Management Information

Systems
BITS Pilani
Pilani Campus

BITS Pilani
Pilani Campus

Lecture Session-2
11- 01-15
BITS/CM/HHSM ZC471

Recap of Chapter-1
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
Internet exercises; Problem solving activity; Online
Resources

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Chapter 2

Information Technologies:
Concepts, Types and IT
Support

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Cases/Highlights in Chapter 2
Opening Case: Mary Kays 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 eservice desk that ensures consultants in 30 countries
are served in a standardized way; Atlas global electronic ordering system

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2.1 Information Systems:

Concepts and Definitions

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2.2 Classification and Types of

Information Systems
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
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Enterprise Systems at Work

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
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Interrelated support systems

TPS collects information that is used in MIS and DW
These, in turn, feed the BI and other enterprise systems.

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2.3 How IT supports people

Operational, Managerial & Strategic Activities
Levels of employees
Executives
Knowledge workers
Middle Managers

Lower-level Managers, Frontline employees

clerical staff

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2.4 How IT Supports Supply

Chains and Business Processes
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
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2.5 IS Infrastructure, Architecture, and

Emerging Computing Environments
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

Web based systems EC systems, electronic
markets, web 2.0 environments

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Emerging computing
environments

SOA: reuse and reconnect

Web services: machine to machine interaction
Utility Computing/SaaS/on-demand computing
Grid Computing SETI
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
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2.6 Innovative and Futuristic

Information Systems

Intelligent traffic control systems

Predictive analysis
Health Care Wireless Predictive System
NRI model
2.7 Managerial issues: Transition,
outsourcing, risks, SCM, BI

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Summary
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

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Appendix
Cases in Chapter 2

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IT at work 2.1 Western

Petroleum
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
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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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Closer Look 2.2 What is

RFID system?
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
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From Google images

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Closer Look 2.2 What is RFID

System? An application
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!)
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IT at work 2.2 Grid

computing at JP Morgan
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.

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IT at work 2.3 Wireless

Pepsi increases productivity
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.

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Abbreviations
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

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Ending Case: Airbus improves

productivity with RFID
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

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Airbus improves productivity

with RFID
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

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