Introduction To IS In Organizations PDF

Introduction to IS Session 1 IS in Global Business Date: 20/11/2024 IS in Organizations Reading: R’De: 1,6, Laudon- Ch: 1,2,3  Difference Between IT & IS IT IS Technology & Artefacts Information+ Technology (what)+ Hardware...

Introduction to IS Session 1 IS in Global Business Date: 20/11/2024 IS in Organizations Reading: R’De: 1,6, Laudon- Ch: 1,2,3  Difference Between IT & IS IT IS Technology & Artefacts Information+ Technology (what)+ Hardware Organization (who)+ People Software (who)+ Process (How)+ Purpose Data Management Tech (why) Telecommunications & Network IS is the use of IT by people in IT Infrastructure organizations or society to improve or enable certain processes 2 IS – A Sociotechnical System 3 Organization MICRO ECONOMIC VIEW OF ORGANIZATION BEHAVIORAL VIEW OF ORGANIZATION 4 Organization ROUTINES AND ORGANIZATION ORGANIZATION ORGANIZATIONAL BUSINESS PROCESSES POLITICS CULTURE ENVIRONMENT 5 Examples of a Business Process Functional Area Business Process Manufacturing and Source Raw materials Production Assembling the Product Checking for Quality Sales and Marketing Identifying Customers Making customers aware of the product Selling the product Finance and Creating Financial Statements Accounting Managing Cash Accounts Paying Creditors Human Resources Hiring Employees Evaluating Job Performance Enrolling Employees in Benefit Plans  ASSIGNMENT THOUGHT EXERCISE What are the different functions in TAPMI? What are the different business processes in each functional domain within TAPMI? Where will you use IT in these business processes? 7  IT Interaction Model Dynamic Changes Org Influencing IS implementation Process Make or Buy Decision Use or Resistance Positive and negative consequences- first, second, and third order effects Consequence influence External Environment External environment influence org 8  Technology Acceptance/ Usage Technology Acceptance Model Craigslist (Davis Bagozzi Goodreads Warshaw, 1989) Perceived Ease of Use (Craigslist Vs Goodreads Vs Amazon/ Instagram) Perceived Usefulness (Tab vs Kindle) Trust (Instagram vs TikTok) Unified Theory of Acceptance and Use of Technology (Venkatesh et al., 2003) IS Adoption and Performance Expectancy Resistance Effort Expectancy Social Influence Facilitating conditions Resistance Change in existing routines. Learning new technology. Perceived Threats Change in org structure, culture, business process, strategy, etc. Project Implementation failures- Major reason 9 Consequences If IT systems capabilities align with business objectives and Positive strategy (Increase sales and CRM) Acceptance Misalignment between IT systems capabilities and business Negative objectives (Scheduling and Excel) Resistance Economic Reduced transaction cost and agency cost (Platforms) IT can substitute intermediaries Consequences Reduce infra expenditure and achieve economies of scale Behavioral IT Flattening hierarchies- removal of midlevel supervisors (biometric and excel/ slcm attendance) Consequences Decentralized decision making 10 Consequences- Impact of IS on Organizations THIRD ORDER EFFECTS Industry level changes; market dominance, adoption by competitors SECOND ORDER EFFECTS Improved Org Performance and Productivity FIRST ORDER EFFECTS Improved Business Processes 11  Example of ID Fresh Foods PROBLEM STATEMENT ID Fresh Foods- a firm that sells ready-to-cook ingredients for making traditional Indian foods. For example, one of their earliest products was batter for idlis and dosas that could be taken from packets and cooked on a stove or steamed. The batter retained its freshness with its unique seal lock technology. Starting in 2005, ID Fresh was able to establish its presence and reputation in Bangalore market, from which that grew and by late 2017, has a presence in many cities India and abroad. ID maintains a strict control over when its packages reach the retail outlet and how long it stays there. To retain freshness, they had their delivery agents remove older packages and replace them with fresh ones. This adherence to strict quality control grew their reputation and their business. One of the challenges that ID faced was that of store returns- packets that were not sold within a given period (three days for some products) were picked up by their delivery personnel and returned. This was waste and stood at about 22% for their idli batter product. ID used information systems to track production amounts, delivery amounts, sales, etc., but they did not have visibility on the returns and wastage. SUGGEST A SUITABLE SOLUTION USING INFORMATION SYSTEMS! 12 Example of ID Fresh Foods 13  Example of ID Fresh Foods QUESTIONS & ANSWERS What is ID’s Business Proposition? Ready to Eat ingredients for traditional Indian Foods. What is their Unique Selling Point (USP)/ Business Freshness guaranteed through Seal Lock Technology; Strategy? regular returns beyond a particular period. Who are their Competitors? MTR Foods, Haldirams, Pepsico, Nestle, Heinz, Etc. What is their existing IS capable of? Capturing production, delivery, sales, etc. What solution would you propose? Mobile app- enabling delivery personnel to record number of packets delivered, stored, displayed, sold, returned. Granular level- shop level and day level transaction details. Based on these data- demand prediction and forecasting algorithms employed. Reduce returns from 22% to 2% Refer this link for more details: https://timesofindia.indiatimes.com/business/india-business/id-runs- on-it-and-lots-of-engineering/articleshow/104983075.cms 14  Example of ID Fresh Foods QUESTIONS & ANSWERS What could be the initial challenges in IT Resistance from delivery personnel as they may not be implementation? tech savvy. Initial training might have been needed. What are the first, second, and third order effects? First order- Improvement in returns processes. Less returns. Overall less wastage and more sales. Second order- More sales leading to more profits and better performance of ID fresh foods. Third order- Dominant Market position at the ready to eat food industry. 80-85% market share. Check https://bizom.com/ RTM platform for more details on IS used. Refer this link for more details: https://www.storyboard18.com/quantum-brief/how-id-fresh-food-mtr- foods-and-gits-are-betting-on-convenience-and-authenticity-to-increase-sales-of-instant-foods- 5098.htm 15 Different Systems in Organization Transaction Processing System Decision Support System Enterprise Resource Planning Supply Chain Management System Customer Relationship Management Knowledge Management System Collaboration Systems 16 People in IT Top Management C Suite Chief Information Officer Chief Data Officer Chief Security Officer Chief Knowledge Officer Middle Management IT Project Manager Product Owner Data Scientists Entry Level System Analysts Software Developers Software Testers End Users 17  18 Challenges for managers. Why Which IS to build? should I Build or outsource? IT implementation and governance? learn How much to spend? this? What system capabilities to develop? What security levels and policies?