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Management Information System

Lesson 1 – Foundations of Information Systems and Business

BITS Pilani Dr. Annapoorna Gopal


Pilani Campus
Introduction – Dr. Annapoorna Gopal B.Sc,M.C.A,Ph.D

1. Assistant Professor – Management Department (Off campus, BITS-Pilani, Bangalore


Center
2. Worked with Wipro Ltd., in multiple leadership roles for 15.5 years
3. Was sr. faculty in the Computer Science department of Christ College, Bangalore for
3.5 years
4. Areas of interest are MIS, Human Resource Management, Business Ethics and
Organizational Behavior
5. Hobbies include reading books, writing and cooking

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Learning Methodology

1. Flipped mode of instruction

2. Experiential Learning
– Case studies, models and simulations

3. Whole or parts of chapters will be self study chapters

4. Grading scheme

Category Grading
Quiz / Assignment 10%
Experiential learning components 15%
Mid Semester Test 30%
Comprehensive Exam 45%

5. TWO mandates
– Reading pre-reading material and case studies prior to class participation
– Active participation in class

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Learning Objectives

1. Understand the role of Information Systems(IS) in business

2. Examine the different components of IS

3. Discuss Managerial challenges of Information Technology(IT)

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Fundamentals – Information Systems

1. Why should we study IS and IT?

2. What is an Information system?

3. Examples of non-computer based IS

4. Examples of computer based IS

Refer page 9 to 14

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Roles of IS in Business

Support of strategies for


competitive advantage

Support of decision making


at all levels of the
enterprise

Support of business
processes and operations

How do the above map to role of IS in your organization?

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Trends in Information Systems

Source : MIS 10th Edition, James A O’Brien, George M Marakas, Ramesh Behl
Refer page 14 to 16

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Case study - eCourier

eCcourier

– Tracks customer satisfaction in realtime


– Provides immediate attention to customer complaints and problems
– Allows GPS tracking of couriers and orders
– Books 955 of its deliveries online
– Uses SeeWhy software to spot trends and anomalies
– Optimizes system on an ongoing basis

How does IT contribute to the business success of eCourier?

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Trends in IT Spend
Table 1. IT Spending by Sector, Worldwide, 2014-2020 (Current U.S. Dollars)
CAGR 2015-2020
2014 2015 2016 2017 2018 2019 2020
Spending (Billions of
Dollars)
Data Center Systems 166 171 175 178 180 182 185 1.6%
Enterprise Software 310 314 332 356 381 408 437 6.8%
Devices 694 662 627 628 625 622 616 -1.4%
IT Services 897 866 898 942 986 1,035 1,088 4.7%

Source: Gartner (July 2016)


Communications
1,542 1,400 1,381 1,408 1,428 1,445 1,468 0.9%
Services
Overall IT 3,610 3,413 3,412 3,512 3,600 3,692 3,793 2.1%
Growth (%)
Data Center Systems 2.9% 2.0% 2.0% 0.9% 1.5% 1.6%
Enterprise Software 1.1% 5.8% 7.3% 7.0% 7.0% 7.1%
Devices -4.6% -5.3% 0.1% -0.4% -0.5% -1.0%
IT Services -3.4% 3.7% 4.9% 4.7% 4.9% 5.1%
Communications
-9.2% -1.4% 2.0% 1.4% 1.2% 1.6%
Services
Overall IT Growth -5.5% 0.0% 2.9% 2.5% 2.5% 2.8%
Note: Numbers may not add up to totals shown because of rounding.

Which are the BIG 5 IT Trends?


BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
E-Business

What is e-business? What are its uses?

Source : MIS 10th Edition, James A O’Brien, George M Marakas, Ramesh Behl
Refer page 19 to 20
How is e-Business being leveraged in todays business context?
BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Types of Information Systems

Transaction processing
Record and process business transactions
Operations Process control
Monitor and control physical processes
Enterprise collaboration
Enhance team/workgroup communication

Updating of corporate databases

Management Information systems


Reports and displays
Management Decision support systems
Interactive and ad hoc support
Executive information systems
Critical information for executives and managers

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Other Information Systems

Expert Systems

Provides expert advice

Knowledge Management Systems


Creation, organization, dissemination of
knowledge throughout company

Strategic Information Systems

Helps to get strategic advantage

Functional Business System


Focus on operational and managerial
application of basic business functions
Refer page 10 to 21

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


IT Challenges and Opportunities

Source : MIS 10th Edition, James A O’Brien, George M Marakas, Ramesh Behl
Refer page 24 to 25
• What are some of the toughest challenges in developing IT solutions?
• How is IT success being measured? Ownership IT and Business Projects?
BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Challenges and Ethics of IT

Human resource systems

Potential Harm
Collusion
Application of IT

Customer relationship
Privacy infringement
management
Inaccurate information
Business Intelligence

Possible Responses
Consumer boycott Code of Ethics
Potential Risks

Work stoppages Certifications


Government Incentives
Intervention
• Do you think use of the Internet or a company’s IT resources should be monitored?
• How can you protect yourself from computer crime?
BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
The IS Function

1. Major functional area of business and Key component of today’s


networked business
2. Provides challenging career opportunities
3. Important contributor to operational efficiency, employee productivity,
morale, customer service/satisfaction
4. Vital ingredient in developing competitive products and services in
global marketplace
5. Major source of information and support for decision making

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


System Concepts

Technology Hardware, software, data management,

Source : MIS 10th Edition, James A O’Brien, George M Marakas, Ramesh Behl
telecommunications networks

Applications To support inter-connected information


systems

Development Finding ways to use information technology;


includes designing basic information system
components
Management Emphasizes the quality, strategic business
value, and security of an organization’s
information systems

What are System, functions of a system, cybernetic system and Business as a system

Refer page 34 to 35

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Components of an IS

Source : MIS 10th Edition, James A O’Brien, George M Marakas, Ramesh Behl
Refer page 41 to 45

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Management Information System
Lesson 2 - Competing with Information Technology

BITS Pilani Dr. Annapoorna Gopal


Pilani Campus
Learning Objectives

1. Understand fundamentals of strategic advantage of IT

2. Discussion how to apply IT for strategic advantage

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Strategic IT

• Technology is the cause and driver for developing Business


Strategy

• IT is integral to business success and can change the way


businesses compete
– Vital competitive networks
– Organizational renewal
– Necessary investment

Can you think of examples where IT has changed the way businesses compete?
Refer page 63 to 66

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Strategic IT Concepts

A strategic information system uses IT to help an organization…


– Gain a competitive advantage/reduce competitive disadvantage
– Meet other strategic enterprise objectives Innovatio
n

Competit
Competit
ive
ive
advantag
What is Competitive Advantage? necessity
e

– Capability for advantage over competitive forces


Organizat
– Leading the industry in some identifiable way ional
learning

– Sustains profits above the industry average


– Hard to maintain over a long period of time
Refer page 75, 76

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Competitive forces and strategies

Source : MIS 10th Edition, James A O’Brien, George M Marakas, Ramesh Behl
Five Forces Analysis for Apple Inc Refer page 66 and 69

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Implementing basic strategies with IT

Source : MIS 10th Edition, James A O’Brien, George M Marakas, Ramesh Behl
BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Using competitive strategies

• Not mutually exclusive


• One alone wont fix the problem
• Usually need a combination

• Innovation not necessarily differentiated


• Kindle vs iPad

• Differentiation not necessarily innovative


• Competition between telecom companies

Examples for differentiation and innovation

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Implementing competitive strategies

Source : MIS 10th Edition, James A O’Brien, George M Marakas, Ramesh Behl
BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Other competitive strategies

• Lock in customers and suppliers


• Deter them from switching to competitors

• Create switching costs


• Time, money, effort needed to switch

• Raise barriers to entry


• Discourage or delay other companies from entering market
• Increase the technology or investment needed to enter

• Build a strong IT department

• Use IT to do more then automate, use IT creatively

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Case Study

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Customer focused business

• Keep customers loyal


– Anticipate their future needs
– Respond to customer concerns
– Provide top-quality customer service
• Focus on customer value
– Quality, not price, has become the primary determinant of value
• Companies that consistently offer the best value from the customer’s
perspective…
– Track individual preferences
– Keep up with market trends
– Supply products, services, and information anytime, anywhere
– Tailor customer services to the individual
– Use Customer Relationship Management (CRM) systems to focus
on the customer
Refer page 77 to 81

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Building customer value via internet

Source : MIS 10th Edition, James A O’Brien, George M Marakas, Ramesh Behl
BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Business Process Re-engineering

• Called BPR or simply Reengineering


– Radical
– Seeks improvements
• High potential
• High risk
• Important enabler of reengineering
– IT
– Process teams
– Case managers
Role of IT in BPR
• IT plays a major role
– Increase process efficiencies • Increase process efficiencies
• Improves communication
– Improves communication
• Facilitates collaboration
– Facilitates collaboration Refer page 86 and 87

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


BPR vs Business Improvement

Source : MIS 10th Edition, James A O’Brien, George M Marakas, Ramesh Behl
How do you re-engineer cross functional processes? Refer page 87 to 88

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


An Agile company

1. Presents products as solutions to problems

2. Cooperates with customers, suppliers and competitors

3. Thrives on change and uncertainty

4. Leverages on people and knowledge

Refer page 89 to 91

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


How IT helps a company be Agile?

Source : MIS 10th Edition, James A O’Brien, George M Marakas, Ramesh Behl
BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Management Information System
Lesson 3 – Computer Hardware

BITS Pilani Dr. Annapoorna Gopal


Pilani Campus
Learning Objectives

1. Understand evolution of computer hardware

2. Identify major types and uses of computer systems

3. Outline major technologies and uses of computer peripherals

for input, storage and output

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Early Computing

1880s
– Punched cards turned sensors On or Off
1946
– ENIAC
– First Digital computer - programmable
– Used vacuum tubes
– Would fill room 39 ft by 39 ft
Late 1950s
– Transistors replaced vacuum tubes
– Smaller, faster, cooler

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Waves of computing

First Generation - Prior to 1950


– Vacuum tubes
Second Generation - Late 1950s
– Transistors & integrated circuits – Jack Kilby
– 200,000 to 250,000 calculations per second
Third Generation - Mid-1960s
– Integrated circuitry and miniaturization
Fourth Generation - 1971
– Further miniaturization
– Multiprogramming and virtual storage
Fifth Generation - 1980s
– Millions of calculations per second

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Age of Microcomputers

First Generation - Prior to 1950


– Vacuum tubes
Second Generation - Late 1950s
– Transistors & integrated circuits – Jack Kilby
– 200,000 to 250,000 calculations per second
Third Generation - Mid-1960s
– Integrated circuitry and miniaturization
Fourth Generation - 1971
– Further miniaturization
– Multiprogramming and virtual storage
Fifth Generation - 1980s
– Millions of calculations per second

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Categories of Computer Systems

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Corporate PC Criteria

• Solid performance, reasonable price


• Operating system ready
• Connectivity
– Network interface cards
– Wireless capabilities

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Information Appliances

Hand-held microcomputer devices


Known as personal digital assistants (PDAs)
– Web-enabled
– Touch screens, handwriting recognition, keypads
– Access email or the Web
– Exchange data with desktop PCs or servers
– Latest entrant is the BlackBerry
PDAs include
– Video-game consoles
– Cellular and PCS phones
– Telephone-based home email appliances
iPhone 4

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Midrange systems

1. High-end network servers


1. Large-scale processing of business applications
2. Not as powerful as mainframes
1. Less expensive to buy, operate, and maintain
3. Often used to manage
1. Large Internet websites
2. Corporate intranets and extranets
3. Integrated, enterprise-wide applications
4. Used as front-end servers
– Assist mainframes with telecommunications and networks

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Mainframe computers

1. Large, fast, powerful computer systems


1. Large primary storage capacity
2. High transaction processing
3. Handles complex computations
2. Widely used as superservers for…
1. Large client/server networks
2. High-volume Internet websites
3. Becoming popular computing platform for…
1. Electronic commerce applications
2. Data mining and warehousing

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Supercomputer systems

1. Extremely powerful systems


1. Scientific, engineering, and business applications
2. Massive numeric computations
2. Markets include…
1. Government research agencies
2. Large universities
3. Major corporations
3. Uses parallel processing
1. Billions to trillions of operations per second
1. (gigaflops and teraflops)
2. Costs $5 to $50 million

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Computer system concept

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Computer Processing Speeds

• Commonly called “clock speed”


Early computers
– Milliseconds (thousandths of a second)
– Microseconds (millionths of a second)
Current computers
– Nanoseconds (billionth of a second)
– Picoseconds (trillionth of a second)
Program instruction processing speeds
– Megahertz (millions of cycles per second)
– Gigahertz (billions of cycles per second)

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Moore’s Law

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Voice Recognition Tools

1. Doctors record to e-medical records


2. Nurses receive instructions record actions
3. Time cut by 75 percent

4. Reduced mistakes

5. ROI 12 to 18 months

6. Transcription $500,000 to zero

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Peripheral Advice

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Input Technologies

1. Keyboard
2. Graphical User Interface (GUI)
3. Electronic Mouse
4. Trackball
5. Pointing stick
6. Touchpad
7. Touch screen

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Pen based computing

• Used in Tablet PCs and PDAs


– Pressure-sensitive layer, similar
to touch screen, under liquid
crystal display screen
– Software digitizes handwriting,
hand printing, and hand drawing

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Speech recognition software

Digitize, analyze, and classify speech and sound


patterns
– Compares to sound patterns in its vocabulary
– Passes recognized words to the application
software
Speaker-independent voice recognition systems
– Recognizes words from never heard voice
– Voice-messaging computers

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Optical Scanning

1. Converts text or graphics to digital


2. Document management library system
3. Scanners
4. Optical Character Recognition (OCR)
1. Reads characters and codes
2. Optical scanning wands

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Other input technologies

1. Magnetic Stripe on credit cards

2. Smart Cards

3. Digital Cameras

4. Magnetic Ink Character Recognition (MICR)

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Output technologies

1. Video Displays
1. Cathode-ray tube (CRT)
2. Liquid crystal displays (LCDs)
3. Plasma displays
2. Printed Output
1. Dot matrix
2. Character printers
3. Inkjet printers spray ink
4. Laser printers
1. Electrostatic process
2. Similar to a photocopying machine

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Storage tradeoffs

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Direct and Sequential Access

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Types of semiconductor memory

1. Random Access Memory (RAM)


1. Most widely used primary storage medium
2. Volatile memory
3. Read/write memory
2. Read-Only Memory (ROM)
1. Permanent storage
2. Can be read, but not overwritten
3. Frequently used programs burnt into chips during
manufacturing process
4. Called firmware
3. Flash Drive

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Flash drives

Jump drive, travel drive, etc.


– Small chips thousands of transistors
– Stores data virtually unlimited periods without power
– Easily transported and highly durable
– Storage capacity of up to 20 GB
• New 1 TB
– Plugs into any USB port

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Storage Devices

Used for secondary storage


– Fast access and high capacity
– Reasonable cost
Redundant Arrays of Independent Disks
– Arrays of hard disk drives
– Virtually unlimited online storage
– 6 to more than 100 small hard disk drives in a single unit
– Data are accessed in parallel over multiple paths from many disks
– Storage area networks can interconnect many RAID units
Secondary storage
– Tape reels, cassettes, and cartridges
– Used in robotic, automated drive assemblies
– Archival and backup storage
– Lower-cost storage solution
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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
RFID

One of the newest and fastest growing storage technologies


– System for tagging and identifying moving objects
• Merchandise, postal packages, casino chips, pets
– Tag 1 inch square
– Chips half the size of a grain of sand
• Passive chips derive power from reader signal
• Active chips are self-powered
Privacy Issues

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Predictions for future

1. Biological memories

2. Health remedies

3. Longer life spans

4. Virtual activities

5. Memory recall

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Management Information System
Lesson 4 – Computer Software

BITS Pilani Dr. Annapoorna Gopal


Pilani Campus
Learning Objectives

1. Understand evolution of computer hardware

2. Identify major types and uses of computer systems

3. Outline major technologies and uses of computer peripherals

for input, storage and output

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Application Software

1. General Purpose
– Perform common information processing

– Productivity packages

2. Custom Software
– In-house development and maintenance
3. Commercial Off-the-Shelf (COTS)
– Third party vendor

4. Open-source Software
– Application code available and free

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Case study

General Electric
– Enormous supply chain
– Global Supplier Library – rudimentary capability
– Aravo’s Supplier Information Management (Sim)
• 500,000 suppliers
• 6 languages
H. B. Fuller
– Payroll system
– Wanted standard global platform
– Selected SaaS

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Types of Application & Systems Software

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Components of top software suites

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Integrated Packages and Web Browsers

Integrated Packages Web browsers


• Combine functions of several • Support navigation
programs – Internet and World-Wide Web
– Examples: Microsoft Works, – Intranets
AppleWorks – Extranets
• Advantages • Universal platform
– Lower price – Information searches
– Less disk space – E-mail
– Pre-installed on – Multimedia file transfer
microcomputers – Discussion groups
• Disadvantages – Other Internet-based
– Limited functionality applications

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Search Engines and Communication Software

Search Engines Communication Software

• Indispensable for finding information • E-mail


• Instant messaging (IM)
• Popular engines
• Weblog or blog
– Google, Ask Jeeves, Look Smart,
– Personal website in dated log
Lycos, Overture, Yahoo!
format
• Universal client
– Updated with new information
– On all computers of an enterprise • Owner
• Gleaned from other sites
• Moderated discussion

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Word Processing and Electronic spreadsheet

Word Processor Electronic Spreadsheet


• Popular Word Processors • Used by most businesses
– Create, edit, revise, and print – Analysis, planning, modeling
documents
– Microsoft Excel, Open Office
– Microsoft Word, Lotus Calc,
WordPro, Corel WordPerfect, Corel QuattroPro
OpenOffice Writer • Electronic Spreadsheet
• Desktop Publishing – Worksheet of rows and
– Produce printed materials that columns
look professionally published – Local computer or on network
– Adobe InDesign, Microsoft – Formulas and functions
Publisher, QuarkXPress
– Charts and graphs
– What-if questions
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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Presentation Graphics and Personal
Information Manager
• Emphasize key points • End user productivity and
• Convert numeric data into collaboration

graphics displays – Used in PDAs

• Create multimedia presentations – Information about clients

– Microsoft PowerPoint, – Schedules, appointments, tasks


OpenOffice Impress, Lotus – Access the Web and e-mail
Freelance, Corel Presentations – Team collaboration
• Use predesigned templates • Lotus Organizer, Microsoft
• Tailor files for HTML format in Web Outlook
sites

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Groupware

Collaborate on group assignments


– E-mail, discussion groups, databases, video conferencing
• Lotus Notes
• Novell GroupWise
• Microsoft Exchange
– Some allow teams to create websites
• Windows SharePoint Services, WebSphere

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Software Alternatives

Outsourcing
– Domestic
– Offshore
Application service providers (ASPs)
– Companies that own, operate, and maintain application software and computer system resources
– Use the application for a fee over the Internet
– Pay-as-you-go
– Use expected to accelerate
Cloud computing – services over the internet
– Natural step from grid computing (Chapter 3)
– Applications
– Virtualized hardware resources
Vendors of cloud services
– SAP Business ByDesign, Salesforce.com, Google Apps, MidlandHR’s “iTrent as a Service”
Advantages
– Low barrier to entry
– Cost Savings
– More powerful software
74 BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Software Licensing

All COTS and ASP software is licensed


– Intellectual property rights
– Copyright
– Trademark
– Trade secrets
– Traditional contract law
• Uniform Commercial Code (UCC)
You buy license, not software
– Protect the vendor’s property rights
Can do
– Sell software
– Dispose of rights
Can’t do
– Duplicate
– Resell multiple copies
– Reverse engineer
– Modifying
– Disclosing
– Transferring software

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Categories of Group Software

System Management Programs


– Manage the resources of a computer system
– Examples:
• Operating systems
• Network management programs
• Database management systems
• System utilities
System Development Programs
– Helps develop IS programs and procedures and then prepare
them for processing
• Language translators and editors
• CASE and programming tools

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Operating Systems

Integrated system of programs that…


– Provides interface between user and computer
– Manages the operations of the CPU
– Controls the input/output, storage resources, and activities of the
computer system
– Provides support for application programs
Loaded first before other tasks

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Operating System Functions

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Popular Operating Systems

Windows • Unix
– AT&T
– GUI, multitasking, networking,
multimedia – Multitasking, multi-user, network-
managing
– Microsoft’s operating system – Portable across computer sizes
• NT, XP, 2003, Vista, • Linux
Windows 7 – Low-cost, powerful, reliable
– Different versions manage – Similar to Unix-like
servers – Open-source

Windows Server 2008 – Flexible


– Multiple machines
– Based on Vista
MAC OS X
– Release 2 to correct
– Apple operating system for the iMac
performance and security issues
– Based on UNIX
– GUI
– Multitasking
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– Multimedia
BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Open Source Software

The Program
– Must allow distribution of
• Source code
• Compiled form
The License
– Shall not restrict selling or giving away
– Must allow modifications
– Must allow distribution
– May restrict modified source code
– Must not discriminate
– Must not restrict other software distributed along with the licensed
software
OpenOffice.org 2
– Sun Microsystems
– Integrated office suite
• File formats compatible with other major suites

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Application Virtualization

Allows software to run on a different operating system.


Advantages
– One machine acts like multiple machines
• Reduces the number of computers needed
• Energy savings
• Use software from multiple vendors

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Other system software

Utilities
– Miscellaneous housekeeping functions
– Example: Norton Utilities includes data backup, virus protection,
data compression, etc.
Performance Monitors
– Keep computer running efficiently
Security Monitors
– Prevent unauthorized use of resources
Middleware
– Interface between an operating system and the application
programs of users

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Programming languages

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Web languages

HTML
– Hypertext documents for the Web
XML
– Identifying tags or contextual labels
– Digital publishing
• Cheaper, faster
Java
– Object-oriented
– Simple, secure, and platform independent
– Java applets on any computer
JEE6 – Java Enterprise Edition 6
Microsoft .NET

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How web services work

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Language translator program

Convert human instructions into computer instructions.


Assembler
– Translates assembler language statement
Compiler
– Translates high-level language statements
Interpreter
– Translates and executes one statement at a time

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BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Programming Tools

Help identify and minimize errors


– Graphical programming interfaces
– Programming editors
– Debuggers
CASE Tools
– Help in the software development process.
• Combine many programming tools into a single application
with a common interface
• Used in different stages of the systems development process

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Case studies

1. McAfee Inc. Page no. 197

2. US Department of Defense – Enlisting open-source applications

Page no. 201

3. Linux, a Tool Page No. 208

4. India’s first life insurance Page No. 213

5. Airbus Page No. 226

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Management Information System
Lesson 5 – Database Management Systems

BITS Pilani Dr. Annapoorna Gopal


Pilani Campus
Learning Objectives

Understand the concepts of

Source : MIS 10th Edition, James A O’Brien, George M Marakas, Ramesh Behl
– Major types of databases
– Data warehouses and data mining
– Fundamental database structures
– Database development

Understand the business value of implementing data resource management


processes and technologies in an organization.

Explain how database management software helps business professionals and


supports the operations and management of a business.

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Logical data elements

Source : MIS 10th Edition, James A O’Brien, George M Marakas, Ramesh Behl
BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Database

Source : MIS 10th Edition, James A O’Brien, George M Marakas, Ramesh Behl
BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Database structures
Network Structure

Source : MIS 10th Edition, James A O’Brien, George M Marakas, Ramesh Behl
Relational Structure Relational Operations
• Most widely used structure
– Data elements are stored in tables 1. Select
– Row represents a record; column is a field 2. Join
– Can relate data in one file with data in another, if both files
share a common data element 3. Project

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Multidimensional and Object Oriented model

Source : MIS 10th Edition, James A O’Brien, George M Marakas, Ramesh Behl
BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Evaluating database structure

Hierarchical

Source : MIS 10th Edition, James A O’Brien, George M Marakas, Ramesh Behl
– Works for structured, routine transactions
– Can’t handle many-to-many relationships
Network
– More flexible than hierarchical
– Unable to handle ad hoc requests
Relational
– Easily responds to ad hoc requests
– Easier to work with and maintain
– Not as efficient/quick as hierarchical or network

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Database development

• Database Administrator (DBA)


– Enterprise database development

Source : MIS 10th Edition, James A O’Brien, George M Marakas, Ramesh Behl
– Improves integrity and security
– Data Definition Language (DDL)
• Data contents, relationships, and structure
– Specifications
• Data dictionary
• Metadata repository
• Database development is top-down process
– Develop an enterprise model
– Define the information needs of end users
– Identify the key data elements

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Database development

Source : MIS 10th Edition, James A O’Brien, George M Marakas, Ramesh Behl
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Data Views

Source : MIS 10th Edition, James A O’Brien, George M Marakas, Ramesh Behl
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Database Types

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Web based system

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Components of datawarehouse

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Data Warehouse and Datamarts

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Data mining

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Database management approach

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Common DBMS components

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DBMS Major Functions

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Database interrogation

SQL Queries
– Structured Query Language
– International standards
– In many DBMS packages
– Query form is
SELECT…FROM…WHERE…
Boolean Logic
– Developed by George Boole
– Mid-1800s
– Used to refine searches
– Three logical operators: AND, OR, NOT

Example
– Cats OR felines AND NOT dogs OR Broadway

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Database Maintenance

Accomplished by
– Transaction processing systems
– Utilities and other applications, supported by DBMS
– Records new business transactions
– Updating and correcting data
• Customer addresses

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Application development

DBMS tools
– 4GL programming language
– Built-in software development tools
– Data manipulation language (DML) statements
• Eliminate conventional programming

Applications
– Data entry screens
– Forms
– Reports
– Web pages

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Case studies

1. Jindal Steel Page No. 250

2. Simplified Data Management Page No. 258

3. Hadoop Page No. 261

4. Coty Page No. 270

5. R.L. Polk and Co. Page No. 274

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Management Information System
Lesson 6 – e-business systems

BITS Pilani Dr. Annapoorna Gopal


Pilani Campus
Learning Objectives

Identify the following cross-functional enterprise systems, and give examples of how they
can provide significant business value to a company

Source : MIS 10th Edition, James A O’Brien, George M Marakas, Ramesh Behl
– Enterprise application integration
– Transaction processing systems
– Enterprise collaboration systems
Give examples of how Internet and other information technologies support business
processes within the business functions of:
– Accounting
– Finance
– Human resource management
– Marketing
– Production
– Operations management
BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus
Enterprise business systems

Use Internet, networks, and IT to support


– Electronic commerce
– Enterprise communications and collaboration
– Web-enabled business processes

E-commerce is the buying, selling, and marketing of


products, services, and information over the Internet
and other networks

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Cross functional systems

• Cross the boundaries of traditional business functions


– Reengineer and improve vital business processes
– R&D overlaps Marketing and Manufacturing

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Enterprise Application Architecture

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Implementing global applications

Globalization vs true-blue American formula


– What is Globalization?
– What is the true-blue American business formula?
Working virtually is critical
– Why?
What is the difference between decision making
approach in UK and US?

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Enterprise Application Integration

• EAI connects cross-functional systems


• Serves as middleware to provide
– Data conversion
– Communication between systems
– Access to system interfaces

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How EAI works

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Transaction Processing System

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Transaction processing lifecycle

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Enterprise Collaboration Systems

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Others

Virtual world - training Information systems that support


– Rollovers – Accounting
– Multicar pileups – Finance
– Life threatening injuries – Marketing
– Police training – Operations management
– Military use – Human resource management

• Marketing systems are concerned with


– Existing products in existing markets
– New products and new markets
– Serving present and potential customers
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IT in Business

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Marketing Information Systems

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Targeted Marketing

• Advertising and promotion management concept


– Five targeting components

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Sales force automation

• Outfit sales force


– Notebook computers,
– Web browsers
– Sales contact software
– Marketing websites
– Company intranet
• Goals
– Increase personal productivity
– Speed up capture and analysis of sales data
– Gain strategic advantage

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Computer integrated manufacturing

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HRM systems

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HRM and Internet/Intranet

• Recruiting employees • Corporate intranet uses


– Corporate website – Process common HRM
transactions
– Commercial recruiting
services – Allow around-the-clock
HRM services
• Posting in Internet – Disseminate information
newsgroups faster than previous
company channels
• Communicating with job – Collect information from
applicants via employees online
– e-mail – Allow HRM tasks to be
– Monster.com performed with little HRM
department intervention
– HotJobs.com
– CareerBuilder.com – Provide training

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Accounting Information Systems

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Business accounting system

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Financial management system

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Case studies

1. Case 1 Page No. 375

2. Ogilvy and Mather …. Page No. 379

3. Coty Page No. 381

4. Syntellects… Page No. 383

5. Exploring virtual worlds Page No. 387

6. Salesforce automation Page No. 389

7. Chiquita brands Page No. 405

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Management Information System
Lesson 7 – Enterprise Business Systems

BITS Pilani Dr. Annapoorna Gopal


Pilani Campus
Learning Objectives – Enterprise Business
Systems

Identify and give examples to illustrate the following aspects of customer

Source : MIS 10th Edition, James A O’Brien, George M Marakas, Ramesh Behl
relationship management, enterprise resource manage-ment, and
supply chain management systems:
– Business processes supported
– Customer and business value provided
– Potential challenges and trends
Understand the importance of managing at the enterprise level to
achieve maximum efficiencies and benefits.

BA ZC 471 Management Information Systems BITS Pilani, Pilani Campus


Managing at the Enterprise Level
• Lessons from Geese
– Importance of team work
– Encourage passion and energy

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Customer Relationship Management

Customer focused
– Customer relationships – most valued asset
– Find and retain most profitable customers possible
Company has
– Single, complete view of every customer
Customers have
– Single, complete view of the company
Integrates and automates customer-serving processes

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Contact and Account Management

Track relevant data about


– Every past and planned contact with prospects and
customers
– Other business and life cycle events

Data captured from touchpoints


– Telephone, fax, e-mail
– Websites, retail stores, kiosks
– Personal contact

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Application clusters in CRM

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Sales

A CRM system provides:


– Support and manage sales activities
– Optimize cross-selling and up-selling
– Method to check account status and history

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Customer Retention Evaluation Report

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Support

Automate direct marketing campaigns


– Qualifying leads for targeted marketing
Marketing and
– Scheduling and tracking mailings
Fulfilment
– Capturing and managing responses
– Analyzing the business value of the campaign
– Fulfilling responses and requests
Shared database
Requests for service are created, assigned,
and managed
Call center software routes calls to agents Customer service
and support
Help desk software provides service data
and suggestions for solving problems
Personalized support information
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Retention and Loyalty Programs

Statistics
– Costs 6 times more to sell to a new customer
– Unhappy customer will tell 8-10 others
– Boosting customer retention by 5 percent can boost profits by 85 percent
– Odds of selling:
• Existing customer - 50 percent
• New - 15 percent
– 70 percent of customers will do business again if problems are quickly
resolved.
Primary objective - enhancing and optimizing customer retention and loyalty
– Identify, reward, and market to the most loyal and profitable customers
– Evaluate targeted marketing and relationship programs

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Phases of CRM

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Benefits of CRM and Reasons for Failure

• Identify and target the best customers


• Real-time customization and personalization of products and services
• Track when and how a customer contacts the company

• Provide a consistent customer experience Benefits


• Provide superior service and support

Reasons for Failure


• Lack of senior management sponsorship Reasons for
• Improper change management Failure
• Elongated projects that take on too much, too fast
• Lack of or poor integration between CRM and core business systems
• Lack of end-user incentives leading to poor user adoption rates
• Lack of understanding and preparation
• Not solving business process problems first
• No participation on part of business stakeholders involved
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Trends in CRM

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What is ERP?

Cross-functional enterprise system


– Integrated suite of software modules
– Supports basic internal business processes
• Manufacturing
• Logistics
• Distribution
• Accounting
• Finance
• Human resources
– Facilitates information flows
• Business
• Supplier
• Customer

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ERP Application Component

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ERP Process and Information Flow

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Business Processes and Functions of ERP

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Cost of implementing new ERP

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Reasons for ERP failures

Most common causes of ERP failure


– Under-estimating complexity
• Planning, development, training
– Failure to involve affected employees
– Too much too fast
– Insufficient training
– Insufficient data conversion and testing
– Over-reliance on ERP vendor or consultants

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ERP Trends and Application Components

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Supply Chain Management

Helps a company
– Get the right products
– To the right place
– At the right time
– In the proper quantity
– At an acceptable cost
Goal of SCM is to efficiently…
– Forecast demand
– Control inventory
– Enhance relationships
– Receive feedback

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Supply Chain lifecycle

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EDI Activities

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Roles and activities of SCM in business

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Functions and benefits of SCM

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Benefits and Challenges of SCM

Key Benefits
– Faster, more accurate order processing
– Reductions in inventory levels
– Quicker times to market
– Lower transaction and materials costs
– Strategic relationships with supplier

Key Challenges
– Lack of knowledge, tools, and guidelines
– Inaccurate data
– Lack of collaboration
– SCM tools are immature, incomplete, and
hard to implement

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Goals and Objectives of SCM

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Trends in SCM

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Management Information System
Lesson 8 – e-commerce Systems

BITS Pilani Dr. Annapoorna Gopal


Pilani Campus
Learning Objectives

1. Identify the major categories and trends of e-


commerce applications
2. Identify the essential processes of an e-commerce
system, and give examples of how they are
implemented in e-commerce applications
3. Identify and give examples of several key factors and
Web store requirements need to succeed in e-
commerce
4. Identify and explain the business value of several
types of e-commerce marketplaces
5. Discuss the benefits and trade-offs of several e-
commerce clicks and bricks alternatives

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Intoduction

Electronic commerce encompasses the entire online


process of
– Developing
– Marketing
– Selling
– Delivering
– Servicing
– Paying for products and services
Relies on Internet and information technologies

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Caselet – Mobile shopping

• Mobile shopping increasing


• Social networking
– Web sites and e-mail too many steps
– Sales pitches on social networks increasing
• Birthday prompts ad for 1-800-Flowers
– Impulsive buyers
• Cell phones
– Starbucks Mobile Card App
• Preloaded spending money
• Scannable bar code
– Last minute game tickets

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Scope of e-commerce

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e-commerce Technologies

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Essentials of e-commerce

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Access Control and Security

E-commerce requires mutual trust and secure access


– User names and passwords
– Encryption key
– Digital certificates and signatures
Restricted access areas
– Other people’s accounts
– Restricted company data
– Webmaster administration areas

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Profiling and Personalizing

Profiling captures behavior and choices


– User registration
– Cookie files and tracking software
– User feedback
Profiling is used for
– Personalized (one-to-one) marketing
– Authenticating identity
– Customer relationship management
– Marketing planning
– Website management

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Search Management

• Find specific product or service


– Website search engine
• Google or Requisite Technology
– Search on content or by parameters

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Content and Catalog Management

Content Management Software


– Maintain text and multimedia for e-commerce
Catalog Management Software
– Maintain catalog content
Catalog and content management software
– Works with profiling tools to personalize content
– Product configuration and mass customization

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Example of workflow management

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Event Notification

Monitors e-commerce processes


Records relevant events
– First website
– Payments
– Problem situations
Notifies involved stakeholders
Works with user-profiling software

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Collaboration and Trading

Processes needed by customers, suppliers, and other


stakeholders
Online communities of interest
– E-mail, chat, discussion groups
– Enhances customer service
– Builds loyalty

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Electronic payment example

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Securing electronic payments

Sniffers easily recognize credit card formats


Protection
– Encrypt data
• Between customer and merchant
• Between customer and financial institution
– Take sensitive information off-line

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E-commerce application trends

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E-commerce success factors

1. Selection and value


2. Performance and service
3. Look and feel
4. Advertising and incentives
5. Personal attention (one-to-one marketing)
6. Community relationships
7. Security and reliability

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Differences in marketing

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Webstores requirement

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Developing a webstore

Build a website
– Choose or set up web hosting
– Use simple design tools and templates
– Include a shopping cart and payment support
Market the website
– Include Web page and e-mail advertising
and promotions
– Exchange advertising with other Web stores
– Register with search engines and directories
– Sign up for affiliate programs

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Getting customers to find you

Submit your site to a search engine


Improve the quality and number of visitors
– Search Engine Optimization (SEO)
• Link Farms
• Keyword stuffing
• Organic Search

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Serving your customers

Convert visitors into loyal customers


– Develop one-to-one relationship with customers
– Create incentives to encourage registration
– Use Web cookies to identify visitors
– Use tracking services to record and analyze website
behavior and customer preferences
– Create an attractive, friendly, efficient store
– Offer fast order processing and payment
– Notify when orders are processed and shipped
– Provide links to related websites

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Managing your webstore

Manage both the business and the website


– Record and analyze traffic, inventory, sales
– Use CRM features to help retain customers
– Link sales, inventory data to accounting systems
Operate 24 hours a day, seven day a week
Protect transactions and customer records
– Use security monitors and firewalls
– Use redundant systems and power sources
– Employ passwords and encryption
– Offer 24-hour tech support

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B2B e-commerce

Wholesale and supply side


– Businesses with other businesses
Relies on multiple technologies
– Catalog systems
– Trading systems
– Data interchange
– Electronic funds transfers

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E-commerce marketplace

One to Many
– Sell-side marketplaces
– One supplier dictates product offerings and prices
Many to One
– Buy-side marketplaces
– Many suppliers bid for the business of a buyer
Some to Many
– Distribution marketplaces
– Unites suppliers who combine their product catalogs to attract a larger audience
Many to Some
– Procurement marketplaces
– Unites major buyers who combine catalogs
– More competition
– Lower prices
Many to Many
– Auction marketplaces
– Dynamically optimizes prices
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B2B commerce portals

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Clicks and bricks

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E-commerce integration

Move traditional strategies to e-commerce


Integrate e-commerce into traditional business
– Sharing of established brands
– Sharing of key business information
– Joint buying power and distribution efficiencies

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E-commerce tradeoffs

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Other clicks and cricks

Partial e-commerce integration


– Joint ventures and strategic partnerships
Complete separation
– Spin-off of an independent e-commerce company
Barnes and Noble’s experience
– Spun off independent e-commerce company
– Gained venture capital, entrepreneurial culture, and flexibility
– Attracted quality management
– Accelerated decision making
– Failed to gain market share

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E-commerce channel choices

An e-commerce channel is the marketing or sales


channel created by a company for its e-commerce
activities
– No universal strategy or e-commerce channel choice
– Both e-commerce integration and separation
have major business benefits and shortcomings
– Most businesses are implementing some
measure of clicks and bricks integration

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E-commerce strategy checklist

Questions to ask and answer


– What audiences are we attempting to reach?
– What action do we want those audiences to take?
– Who owns the e-commerce channel within the organization?
– Is the e-commerce channel planned alongside other channels?
– Is there a process for generating, approving, releasing, and
withdrawing content?
– Will our brand translate to the new channel?
– How will we market the channel itself?

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Caselet – brands go online

Companies must protect brand names, logos and


trademarks
– BrandProtect, MarkMonitor, and NameProtect offer help

Challenge has grown exponentially

Another type of violation is using logos without


permission

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Management Information System
Lesson 10 – Decision Support Systems

BITS Pilani Dr. Annapoorna Gopal


Pilani Campus
Learning Objectives

• Identify the changes taking place in the form and use of


decision support in business

• Identify the role and reporting alternatives of management


information systems

• Describe how online analytical processing can meet key


information needs of managers

• Explain the decision support system concept and how it differs


from traditional management information systems
Decision Support in Business

• Provide responses to:


– Changing market conditions
– Customer needs
• Several types of systems
– Management information
– Decision support
– Other information systems
Caselet 1: Fact-Based Decision Making

• Decisions based on facts beat decisions based on


gut
• Dashboard
– Makes detailed statistics available in real-time
• Scorecard
– Software compares details to defined metrics
• How prepared are organizations to synthesize and
share key performance indicators?
• How prepared are executives to draw insight from
information?
Levels of Managerial Decision Making
Attributes of Information Quality
Decision Structure

• Structured (operational)
– Procedures can be specified in advance
• Unstructured (strategic)
– Not possible to specify procedures in advance
• Semi-structured (tactical)
– Decision procedures can be pre-specified,
but not enough to lead to the correct decision
Decision Support Systems

Management Information Decision Support


Systems Systems

Decision Provide information about the Provide information and


support performance of the techniques to analyze
provided organization specific problems

Information form Periodic, exception, demand, Interactive inquiries and


and frequency and push reports and responses
responses

Information Prespecified, fixed format Ad hoc, flexible, and


format adaptable format

Information Information produced by Information produced by


processing extraction and manipulation of analytical modeling of
methodology business data business data
Decision Support Trends

Add info from new


paragraphs
Business Intelligence Applications
DSS Components
Management Information Systems
Online Analytical Processing
GIS and DVS Systems
Using Decision Support Systems
Data Mining

• Provides decision support through knowledge


discovery
– Analyzes vast stores of historical business data
– Looks for patterns, trends, and correlations
– Goal is to improve business performance
• Types of analysis
– Regression
– Decision tree
– Neural network
– Cluster detection
– Market basket analysis
Market Basket Analysis

• One of the most common uses for data mining


– Determines what products customers purchase
together with other products
• Other uses
– Cross Selling
– Product Placement
– Affinity Promotion
– Survey Analysis
– Fraud Detection
– Analyze Customer Behavior
Executive Information Systems (EIS)

• Combines many features of MIS and DSS


• Provides immediate and easy information
• Identifies critical success factors

• Features
– Customizable graphical user interfaces
– Exception reports
– Trend analysis
– Drill down capability
Enterprise Information Portal Components
Enterprise Knowledge Portal
Attributes of Intelligent Behavior
Domains of Artificial Intelligence
Components of an Expert System
Methods of Knowledge Representation

• Case-Based
– Examples from the past
• Frame-Based
– Collection of knowledge about an entity
• Object-Based
– Data elements include both data and the methods or
processes that act on those data
• Rule-Based
– Factual statements in the form of a premise and a
conclusion (If, Then)
Expert System Application Categories

• Decision Management
– Loan portfolio analysis
– Employee performance evaluation
– Insurance underwriting

• Diagnostic/Troubleshooting
– Equipment calibration
– Help desk operations
– Medical diagnosis
– Software debugging
Expert System Application Categories

• Design/Configuration
• Selection/Classification
• Process Monitoring/Control
Benefits and Limitations of Expert Systems

• Benefits
– Captures human experience in a computer-based information
system

• Limitations
– Limited focus
– Inability to learn
– Maintenance problems
– Development cost
– Can only solve specific types of problems
in a limited domain of knowledge
Development Tool

• Expert System Shell


– The easiest way to develop an expert system
– A software package consisting of an expert system
without its knowledge base
– Has an inference engine and user interface programs
Knowledge Engineering

• A knowledge engineer
– Works with experts to capture the knowledge they
possess
• Facts and rules of thumb
– Builds the knowledge base
• if necessary, the rest of the expert system
– Similar role to systems analysts
Neural Networks

• Modeled after the brain’s mesh-like network of


interconnected processing elements (neurons)
– Interconnected processors operate in parallel
and interact with each other
– Allows the network to learn from the data it processes
Example of Fuzzy Logic Rules and Query
Genetic Algorithms

• Genetic algorithm software


– Uses Darwinian, randomizing, and other mathematical
functions
– Simulates an evolutionary process, yielding increasingly
better solutions to a problem
– Used to model a variety of scientific, technical, and
business processes
– Useful when thousands of solutions are possible
Virtual Reality (VR)

• Virtual reality is a computer-simulated reality


– Fast-growing area of artificial intelligence
– Originated from efforts to build natural, realistic, multi-
sensory human-computer interfaces
– Relies on multi-sensory input/output devices
– Creates a three-dimensional world through
sight, sound, and touch
• Telepresence
– Using VR to perform a task in a different location
Intelligent Agents

• Software surrogate for an end user or a


process that fulfills a stated need or
activity
– Uses built-in and learned knowledge base to
accomplish tasks

• Software robots or bots


Types of Intelligent Agents

• User Interface Agents


– Interface Tutors
– Presentation Agents
– Network Navigation Agents
– Role-Playing Agents

• Information Management Agents


– Search Agents
– Information Brokers
– Information Filters
Caselet 2 - Business Intelligence Deployments

• Analyze raw data (e.g., sales transactions)


• Extract useful insights
• Can transform business processes
• Can impact the bottom line
• Major impediment - most companies don’t
understand their business processes well
enough
• Uncovering flawed business processes beats
merely to monitoring
Management
Information System
BITS Pilani Dr. Annapoorna Gopal
Pilani Campus
Developing Business/IT Strategies -
Learning Objectives

• Discuss the role of planning in the business


use of information technology, using the scenario approach
and planning for competitive advantage as examples

• Discuss the role of planning and business models in the


development of business/IT strategies, architectures, and
applications

• Identify several change management solutions for end user


resistance to the implementation of new IT-based business
strategies and applications
Planning Fundamentals

• IT created a seismic shift


– Just knowing the importance and structure of
e-business is not enough
– Must be able to transform an old business design to a
new e-business design
Components of Organizational Planning
Scenario Approach

• Gaining popularity
• Less formal
• Virtual world (microworld) exercises
• Business scenarios are created and evaluated
• Alternative scenarios are then created
Strategic Visioning Questions
Trends that Affect Strategic Planning
Strategic Opportunities Matrix
SWOT Analysis

• Strengths
– Core competencies and resources
• Weaknesses
– Areas of substandard business performance
• Opportunities
– Potential for new business markets or innovative
breakthroughs
• Threats
– Potential for business and market losses
Business Models and Planning

• Vital questions
– Who are our customers?
– What do our customers value?
– How much will it cost to deliver that value?
– How do we make money in this business?
Questions for Business Models
The Business/IT Planning Process
Information Technology Architecture

• Conceptual design components


– Technology platform
– Data resources
– Application architecture
– IT organization
Balanced Scorecard

• Measures activities in terms of vision and strategies


– Financial performance
– Impact on customers
– Performance of key business processes
– Company’s learning curve and growth
• Four processes
– Translate vision into operational goals
– Communicate vision and link to performance
– Business planning
– Feedback/learning and strategy adjustment
Balanced Scorecard Example

www.steelwedge.com
Identifying Business/IT Strategies

• Valuable Internet applications


– Transcend communication barriers
– Establish connections that enhance productivity
– Stimulate innovative development
– Improve customer relations
Strategic Positioning Matrix
Strategic Matrix

• Cost and Efficiency Improvements


– Low internal and low external connectivity
– Recommend – Use the Internet as a fast, low-cost way
to communicate and interact with others
• Performance Improvement in Effectiveness
– High internal but low external connectivity
– Recommend – Increase use intranets and extranets
Strategic Strategies

• Global Market Penetration


– High external but low internal connectivity
– Capitalize with e-commerce websites using value-
added information services and extensive online
customer support

• Product and Service Transformation


– High external and high internal connectivity
– Develop and deploy new Internet-based
products and services to create a new strategic
position in the marketplace
E-Business Strategy Examples

• Market Creator
• Channel Reconfiguration
• Transaction Intermediary
• Infomediary:
• Self-Service Innovator
• Supply Chain Innovator
• Channel Mastery
Business Application Planning Process
Comparing Planning Approaches
E-Business Architecture Planning
Implementation Challenges

• Implementation
– Do what you planned to do
– Critical skill for managers
• Many companies are good at planning
• Few are good at executing the plan
– Even if senior management consistently identifies e-
business as an area of great opportunity and critical
need
RWC 2: Project Success

• People skills critical to project success


– Teamwork
– Support during tough times
• Bad relationships leading cause of failure
• Managers tend to go to software instead of
building relations
• Showing progress at short intervals helps
Implementing Information Technology

• Developments that have generated organizational


change
– Business process reengineering
– ERP systems
– Y2K compliance
– Shared service centers
– Just-in-time manufacturing
– Sales force automation
– Contract manufacturing
– Introduction of Euro currency
• E-business is the latest catalyst
Impact and Scope of Implementing IT
Impact and Scope of Implementing IT
End User Resistance and Involvement

• Change generates resistance


• Examples:
– Customer Relationship Management (CRM)
– Knowledge Management Systems (KM)
• CRM failures
– CRM failure rate up to 75 percent
– Causes for failure
• Sales force automation problems
• Unaddressed cultural issues
• Sales staffs fearful and thus resistant
Obstacles to KM Systems
Keys to Solving End User Resistance

• Create relationships
– Understand the end-user’s situation
• Provide education and training
• Require involvement and commitment
– End-users
– Top management
– All stakeholders
• Eliminate frustration and inconvenience
Key Dimensions of Change Management
Change Management Programs

• Develop a change action plan


• Assign managers as change sponsors
• Develop employee change teams
• Encourage open communications and
feedback about organizational changes
Change Management Tactics

• Involve as many people as possible in e-business


planning and application development
• Make constant change an expected part of the
culture
• Tell everyone as much as possible about
everything, as often as possible, in person
• Make liberal use of financial incentives and
recognition
• Work within company culture, not around it
A Change Management Process
Avnet Marshall’s Transformation

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