BITS Pilani Pilani Campus

BITS ZC471 Management Information Systems

BITS Pilani Pilani Campus

Lecture Session-2

02- 08-14

BITS Pilani, Pilani Campus

• Closer Look 1.4 – Second Life (SL) and

Business

• Nearly 2000 IBM employees have signed up – use

the site to share ideas and work on projects – IBM

holds alumni block

• SL allows current and former employees from

around the globe to get together in virtual meetings;

• IBM purchased islands – meeting places; has also

set up a Circuit City store and a Sears appliance

store as virtual commerce demonstration projects

Recap – Chapter 1 - Information Snippets of Chapter

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• Information & entertainment products that are digitized – Audios, videos, ….

• Symbols, tokens & concepts – Tickets, credit cards

• Processes & services – Government, education, …

• Digital Enterprise: use of computers and ISs to perform or support activities • Better engagement of customers

• Better employee productivity

• Improved operating efficiency

• Digital Economy: …based on digital technologies and communication using IT.

• Entrepreneurship: Online companies, innovative business models

1.1 Doing Business in the Digital Economy

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• E-C: Process of buying and selling, transferring, exchanging products, services or information via the internet (or other networks)

• Networked computing: Backbone of E-C. • Computers and other e-devices connected through telecomm networks

• Connections give access to remote information.

• Users may be connected via wireless networks to public network-Internet, value-added networks (VAN); Intranets (within organizations only); & connections to business partners (Extranets)

• New Vs. Old Economy • Paying for goods

• Buying/renting movies

• Reserving tickets

• …

E-Commerce and Networked Computing

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Online customization

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1.2 Information Systems and Information Technology

A schematic view of an information system 7 BITS/CM/HHSM ZC471 02/08/2014

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The basic components of information systems

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• Business Performance Management 1. Decide on desired performance levels: What to achieve?

2. Determine how to attain the performance levels: How to achieve?

3. Periodically assess where the organization stands with respect to its goals,

objectives and measures: How is it going?

4. Adjust performance and/or goals: Closing the gap, if any

• Impact of business environment • Social

• Legal

• Political

• Technological

• Economical

• Green IT • To minimize damage to physical environment and eco system

• Energy saving, minimize heat generation, ….

1.3 BPM, Business Pressures, Organizational

Responses, and IT Support

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Pressures and Responses (Table 1.3) & IT

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Environment – Green IT

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• Strategy: The component that defines how to attain the

mission, goals and objectives • What is the long term direction? Overall plan for resources deployment?

What are trade-offs (resources sharing)? Unique positioning Vs.

competition? Sustenance?

• Porter’s competitive forces model and strategy (Table 1.4)

1.4 Strategy for Competitive Advantage and IT Support

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Porter’s value chain model

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• Adaptive Enterprises and Role of IT

• Recognize changes; Deal with changes; Don’t wait for competitor to introduce changes; Have a scalable and appropriate IT architecture; Develop innovative culture;

• Real time, On Demand IT Support • Helps in faster decisions, immediate responses

• Innovation and creativity

• First mover advantage: eBay, Dell, Apple Computers, ….

• Losers: Netscape, Chemdex

Adaptive Enterprises

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• What is social computing? • Computing that is concerned with the intersection of

social behaviour and ISs.

• “tripadvisor.com”

• Social Network • Web site where people create their own space, home

page to write blogs, wikis, post pictures, videos,. … and link to other web locations.

• Creating online communities

• Examples of social networking service sites?

• Do you belong to any of such sites? Reasons?

• Functions & Impacts of Social Computing

• Virtual worlds

1.5 Social Computing and Networking and Virtual Worlds

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• Provide an understanding of o Relevance and usefulness of Information Systems in Business

o Increasing importance of IT in society

• MIS, IT knowledgeable

More Information – Chapter 1

• How IT benefits you? • Accounting/Finance/HR/IS/Marketing/OM

• Key Terms; Chapter Highlights; Questions for discussion

• Exercises and Projects; Group assignments and projects

• Internet exercises; Problem solving activity; Online resources

• References (34)

Why should we learn this course?

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Ending Case: NHS Hospitals adopt co-operative WiFi

• London NHS trust has installed WiFi access points in Royal London Hospital

• 77 access points in accident and emergency department

• Network will be used for three classic health service applications

– Vocera active badges – provide location services and voice telephony for staff

– Active RFID tagging - important clinical equipment using active WiFi tags from Aeroscout

– Mobile Clinical Assistant (MCA) – special purpose WiFi connected PDA from Philips to support medical staff

NHS Hospitals adopt co-operative WiFi

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Information Technologies: Concepts, Types and IT Support

Chapter 2

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• Opening Case: Mary Kay’s IT systems

• Founded in 1962; has about 1.8 million consultants selling

its cosmetics and fragrances in 34 countries;

• In 2000, the consultants faced an increasing demand for

internet use

• IT department is split into three divisions: E-commerce, SC

and back office support (for order fulfilment, accounting and

finance)

• First IT project: introduction of a technology called

Business Service Management (BSM – Maryville

Technologies)

• Solution – an e–service desk that ensures consultants in 30

countries are served in a standardized way; Atlas – global

electronic ordering system

Cases/Highlights in Chapter 2

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• Generating $62 million per employee at WP • WP (westernpetro.com) buys petro products in bulk

(50,000 barrels) and sells them in smaller chunks (5000 barrels) to over 2000 customers

• Basic idea: to automate processes wherever possible, and outsource all noncritical functions.

• In 2003, management capped the number of employees at 58. This move generated almost $62 million per employee

• Key piece of automation strategy is a software called PetroMan :– includes a trading application, contract management, risk management, accounting programs and pipeline scheduler;

• Financial software: Global Financials

IT at work 2.1 – Western Petroleum

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Closer Look 2.1 – BI for competitive advantage

• An umbrella term

• Architecture: Four major components

1. A data warehouse (with its data sources)

2. Business Analytics (collection of tools for

manipulating, analysing and mining data

in DW)

3. BPM for monitoring and analysing

performance, and

4. A user interface display (such as

dashboard)

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• Uses electronic tags (chips) instead of

bar codes to identify objects or items

• RFID readers use radio waves to

interact with tags;

• Transmission of data and/or storage of

information about the objects (or to

locate item); major benefits are:

• Quick tracking of where items are in real

time

• Finding extensive information about items

• Enabling quick inventory taking of items

Closer Look 2.2 – What is RFID system?

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From Google images

02/08/2014

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Nokia

• Security guards employed a Nokia carry a

mobile phone handset with RFID tag.

• Tags are also installed at various points

around the facility;

• At the start of shift, guards use the phone to

read their RFID enabled name badges;

• Implemented in Airbus Industries also; (Visit

Airbus Industries site and gather further

details!)

Closer Look 2.2 – What is RFID System? – An application

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• JP Morgan Chase – largest financial institution in the US employs 11000 IT professionals

• Had about 2000 PCs that run on 50 servers

• In 2003, demand for computing was increasing; began use of grid computing at a cost of $4.5 million

• System saved $1 m in computing costs in 2003, and $5 m in 2004.

• System also provides scalability; largest known grid computing commercial application in 2004

• Major success factor was the emphasis on problem solving rather than on pushing for a new technology.

IT at work 2.2 – Grid computing at JP Morgan

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• A machine is out of stock or not functioning – loses

revenue; Tens of thousands of machines to service

• In 2002, technicians were given handheld devices

hooked into a Wireless Wide Area Network (WWAN).

• A mobile database application allows wireless

communications around US in real time

• Database includes repair parts inventory that is

available on each service truck; Back office system

that maintains the overall inventory;

• Able to locate any truck in real time (GPSs); each

technician able to handle one more service call than

previously.

IT at work 2.3 – Wireless Pepsi increases productivity

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• About an Intelligent Traffic System (ITS)

implemented in Taiwan.

• Not much details given in text

• Source: http://iis-

db.stanford.edu/evnts/6597/SPRIE_Innovation_Bey

ond_Boundaries_Jaching_Chou_June_30,_2011.p

df

• One stop service of transport information

in Taiwan – (Source: http://e-iot.iot.gov.tw)

Closer Look 2.3 – How useful traffic lights can be

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Eight ITS Services in Taiwan

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• GPRS – General Packet Radio Service

• WLAN – Wireless Local Area Network

• WiMAX – Wireless for Maximum Connectivity

• DSRC – Dedicated Short Range

Communication

• RDS/DAB – Radio Data System/Digital Audio

Broadcasting

• xDSL – Digital Subscriber Line

Abbreviations

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• Airbus – A380, the two decker 525 seat

airplane scheduled for completion in

2007/08

• RFID infrastructure also integrated with

ERP system

• Software also manages data from bar

codes, which remain an important part

of Airbus supply chain

• RFID industry is still highly fragmented

Ending Case: Airbus improves productivity with RFID

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• Airbus is employing RFID across two main categories: • Non-flyable consists of ground based processes,

such as SC, transportation logistics, manufacturing and assembly related applications

• Flyable refers to all in-service processes, including operational, maintenance, and payload tracking applications

• Entered service on 25 October 2007 with flight number SQ380 between Singapore and Sydney.

• One more case: E Business at FedEx Corp. – Self-study activity

Airbus improves productivity with RFID

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What is an IS? What is MIS?

An IS uses hundreds of smaller programs called

applications

Connected to other systems

Data → Information → Knowledge → ?

The relationship among data, information &

knowledge – Figure

2.1 Information Systems: Concepts and Definitions

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• Classification based on level

• Personal and productivity, TPS, Functional

and MIS, Enterprise Systems, Inter-

Organizational, Very Large & Special

Systems

• Classification based on type of support

• MIS, OAS, CAD/CAM, DMS, DSS, Expert

Systems, KMS, Data Mining, Business

Intelligence, Mobile Computing

2.2 Classification and Types of Information Systems

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Levels of Information Systems

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Functional information systems

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• SPSS Predictive Analytics helps State of

Texas recover $400 Million in unpaid Taxes

• US Military Utilizes High Tech Training

Practices

• Forterra to Integrate Tech with Army Training

• Virtual Worlds: The Future of Military Training

• NDIA - Soldiers Learn Hazards of War in Virtual

Reality

• Virtual training prepares soldiers for real-life

operations

• DangerRoom – National Security

Enterprise Systems at Work

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Dashboards

Power of IT – BPM Systems

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• TPS collects information that is used in MIS and DW

• These, in turn, feed the BI and other enterprise systems.

Interrelated support systems

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2.3 How IT Supports People?

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• Supply Chain and its three parts

• Purpose of IT in

• Internal part

• Upstream part

• Downstream part

• Other Systems

• Industry specific systems

• E-commerce models

• Online search

• Social Networking

2.4 How IT Supports Supply Chains and Business Processes

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• Infrastructure: Physical facilities; Components:

H/w, S/w, Networks and telecomm, databases and data

workers & inf. Management personnel

• Architecture: High level map of inf. assets

Step 1. Business goals and vision

Step 2. Information architecture

Step 3. Data architecture

Step 4. Application architecture

Step 5. Technical architecture

Step 6. Organizational architecture

• Web based systems

2.5 Information Systems Infrastructure,

Architecture, and Emerging Computing Environments

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• SOA: reuse and reconnect

• Web services: machine to machine interaction

• Utility Computing/SaaS/on-demand computing

• Grid Computing – SETI – LHCS • J.P. Morgan Harnesses Power with Grid Computing

System

• Cloud computing: Combines SaaS, utility computing, grid computing & Web 2.0 concepts

• Mobile and Pervasive Computing

• What is Virtualization? – Separation • Storage Virtualization – pooling of storages…

• Network Virtualization – splitting the network load…

• Hardware Virtualization – use of s/w to emulate h/w

Emerging computing environments

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2.6 Innovative and Futuristic Information Systems

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• Intelligent traffic control systems

• Taiwan ITS

• Car Navigation (Auto) Systems

• NextBus Information

• Predictive analysis

• Health Care Wireless Predictive System

• NRI model

• 2.7 Managerial issues: Transition,

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• Information Systems: Concepts and Definitions

• Classification and Types of Information Systems

• How IT Supports People

• How IT Supports Supply Chains and Business

Processes

• Information Systems Infrastructure,

Architecture, and Emerging Computing

Environments

• Innovative and Futuristic Information Systems

• Managerial Issues

Summary

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