Information Systems MSI 101 Lecture Notes PDF

Information Systems MSI 101 Manu K. Gupta Department of Management Studies, IIT Roorkee. Session 1 Welcome to this Module! Session 1 - Introduction to Information Systems and IT Value 1 Welcome to this Module! Sess...

Information Systems MSI 101 Manu K. Gupta Department of Management Studies, IIT Roorkee. Session 1 Welcome to this Module! Session 1 - Introduction to Information Systems and IT Value 1 Welcome to this Module! Session 1 - Introduction to Information Systems and IT Value Session 2 - Aligning IT with Business Strategy and Operating Models 1 Welcome to this Module! Session 1 - Introduction to Information Systems and IT Value Session 2 - Aligning IT with Business Strategy and Operating Models Session 3 - IT-based Business Models 1 Welcome to this Module! Session 1 - Introduction to Information Systems and IT Value Session 2 - Aligning IT with Business Strategy and Operating Models Session 3 - IT-based Business Models Session 4 - IT-Based Decision Making and Data-Driven Organization 1 Welcome to this Module! Session 1 - Introduction to Information Systems and IT Value Session 2 - Aligning IT with Business Strategy and Operating Models Session 3 - IT-based Business Models Session 4 - IT-Based Decision Making and Data-Driven Organization Session 5 - IT Governance, IT Investment, and Healthcare IT 1 Textbooks 2 Textbooks Figure 1: Useful textbooks for this module. 2 Session 1 Learning Objectives Understand what Information Systems (IS) and Information Technology (IT) are. 3 Learning Objectives Understand what Information Systems (IS) and Information Technology (IT) are. Explore the value of IT in modern businesses. 3 Learning Objectives Understand what Information Systems (IS) and Information Technology (IT) are. Explore the value of IT in modern businesses. Learn how IT creates a competitive advantage in various industries. 3 Key concepts Definition of Information Systems (IS) and Information Technology (IT). Role of IS/IT in modern organizations IT Value: How IT contributes to business value (productivity, efficiency, innovation) 4 Key concepts Definition of Information Systems (IS) and Information Technology (IT). Role of IS/IT in modern organizations IT Value: How IT contributes to business value (productivity, efficiency, innovation) Discussion Points: Examples of IT transforming industries (e.g., retail, banking, logistics). Benefits and challenges of adopting IT in businesses. 4 Data Vs Information 5 Data Vs Information Figure 2: Raw, unorganized data and structured, meaningful information 5 Data vs Information Data: Consists of raw fact. 6 Data vs Information Data: Consists of raw fact. Examples 6 Data vs Information Data: Consists of raw fact. Examples - Employee number, An inventory part number, Number of units produced on a production line. 6 Data vs Information Data: Consists of raw fact. Examples - Employee number, An inventory part number, Number of units produced on a production line. Source (Industry) – Company Name 6 Data vs Information Data: Consists of raw fact. Examples - Employee number, An inventory part number, Number of units produced on a production line. Source (Industry) – Company Name Sensor Readings (IoT/Manufacturing) 6 Data vs Information Data: Consists of raw fact. Examples - Employee number, An inventory part number, Number of units produced on a production line. Source (Industry) – Company Name Sensor Readings (IoT/Manufacturing): Tata Steel, Mahindra & Mahindra 6 Data vs Information Data: Consists of raw fact. Examples - Employee number, An inventory part number, Number of units produced on a production line. Source (Industry) – Company Name Sensor Readings (IoT/Manufacturing): Tata Steel, Mahindra & Mahindra Survey Responses (Customer Feedback) 6 Data vs Information Data: Consists of raw fact. Examples - Employee number, An inventory part number, Number of units produced on a production line. Source (Industry) – Company Name Sensor Readings (IoT/Manufacturing): Tata Steel, Mahindra & Mahindra Survey Responses (Customer Feedback): Flipkart, Zomato 6 Data vs Information Data: Consists of raw fact. Examples - Employee number, An inventory part number, Number of units produced on a production line. Source (Industry) – Company Name Sensor Readings (IoT/Manufacturing): Tata Steel, Mahindra & Mahindra Survey Responses (Customer Feedback): Flipkart, Zomato Social Media Posts (User Interaction Data) 6 Data vs Information Data: Consists of raw fact. Examples - Employee number, An inventory part number, Number of units produced on a production line. Source (Industry) – Company Name Sensor Readings (IoT/Manufacturing): Tata Steel, Mahindra & Mahindra Survey Responses (Customer Feedback): Flipkart, Zomato Social Media Posts (User Interaction Data): Byju’s, Swiggy 6 Data vs Information Data: Consists of raw fact. Examples - Employee number, An inventory part number, Number of units produced on a production line. Source (Industry) – Company Name Sensor Readings (IoT/Manufacturing): Tata Steel, Mahindra & Mahindra Survey Responses (Customer Feedback): Flipkart, Zomato Social Media Posts (User Interaction Data): Byju’s, Swiggy Emails or Customer Support Tickets (Telecom/Banking) 6 Data vs Information Data: Consists of raw fact. Examples - Employee number, An inventory part number, Number of units produced on a production line. Source (Industry) – Company Name Sensor Readings (IoT/Manufacturing): Tata Steel, Mahindra & Mahindra Survey Responses (Customer Feedback): Flipkart, Zomato Social Media Posts (User Interaction Data): Byju’s, Swiggy Emails or Customer Support Tickets (Telecom/Banking)– Airtel, ICICI Bank 6 Data vs Information Data: Consists of raw fact. Examples - Employee number, An inventory part number, Number of units produced on a production line. Source (Industry) – Company Name Sensor Readings (IoT/Manufacturing): Tata Steel, Mahindra & Mahindra Survey Responses (Customer Feedback): Flipkart, Zomato Social Media Posts (User Interaction Data): Byju’s, Swiggy Emails or Customer Support Tickets (Telecom/Banking)– Airtel, ICICI Bank Financial Statements (Banking/Consulting) 6 Data vs Information Data: Consists of raw fact. Examples - Employee number, An inventory part number, Number of units produced on a production line. Source (Industry) – Company Name Sensor Readings (IoT/Manufacturing): Tata Steel, Mahindra & Mahindra Survey Responses (Customer Feedback): Flipkart, Zomato Social Media Posts (User Interaction Data): Byju’s, Swiggy Emails or Customer Support Tickets (Telecom/Banking)– Airtel, ICICI Bank Financial Statements (Banking/Consulting): HDFC Bank, Tata Consultancy Services (TCS) 6 Data vs Information Data: Consists of raw fact. Examples - Employee number, An inventory part number, Number of units produced on a production line. Source (Industry) – Company Name Sensor Readings (IoT/Manufacturing): Tata Steel, Mahindra & Mahindra Survey Responses (Customer Feedback): Flipkart, Zomato Social Media Posts (User Interaction Data): Byju’s, Swiggy Emails or Customer Support Tickets (Telecom/Banking)– Airtel, ICICI Bank Financial Statements (Banking/Consulting): HDFC Bank, Tata Consultancy Services (TCS) 6 Data vs Information Information: Collection of data organized and processed sothat it has additional value beyond the value of individual facts. 7 Data vs Information Information: Collection of data organized and processed sothat it has additional value beyond the value of individual facts. Examples 7 Data vs Information Information: Collection of data organized and processed sothat it has additional value beyond the value of individual facts. Examples : Sales manager may want individual sales data summarized so it shows total sales for the month. 7 Data vs Information Information: Collection of data organized and processed sothat it has additional value beyond the value of individual facts. Examples : Sales manager may want individual sales data summarized so it shows total sales for the month. Sales Report (E-commerce) 7 Data vs Information Information: Collection of data organized and processed sothat it has additional value beyond the value of individual facts. Examples : Sales manager may want individual sales data summarized so it shows total sales for the month. Sales Report (E-commerce) : Flipkart 7 Data vs Information Information: Collection of data organized and processed sothat it has additional value beyond the value of individual facts. Examples : Sales manager may want individual sales data summarized so it shows total sales for the month. Sales Report (E-commerce) : Flipkart Customer Satisfaction Dashboard (Food Delivery/E- commerce) 7 Data vs Information Information: Collection of data organized and processed sothat it has additional value beyond the value of individual facts. Examples : Sales manager may want individual sales data summarized so it shows total sales for the month. Sales Report (E-commerce) : Flipkart Customer Satisfaction Dashboard (Food Delivery/E- commerce) : Swiggy, Zomato 7 Data vs Information Information: Collection of data organized and processed sothat it has additional value beyond the value of individual facts. Examples : Sales manager may want individual sales data summarized so it shows total sales for the month. Sales Report (E-commerce) : Flipkart Customer Satisfaction Dashboard (Food Delivery/E- commerce) : Swiggy, Zomato Employee Performance Evaluation (IT/Consulting) 7 Data vs Information Information: Collection of data organized and processed sothat it has additional value beyond the value of individual facts. Examples : Sales manager may want individual sales data summarized so it shows total sales for the month. Sales Report (E-commerce) : Flipkart Customer Satisfaction Dashboard (Food Delivery/E- commerce) : Swiggy, Zomato Employee Performance Evaluation (IT/Consulting) : Infosys, Tata Consultancy Services (TCS) 7 Data vs Information Information: Collection of data organized and processed sothat it has additional value beyond the value of individual facts. Examples : Sales manager may want individual sales data summarized so it shows total sales for the month. Sales Report (E-commerce) : Flipkart Customer Satisfaction Dashboard (Food Delivery/E- commerce) : Swiggy, Zomato Employee Performance Evaluation (IT/Consulting) : Infosys, Tata Consultancy Services (TCS) Website Analytics Dashboard (E-commerce/Tech) 7 Data vs Information Information: Collection of data organized and processed sothat it has additional value beyond the value of individual facts. Examples : Sales manager may want individual sales data summarized so it shows total sales for the month. Sales Report (E-commerce) : Flipkart Customer Satisfaction Dashboard (Food Delivery/E- commerce) : Swiggy, Zomato Employee Performance Evaluation (IT/Consulting) : Infosys, Tata Consultancy Services (TCS) Website Analytics Dashboard (E-commerce/Tech) : Myntra, MakeMyTrip 7 Data vs Information Information: Collection of data organized and processed sothat it has additional value beyond the value of individual facts. Examples : Sales manager may want individual sales data summarized so it shows total sales for the month. Sales Report (E-commerce) : Flipkart Customer Satisfaction Dashboard (Food Delivery/E- commerce) : Swiggy, Zomato Employee Performance Evaluation (IT/Consulting) : Infosys, Tata Consultancy Services (TCS) Website Analytics Dashboard (E-commerce/Tech) : Myntra, MakeMyTrip Project Status Report (Infrastructure/Real Estate) 7 Data vs Information Information: Collection of data organized and processed sothat it has additional value beyond the value of individual facts. Examples : Sales manager may want individual sales data summarized so it shows total sales for the month. Sales Report (E-commerce) : Flipkart Customer Satisfaction Dashboard (Food Delivery/E- commerce) : Swiggy, Zomato Employee Performance Evaluation (IT/Consulting) : Infosys, Tata Consultancy Services (TCS) Website Analytics Dashboard (E-commerce/Tech) : Myntra, MakeMyTrip Project Status Report (Infrastructure/Real Estate) : Larsen & Toubro (L&T), Godrej Properties 7 Why learn about Information Systems? Computers and information systems are all around you Online classes Grading Grocery and retail smartphones Internet Businesses can use information systems to increase revenues and reduce costs. Information systems used by: Sales representatives, Managers, Financial advisors 8 What are Information Systems? An information system is a set of interrelated component that col- lect, process, store data and information and provide feedback to meet an objective. - Fundamentals of Information Systems by Stair and Reynolds 9 CBIS - Computer based information systems Hardware – Computer Equipment Software – Computer Programs Telecom – Electronic Transmission Databases – Organized collection of data People – End Users, Clients Procedure – Rules for using CBIS 1 0 CBIS - Computer based information systems Hardware – Computer Equipment Software – Computer Programs Telecom – Electronic Transmission Databases – Organized collection of data People – End Users, Clients Procedure – Rules for using CBIS CBIS is a single set of hardware, software, databases, 1 0 Examples of Information Systems A university University stores all student data in a database Built-in query capability Other types of analysis can be done Teletech International textile company Database stores data on products, suppliers, sales personnel, costs Process components Forecasting models 11  Smartphones and Mobile Apps 1 2  Smartphones and Mobile Apps - Google Maps E-Commerce Platforms 1 2  Smartphones and Mobile Apps - Google Maps E-Commerce Platforms - Amazon Public Transportation Systems 1 2  Smartphones and Mobile Apps - Google Maps E-Commerce Platforms - Amazon Public Transportation Systems - Transit App Healthcare Systems 1 2  Smartphones and Mobile Apps - Google Maps E-Commerce Platforms - Amazon Public Transportation Systems - Transit App Healthcare Systems - Patient Portals Banking and Financial Services 1 2  Smartphones and Mobile Apps - Google Maps E-Commerce Platforms - Amazon Public Transportation Systems - Transit App Healthcare Systems - Patient Portals Banking and Financial Services - Online Banking Home Automation Systems 1 2  Smartphones and Mobile Apps - Google Maps E-Commerce Platforms - Amazon Public Transportation Systems - Transit App Healthcare Systems - Patient Portals Banking and Financial Services - Online Banking Home Automation Systems - Amazon Echo Education Technology 1 2  Smartphones and Mobile Apps - Google Maps E-Commerce Platforms - Amazon Public Transportation Systems - Transit App Healthcare Systems - Patient Portals Banking and Financial Services - Online Banking Home Automation Systems - Amazon Echo Education Technology - Moodle Customer Service Systems 1 2  Smartphones and Mobile Apps - Google Maps E-Commerce Platforms - Amazon Public Transportation Systems - Transit App Healthcare Systems - Patient Portals Banking and Financial Services - Online Banking Home Automation Systems - Amazon Echo Education Technology - Moodle Customer Service Systems - Zendesk Supply Chain Management 1 2  Smartphones and Mobile Apps - Google Maps E-Commerce Platforms - Amazon Public Transportation Systems - Transit App Healthcare Systems - Patient Portals Banking and Financial Services - Online Banking Home Automation Systems - Amazon Echo Education Technology - Moodle Customer Service Systems - Zendesk Supply Chain Management - Inventory Management System Entertainment Systems 1 2  Smartphones and Mobile Apps - Google Maps E-Commerce Platforms - Amazon Public Transportation Systems - Transit App Healthcare Systems - Patient Portals Banking and Financial Services - Online Banking Home Automation Systems - Amazon Echo Education Technology - Moodle Customer Service Systems - Zendesk Supply Chain Management - Inventory Management System Entertainment Systems - Netflix 1 2 What is Information Technology (IT)? 1 3 What is Information Technology (IT)? Definition: Refers to the use of computers, software, networks, and other technologies to store, retrieve, transmit, and manipulate data. 1 3 What is Information Technology (IT)? Definition: Refers to the use of computers, software, networks, and other technologies to store, retrieve, transmit, and manipulate data. Components: Hardware (computers, servers) Software (applications, operating systems) Networking (internet, intranet) Databases (data storage solutions) 1 3 IT vs IS Focu s 1 4 IT vs IS Focus IT focuses on technology and infrastructure IS focuses on the application of technology to support business processes and decision-making. 1 4 IT vs IS Focus IT focuses on technology and infrastructure IS focuses on the application of technology to support business processes and decision-making. Purpose 1 4 IT vs IS Focus IT focuses on technology and infrastructure IS focuses on the application of technology to support business processes and decision-making. Purpose IT is about managing technology. IS is about managing data and processes to provide insights and support organizational goals 1 4 IT vs IS Focus IT focuses on technology and infrastructure IS focuses on the application of technology to support business processes and decision-making. Purpose IT is about managing technology. IS is about managing data and processes to provide insights and support organizational goals While IT provides the tools and infrastructure, IS encompasses the broader context of how those tools are used within organizations. 1 4 Three fundamental types of information systems Personal IS Group IS Enterprise IS 15 Personal IS 1 6 Personal IS Definition: Designed for individual users to support personal tasks and decision-making. 1 6 Personal IS Definition: Designed for individual users to support personal tasks and decision-making. Characteristics: Focused on personal productivity. Typically software applications (e.g., word processors, spreadsheets). 1 6 Personal IS Definition: Designed for individual users to support personal tasks and decision-making. Characteristics: Focused on personal productivity. Typically software applications (e.g., word processors, spreadsheets). Examples: Personal finance software (e.g., Mint). Task management apps (e.g., Todoist). 1 6 Personal IS Definition: Designed for individual users to support personal tasks and decision-making. Characteristics: Focused on personal productivity. Typically software applications (e.g., word processors, spreadsheets). Examples: Personal finance software (e.g., Mint). Task management apps (e.g., Todoist). 1 6 17 Group IS 1 8 Group IS Definition: Facilitate collaboration among members of a team or group. 1 8 Group IS Definition: Facilitate collaboration among members of a team or group. Characteristics: Support group decision-making and coordination. Often include communication and collaboration tools. 1 8 Group IS Definition: Facilitate collaboration among members of a team or group. Characteristics: Support group decision-making and coordination. Often include communication and collaboration tools. Examples: Project management software (e.g., Trello). Communication platforms (e.g., Slack, Microsoft Teams). 1 8 19 Enterprise IS 2 0 Enterprise IS Definition: Integrated systems that support and manage organizational processes across departments. 2 0 Enterprise IS Definition: Integrated systems that support and manage organizational processes across departments. Characteristics: Enable data sharing and process integration. Support strategic decision-making and resource management. 2 0 Enterprise IS Definition: Integrated systems that support and manage organizational processes across departments. Characteristics: Enable data sharing and process integration. Support strategic decision-making and resource management. Examples: Enterprise Resource Planning (ERP) systems (e.g., SAP). Customer Relationship Management (CRM) systems (e.g., Salesforce). 2 0 21 Three fundamental types of information systems Personal IS Group IS Enterprise IS Examples Personal Email, Transaction produc- instant pro- tivity messaging, cessing software, project systems, decision-support management enterprise system software systems, interorganizationa l systems Benefits Improved Increased Increased productiv- collabo- standard- ity ration ization and ability to monitor work Manager’s Ensure that Demonstrate Identify and put role em- how into ployees technology can place the full understand and be used. Set set of connect to the norms for organizational 22 change. participation complements Importance of Information Systems Personal Information Systems 2 3 Importance of Information Systems Personal Information Systems Efficiency, Customization, Accessibility 2 3 Importance of Information Systems Personal Information Systems Efficiency, Customization, Accessibility Group Information Systems 2 3 Importance of Information Systems Personal Information Systems Efficiency, Customization, Accessibility Group Information Systems Coordination, Communication, Productivity, Collaboration 2 3 Importance of Information Systems Personal Information Systems Efficiency, Customization, Accessibility Group Information Systems Coordination, Communication, Productivity, Collaboration Enterprise information system 2 3 Importance of Information Systems Personal Information Systems Efficiency, Customization, Accessibility Group Information Systems Coordination, Communication, Productivity, Collaboration Enterprise information system Integration, Strategic Decision-Making, Resource Management, Scalability. 2 3 Key Roles of IS/ IT in Business 2 4 Key Roles of IS/ IT in Business Streamline operations Improve communication Enable decision-making through data analysis Support customer engagement and relationship management Drive innovation and new business models 2 4 Key Roles of IS/ IT in Business Streamline operations Improve communication Enable decision-making through data analysis Support customer engagement and relationship management Drive innovation and new business models 2 4 Leading IT services and consulting companies in India and their net sales. 2 5 Leading IT services and consulting companies in India and their net sales. 2 5 IT spending worldwide IT spending worldwide 2 6 IT spending worldwide IT spending worldwide Source: Gartner 2 6 IT export from India IT Exports Contribution to India’s GDP is 2 7 IT export from India IT Exports Contribution to India’s GDP is : 7.5% 2 7 IT export from India IT Exports Contribution to India’s GDP is : 7.5% Value of export revenue of the IT sector across, 2 Source: Meity 7 IT Value in Modern Business Definition: IT value refers to the benefits that IT brings to an organization, such as increased efficiency, enhanced innovation, cost savings, and improved customer experiences. 2 8 IT Value in Modern Business Definition: IT value refers to the benefits that IT brings to an organization, such as increased efficiency, enhanced innovation, cost savings, and improved customer experiences. Efficiency gains (automated processes) 2 8 IT Value in Modern Business Definition: IT value refers to the benefits that IT brings to an organization, such as increased efficiency, enhanced innovation, cost savings, and improved customer experiences. Efficiency gains (automated processes) Better decision-making (data analytics) 2 8 IT Value in Modern Business Definition: IT value refers to the benefits that IT brings to an organization, such as increased efficiency, enhanced innovation, cost savings, and improved customer experiences. Efficiency gains (automated processes) Better decision-making (data analytics) Competitive advantage (e.g., Amazon’s use of AI/ML for recommendations) 2 8 IT Value in Modern Business Definition: IT value refers to the benefits that IT brings to an organization, such as increased efficiency, enhanced innovation, cost savings, and improved customer experiences. Efficiency gains (automated processes) Better decision-making (data analytics) Competitive advantage (e.g., Amazon’s use of AI/ML for recommendations) Innovation and new business models (Airbnb, Uber) 2 8 Summar y Data vs Information Information systems – three fundamental types Information technology vs information systems Importance of IS and its key role in business IT value in Modern businesses 2 9  Thank you! [email protected]