Information

Systems
MSI 101

Manu K. Gupta
Department of Management Studies,

IIT Roorkee.

Session 1
Welcome to this Module!

• Session 1 - Introduction to Information Systems and IT Value

• Session 2 - Aligning IT with Business Strategy and Operating
Models
• Session 3 - IT-based Business Models
• Session 4 - IT-Based Decision Making and Data-Driven
Organization
• Session 5 - IT Governance, IT Investment, and Healthcare IT

1
Textbooks

Figure 1: Useful textbooks for this

module.

2
Session 1
Learning Objectives

• Understand what Information Systems (IS) and

Information Technology (IT) are.
• Explore the value of IT in modern businesses.
• Learn how IT creates a competitive advantage in various
industries.

3
Key concepts

• Definition of Information Systems (IS) and Information Technology

(IT).
• Role of IS/IT in modern organizations
• IT Value: How IT contributes to business value (productivity,
efficiency, innovation)

Discussion Points:

• Examples of IT transforming industries (e.g., retail, banking,

logistics).
• Benefits and challenges of adopting IT in businesses.

4
Data Vs Information

Figure 2: Raw, unorganized data and structured, meaningful information

5
Data vs Information

Data: Consists of raw fact.

Examples - Employee number, An inventory part number, Number of
units produced on a production line.
Source (Industry) – Company Name

• Sensor Readings (IoT/Manufacturing): Tata Steel, Mahindra &

Mahindra
• Survey Responses (Customer Feedback): Flipkart, Zomato
• Social Media Posts (User Interaction Data): Byju’s, Swiggy
• Emails or Customer Support Tickets (Telecom/Banking)–
Airtel, ICICI Bank
• Financial Statements (Banking/Consulting): HDFC Bank, Tata
Consultancy Services (TCS)

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Data vs Information

Information: Collection of data organized and processed sothat it

has additional value beyond the value of individual facts.
Examples : Sales manager may want individual sales data summarized
so it shows total sales for the month.

• Sales Report (E-commerce) : Flipkart

• Customer Satisfaction Dashboard (Food Delivery/E-commerce) :
Swiggy, Zomato
• Employee Performance Evaluation (IT/Consulting) : Infosys, Tata
Consultancy Services (TCS)
• Website Analytics Dashboard (E-commerce/Tech) : Myntra,
MakeMyTrip
• Project Status Report (Infrastructure/Real Estate) : Larsen &
Toubro (L&T), Godrej Properties

7
Why learn about Information Systems?

Computers and information systems are all around you

• Online classes
• Grading
• Grocery and retail
• smartphones
• Internet

Businesses can use information systems to increase revenues and

reduce costs.
Information systems used by: Sales representatives, Managers,
Financial advisors

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What are Information Systems?

An information system is a set of interrelated component that col-

lect, process, store data and information and provide feedback to
meet an objective.
- Fundamentals of Information Systems by Stair and Reynolds

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CBIS - Computer based information
systems

• Hardware – Computer Equipment

• Software – Computer Programs
• Telecom – Electronic Transmission
• Databases – Organized collection of

data
• People – End Users, Clients
• Procedure – Rules for using CBIS

CBIS is a single set of hardware, software, databases,

telecommu- nications, people, and procedures that are
configured to collect, manipulate, store, and process data into 10
Examples of Information
Systems

• A university
• University stores all student data in a database
• Built-in query capability
• Other types of analysis can be done
• Teletech
• International textile company
• Database stores data on products, suppliers, sales personnel,
costs
• Process components
• Forecasting models

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• Smartphones and Mobile Apps - Google Maps
• E-Commerce Platforms - Amazon
• Public Transportation Systems - Transit App
• Healthcare Systems - Patient Portals
• Banking and Financial Services - Online Banking
• Home Automation Systems - Amazon Echo
• Education Technology - Moodle
• Customer Service Systems - Zendesk
• Supply Chain Management - Inventory Management
System
• Entertainment Systems - Netflix

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What is Information Technology (IT)?

Definition: Refers to the use of computers, software, networks, and

other technologies to store, retrieve, transmit, and manipulate data.

Components:
• Hardware (computers, servers)
• Software (applications, operating systems)
• Networking (internet, intranet)
• Databases (data storage solutions)

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IT vs IS

Focus

• IT focuses on technology and infrastructure

• IS focuses on the application of technology to support
business processes and decision-making.

Purpose

• IT is about managing technology.

• IS is about managing data and processes to provide insights
and support organizational goals

While IT provides the tools and infrastructure, IS encompasses the

broader context of how those tools are used within
organizations.

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Three fundamental types of information
systems

• Personal IS
• Group IS
• Enterprise IS

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Personal IS

Definition:

• Designed for individual users to support personal tasks

and decision-making.

Characteristics:

• Focused on personal productivity.

• Typically software applications (e.g., word processors,
spreadsheets).

Examples:

• Personal finance software (e.g., Mint).

• Task management apps (e.g., Todoist).

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17
Group IS

Definition:

•Facilitate collaboration among members of a team or

group. Characteristics:

• Support group decision-making and coordination.

• Often include communication and collaboration tools.

Examples:

• Project management software (e.g., Trello).

• Communication platforms (e.g., Slack, Microsoft Teams).

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19
Enterprise IS

Definition:

• Integrated systems that support and manage organizational

processes across departments.

Characteristics:

• Enable data sharing and process integration.

• Support strategic decision-making and resource
management.

Examples:

• Enterprise Resource Planning (ERP) systems (e.g., SAP).

• Customer Relationship Management (CRM) systems (e.g.,
Salesforce).

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21
Three fundamental types of information
systems
Personal IS Group IS Enterprise IS
Examples Personal Email, instant Transaction
produc- messaging, project pro-
tivity management cessing
software, decision- software systems, enterprise
support system
systems,
interorganizational
systems
Benefits Improved productiv- Increased collabo- Increased standard-
ity ration ization and ability to
monitor work
Manager’s Ensure that em- Demonstrate how Identify and put into
role ployees understand technology can be place the full set
and connect to the used. Set norms of organizational
change. Encourage for participation complements prior
use. to adoption. Inter-
Challenge workers vene forcefully and 22
to find new uses continually to
Importance of Information Systems

Personal Information Systems

•Efficiency, Customization,

Accessibility Group Information Systems

•Coordination, Communication, Productivity,

Collaboration Enterprise information system

• Integration, Strategic Decision-Making, Resource Management,

Scalability.

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Key Roles of IS/IT in Business

• Streamline operations
• Improve communication
• Enable decision-making through data analysis
• Support customer engagement and relationship
management
• Drive innovation and new business models

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Leading IT services and consulting companies in India and their net
sales.

25
IT spending worldwide

IT spending worldwide

Source: Gartner
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IT export from India

IT Exports Contribution to India’s GDP is : 7.5%

Value of export revenue of the IT sector across, Source: Meity 27

IT Value in Modern Business

Definition: IT value refers to the benefits that IT brings to an

organization, such as increased efficiency, enhanced innovation,
cost savings, and improved customer experiences.

• Efficiency gains (automated processes)

• Better decision-making (data analytics)
• Competitive advantage (e.g., Amazon’s use of AI/ML for
recommendations)
• Innovation and new business models (Airbnb, Uber)

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Summary

• Data vs Information
• Information systems – three fundamental
types
• Information technology vs information
systems
• Importance of IS and its key role in business
• IT value in Modern businesses

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 Thank
you!
[email protected]
c.in