Information

System- Success
and Failure
Ms. Saloni Kurne
 Introduction:
• A success and failure information system is a system
that collects, analyzes and reports data related to the
success or failure of an organization’s activities or
projects. It provides information on the effectiveness
and efficiency of various processes and helps in
making informed decisions to improve performance.
 Major problem areas in
Information System:
• Data quality: If the data input into the information system is
inaccurate, incomplete, or inconsistent, it can lead to incorrect
or unreliable information being generated. This can negatively
impact decision-making and overall system performance.

• System security: Information systems are vulnerable to

various security threats, such as hacking, malware and
unauthorized access. If the system is not adequately protected,
sensitive data can be compromised, leading to financial loss,
reputational damage, and legal issues.
• System Integration: Many organizations have multiple
information systems that need to communicate and share data
with each other. Lack of integration between these systems can
lead to inefficiencies, duplication of efforts, and difficulty in
obtaining a holistic view of the organization’s operations.

• System Scalability: As organizations grow and their needs

change, information systems need to be able to scale and
handle increasing volumes of data and users. If the system is
not designed to handle these scalability requirements, it can
lead to performance issues and limitations in the system’s
ability to support the organization’s growth.
• System downtime: Information systems are crucial for
organizations to operate efficiently, so any downtime can have
significant impacts on productivity and customer service.
Issues such as hardware failure, software glitches, and
inadequate system maintenance can lead to system downtime
and disruption of business operations.

• User adoption and training: Even the most advanced and

well-designed information systems can fail if users do not
adopt them and are not properly trained on how to use them.
Lack of user buy-in and training can result in resistance to
change, low system utilization and limited benefits being
realized from the information system investment.
• System flexibility and customization: Organizations often
have unique processes and requirements that may not be fully
supported by off-the-shelf information systems. If the system
lacks flexibility and customization options, it can create
inefficiencies and force organizations to adapt their processes
to fit the system’s limitations.

• System governance: Information systems require effective

governance to ensure that they are aligned with organizational
goals, comply with regulations, and are properly managed.
Poor system governance can lead to mismanagement, lack of
accountability, and increased risk of system failures and
security breaches.
 Evaluation of success of
information systems:
• User satisfaction: A successful information system should
meet the needs and expectations of its users. User satisfaction
can be measured through surveys, user feedback, and user
adoption rates. If users are happy with the system and find it
easy to use and navigate, it can be considered a success.

• Efficiency and Effectiveness: Information systems are

designed to improve productivity, streamline processes, and
make operations more efficient. The success of a system can
be measured by evaluating how well it achieves these goals.
Factors to consider include time and cost savings, reduction in
errors, and improved data accuracy.
• Return on Investment(ROI): Organizations invest significant
resources, both financial and human, into implementing and
maintaining information systems. The success of a system can
be evaluated by assessing whether it delivers a positive ROI.
This can be measured by determining if the system generates
cost savings, increase revenue, or provides a competitive
advantage.

• System Reliability: A successful information system should

be reliable and available when needed. System uptime,
downtime and performance can be measured to assess its
reliability. A high availability and minimal downtime indicate
a robust and successful system.
• Data Quality: Information systems rely on accurate and
reliable data. The success of a system can be evaluated by
assessing the quality of the data it generates and processes.
Factors to consider include data completeness, accuracy,
timeliness, and consistency.

• Security and Privacy: Information systems handle sensitive

and confidential data, so their success can be evaluated based
on how well they protect this information. The system should
have proper security controls in place to prevent unauthorized
access and ensure data privacy. Regular security audits and
assessments can help evaluate the system’s success in this
aspect.
• Scalability and Flexibility: A successful information system
should be able to scale and adapt to changing business needs.
The ability to accommodate growth, handle increased data
volumes, and integrate with other systems are important
factors to consider when evaluating success.
 Introduction to ERP:
• Enterprise Resource Planning (ERP) is a software system that
integrates and manages various functions and processes within
an organization, including finance, human resources, inventory
management, manufacturing and customer relationship
management.
• It provides a centralized database that allows different
departments to access and share information, improving
communication and collaboration across the organization.
• ERP enables organizations to streamline their business
operations, boost efficiency, and make informed decisions based
on real-time data.
• Overall, ERP helps businesses to optimize resources, reduce
costs, and improve overall performance.
 Advantages of ERP:
• Increased efficiency: ERP systems eliminate the need manual
data entry and streamline business processes, resulting in
increased productivity and reduced errors.

• Centralized information: ERP systems integrate various

departments and functions into a single system, allowing for
easy access and sharing of information across the
organization.

• Improved decision making: ERP systems provide real-time

data and reporting capabilities, enabling managers to make
more informed and timely decisions.
• Enhanced customer service: With access to customer
information and order tracking, ERP systems enable improved
customer service and satisfaction.

• Cost savings: ERP systems automate and streamline processes,

reducing the need for manual labor and minimizing errors and
inefficiencies, resulting in cost savings.

• Scalability: ERP systems are designed to grow with your

business, allowing for easy integration of new functionalities and
modules as the company expands.

• Regulatory compliance: ERP systems offer built in

functionalities to assist with compliance requirements, such as
financial reporting, taxation, and industry specific regulations.
• Supply chain management: ERP systems enable better
inventory management, demand planning, and procurement,
resulting in reduced inventory carrying costs and improved
overall supply chain efficiency.
• Data security: ERP systems provide robust security measures
to protect valuable business data from unauthorized access or
loss.
• Business insights: ERP systems generate comprehensive
analytical reports and dashboards, providing valuable insights
into business performance and trends, helping organizations
identify growth opportunities and areas for improvement.
 Disadvantages of ERP:
• Cost: Implementing an ERP system can be expensive, especially for
small and medium sized businesses. The cost includes purchasing the
software, training employees and maintaining the system.

• Complexity: ERP systems are complex and can be difficult to

implement and customize to fit specific business processes. This can
lead to a lengthy implementation process and require the expertise of
IT professionals.

• Customization limitations: While ERP systems can be

customizable, there are limits to how much customization can be
done. This can result in businesses having to adapt their processes to
fit the system rather than the system adapting to fit their processes.
• Training and user adoption: ERP systems require extensive
training for employees to effectively use the system. This can
be time-consuming and may result in resistance from
employees who are resistant to change.

• Data security concerns: ERP systems house a large amount

of sensitive business data, and there is always a risk of data
breaches or unauthorized access. Businesses must implement
stringent data security measures to safeguard this information.

• Dependence on vendor support: Businesses that implement

an ERP system become dependent on the support and
maintenance provided by the ERP vendor. If the vendor goes
out of business or discontinues support for the software, it can
result in a significant disruption for businesses.
• Upgrade challenges: Upgrading and ERP system to a newer
version can be challenging, as it may require significant investment
and technical expertise. This can pose risks and disruptions to the
business if not managed properly.

• Integration difficulties: Integrating an ERP system with existing

legacy systems or other third-party software can be complex and
time-consuming. Ensuring smooth integration and data exchange
between systems can be a challenge.

• Lack of flexibility: ERP systems are designed to provide a

standardized solution for businesses, which may not meet all their
unique requirements. This lack of flexibility can hinder businesses
ability to adapt to changing market conditions or operational needs.
• Time-consuming implementation: Implementing an ERP
system can be a time-consuming process, often taking months
or even years. This can cause disruptions to business
operations and require significant resources during the
implementation phase.
 Modules of ERP:
• Financial Management: This module handles all financial
transactions and processes, including accounts receivable, accounts
payable, general ledger and financial reporting.

• Human Resource Management: This module manages employee

information, such as payroll, benefits administration, time and
attendance tracking, and performance management.

• Supply Chain Management: This module helps manage the flow

of goods and services from the procurement of raw materials to the
delivery of finished products. It includes functions such as
inventory management, order management, procurement, and
logistics.
• Customer Relationship Management: This module focuses
on managing customer interactions and relationships,
including sales and marketing activities, customer service and
support.

• Manufacturing Execution System: This module is

responsible for managing the production process, including
work orders, production scheduling, shop floor control, quality
control, and product traceability.

• Warehouse Management System: This module handles the

management of inventory and storage within a warehouse,
including inventory control, pick, pack and ship processes, and
order fulfillment.
• Project Management: This module helps in planning,
organizing and managing projects, including tasks, resources,
timelines and budgets.

• Business Intelligence: This module provides tools and

capabilities for analyzing and reporting on data stored within
the ERP system, enabling users to make informed business
decisions.

• Quality Management: This module ensures that products or

services meet quality standards and includes functions such as
quality control, inspections, and corrective actions.
• Asset Management: This module helps in tracking and
managing company assets, including maintenance schedules,
repairs and depreciation.
 Decision Making Process-
Programmed decisions:
• Programmed decisions are routine and repetitive decisions that
are made in accordance with established rules and procedures.

• These decisions are usually made in well-structured situations

where the outcomes are predictable.

• The decision maker simply needs to follow a predetermined set

of guidelines or rules to make the decision.

• Examples of programmed decisions include payroll

processing, inventory management and customer service
protocols.
 Decision Making Process-
Non-Programmed decisions:
• Non-programmed decisions are unique and complex decisions that do
not have predetermined solutions.

• These decisions are made in unstructured or semi-structured situations

where the outcome is certain and unpredictable.

• Non-programmed decisions require a high level of judgment, analysis,

and creativity.

• They often involve strategic planning, problem solving, and innovation.

• Examples of non-programmed decisions include launching a new

product, entering a new market, and handling unexpected crises.
 Decision Support System:
• Decision Support Systems (DSS) are computer based systems
that assist individuals or organizations in making decisions by
providing relevant information, analysis tools, and models.
• DSS are designed to support decision making by utilizing
various data sources, applying analytical techniques and
presenting results in a user-friendly format.
• These systems are often used in complex and uncertain
situations where there is a need for quick and efficient
decision making.
• DSS can assist in a wide range of decision making tasks, such
as strategic planning, resource allocation, risk analysis and
problem solving.
 Advantages of DSS:
• Increased efficiency: ERP systems eliminate the need for
manual data entry and streamline business processes, resulting
in increased productivity and reduced errors.

• Centralized information: ERP systems integrate various

departments and functions into a single system, allowing for
easy access and sharing of information across the organization.

• Improved decision making: ERP systems provide decision-

makers with relevant and timely information, allowing them to
make faster and more informed decisions.
• Access to real-time data: DSS can access and analyze real-
time data, giving decision-makers the most up-to-date
information available.

• Better strategic planning: DSS help organizations develop

and implement better strategic plans by providing insights into
market trends, competitor activities, and other key factors.

• Enhanced data analysis: DSS use advanced analytical tools

to interpret and visualize data, helping decision-makers
identify patterns, trends, and relationships that may not be
immediately apparent.
• Increased productivity: DSS can automate routine tasks,
allowing employees to focus on more strategic and value-
added activities.

• Improved Communication: DSS facilitate communication

and collaboration among decision makers, enabling them to
share information, insights and decisions more effectively.

• Flexibility: DSS can be customized to meet the specific

needs of an organization, allowing for greater flexibility and
adaptability in decision-making processes.
 Models of DSS:
• Decision Tree: A decision-tree is a model that uses a tree-like structure
to represent decisions and their possible consequences. It is a popular
model in decision support system (DSS) as it can be easily visualized and
interpreted by users.

• Regression Analysis: Regression analysis is a statistical model used to

analyze the relationship between a dependent variable and one or more
independent variable.

• Monte Carlo Simulation: Monte Carlo simulation is a computational

technique used to model and analyze the impact of uncertainty and
variability in complex systems. In a DSS, Monte Carlo simulation can be
used to simulate multiple scenarios and assess the potential outcomes of
different decisions under varying conditions.
• Neural Networks: Neural Networks are computational
models inspired by the human brain’s neural structure. They
are widely used in DSS for tasks such as pattern recognition,
classification. And forecasting. Neural networks can learn
from historical data and make predictions or decisions based
on that learning.

• Genetic Algorithms: Genetic algorithms are computational

models inspired by the principles of natural selection and
genetics. They are used in DSS for optimization problems,
where an optimal solution needs to be found among a large set
of possible solutions. Genetic algorithms can iteratively
evolve and improve solutions over time.
• Simulation Models: Simulation models are used to imitate
real-world systems and processes, allowing decision-makers to
test different scenarios and understand their potential impact
before making a decision. Simulation models are particularly
useful in DSS for assessing the consequences and risks
associated with various decisions.

• Analytic Hierarchy Process (AHP): AHP is a decision-

making technique that helps decision-makers to prioritize and
compare alternatives based on a set of criteria. It allows for the
subjective evaluation of different factors and their relative
importance, making it useful in multi-criteria decision-making
problems.
• Bayesian Networks: Bayesian networks are probabilistic
graphical models that represent the uncertainty and
dependencies among different variables. In a DSS, Bayesian
networks can be used to model complex decision problems
can be used to model complex decision problems and update
the probability distribution based on new information or data.

• Fuzzy Logic Models: Fuzzy logic models allow for the

representation of vagueness and uncertainty in decision-
making. They are particularly useful in situations where crisp
boundaries cannot be defined. Fuzzy logic models can handle
imprecise inputs and provide outputs based on fuzzy inference
rules.
• Multi-Criteria Decision Analysis (MCDA): MCDA is a
decision-making technique that helps decision-makers
evaluate and compare alternatives based on multiple criteria or
objectives. It allows for the consideration of both quantitative
and qualitative factors, enabling a more comprehensive
decision-making process.
 Approaches to DSS:
• Model driven DSS: In this approach, the DSS uses mathematical
and analytical models to make decisions. These models are
created based on variables, rules and decision criteria provided by
the decision-makers. Examples of such models include linear
programming, optimization techniques, and decision trees.

• Data-driven DSS: This approach emphasizes the use of data to

make decisions. DSS systems using this approach collect and
analyze large volumes of data to identify patterns, trends, and
relationships. Techniques like data mining, data visualization, and
predictive analytics are often used in this approach.
• Knowledge driven DSS: This approach focuses on capturing
and utilizing expert knowledge to make decisions. Expert
systems, rule-based systems, and artificial intelligence
techniques are employed to represent and process this
knowledge. The DSS uses a set of rules and logical reasoning
to provide recommendations or solutions.

• Collaborative DSS: This approach involves multiple

decision-makers working together to make decisions.
Collaborative DSS systems provide tools and platforms for
sharing information, discussing ideas and collaborating on
decisions. Techniques like group decision-making, consensus
building, and social networking are utilized in this approach.
• Hybrid DSS: This approach combines multiple approaches to
leverage their strengths and overcome their limitations. A
hybrid DSS may integrate elements of model-driven, data
driven, and knowledge driven approaches, depending on the
specific decision making requirements.
Thank You!