How are information

systems transforming
business and what is
their relationship to
globalization?
With reference to the Indian economy, inclusive of case
studies.

By Ayush Bisht
Introduction
E-mail, online conferencing, and cell phones have become essential tools for conducting
business. Information systems are the foundation of fast-paced supply chains. The internet
allows many businesses to buy, sell, advertise, and solicit customer feedback online.
Organizations are trying to become more competitive and efficient by digitally enabling
their core business processes and evolving into digital firms. The Internet has stimulated
globalization by dramatically reducing the costs of producing, buying, and selling goods on
a global scale. New information system trends include the emerging mobile digital
platform, online software as a service, and cloud computing.
Wireless communications, including computers, cell phones, and PDAs, are keeping
managers, employees, customers, suppliers, and business partners connected in every
way possible. Email, online conferencing, the Web, and the Internet, are providing new
and diverse lines of communication for all businesses, large and small. Through increased
communication channels and decreased costs of the communications, customers are
demanding more of businesses in terms of service and product, at lower costs. Ecommerce is changing the way businesses must attract and respond to customers.

Increase in use of wireless technology, web sites, etc., has

improved efficiency and effectiveness of workers, saving
money for all types of businesses.

In the Office

Wired networks are old hat. Wi-Fi wireless technology saves businesses a
considerable amount of money on installation costs. Companies no longer have to
physically run wires throughout an office building, warehouse or store. This is especially
handy for businesses that have workers that move throughout the location, but still need
to stay connected to inventory or sales software through portable devices. Bluetooth is a
short-range wireless technology that acts as a complement to Wi-Fi. It is often used to
transfer data between a computer and a cellphone or connect a wireless headset. Workers
gain flexibility while businesses reduce investment costs.

Mobilizing Workers

Cell phones, laptops and netbooks combined with GPS, Wi-Fi and Bluetooth wireless
technologies have created the potential for a powerful mobile workforce. Small businesses
are often in competition with larger companies and need to maximize the efficiency of
workers. They can't afford to have employees out of touch. Owners often wear many hats
and have to keep track of multiple facets of a business, even during nights, weekends and
vacations. Wireless technologies ensure that businesses aren't tied down to a single
location.

GPS

GPS devices have gone from expensive premium items to common business accessories.
GPS technology has been a boon to the transportation industry when it comes to finding
efficient routes and tracking vehicles, but it makes sense for any business with a mobile
component. Traveling employees can use GPS devices to get to their destinations on time,
find the best gas prices and avoid traffic tangles. On-time customer service translates into
happy customers. Outfitting company cars with GPS can take a lot of the stress out of
business travel.

Smartphones

A survey by research group Gartner found that smartphone sales rose 24 percent between
2008 and 2009. That is a trend that businesses are getting in on. Smartphones have all
the same business benefits of regular cell phones--such as keeping mobile employees in
touch--and adds in features like powerful business applications and easy Internet access.
Mobile invoicing software, calendars and email mean that employees and owners are
always up-to-date on business happenings and can respond quickly to customer requests.

Wireless Computers

Once upon a time, business road warriors had to hook into wired Ethernet connections to
get online from the road. Wi-Fi is now built into new laptops and gives workers the
opportunity to connect easily from hotels, coffee shops, home offices, book stores and
client sites. It is a big boost to business efficiency when research, invoicing, email and
project development can be handled without having to return to a desktop computer at
the main office. This approach helps to keep small businesses nimble and competitive.

Thus we can conclude the pros and cons of wireless networking for new
age businesses:
Wireless technology has a number of key business benefits.

1. Increased efficiency
Improved data communications lead to faster transfer of information within businesses
and between partners and customers. For example, sales people can remotely check stock
levels and prices whilst on sales calls.

2. Better coverage
Because wireless technology enables the user to communicate while on the move, you are
rarely out of touch - you don't need extra cables or adaptors to access office networks.

3. Flexibility
Office-based wireless workers can be networked without sitting at dedicated computers,
and can continue to do productive work while away from the office. This can lead to new
styles of working, such as home working or direct access to corporate data while on
customer sites.

4. Cost savings
Wireless networks can be easier and cheaper to install, especially in listed buildings or
where the landlord will not permit the installation of cables.

5. New opportunities
Wireless networking could allow you to offer new products or services. For example, many
airport departure lounges, train stations, hotels, cafes and restaurants have installed 'hot
spot' wireless networking services to allow mobile users to connect their equipment to
their 'home' offices while travelling.

There are also certain drawbacks associated with the use of wireless
networks.

1. Security
Wireless transmission is more vulnerable to attack by unauthorized users, so particular
attention has to be paid to security.

2. Installation problems
You may suffer interference if others in the same building also use wireless technology or
where other sources of radio signals are present. This could lead to poor communication
or, in extreme cases, loss of wireless communication altogether.

3. Coverage
In some buildings getting consistent coverage can be difficult, leading to 'black spots'
where no signal is available. For example, in structures built using steel reinforcing
materials, you may find it difficult to pick up the radio frequencies used.

Shifts in media and advertising

New federal security and accounting laws

Case Study 1 : Digital marketing towards market

expansion

Case Study 2 : ING vyasa redefined mobile banking

Case Study 1 : Digital marketing towards market

expansion

Case
Study
: Mahindra
using technology
with
Case
Study
2 :3ING
vyasa redefined
mobile banking
automobiles

Case Study 3 : Mahindra using technology with

automobiles

Case Study 3 : Mahindra using technology with

automobiles

Case Study 3 : Mahindra using technology with

automobiles

Information

System (IS)
An Information system is a system composed of people and computers that processes or
interprets information. The term is also sometimes used in more restricted senses to refer
to only the software used to run a computerized database or to refer to only a computer
system.

The plural term information systems (construed as singular) is also used for the actual
academic study of the field, in other words for the study of complementary networks of
hardware and software that people and organizations use to collect, filter, process, create
and distribute data.

Any specific information system aims to support operations, management and decision
making. In a broad sense, the term is used to refer not only to the information and
communication technology (ICT) that an organization uses, but also to the way in

which people interact with this technology in support of business

processes.
The 5 components that must come together in order to produce a computerbased information system are:

1. Hardware: The term hardware refers to machinery. This category includes the
computer itself, which is often referred to as the central processing unit (CPU), and all of
its support equipments. Among the support equipments are input and output devices,
storage devices and communications devices.

2. Software: The term software refers to computer programs and the manuals (if any)
that support them. Computer programs are machine-readable instructions that direct the
circuitry within the hardware parts of the system to function in ways that produce useful
information from data. Programs are generally stored on some input / output medium,
often a disk or tape.

3. Data: Data are facts that are used by programs to produce useful information. Like
programs, data are generally stored in machine-readable form on disk or tape until the
computer needs them.

4. Procedures: Procedures are the policies that govern the operation of a computer
system. "Procedures are to people what software is to hardware" is a common analogy
that is used to illustrate the role of procedures in a system.

5. People: Every system needs people if it is to be useful. Often the most over-looked
element of the system are the people, probably the component that most influence the
success or failure of information systems.

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

Input

Proce
ss

Outpu
t

Major new information system trends; unfortunately, in India

only healthcare sector has prevalent Information System
practices, still growing.
Case Study:
Emerging trends in Indian healthcare - Technology to become a Core Function

Technology will be a game changer in the manner in which healthcare services

will be delivered in India. The private sector will be the major driving force
behind technology adoption in the Indian healthcare segment. To optimize costs
and effectively manage operations, IT solutions will become an integral part of
process management, patient care and the management information system
(MIS) in hospitals. With the health insurance sector poised for major growth in
the coming decade, increasing demand from this sector for more efficient
systems for storage and retrieval of information will put pressure on hospitals
and other healthcare providers to imbibe technology to modernize existing
infrastructure.
The convergence of healthcare with upcoming technologies such as cloud
computing and wireless technologies will play a key role in improving
accessibility and meeting the challenge of manpower shortage. The coming
years are expected to witness greater deployment of tools such as telemedicine,
tele radiology, hospital information systems (HIS)/hospital management
information systems (HMIS), online or electronic medical records (EMR), etc.
The healthcare sector is poised to embrace cloud computing in a big way in the
coming decade. Cost-effective cloud-based solutions are expected to drive
increased adoption of HMIS and EMRs. The various benefits that can be derived,
such as easy accessibility irrespective of geographical location, fewer errors,
and fast response in times of emergencies, patient convenience, among others,
will drive increased adoption.
To drive improved efficiencies, more hospitals are likely to seek automation for
their workforce management, administration, finance, billing, patient records
and pharmacies. Along with the growing popularity of digitization in hospitals,
market penetration of picture archiving and communication systems (PACS) is
likely to increase further in the coming years.

The exhibit in the next page indicates the factors that will drive demand for
increased technology adoption going forward.

However, the road to greater technology adoption is not going to be

without its share of challenges. Currently, the IT budget for Indian
hospitals does not exceed 10% of their revenues, substantially lower than
allocation on IT in hospitals in the West. Moreover, despite the long-term
gains in efficiencies and costs that can be achieved, the initial high
capital investments may act as impediments for organizations looking to
invest in advanced technology products/ services. Further, lack of inhouse IT expertise, lack of standards, reluctance/resistance of staff,
inadequate support from the IT vendors, etc. are some of the bottlenecks
that will have to be effectively dealt with in this direction.

Case Study 4 : Fortis using the power of Information

Systems

Case Study 4 : Fortis using the power of Information

Systems

Digital Firm
The Digital Firm is a general term for organizations that have enabled core business
relationships with employees, customers, suppliers, and other external partners
through digital networks.
These digital networks are supported by enterprise class technology platforms that
have been leveraged within an organization to support critical business functions and
services.
Some examples of these technology platforms are Customer Relationship Management
(CRM), Supply Chain Management (SCM), Enterprise Resource Planning (ERP), Knowledge
Management System (KMS), Enterprise Content Management (ECM), and Warehouse
Management System (WMS) among others.
The purpose of these technology platforms is to digitally enable seamless integration
and information exchange within the organization to employees and outside the
organization to customers, suppliers, and other business partners.
A firm that has enabled core business relationships through digital networks
supported by enterprise class technology platforms to digitally enable seamless
integration and information exchange.

Characteristics of Digital Firm:

Significant business relationships are digitally enabled and mediated

Core business processes are accomplished through digital networks and span the entire
organization

Key corporate assets are managed digitally

Internal and external environments are quickly recognized and dealt with
Case Study 4 : Fortis using the power of Information
Systems

Pros and Cons of Digital Firm:

Its an advantage for an organization to utilize the current technologies to optimize their
resources and obtain the highest productivity and profit. Although there are many
advantages of digital firm such as increase flexibility, empowerment, teamwork, and lower
costs, by in the perspective of a management psychology student, management of digital
firm must also concern on the welfare and job satisfaction of employees.
However, there are some disadvantages of managing the digital firm. Many digital firms
face serious complaints from their employees about their health and high rates of medical
claims. If employees seat in front of computer or screen for long hours, they were easily
faces health problem such as back injuries caused by awkward seating posture, carpel
tunnel syndrome caused by repetitive typing and psychological stress caused by work
overload. And, these health problems will end up with high turnover rate. Thus, safety and
health of employees cannot be neglected while managing the digital world.

Globalization (with reference to impact on IS)

Globalization is the process of international integration arising from the
interchange of world views, products, ideas and other aspects of culture.
Advances in transportation and telecommunications infrastructure, including the
rise of the telegraph and its posterity the Internet, are major factors in
globalization, generating further interdependence of economic and cultural
activities.

Customers no longer need to rely on local businesses for products and

services. Specially, some people find it tiring to go to the market and browse
individual shop, with the emergence of online shopping portals like Flipkart
and Snapdeal, people can view/buy anything from a wide variety of
merchandise. They can shop 24/7 for virtually anything and have it delivered
to their doorstep or desktop (online software purchase).

Today, getting information where it needs to go is cheaper and easier than ever
before. Businesses save money, and globalization escalates. Because it's easier to
reach out, it's easier to expand a business to other countries, via Internet
storefronts that literally service the whole world. Cultural barriers are breached each
day, as people use technology to learn more about doing business with other
nations. This concept of fast-moving information and globalization contributes to a
whole new way of doing business. Cell phone, smart phones, text messaging, and
social networking have also transformed the promotional aspects of running a
business in the post-millennial age.

Information systems are transforming business through their ability to share

information in an instant. Due to lightning-fast technology, the overall pace of
business is rapid-fire, and growing faster every day. For example, meetings and
conferences can now take place via low-cost services such as Skype, which also
offers free services to users. In the past, sharing information between parties in

different cities or countries could be very expensive - long-distance phone calls or

face-to-face meetings were necessary.

Companies can operate 24/7 from any geographic location around the world,
like the Tata Consultancy Services caters to many thousand customers from
around the world.

Jobs can just as easily move across the state or across the ocean.

Employees must continually develop high-level skills through education and

on-the-job experience that cannot be outsourced.

Business must avoid markets for goods and services that be produced
offshore much cheaper.

The emergence of the internet into a full-blown international communications

system has drastically reduced the costs of operating and transacting on a
global scale.

The pace of information systems establishes a new concept of "instant"

sharing.
Some examples include:

Twitter - This short, text-like social networking platform allows businesses to

build their brands before a global audience. Political revolutions and elections have
begun to be influenced by mass gatherings on Twitter - it is a powerful tool for
change and globalization.
Cloud Computing - This system allows business owners to sample high-tech
software they might not be able to buy outright. Cloud computing allows
businesses to pay servers for specific information system services and data
storage solutions.

In the future, the pace of information systems will continue to

amaze and inspire; businesses will evolve and globalize,
setting higher goals in the world marketplace.

Columbus was searching for hardware precious metals, silk, and spices the
sources of wealth in his day.
I was searching for software, brainpower, complex algorithms, knowledge workers, call
centers, transmission protocols, breakthroughs in optical engineering the sources of
wealth in our day.
Thomas Friedman, the World Is Flat

Thomas Friedmans ideology should stimulate our thinking and our action.

Reference
http://www.eweek.com
http://ipip.intel.com
http://techcrunch.com
https://sites.google.com/
http://www.business-scene.com/
http://www.mbaskool.com/
http://articles.economictimes.indiatimes.com/
http://www.powershow.com/
http://en.wikipedia.org/
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