Information Systems (MSI 101) - Session 1 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! S...

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 10 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, telecommu- nications, people, and procedures that are configured to collect, manipulate, store, and process data into information. 10 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 12  Smartphones and Mobile Apps - Google Maps E-Commerce Platforms 12  Smartphones and Mobile Apps - Google Maps E-Commerce Platforms - Amazon Public Transportation Systems 12  Smartphones and Mobile Apps - Google Maps E-Commerce Platforms - Amazon Public Transportation Systems - Transit App Healthcare Systems 12  Smartphones and Mobile Apps - Google Maps E-Commerce Platforms - Amazon Public Transportation Systems - Transit App Healthcare Systems - Patient Portals Banking and Financial Services 12  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 12  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 12  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 12  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 12  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 12  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 12 What is Information Technology (IT)? 13 What is Information Technology (IT)? Definition: Refers to the use of computers, software, networks, and other technologies to store, retrieve, transmit, and manipulate data. 13 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) 13 IT vs IS Focus 14 IT vs IS Focus IT focuses on technology and infrastructure IS focuses on the application of technology to support business processes and decision-making. 14 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 14 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 14 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. 14 Three fundamental types of information systems Personal IS Group IS Enterprise IS 15 Personal IS 16 Personal IS Definition: Designed for individual users to support personal tasks and decision-making. 16 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). 16 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). 16 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). 16 17 Group IS 18 Group IS Definition: Facilitate collaboration among members of a team or group. 18 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. 18 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). 18 19 Enterprise IS 20 Enterprise IS Definition: Integrated systems that support and manage organizational processes across departments. 20 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. 20 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). 20 21 Three fundamental types of information systems Personal IS Group IS Enterprise IS Examples Personal produc- Email, instant Transaction pro- tivity software, messaging, project cessing systems, decision-support management enterprise systems, system software interorganizational systems Benefits Improved productiv- Increased collabo- Increased standard- ity ration ization and ability to monitor work Manager’s Ensure that em- Demonstrate how Identify and put into role ployees understand technology can be place the full set and connect to the used. Set norms of organizational change. Encourage for participation complements prior use. Challenge to adoption. Inter- workers to find new vene forcefully and uses continually to ensure adoption 22 Importance of Information Systems Personal Information Systems 23 Importance of Information Systems Personal Information Systems Efficiency, Customization, Accessibility 23 Importance of Information Systems Personal Information Systems Efficiency, Customization, Accessibility Group Information Systems 23 Importance of Information Systems Personal Information Systems Efficiency, Customization, Accessibility Group Information Systems Coordination, Communication, Productivity, Collaboration 23 Importance of Information Systems Personal Information Systems Efficiency, Customization, Accessibility Group Information Systems Coordination, Communication, Productivity, Collaboration Enterprise information system 23 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. 23 Key Roles of IS/IT in Business 24 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 24 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 24 Leading IT services and consulting companies in India and their net sales. 25 Leading IT services and consulting companies in India and their net sales. 25 IT spending worldwide IT spending worldwide 26 IT spending worldwide IT spending worldwide Source: Gartner 26 IT export from India IT Exports Contribution to India’s GDP is 27 IT export from India IT Exports Contribution to India’s GDP is : 7.5% 27 IT export from India IT Exports Contribution to India’s GDP is : 7.5% Value of export revenue of the IT sector across, Source: Meity 27 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. 28 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) 28 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) 28 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) 28 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) 28 Summary 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 29  Thank you! [email protected] 29