Role of Information Systems in
Business Today

Improved Decision Making

Without accurate information:


 Managers must use forecasts, best guesses, luck
Leads to:
 Overproduction, underproduction of goods and services
 Misallocation of resources
 Poor response times
 Poor outcomes raise costs, lose customers

 Example: Verizon’s Web-based digital dashboard to provide


managers with real-time data on customer complaints, network
performance, line outages, etc.
The Role of Information Systems in
Business Today

Competitive Advantage
Delivering better performance

Charging less for superior products

Responding to customers and suppliers in real time

Examples: Apple, Walmart, UPS


The Role of Information Systems in
Business Today

Survival
Information technologies as necessity of business

May be:

 Industry-level changes, e.g. Citibank’s introduction of ATMs


 Governmental regulations requiring record-keeping
 Examples: Toxic Substances Control Act, Sarbanes-Oxley Act

 Nokia
The Role of Information Systems in
Business Today
The Interdependence between Organizations and Information Technology

Figure: Interdependence between a firm’s information systems and its business capabilities
A Sociotechnical Perspective on Information Systems

Figure In a sociotechnical perspective, the performance of a system is optimized when both the
1-10 technology and the organization mutually adjust to each other until a satisfactory fit is
obtained.
Case Discussion:

\\10.40.0.4\handouts\Pmjeyanthi\ISB\Case
Discussion\STAR Air Ambulance Information
Systems Study.pdf

You might also like