PGDDA 101 ISM Unit 1

10/9/2023
Information System Management
Praveen Kumar, PhD

Assistant Professor
University School of Management Studies,
Guru Gobind Singh Indraprastha University, New Delhi
Course Outlines
• Meaning and Role of Information Systems
• Planning for Information Systems
• Building Information Systems
• Emerging Concepts and Issues in Information Systems
Praveen Kumar, PhD ISM (PGDDA - 101) 2
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10/9/2023
Unit I
Meaning and Role of Information Systems
Course Outlines
• Meaning and Role of Information Systems: Information
Systems: Digital Enterprises, Role of Information Systems,
• Types of Information Systems: Operations Support Systems,
Management Support Systems, Expert Systems and
Knowledge Management Systems.
• Information Systems for Strategic Advantage: Competitive
Strategy Concepts, Strategic Role of Information Systems.
Integrating Information Systems with Business Strategy, Value
Chain Analysis.
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Agenda
• Information Systems: Digital Enterprises
• Role of Information Systems
• Types of Information Systems:
• Operations Support Systems,
• Management Support Systems,
• Expert Systems
• Knowledge Management Systems
• Competitive strategy concepts
• Strategic Role of Information Systems
Unit I Session I
Information Systems
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Agenda
• System and System theory and its benefits
• Information System (IPO and POT prospectives)
• Components of Information System
• Functions of information System
• Types of Information System
• TPS
• MIS
• DSS
• EIS
System
• System is a group of interrelated components working
together toward a common goal, by accepting inputs and
processing outputs in an organized transformation process.
• System Concepts:
• Technologies (H/W, S/W and Telecommunication Technology)
• Application
• Development
• Management
• Components of System:
• Input, Output and Processing
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Systems Theory
Systems theory is the interdisciplinary study of systems.
A system is a cohesive conglomeration (collection/ gathering/
assembly/ mass) of interrelated and interdependent parts that is
either natural or man-made.
Every system has, its spatial and temporal boundaries, surrounded
and influenced (subjective/ partial/ unfair) by its environment,
described by its structure and purpose or nature and expressed in its
functioning.
The goal of systems theory is systematically discovering a
system's dynamics, constraints, conditions and elucidating
principles (purpose, measure, methods, tools, etc.) that can be
discerned and applied to systems at every level of nesting, and in
every field for achieving optimized equifinality.
Systems Theory (Contd.)

Systems theory is an interdisciplinary theory about the nature of complex
systems in nature, society, and science, and is a framework by which one can
investigate and/or describe any group of objects that work together to produce
some result.
• This could be a single organism, any organization or society, or any electro-
mechanical or informational artifact
• The systems framework is also fundamental to organizational theory as
organizations are complex dynamic goal-oriented processes
Computer-aided software engineering (CASE) Tools
• Systems Engineering is an interdisciplinary approach and means for enabling
the realization and deployment of successful systems.
• It can be viewed as the application of engineering techniques to the
engineering of systems, as well as the application of a systems approach to
engineering efforts
• Systems Engineering considers both the business and the technical needs of
all customers, with the goal of providing a quality product that meets10
the
user needs
Praveen Kumar, PhD ISM (PGDDA - 101)
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Importance of the System Approach

Principle
• The success of the business in achieving its objectives depends on
the management approach.
• The systems approach will ensure quality products that meet
user requirements.
• This is because the approach systematically integrates all functions
into an interrelated team effort, providing a structured framework
for the development process that proceeds from concept to
production.
• This ensures that all the system functions are optimized to achieve
maximum compatibility for enhanced productivity
Benefit
• The systems approach to management introduces a structured
configuration where personnel work as a combined unit.
• Feedback provides a good basis of control, leading to higher
quality of products.
• Overall, the approach improves strategic and management
decision-making due to the interrelationships between the various
subsystems.
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Limitations
• A systems approach does not adequately specify the
interdependence and nature of interaction between an
organization and its environment.
• The system tends to be rigid and will react slowly in open
systems that interact with external forces.
• It generally is suitable for the manufacturing industry but not the
service industry, which often has to adapt to the external
environment.
• It also does not offer practicing managers specific tools and
techniques, remaining rather abstract for practical problems.
Information System
• It is a set of interrelated components working together to collect,
retrieve, process, store, and distribute information for the purpose of
facilitating planning, control, coordination, analysis, and decision
making in business organizations
• Input-process-output perspective
• People-organization-technology perspective
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What Is an Information System?

• Information system has been defined in terms of two perspectives:
• one relating to its function;
• the other relating to its structure.
• From a functional perspective; an information system is a
technologically implemented medium for the purpose of recording,
storing, and disseminating linguistic expressions as well as for the
supporting of inference making.
• From a structural perspective; an information system consists of a
collection of people, processes, data, models, technology and partly
formalized language, forming a cohesive structure which serves some
organizational purpose or function.
Information System (POT

prospectives)
An organized combination of
• People (operators and managers)
• Hardware (Input / Output devices )
• Software (processing and storages)
• Data resources (organizational events
and activities)
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Information System (IPO prospectives)

It involves (IPO or process )
• Input of Data
• Processing based on business logics
• Output information
• (May have storage device And feedback system)
Input Processing Output
Storage
FeedBack
Functions of an Information System
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Components of Information System

• Resources of people: (end users and IS specialists, system
analyst, programmers, data administrators etc.).
• Hardware: (Physical computer equipments and associate device,
machines and media).
• Software: (programs and procedures).
• Data: (data and knowledge bases), and
• Networks: (communications media and network support).
Components of Information System
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Type of Information System

Transaction Processing Systems (TPS):
• Designed to collect, process and store transactions that occur in
the day-to-day operations of a company.
It can also be used to
• Cancel or modify transactions done in past
• The ability to accurately record multiple transactions
simultaneously.
• They are built to be able to handle large volumes of
transactions. Examples include stock control systems, payroll
systems, order processing systems etc.
Type of Information System (Cont.)

Decision Support Systems (DSS):
• To take the best decisions by generating statistical projections
from analyzed data.
• Although it does not eliminate the need for the manager’s
judgment, it significantly improves the quality of the decision by
offering forecasts that help determine the best course of action.
• These systems compile information from several sources for
purposes of aiding in decision making. Examples of these
systems include computer supported cooperative work, group
decision support systems, logistics systems and financial
planning systems.
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• Executive Information Systems. Also known as Executive Support
System, this is a tool used for reporting enterprise-wide data to top
executives.
• It provides quick and easy to use reports, that are presented in graphical
displays with easy to compare features.
• It can be taken as specialized decision support systems because it
provides information necessary to help improve the quality of decisions.
• Owing to the high expectations from such a system, these systems need
to be highly individualized hence they are usually custom made for
specific clients. They are also customizable to fit the specific needs of the
clients.

• Management Information Systems. These systems make use of
information technology to help managers ensure a smooth and
efficient running of the organization.
• Information collected by these systems is structured so that the
managers can easily evaluate the company’s current performance
vis-à-vis previous outputs.
• Some of the common types of Management Information Systems
include process control systems, human resource management
systems, sales and marketing systems, inventory control systems,
office automation systems, enterprise resource planning systems,
accounting and finance systems and management reporting
systems.
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Types of Information
Descriptive Information
What is….?
Diagnostic information
What is wrong …?
GOAL
Predictive information
What would happen if….?
Prescriptive information
What should be done ….?
Unit I Session II
Information Systems
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Agenda
Information Systems:
• Digital Enterprises,
• Role of Information Systems
Information system understanding

The transforming of data to information by using the PPT concept of
People Process and Technology.
The process component resulted into converting the data into value
added information for the enterprise.
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Data and its characteristics

An information system is established to transform data into information
in order to generate knowledge that can be used for decision making.
Functional objectives of establishing an information system is to
• Generate and / or Collect data (Data sources)

• Store and Retrieve them when needed (Data repository)
• Perform analysis to generate information ( Data insight)
Data and its characteristics

Information to add value depends on the data and its characteristics, that is to ensure
quality of data:
Accessible: User can access with security and reliability.
Consistent: no discrepancies, and structure, data source. independency
Complete: No missing information.
Timely : Delivered when needed.
Accurate: Errors and bias free, with data validated.
Cost: production or acquiring cost must be
balanced.
Relevant: Important to decision makers.
Clear: Not overly complex, easy to understand.
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Digital Enterprises
Digital enterprise is a business organisation with:
• a high level of automation and
• advanced Information-Communication technologies (ICT)
for the digital description of products and services in business
operations.
It must be capable of taking full advantage of social, mobile, web,

cloud and analytic technologies and a capability to integrate people,
processes, and capabilities to deliver a customer centric experience
Digital Enterprises
• IT has reshaped the infrastructure and operations of enterprises,
• The digital enterprise evolved to represent businesses that have
completed a digital transformation or digitalization to embed digital
solutions across the enterprise.
• Digitization:
• Digitalization
• Digital Transformation
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Digital Enterprises
Digital innovation stages are digitization, digitalization and digital
transformation (Venkatraman, 2017).
Digitization: Its results in the storage of information in 0,1 bits with a
searchable repository of big data.
“The encoding of analog information into a digital format (i.e., into zeros and ones) such
that computers can store, process, and transmit such information” (Tan and Pan, 2003).
Digitalization: Implementation of digital technologies in the business
process, to help in optimization by allowing process-based efficient
coordination, also in creating additional customer value, customer
experiences (CX) through digital business processes.
“Information Technology or digital technologies can be used to alter existing business
processes” (Li et al., 2016).
Digital Enterprises
Digital transformation: The digital transformation required
technological interfaces at its various interaction points with
stakeholders to complete the process digitally.
So, needs to create digital resources, organizational structure
enhancement, enterprise goals, and growth strategies.
“A firm employs digital technologies to develop a new digital business model which helps create
more value for the firm. In the digital transformation phase, the capability to acquire and
analyze big data for decision-making is crucial” (Loebbecke and Picot, 2015).
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Digital Enterprises
DIKW Pyramid:
Data:
Information:
Knowledge:
Wisdom:
Role Of Informatıon System

• The role of IS in an organization can be compared to the role of heart in the
body.
• Ensures that an appropriate data is collected from the various sources,
processed, and sent further to all the needy destinations.
• The information needs of an individual, a group of individuals, the management
functionaries: the managers and the top management.
• Satisfies the diverse needs through a variety of systems such as Query Systems,
Analysis Systems, Modeling Systems and Decision Support Systems.
• Helps in Strategic Planning, Management Control, Operational Control and
Transaction Processing.
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Case study on “IT Doesn’t Matter”

• Strategic value of information technology,
• IT to gain a competitive edge
• IT’s potency and ubiquity have increased,
• No talk on the way the technologies influence, or fail to influence, competition at
the firm level
• Infrastructural technologies Vis-a-Via proprietary technologies
• IT is subject to rapid price deflation. (Gordon Moore made his famously prescient
assertion that the density of circuits on a computer chip would double every two
years)
Unit I Session II
Types of Information Systems
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Business Process
Types of Information Systems:
Operations Support Systems,
Management Support Systems,
Expert Systems
Knowledge Management Systems
Praveen Kumar, PhD ITM (MBA 111) 39
Types of Information system
Information Systems
Operation Support Systems Management Support Systems
Specialized Transaction Process Enterprise Management Decision Executive Specialized

Processing Process Control collaboration Information Support Information Processing
Systems Systems Systems Systems Systems Systems Systems Systems
Functional
Knowledge Strategic
Expert Business
Management Information Systems
Systems
Systems Systems
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Transaction Processing Systems (TPS):
• Designed to collect, process and store transactions that occur in the
day-to-day operations of a company.
• Cancel or modify transactions done in past
• The ability to accurately record multiple transactions simultaneously.
• They are built to be able to handle large volumes of transactions.
Examples include stock control systems, payroll systems, order
processing systems etc.

Process Control Systems (PCS):
• Designed to collect, process and store process specific activities that
occur in the day-to-day operations of an Industrial.
• Monitor or review the processes done in past
• The ability to accurately record multiple processes simultaneously.
• They are built to be able to control and manage the multi-process of
manufacturing units. Examples include Power generation plants,
Petroleum refineries, heavy engineering systems etc.
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Enterprise Collaboration Systems (ECS):
• Designed to communicate and collaborate between the teams,
workgroups at enterprise level, managing their communication and
collaboration related activities.
• Multi-member interaction and communication both using audio and video
modes
• The ability to accurately record multiple sessions and events
simultaneously.
• They are built to be able to handle large volumes of interactive and
collaborative activities. Examples e-mail, conference calls, virtual meeting
rooms etc.

• Management Information Systems (MIS): These systems make use of
information technology to help managers ensure a smooth and efficient
running of the organization.
• Information collected by these systems is structured so that the
managers can easily evaluate the company’s current performance vis-à-
vis previous outputs.
• Some of the common types of Management Information Systems include
process control systems, human resource management systems, sales
and marketing systems, inventory control systems, office automation
systems, enterprise resource planning systems, accounting and finance
systems and management reporting systems.
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Decision Support Systems (DSS):
• To take the best decisions by generating statistical projections
from analyzed data.
• Although it does not eliminate the need for the manager’s
judgment, it significantly improves the quality of the decision by
offering forecasts that help determine the best course of action.
• These systems compile information from several sources for
purposes of aiding in decision making. Examples of these
systems include computer supported cooperative work, group
decision support systems, logistics systems and financial
planning systems.

• Executive Information Systems (EIS): Also known as
Executive Support System, this is a tool used for reporting
enterprise-wide data to top executives.
• These systems provide quick and easy to use reports that are
presented in graphical displays that are easy to compare. They
can be taken as specialized decision support systems because
they provide information necessary to help improve the quality
of decisions. Owing to the high expectations from such a
system, these systems need to be highly individualized hence
they are usually custom made for specific clients. They are also
customizable to fit the specific needs of the clients.
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Team Presentation
• Information system
• Operation Support system
• Transaction Process system Team PGDDA 1 (1) Monday (18 Sept 2023)
• Process Control System Team PGDDA 2 (2) Thursday (21 Sept 2023)
• Enterprise collaboration system Team PGDDA 3 (3) Monday (18 Sept 2023)
• Specialized Processing system Team PGDDA 4 (4) Thursday (21 Sept 2023)
• Management Support system
• Management Information system Team PGDDA 5 (5) Monday (25 Sept 2023)
• Decision support system Team PGDDA 6 (6) Thursday (28 Sept 2023)
• Executive Information system Team PGDDA 7 (7) Monday (25 Sept 2023)
• Specialized Processing system Team PGDDA 8 (8) Thursday (28 Sept 2023)
• Any one of the Support systems, as per the above list. with details on hardware /software components besides its role in
the enterprise with benefits, facilities and information flow details.
Unit I Session III

Competitive strategy and
Strategic Role of Information Systems
Praveen Kumar, PhD ITM (MBA 111) 48
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Agenda
• Competitive Strategy Concepts,
• Strategic Role of Information Systems.
• Integrating Information Systems with Business Strategy,
Competitive Forces
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Strategic Role of Information Systems

Strategy is the formulation of basic organizational missions, purposes and objectives; Policies and
program strategies to achieve them; and the methods needed to ensure that Strategies are
implemented to achieve organizational ends.
The Information systems help an organization at being strategic. So that an organization is:
• Clear about its objectives because the information system has provided precise and directive
information about the tasks and their purpose.
• Aware of the resources available to pursue the spelled goals and objectives.
• Conscious of matters and can respond to the dynamic environment.
The strategic roles of IS can be classified into:
• Strategic Management.
• Strategic planning.
• Strategic operations
Competitive Forces
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Competitive Strategies (Porter’s five force)
Competitive Forces and Strategies

Porter’s classic model of competition
• Rivalry among competitors:
• Threat of New entrants:
• Threat of substitutes:
• Bargaining power of customers:
• Bargaining power of suppliers:
Competitive Strategies:
• Cost leadership:
• Differentiation:
• Innovation:
• Growth:
• Alliance:
• Others strategies
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Competitive strategies vs Competitive

forces
Cost leadership
Competitive Strategy
Differentiation
Innovation
Growth
Alliance
Others strategies
Bargaining Bargaining
Rivalry among Threat of New Threat of
power of power of
competitors entrants substitutes
customers suppliers
Competitive strategies vs Competitive forces

• Rivalry among competitors: Airtel / Jio
• Threat of New entrants: E-commerce like Multi-brand outlets / Startups
• Threat of substitutes: Tab / Mobile
• Bargaining power of customers: As used by most of the big brands in
negotiation with manufacturers
• Bargaining power of suppliers: Producers of specialized goods or services
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Competitive strategies vs Competitive forces

Competitive Strategy:
• Cost leadership: Airtel / Jio – Nano, Maruti
• Differentiation: Narrow focused products or services like A luxury electric
vehicle
• Innovation: Aims to create new value
• Growth: Reaching new customers and increasing market share,
• Alliance: Partnership to have better product quality or to add features or the
market enrichment
• Others strategies: Mix of these
Case Study –ABB Company

• Use and usefulness of information systems differ:
• The computerized information system is viewed as an object, a
technical construction, that is to be used by people.
• The five roles that an information system may be allowed to
take in an organization:
• Bureaucrat,
• Manipulator,
• Administrator,
• Consultant and
• Dismissed.
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• Dimensions Affecting User Perception of
Information Systems Direction of
• the first system, AROS, as a manipulator in IS controls
Control
the early 1990s, actions
• the system had been tailored to suit the business
processes, but as the business changed,
resulting patchwork. (Further changes led to Poor fit
unexpected errors), which leads to replace of the Good fit
Manipulators IS fits with
• The BLICK project enthusiasts set up the new structure
system (Triton) to help increase efficiency in the
company. Individuals
control actions
• The old one tried to conserve old ways of
working, the new one tried to change the way
work was done.

IS controls
• Five Identified Roles of an Information Systems Direction of
actions
• Bureaucrat stands for good fit between IS and structure, Control
and the Manipulator for poor fit
• the Consultant stands for good fit and the Administrator for
poor fit.
Bureaucrat Manipulator
• the Dismissed is disregarded or ignored by its intended
users.
• It was dismissed by the salespeople. Good fit Poor fit
IS fits with
• the operators, it was a Bureaucrat, structure Consultant Administrator
• for the production planner it was an Administrator,
and
Individuals
• the purchasers turned it into a Consultant. control actions
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Thanks
Q&A
• How to understand an Information Systems.
• What are the types and classifications of an Information Systems?
• What are the roles of an Information Systems role in an organization?
• How Information Systems can impact the strategies of an organization, use the
five competitive forces vis-a-via competitive strategies based analysis?
• What are the digital enterprises, and what is the basic utilities of these in today’s
changing business scenarios?
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Value chain
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10/9/2023

Information System Management

Praveen Kumar, PhD

Praveen Kumar, PhD ISM (PGDDA - 101) 2

Praveen Kumar, PhD ISM (PGDDA - 101) 3

Praveen Kumar, PhD ISM (PGDDA - 101) 4

Praveen Kumar, PhD ISM (PGDDA - 101) 5

Praveen Kumar, PhD ISM (PGDDA - 101) 6

Systems Theory (Contd.)

Importance of the System Approach

Praveen Kumar, PhD ISM (PGDDA - 101) 12

Praveen Kumar, PhD ISM (PGDDA - 101) 14

What Is an Information System?

Praveen Kumar, PhD ISM (PGDDA - 101) 15

Information System (POT

Praveen Kumar, PhD ISM (PGDDA - 101) 16

Information System (IPO prospectives)

Input Processing Output

Functions of an Information System

Praveen Kumar, PhD ISM (PGDDA - 101) 18

Components of Information System

Praveen Kumar, PhD ISM (PGDDA - 101) 19

Components of Information System

Praveen Kumar, PhD ISM (PGDDA - 101) 20

Type of Information System

Praveen Kumar, PhD ISM (PGDDA - 101) 21

Type of Information System (Cont.)

Type of Information System (Cont.)

Praveen Kumar, PhD ISM (PGDDA - 101) 23

Type of Information System (Cont.)

Praveen Kumar, PhD ISM (PGDDA - 101) 24

Praveen Kumar, PhD ISM (PGDDA - 101) 25

Praveen Kumar, PhD ISM (PGDDA - 101) 26

Praveen Kumar, PhD ISM (PGDDA - 101) 27

Information system understanding

Praveen Kumar, PhD ISM (PGDDA - 101) 28

Data and its characteristics

• Generate and / or Collect data (Data sources)

Praveen Kumar, PhD ISM (PGDDA - 101) 29

Data and its characteristics

Praveen Kumar, PhD ISM (PGDDA - 101) 30

It must be capable of taking full advantage of social, mobile, web,

Praveen Kumar, PhD ISM (PGDDA - 101) 31

Praveen Kumar, PhD ISM (PGDDA - 101) 32

Praveen Kumar, PhD ISM (PGDDA - 101) 35

Role Of Informatıon System

Praveen Kumar, PhD ISM (PGDDA - 101) 36

Case study on “IT Doesn’t Matter”

Praveen Kumar, PhD ISM (PGDDA - 101) 37

Praveen Kumar, PhD ISM (PGDDA - 101) 38

Praveen Kumar, PhD ITM (MBA 111) 39

Types of Information system

Operation Support Systems Management Support Systems

Specialized Transaction Process Enterprise Management Decision Executive Specialized

Praveen Kumar, PhD ISM (PGDDA - 101) 40

Type of Information System

Praveen Kumar, PhD ISM (PGDDA - 101) 41

Type of Information System