Information Systems in Business

Management Cycle and IT Model

Why should we have a basic knowledge about Information System??

To understand functional areas in business.
To make right managerial decisions To improve efficiency and effectiveness of business

process Transform organizations. Act as a part of corporate strategy Helps Knowledge management

 Ultimately, MIS should improve the workers

productivity. Improved work environment for employees

What is Information System??

A set of interrelated components that collects,

processes, stores, analyses and distribute information to support decision making and control in an organization.
Also helps to analyze problems, visualize

complex subjects and create new products. CBIS :computer Based Information System that uses computer technology to perform some or all of its intended tasks

 Information Technology : Various hardware

components necessary for the systems to operate.

Major Management Challenges to build and use IS

Obtaining business value from information

systems Providing appropriate complementary assets to use information technology effectively. Understand the system requirements Creating flexible IT infrastructure. Creating user friendly systems. Ethics and security

Contnd..
Recognizing opportunities for using IT and Web

based systems for strategic advantage. Who will build, operate, and maintain information systems? How much IT? What social networking activities should be pursued? How important is IT? Globalization. Transforming organization to digital economy.

Classification By Support Function

Transaction processing Systems.

TPS automates routine and repetitive tasks

that are critical to the operation of the organization, such as preparing a payroll, billing customers, Warehouse operations Data collected from this operation supports the MIS and DSS systems employed by Middle Management

 Processes data

1. Batch Processing 2.Real-time processing Updates operational databases Produce business documents
Examples :Sales and inventory processing and accounting systems

Management Support Systems

When

IS applications focus on providing information and support for effective decision making by managers its called MIS. Provides information in the form of reports

Executive Support Systems (ESS)

ESS systems or Enterprise Information Systems

(EIS) were originally implemented to support senior management. These systems have been expanded to support other managers within the enterprise At the senior management level they support Strategic Activities which deals with situations that may significantly change the manner in which business is done EIS supports business processes that are performed by two or more departments

 Interorganizational Systems : Systems that

connects two or more organizations Eg: Systems connecting Buyers and sellers Global Information Systems: IOS that connect companies in two or more countries are referred to as global information systems

Operations Support Systems

An operational support system (OSS) is a set of

programs that help a communications service provider monitor, control, analyze and manage a telephone or computer network

Process Control Systems

Monitor and control industrial processes. Examples: Petroleum refining, power generation and steel production systems

Enterprise collaboration system

Support team, workgroup and enterprise communications and collaboration. Examples: e-mail, chat and videoconferencing groupware systems

Role of e-Business in Business.

The

internet and related technologies and applications plays a major role in business. E-business (electronic business), is the conduct of business on the Internet, not only buying and selling but also servicing customers and collaborating with business partners.

 E-business includes e-commerce but also covers

internal processes such as production, inventory management, product development, risk management, finance, knowledge management and human resources.

 One of the first to use the term was IBM, in October,

1997. Companies are using the Web to buy parts and supplies from other companies, to collaborate on sales promotions, and to do joint research. Example: DELL,CISCO.

 Businesses increasingly perform their basic

functions: buying and selling goods and services, servicing customers, and collaborating with business partners electronically
This process is known as electronic business

(E-business) or electronic commerce (Ecommerce)

Examples: Amazon, eBay

Notable changes
Evolution of computers from computational device

to a communicational medium The tremendous growth of the internet and the Web. Information Technology can be applied in rural sections of the country.

Doing Business in the Digital Economy

Toyota Scions Innovative Advertising Strategies

The Problem: Increasingly competitive global

marketplace for the automotive industry. Toyota with introduction of Scion goes directly up against General Motors and the Malibu for the position of #1 car manufacturer.
Gen Y target market Wide target market

GM

Vs.

Toyota

Toyota Scions Innovative Advertising Strategies (continued)

Toyota known for its manufacturing innovations.

Aggressive web-presence strategy.

Generation Y population, those born 1980-1994,

expected to be a bigger consumer base.

Toyota Scions Innovative Advertising Strategies (continued)

The Solution: Segmented advertising major

media-based strategy.
Toyota uses Scion Campaign Has PersonalityDriven Ads to reach future customers at a very young age

Toyota Scions Innovative Advertising Strategies (continued)

In August 2007, Scion launched Club Scion to

create a virtual reality world site of dance floors, music, etc for enthusiasts. Additional virtual world presence by Scion to attract the consumer includes: - Secondlife.com - Whyville.com

Toyota Scions Innovative Advertising Strategies (continued)

Toyota Uses Chat to Promote Scion smart

strategy to tap into the social networks of 18 to 24 year old audience.

Toyota Scions Innovative Advertising Strategies (continued)

Toyota targets children as a means to influence

their parents. Scion is creating its own broadband channel as a way to move from push to pull marketing where the customer decides what materials to view and when. Toyota created its own social network called Scion Speak where Scions enthusiasts can socialize, communicate and play.

Toyota Scions Innovative Advertising Strategies (continued)

The Results: Scion has 80% brand recognition

according to Marketing Vox News (2007).

- Amazing jump to #1 ranking due to interactive and community-oriented nature of the Scion online experiences. - Scion website is highly personalized with sophisticated customization tools with offline information integration.

Success and Failure with IT

Success should NOT be measured only

by its efficiency in terms of minimizing costs, time and the use of information resources. Success should be measured by the effectiveness of IT in supporting an organizations business strategies Business processes Enhancing organizational structures, culture Increasing the customer and business value of the enterprise.

ITCs e Choupal
Its a multilingual, web based e-procurement

solution provided comprehensive information targeted at the farmers. The existing supply chain was typically Village-> Mandi->ITC Factory Farmers had only one option to sell their produce. Mandi was run by middle men who often cheated the farmers in terms of weight and of price.

 Information Technology in Rural India

 Farmers were usually in the dark about the

meteorological information during the sowing time. They were unaware of the latest techniques in farming, soil analysis ,fertilizer application etc. Most importantly, they were unaware of the actual prices at which middlemen sold their produce.

 In May 1999,the eChoupal plan took concrete

shape www.soyachoupal.com As per this concept each village was provided with A PC Connection lines UPS and A printer

Challenges
Low availability of electric power and fluctuations

in supply Transportation issue Telecom infrastructure was very poor 100% computer illiterate consumer base

System Specifications
Organizational

Information
Application Technical

How it works??
A literate member is chosen as Sanchalak

Samyojaks

help establish eChoupal kiosks

eChoupal is a big hit with farmers

ITC puts up its offer prices on the site.

eChoupal system gave farmers an option to sell

his produce to ITC anytime he wanted Transparency in the system was there. System is multilingual Entire system is used by the villagers

eChoupal gives farmers a lot of relevant information's

Weather information Best farming parctices Market information Crop information FAQ

Soil testing
Feed back Farmer information

State and central government schemes

News

 www.aquaculture

www.plantersnet.com
Futer plans Now benefiting over 2.4 million farmers over 4100

e-choupals covering 21000 villages In next decade will cover over 100,000 villages

Case discussion
1. Identify the difficulties that eChoupal may face. 2. What are the other areas where the eChoupal concept may be applied in rural India? What is innovative about eChoupal? 4. http://www.youtube.com/watch?v=qkHWdhobgi M
3.