INFORMATION SYSTEMS IN BUSINESS

TODAY

Session#2
CASES
Case#1: Tesco: use of IT and information systems ‐Introduction to MIS
Case#2: UPS Competes Globally with Information Technology
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Technical Perspectives on Information Systems

 Information system:
 Set of interrelated components
 Collect, process, store, and distribute information
 Support decision making, coordination, and control (analysis, new
product/service)
Reg no   marks
2222         650
3333         660
4444         700
5555         300
 Information vs. data
 Data are streams of raw facts
 Information is data shaped into meaningful form

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Perspectives on Information Systems

Data and Information

Figure 1.3 Raw data from a supermarket checkout counter can be processed and organized to produce meaningful
information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a
specific store or sales territory.

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https://www.youtube.com/watch?v=sIjSY05JE9Q (Watch this video as well)

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Perspectives on Information Systems

Figure 1.4

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Perspectives on Information Systems

 Three activities of information systems

1. Input: Captures raw data from organization or
external environment
2. Processing: Converts raw data into meaningful
form
3. Output: Transfers processed information to
people or activities that use it

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Business perspective on information systems

 Real economic value to the business

 Instrument for creating value
 Solve Organization problems (NUST Entry test IS)
 Investments in IT will result in superior returns:
 Productivity increases
 Revenue increases
 Cost saving
 Superior long-term strategic positioning

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Strategic Business Objectives of IS

 Operational Excellence (Walmart)

 New Product, Services, and Business Model (iTune)

 Customer and Supplier Intimacy(Hotel chain)

 Improved Decision Making

 Competitive Advantage(combination of above objectives)

 Survival(ATM, email, internet)

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Interdependence between firm’s Information System and Its capabilities

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COMPLEMENTARY ASSETS:

 Investing in information technology does not

guarantee good returns
 You need (Relate to UPS case)
 Right business model
 Top Management support
 New Business processes
 Management Behavior
 Supportive culture

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COMPLEMENTARY ASSETS

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COMPLEMENTARY ASSETS

Quadrant 1 represents firms that invest much less in IT but still receive
strong returns.

Quadrant 2 represents firms that invest a great deal in IT and receive a

great deal in returns.

Quadrant 3 represents firms that invest much less in IT and receive poor
returns.

Quadrant 4 represents firms that invest a great deal in IT but receive poor
returns.

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Both Perspective are inter-related with each other.

 What do you think?

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Three Dimensions of Information System

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.

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Organizational Dimension

key elements of an organization

• People
• Structure
• Politics
• Culture
• Business processes

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Organizational dimension
 Different Business functions
 Salesand marketing
 Human resources
 Finance and accounting
 Manufacturing and production

 Business process
• The manner or a mechanism in which work is
organized, coordinated, and focused
to produce a valuable product or service.

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Organizational Dimension
• How Information System relate to the Organization
• Information systems fully or partially automate business
processes

• Business Process is key element of the Organization

• Changing business process have direct impact for

• People

• Structure

• Politics

• Culture

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Management Dimension

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Management Dimension

 Management’s Job
 Make decisions
 Action Plans to solve Problems
 Sense Threats/Opportunities
 Develop Business strategies

 Information Systems
 To create new products/Service
 To create or Improve Business processes
 To recreate Organization

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Technology Dimension

 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
 Mobile and wireless technology

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Group Exercise

Read CIMB case study and answers the following

1) What is the business problem/challenge?
2) What is business solution?
3) How IT provided that solution?
4) What are management factors?
5) What are organizational factors?
6) What are the technological factors?

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UPS COMPETES GLOBALLY WITH INFORMATION TECHNOLOGY

Read the Interactive Session and discuss the following questions

 What are the inputs, processing, and outputs of
UPS’s package tracking system?
 What technologies are used by UPS? How are these
technologies related to UPS’s business strategy?
 What problems do UPS’s information systems solve?
What would happen if these systems were not
available?

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Dimensions of UPS Tracking system

 Organizational:
 Procedures for tracking packages and managing
inventory and provide information
 Management:
 Monitor service levels and costs
 Supply Chain service Providers
 Invest in IT to maintain leadership in the Industry
 Use of IT for cost saving
 Technology:
 Handheld computers, bar-code scanners, networks,
desktop computers, etc.
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CASE STUDY

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People Processes Data Software Hardware

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