BITS ZC471 Management Information Systems

BITS ZC471 Management
Information Systems
BITS Pilani
Pilani Campus
BITS Pilani
Pilani Campus
Lecture Session-2
02- 08-14
Recap Chapter 1 - Information

Snippets of Chapter
Closer Look 1.4 Second Life (SL) and
Business
Nearly 2000 IBM employees have signed up use
the site to share ideas and work on projects IBM
holds alumni block
SL allows current and former employees from
around the globe to get together in virtual meetings;
IBM purchased islands meeting places; has also
set up a Circuit City store and a Sears appliance
store as virtual commerce demonstration projects
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BITS/CM/HHSM ZC471
BITS Pilani, Pilani Campus
1.1 Doing Business in the

Digital Economy
Information & entertainment products that are
digitized Audios, videos, .
Symbols, tokens & concepts Tickets, credit cards
Processes & services Government, education,
Digital Enterprise: use of computers and ISs to
perform or support activities
Better engagement of customers

Better employee productivity
Improved operating efficiency
Digital Economy: based on digital technologies and

communication using IT.
Entrepreneurship: Online companies, innovative
business models
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E-Commerce and Networked

Computing
E-C: Process of buying and selling, transferring,
exchanging products, services or information via the
internet (or other networks)
Networked computing: Backbone of E-C.
Computers and other e-devices connected through telecomm networks
Connections give access to remote information.
Users may be connected via wireless networks to public network-Internet,
value-added networks (VAN); Intranets (within organizations only); &
connections to business partners (Extranets)
New Vs. Old Economy
Paying for goods

Buying/renting movies
Reserving tickets
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Online customization
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1.2 Information Systems and

Information Technology
A schematic view of an information system

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The basic components of

information systems
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1.3 BPM, Business Pressures, Organizational

Responses, and IT Support
Business Performance Management
1. Decide on desired performance levels: What to achieve?
2. Determine how to attain the performance levels: How to achieve?
3. Periodically assess where the organization stands with respect to its goals,
objectives and measures: How is it going?
4. Adjust performance and/or goals: Closing the gap, if any
Impact of business environment
Social
Legal
Political
Technological
Economical
Green IT
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To minimize damage to physical environment and eco system

Energy saving, minimize heat generation, .
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Pressures and Responses

(Table 1.3) & IT
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Environment Green IT
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1.4 Strategy for Competitive

Advantage and IT Support
Strategy: The component that defines how to attain the

mission, goals and objectives
What is the long term direction? Overall plan for resources deployment?
What are trade-offs (resources sharing)? Unique positioning Vs.
competition? Sustenance?
Porters competitive forces model and strategy (Table 1.4)
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Porters value chain model
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Adaptive Enterprises
Adaptive Enterprises and Role of IT
Recognize changes; Deal with changes; Dont wait
for competitor to introduce changes; Have a scalable
and appropriate IT architecture; Develop innovative
culture;
Real time, On Demand IT Support
Helps in faster decisions, immediate responses
Innovation and creativity
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First mover advantage: eBay, Dell, Apple

Computers, .
Losers: Netscape, Chemdex
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1.5 Social Computing and

Networking and Virtual Worlds
What is social computing?
Computing that is concerned with the intersection of
social behaviour and ISs.
tripadvisor.com
Social Network
Web site where people create their own space, home
page to write blogs, wikis, post pictures, videos,. and
link to other web locations.
Creating online communities
Examples of social networking service sites?

Do you belong to any of such sites? Reasons?
Functions & Impacts of Social Computing
Virtual worlds
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Why should we learn this

course?
Provide an understanding of
o Relevance and usefulness of Information Systems in Business
o Increasing importance of IT in society
MIS, IT knowledgeable
More Information Chapter 1

How IT benefits you?
Accounting/Finance/HR/IS/Marketing/OM
Key Terms; Chapter Highlights; Questions for

discussion
Exercises and Projects; Group assignments and
projects
Internet exercises; Problem solving activity; Online
resources
References (34)
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NHS Hospitals adopt cooperative WiFi

Ending Case: NHS Hospitals adopt cooperative WiFi
London NHS trust has installed WiFi access points
in Royal London Hospital
77 access points in accident and emergency
department
Network will be used for three classic health service
applications
Vocera active badges provide location services and
voice telephony for staff
Active RFID tagging - important clinical equipment using
active WiFi tags from Aeroscout
Mobile Clinical Assistant (MCA) special purpose WiFi
connected PDA from Philips to support medical staff
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Chapter 2
Information Technologies:
Concepts, Types and IT
Support
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Cases/Highlights in Chapter 2
Opening Case: Mary Kays IT systems
Founded in 1962; has about 1.8 million consultants selling
its cosmetics and fragrances in 34 countries;
In 2000, the consultants faced an increasing demand for
internet use
IT department is split into three divisions: E-commerce, SC
and back office support (for order fulfilment, accounting and
finance)
First IT project: introduction of a technology called
Business Service Management (BSM Maryville
Technologies)
Solution an eservice desk that ensures consultants in 30
countries are served in a standardized way; Atlas global
electronic ordering system
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IT at work 2.1 Western

Petroleum
Generating $62 million per employee at WP
WP (westernpetro.com) buys petro products in bulk
(50,000 barrels) and sells them in smaller chunks (5000
barrels) to over 2000 customers
Basic idea: to automate processes wherever possible,
and outsource all noncritical functions.
In 2003, management capped the number of employees
at 58. This move generated almost $62 million per
employee
Key piece of automation strategy is a software called
PetroMan : includes a trading application, contract
management, risk management, accounting programs
and pipeline scheduler;
Financial software: Global Financials
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Closer Look 2.1 BI for

competitive advantage
An umbrella term
Architecture: Four major components
1. A data warehouse (with its data sources)
2. Business Analytics (collection of tools for
manipulating, analysing and mining data
in DW)
3. BPM for monitoring and analysing
performance, and
4. A user interface display (such as
dashboard)
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Closer Look 2.2 What is

RFID system?
Uses electronic tags (chips) instead of
bar codes to identify objects or items
RFID readers use radio waves to
interact with tags;
Transmission of data and/or storage of
information about the objects (or to
locate item); major benefits are:
Quick tracking of where items are in real
time
Finding extensive information about items
Enabling quick inventory taking of items
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From Google images
22
Closer Look 2.2 What is RFID

System? An application
Nokia
Security guards employed a Nokia carry a
mobile phone handset with RFID tag.
Tags are also installed at various points
around the facility;
At the start of shift, guards use the phone to
read their RFID enabled name badges;
Implemented in Airbus Industries also; (Visit
Airbus Industries site and gather further
details!)
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IT at work 2.2 Grid

computing at JP Morgan
JP Morgan Chase largest financial institution
in the US employs 11000 IT professionals
Had about 2000 PCs that run on 50 servers
In 2003, demand for computing was increasing;
began use of grid computing at a cost of $4.5
million
System saved $1 m in computing costs in 2003,
and $5 m in 2004.
System also provides scalability; largest known
grid computing commercial application in 2004
Major success factor was the emphasis on
problem solving rather than on pushing for a
new technology.
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IT at work 2.3 Wireless Pepsi

increases productivity
A machine is out of stock or not functioning loses
revenue; Tens of thousands of machines to service
In 2002, technicians were given handheld devices
hooked into a Wireless Wide Area Network (WWAN).
A mobile database application allows wireless
communications around US in real time
Database includes repair parts inventory that is
available on each service truck; Back office system
that maintains the overall inventory;
Able to locate any truck in real time (GPSs); each
technician able to handle one more service call than
previously.
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Closer Look 2.3 How useful

traffic lights can be
About an Intelligent Traffic System (ITS)
implemented in Taiwan.
Not much details given in text
Source: http://iisdb.stanford.edu/evnts/6597/SPRIE_Innovation_Bey
ond_Boundaries_Jaching_Chou_June_30,_2011.p
df
One stop service of transport information

in Taiwan (Source: http://e-iot.iot.gov.tw)
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Eight ITS Services in Taiwan
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Abbreviations
GPRS General Packet Radio Service

WLAN Wireless Local Area Network
WiMAX Wireless for Maximum Connectivity
DSRC Dedicated Short Range
Communication
RDS/DAB Radio Data System/Digital Audio
Broadcasting
xDSL Digital Subscriber Line
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Ending Case: Airbus improves

productivity with RFID
Airbus A380, the two decker 525 seat
airplane scheduled for completion in
2007/08
RFID infrastructure also integrated with
ERP system
Software also manages data from bar
codes, which remain an important part
of Airbus supply chain
RFID industry is still highly fragmented
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Airbus improves productivity

with RFID
Airbus is employing RFID across two main
categories:
Non-flyable consists of ground based processes,
such as SC, transportation logistics,
manufacturing and assembly related applications
Flyable refers to all in-service processes,
including operational, maintenance, and payload
tracking applications
Entered service on 25 October 2007 with

flight number SQ380 between Singapore and
Sydney.
One more case: E Business at FedEx Corp.
Self-study activity
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2.1 Information Systems:

Concepts and Definitions
What is an IS? What is MIS?
An IS uses hundreds of smaller programs called
applications
Connected to other systems
Data Information Knowledge ?
The relationship among data, information &
knowledge Figure
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2.2 Classification and Types of

Information Systems
Classification based on level
Personal and productivity, TPS, Functional
and MIS, Enterprise Systems, InterOrganizational, Very Large & Special
Systems
Classification based on type of support

MIS, OAS, CAD/CAM, DMS, DSS, Expert
Systems, KMS, Data Mining, Business
Intelligence, Mobile Computing
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Levels of Information Systems
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Functional information
systems
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Enterprise Systems at Work

SPSS Predictive Analytics helps State of
Texas recover $400 Million in unpaid Taxes
US Military Utilizes High Tech Training
Practices
Forterra to Integrate Tech with Army Training
Virtual Worlds: The Future of Military Training
NDIA - Soldiers Learn Hazards of War in Virtual
Reality
Virtual training prepares soldiers for real-life
operations
DangerRoom National Security
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Power of IT BPM Systems

Dashboards
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Interrelated support systems

TPS collects information that is used in MIS and DW
These, in turn, feed the BI and other enterprise systems.
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2.3 How IT Supports People?
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2.4 How IT Supports Supply

Chains and Business Processes
Supply Chain and its three parts
Purpose of IT in
Internal part
Upstream part
Downstream part
Other Systems
02/08/2014
Industry specific systems

E-commerce models
Online search
Social Networking
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2.5 Information Systems Infrastructure,
Architecture, and Emerging Computing Environments
Infrastructure: Physical facilities; Components:

H/w, S/w, Networks and telecomm, databases and data
workers & inf. Management personnel
Architecture: High level map of inf. assets

Step 1. Business goals and vision
Step 2. Information architecture
Step 3. Data architecture
Step 4. Application architecture
Step 5. Technical architecture
Step 6. Organizational architecture
Web based systems

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Emerging computing
environments
SOA: reuse and reconnect

Web services: machine to machine interaction
Utility Computing/SaaS/on-demand computing
Grid Computing SETI LHCS
J.P. Morgan Harnesses Power with Grid Computing
System
Cloud computing: Combines SaaS, utility computing, grid

computing & Web 2.0 concepts
Mobile and Pervasive Computing

What is Virtualization? Separation
Storage Virtualization pooling of storages
Network Virtualization splitting the network load
Hardware Virtualization use of s/w to emulate h/w
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2.6 Innovative and Futuristic

Information Systems
Intelligent traffic control systems
Taiwan ITS
Car Navigation (Auto) Systems
NextBus Information
Predictive analysis
Health Care Wireless Predictive System
NRI model
2.7 Managerial issues: Transition,
outsourcing, risks, SCM, BI
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Summary
Information Systems: Concepts and Definitions

Classification and Types of Information Systems
How IT Supports People
How IT Supports Supply Chains and Business
Processes
Information Systems Infrastructure,
Architecture, and Emerging Computing
Environments
Innovative and Futuristic Information Systems
Managerial Issues
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BITS ZC471 Management Information Systems

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BITS ZC471 Management

Recap Chapter 1 - Information

BITS Pilani, Pilani Campus

1.1 Doing Business in the

Better engagement of customers

Digital Economy: based on digital technologies and

BITS Pilani, Pilani Campus

E-Commerce and Networked

New Vs. Old Economy

Paying for goods

BITS Pilani, Pilani Campus

BITS Pilani, Pilani Campus

1.2 Information Systems and

A schematic view of an information system

BITS Pilani, Pilani Campus

The basic components of

BITS Pilani, Pilani Campus

1.3 BPM, Business Pressures, Organizational

Impact of business environment

To minimize damage to physical environment and eco system

BITS Pilani, Pilani Campus

Pressures and Responses

BITS Pilani, Pilani Campus

BITS Pilani, Pilani Campus

1.4 Strategy for Competitive

Strategy: The component that defines how to attain the

Porters competitive forces model and strategy (Table 1.4)

BITS Pilani, Pilani Campus

Porters value chain model

BITS Pilani, Pilani Campus

Real time, On Demand IT Support

Helps in faster decisions, immediate responses

Innovation and creativity

First mover advantage: eBay, Dell, Apple

BITS Pilani, Pilani Campus

1.5 Social Computing and

Examples of social networking service sites?

BITS Pilani, Pilani Campus

Why should we learn this

More Information Chapter 1

Key Terms; Chapter Highlights; Questions for

BITS Pilani, Pilani Campus

NHS Hospitals adopt cooperative WiFi

BITS Pilani, Pilani Campus

BITS Pilani, Pilani Campus

BITS Pilani, Pilani Campus

IT at work 2.1 Western

BITS Pilani, Pilani Campus

Closer Look 2.1 BI for

BITS Pilani, Pilani Campus

Closer Look 2.2 What is

From Google images

BITS Pilani, Pilani Campus

Closer Look 2.2 What is RFID

BITS Pilani, Pilani Campus

IT at work 2.2 Grid

BITS Pilani, Pilani Campus

IT at work 2.3 Wireless Pepsi

BITS Pilani, Pilani Campus

Closer Look 2.3 How useful

One stop service of transport information

BITS Pilani, Pilani Campus