CHAPTER 1: INTRODUCTION

1. WHAT ARE INFORMATION SYSTEM?

Information systems are a combination of multiple resources, including hardware, software, computer
system connections and end users. These resources help with the processing and dissemination of
information. Information systems collect, store and process data for end users in various projects.
An important aspect of this technology is customization. Depending on the capabilities of the software,
users can customize information to their needs. For example, a plant manager can generate reports that
identify levels of productivity or get real-time data to pinpoint issues on the production line and determine
if a shutdown is necessary.
• Set of interrelated components
• Collect, process, store, and distribute information
• Support decision making, coordination, and control

2. TYPES OF IS:
There are several types of information systems:
• Operations support systems, which includes transaction processing.
• Executive information systems.
• Decision support systems.
• Management information systems.

3. OBJECTIVE OF HAVING IS IN BUSINESS:

Business firms invest heavily in information systems to achieve six strategic business objectives:
1. Operational excellence
2. New products, services, and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Survival

1. Operational excellence
• Improvement of efficiency to attain higher profitability
• Information systems, technology an important tool in achieving greater efficiency and
productivity
• Walmart’s RetailLink system links suppliers to stores for superior replenishment system

2. New products, services, and business models

 • Business model: describes how company produces, delivers, and sells product or service to
create wealth
• Information systems and technology a major enabling tool for new products, services, business
models
• Examples: Apple’s iPod, iTunes, iPhone, iPad, Google’s Android OS, and Netflix

3. Customer and supplier intimacy

• Serving customers well leads to customers returning, which raises revenues and profits
Example: High‐end hotels that use computers to track customer preferences and use to monitor
and customize environment
• Intimacy with suppliers allows them to provide vital inputs, which lowers costs
Example: J.C.Penney’s information system which links sales records to contract manufacturer

4. Improved decision making

• Without accurate information:
o Managers must use forecasts, best guesses, luck
• Leads to:
o Overproduction, underproduction of goods and services
o Misallocation of resources
o Poor response times

5. Competitive advantage
• Delivering better performance
• Charging less for superior products
• Responding to customers and suppliers in real time
Examples: Apple, Walmart, UPS

6. Survival
• Information technologies as necessity of business
• May be:
o Industry‐level changes, e.g. Citibank’s introduction of ATMs
• Governmental regulations requiring record‐keeping
Examples: Toxic Substances Control Act, Sarbanes‐Oxley Act

4. PERSPECTIVE OF I.S.
a. Organisation : Hierarchy of authority (Senior, Middle and Operational), responsibility and functions
(HR, Marketing, Finance etc)
b. Technology : Comp. H/W & S/W, data management Technology, Network & Telecom Tech and IT
Infrastructure
c. Management : Set organisational strategy, Create new Products and Services & recreating
organisations

5. BUSINESS INFORMATION VALUE CHAIN

From a business perspective, information systems are part of a series of value-adding activities for
acquiring, transforming, and distributing information that managers can use to improve decision making,
enhance organizational performance, and ultimately increase firm profitability.
6. COMPLEMENTARY ASSETS:
Information technology investments cannot make organizations and managers more effective unless they
are accompanied by complementary assets: assets required to derive value from a primary investment.
Complementary Assets include:
1. Organizational assets: These include a supportive business culture that values efficiency and
effectiveness, an appropriate business model, efficient business processes, decentralization of
authority, highly distributed decision rights, and a strong information system (IS) development
team.
2. Managerial assets: These include strong senior management support for change, incentive systems
that monitor and reward individual innovation, an emphasis on teamwork and collaboration,
training programs, and a management culture that values flexibility and knowledge.
3. Social assets: These are not made by the firm but by the society at large, other firms, governments,
and other key market actors, such as the Internet, educational systems, network and computing
standards, regulations and laws, and the presence of technology and service firms.

CHAPTER 2: ERP (ENTERPRISE RESOURCE PLANNING) SYSTEM

1. WHAT IS ERP?
Enterprise resource planning (ERP) is business process management software that allows an organization
to use a system of integrated applications to manage the business and automate many back office
functions related to technology, services and human resources.
ERP software typically integrates all facets of an operation — including product planning, development,
manufacturing, sales and marketing — in a single database, application and user interface.
2. CLASSES OF IS:

• Enterprise systems (ERP)

• Supply chain management systems (SCM)
• Customer relationship management systems (CRM)
• Knowledge management systems (KMS)
3. ENTERPRISE SYSTEMS (ERP)

• Collects data from different firm functions and stores data in

single central data repository
• Resolves problem of fragmented, redundant data sets and
systems
Enables:
o Coordination of daily activities
o Efficient response to customer orders (production,
inventory)
o Provide valuable information for improving
management decision making

4. DIFFERENCE BETWEEN ERP AND OTHER S/W SOLUTION

1. Ease of Integration:
ERP software facilitates enterprise-wide integrated information system covering every
organisational functional area such as accounts, human resources, sales and distribution,
marketing, manufacturing among others. The main differences between ERP software and
standalone business applications are on functionality and characteristics. Unlike the standalone
business applications, Enterprise resource planning software not only addresses the current needs
of the organisation but also offers continuous opportunity of refining and improving the business
processes.

2. Flexibility:
Most organisations deploy ERP software to enhance coordination among various business entities
within the same firm as well as business partners. Due to their inflexibility, standalone business
applications are not able to go beyond the specific entities in which they are used. In addition, ERP
software can be centrally managed and necessary controls imposed to ensure proper usage within
the entire organisation without interference.

3. Cost - Effectiveness:
Deployment of standalone business applications, they tend to be very costly, especially when you
have several entities that need separate applications to facilitate their operations. ERP software
deployment is cost-effective since the software is modular and an organisation can choose the
specific modules that are appropriate to the organisation and in case of future additions, the cost of
additional modules cannot be commensurate to setting up a standalone business application when
needs arise.

4. Ease of Communication:
ERP software facilitates the integration of all organisational entities thus making it easy for all the
entities to share information and communicate with each other. On the other hand, a standalone
business application does not support communication with other organisational entities and in case
a report is generated, it cannot be shared unless it is printed or emailed.

5. TRANSACTION PROCESSING SYSTEMS

• Perform and record daily routine transactions necessary to conduct business
Examples: sales order entry, payroll, shipping
• Allow managers to monitor status of operations and relations with external environment
• Serve operational levels
• Serve predefined, structured goals and decision making
 Example of TPS
Payroll system

5. MANAGEMENT INFORMATION SYSTEMS

A management information system (MIS) is a computerized database of financial information organized
and programmed in such a way that it produces regular reports on operations for every level of
management in a company. It is usually also possible to obtain special reports from the system easily.

The main purpose of the MIS is to give managers feedback about their own performance; top management
can monitor the company as a whole.

• Serve middle management

• Provide reports on firm’s current performance, based on data from TPS
• Provide answers to routine questions with predefined procedure for answering them
• Typically have little analytic capability

6. DECISION SUPPORT SYSTEMS:

DSS is a computerized information system used to support decision-making in an organization or a
business.
A DSS lets users sift through and analyse massive reams of data and compile information that can be used
to solve problems and make better decisions.
The benefits of decision support systems include more informed decision-making, timely problem solving
and improved efficiency for dealing with problems with rapidly changing variables
• Serve middle management
• Support non‐routine decision making
Example: What is impact on production schedule if December sales doubled?
• Often use external information as well from TPS and MIS
• Model driven DSS
Voyage‐estimating systems
• Data driven DSS
 Intrawest’s marketing analysis systems

7. BUSINESS INTELLIGENCE:
• Applications and practices for the collection, integration, analysis, and presentation of business
information.
• The purpose of Business Intelligence is to support better business decision making. Essentially,
Business Intelligence systems are data-driven Decision Support Systems (DSS).
• Business Intelligence is sometimes used interchangeably with briefing books, report and query tools
and executive information systems.

• Class of software applications

• Analyse current and historical data to find patterns and rends and aid decision‐making
• Used in systems that support middle and senior management
• Data‐driven DSS
• Executive support systems (ESS)

8. EXECUTIVE SUPPORT SYSTEMS:

• A reporting tool (software) that allows you to turn your organization's data into useful summarized
reports.
• These reports are generally used by executive level managers for quick access to reports coming
from all company levels and departments such as billing, cost accounting , staffing, scheduling, and
more.
• Quick access to organized data from departments and provide analysis tools that predicts a series
of performance outcomes over time using the input data.
• Provide possible outcomes and quick reference to statistics and numbers needed for decision-
making.
• Address non‐routine decisions
o requiring judgment, evaluation, and insight
• Incorporate data about external events (e.g. new tax laws or competitors) as well as summarized
information from internal MIS and DSS
Example: Digital dashboard with real‐time view of firm’s financial performance: working capital,
accounts receivable, accounts payable, cash flow, and inventory
CHAPTER 3: CRM
1. WHAT IS CRM?
• Customer relationship management (CRM) is an approach to managing a company's interaction
with current and potential customers.
• It uses data analysis about customers' history with a company and to improve business
relationships with customers, specifically focusing on customer retention and ultimately driving
sales growth.
• One important aspect of the CRM approach is the systems of CRM that compile data from a range
of different communication channels, including a company's website, telephone, email, live chat,
marketing materials, and more recently, social media.

2. MAIN AREAS OF CRM

3. BENEFITS OF CRM IN AN ORGANISATION:

• Manage customer contact information
• Organize customer interactions in a central location
• Track customer habits, actions and preferences
• Weaken expense and business risk
• Measure success of campaigns
• Provide instant metrics
• Manage customer service requests
• Track industry trends
• Create more personalized customer experiences
4. CRM’S COMPREHENSIVE HAVE MODULES FOR:
• Partner relationship management (PRM)
o Integrating lead generation, pricing, promotions, order configurations, and availability
o Tools to assess partners’ performances
• Employee relationship management (ERM)
o E.g. Setting objectives, employee performance management, performance‐based
compensation, employee training
5. CRM PACKAGE TOOLS INCLUDES:

• Sales force automation (SFA)

E.g. sales prospect and contact information, and sales quote generation capabilities
• Customer service
E.g. assigning and managing customer service requests;
Web‐based self‐service capabilities
• Marketing
E.g. capturing prospect and customer data, scheduling and tracking direct‐marketing mailings or e‐
mail
6. TYPES OF CRM:
1. Operational CRM:

• It streamlines the business process that includes Sales automation, Marketing automation and
Service automation.
• Main purpose:
o to generate leads
o convert them into contacts
o capture all required details
o provide service throughout customer lifecycle
2. Analytical CRM:

• It helps top management, marketing, sales and support personnel to determine the better way to serve
customers.
• Main Function: Data Anlysis
o Analyses customer data, coming from various touch points, to get better insights about current
status of an organization.
• It helps top management to take better decision, marketing executives to understand the campaign
effectiveness, sales executives to increase sales
• Support personnel to improve quality of support and build strong customer relationship
3. Collaborative / Strategic CRM:

• It enables an organization to share customers’ information among various business units like sales
team, marketing team, technical and support team.
o For example, feedback from a support team could be useful for marketing team to approach
targeted customers with specific products or services.
• In real world, each business unit works as an independent group and rarely shares customers’ data with
other teams that often causes business losses.
• Collaborative CRM helps to unite all groups to aim only one goal – use all information to improve the
quality of customer service to gain loyalty and acquire new customers to increase sales.
7. PRIMARY MOTIVATORS FOR CRM SYSTEM ADOPTION

• Increasing sales by better timing approaches that anticipate needs based on historic trends
• Identifying current and planned needs or customer insight to shape new product or service
development
• Cross-selling of other products by highlighting and suggesting alternatives or enhancements
• Identifying which customers are the most profitable and by how much
• For more effective targeted marketing communications based on past purchases
• Assessing and improving customer satisfaction and retention
• Increasing value from existing customers, and reducing costs associated with supporting and
servicing them
• Identifying unprofitable customers, and managing them in more cost-effective ways

8. PRIMARY CHALLENGES IN IMPLEMENTING CRM

• Collecting customer information

• Storing customer information
• Accessing customer information
• Analyzing customer behavior and future prediction
• Marketing more effectively
• Enhancing the customer experience
• Sales and marketing process integration (or automation)

9. TOP REASON’S WHY CRM IMPLEMENTATIONS FAIL OR STALL

• Lack of executive or senior management sponsorship

• Limited business cohesion, unclear goals, or understanding of the business benefits
• Belief that technology alone will not reap the full benefits of CRM
• Poor planning, requirements, or goal analysis
• Lack of buy-in or staff inertia to use the CRM system
• Unsuitable or insecure hardware or network platform, challenging the integrity of the system or
customer data
• Implementation that is overly disruptive to the organization’s daily business practices
• Provider viewed as too expensive, lacking in expertise, or unable to understand your business
model
• Executives unable to gain visibility and a clear understanding of the company’s actual business
practices
• Customizing system perceived as too complicated or not easy to use
• Poor data conversion or data silos that cause data integration obstacles and challenges
• Unclear gains in customer management efficiency and/or staff productivity
• Too much reliance on changing business processes to mold around technology solution
CHAPTER 4: SCM
1. WHAT IS SCM?
SCM is the management of a network of all business processes and activities involving procurement of raw
materials, manufacturing and distribution management of Finished Goods.
Supply chain activities cover everything from product development, sourcing, production, and logistics, as
well as the information systems needed to coordinate these activities.

• Procuring raw materials

• Transforming them into products
• Distributing the products

Upstream Supply Chain:

Raw material extraction or production are elements of the supply chain considered to be upstream. The oil
and gas supply chain is commonly referenced in this manner.
Downstream Supply Chain:
Organizations and processes responsible for delivering products to customers, it include refineries and
marketing. These services turn crude oil into usable products such as gasoline, fuel oils, and petroleum-
based products.
2. HOW DOES ICT HELP A SCM SYSTEM IMPLEMENTED IN ANY FIRM

• Inefficiencies cut into a company’s operating costs

o Can waste up to 25% of operating expenses
• Just‐in‐time strategy:
o Components arrive as they are needed
o Finished goods shipped after leaving assembly line
• Safety stock
o Buffer for lack of flexibility in supply chain
• Bullwhip effect
o The bullwhip effect is a distribution channel phenomenon in which forecasts yield supply
chain inefficiencies.
o It refers to increasing swings in inventory in response to shifts in customer demand as one
moves further up the supply chain.
o Information about product demand gets distorted as it passes from one entity to next
across supply chain

3. BUSINESS VALUE OF SCM SYSTEM:

• Match supply to demand

• Reduce inventory levels
• Improve delivery service
• Speed product time to market
• Use assets more effectively
• Reduced supply chain costs lead to increased profitability
• Increased sales
3. DIFFERENT SCM SOFTWARES:
Supply chain management software (SCMS) is the software tools or modules used in executing supply
chain transactions, managing supplier relationships and controlling associated business processes.

• Supply chain planning systems

o Model existing supply chain
o Demand planning
o Optimize sourcing, manufacturing plans
o Establish inventory levels
o Identifying transportation modes
• Supply chain execution systems
o Manage flow of products through distribution centers and warehouses
4. MODULES OF SCM:

• Inventory Optimization (Warehouse Management, Replenishment),

• Transportation and Logistics (Routing, Scheduling, Carrier/Fleet/Fuel Management),
• Planning (Advanced Planning and Scheduling, Forecasting, Supply Chain Planning through
Execution),
• Distribution Management (Order Orchestration, Management, Global Trade Management),
• E-Commerce (POS, Store Inventory & Fulfillment, EDI).
5. Global SCM:

• Global supply chain issues

o Global supply chains typically span greater geographic distances and time differences
o More complex pricing issues (local taxes, transportation, etc.)
o Foreign government regulations
• Internet helps companies manage many aspects of global supply chains
o Sourcing, transportation, communications, international finance
• Push‐based model (build‐to‐stock)
o Schedules based on best guesses of demand
• Pull‐based model (demand‐driven)
o Customer orders trigger events in supply chain
• Sequential supply chains
o Information and materials flow sequentially from company to company
• Concurrent supply chains
o Information flows in many directions simultaneously among members of a supply chain
network
6. GLOBAL INFORMATION SYSTEM (GIS):

• information system which is developed and / or used in a global context; or

• information system which attempts to deliver the totality of measurable data worldwide within a
defined context
• Global economic system and global world order driven by advanced networks and information
systems
• Growth of international trade has radically altered domestic economies around the globe
o For example, production of many high‐end electronic products parceled out to multiple
countries
7. STRATEGY TO BUILD GIS:

• Understand global environment

o Business drivers pushing your industry toward global competition
o Inhibitors creating management challenges
• Develop corporate strategy for competition
o How firm should respond to global competition
• Develop organization structure and division of labor
o Where will production, marketing, sales, etc., be located
• Consider management issues
o Design of business procedures, reengineering, managing change
• Consider technology platform
8. CHALLENGES AND OBSTACLES TO GLOBAL BUSINESS SYSTEMS
General cultural challenges

• Cultural particularism
o Regionalism, nationalism, language differences
• Social expectations:
o Brand‐name expectations, work hours
• Political laws:
o Transborder data flow
o Transborder data and privacy laws, commercial regulations
Specific challenges

• Standards
o Different EDI, e‐mail, telecommunication standards
• Reliability
o Phone networks not uniformly reliable
• Speed
o Different data transfer speeds, many slower than U.S.!!
• Personnel
o Shortages of skilled consultants
9. GLOBAL STRATEGIES AND BUSINESS ORGANIZATION

Three main kinds of organizational structure

• Centralized: In the home country
• Decentralized/dispersed: To local foreign units
• Coordinated: All units participate as equals

Four main global strategies

• Domestic exporter
• Multinational
• Franchisers
• Transnational
10. LOGICAL STRUCTURE (CONFIGURATION) OF THE I.S. FOR THE DIFFERENT STRATEGIES

10. TECHNICAL ARCHITECTURE:

The several configurations of the I.S. for international players can be run on different technical architecture
(combination of HW, SW, DBMS and IT specialists)

CHAPTER 5: CIO
1.WHO IS A CIO?
Chief information officer (CIO) / chief digital information officer (CDIO) / information technology (IT)
director is a job title commonly given to the most senior executive in an enterprise responsible for the
information technology and computer systems that support enterprise goals.
The CIO reports directly to the chief executive officer but may also report to the chief operating officer or
chief financial officer
2. ROLES OF CIO

• CIO must make executive decisions regarding things such as the purchase of IT equipment from
suppliers or the creation of new systems
• CIO is ‘required to have strong organizational skills’.
• CIO must balance roles in order to gain a competitive advantage and keep the best interests of the
organization’s employees.
• CIOs also have the responsibility of recruiting, so it is important that they take on the best
employees to complete the jobs the company needs fulfilling.
• CIOs are directly required to map out both the ICT strategy and ICT policy of an organization.
 o The ICT strategy covers future proofing, procurement, and the external and internal
standards laid out by an organization.
o the CIO must write up the ICT policy, detailing how ICT is utilized and applied.
3. CHALLENGES FACED BY CIO:
• Cybersecurity:
o Protecting personal data and securing the business has remained a concern for CIOs
annually.
o Digital leaders need to align with executives in monitoring security and ensuring they are
protected from breaches.
o As IoT is a growing digital trend with more devices being connected to the web the chance
of threats remain a high risk for businesses.
o CIOs should implement security strategies including staff training, focus groups and
meetings as ways to teach all employees about security safety.
o Through collaborating with staff members CIOs can help ensure safety in the organisation
and help prevent further threats.
• Diversity:
o CIOs increasing diversity should adopt flexible benefits, remote working and encourage
female mentors resulting in a team more creative, open and productive.
• Balancing a demanding role and managing stakeholders:
o Making sure there is a wide engagement with senior people across an organisation making
calls and building relationships rather than the CIO being left in the position of upsetting
somebody is the best route to address that.
o Addressing these issues and maintaining a better work-life balance will address skill gaps,
retain talent and create company loyalty for supporting CIOs

CHAPTER 5: ICT
1.WHO IS AN ICT?
Information and Communications Technology (ICT) is an extended term for information technology (IT)
which stresses the role of unified communications and the integration of telecommunications (telephone
lines and wireless signals), computers as well as necessary enterprise software, middleware, storage, and
audio-visual systems, which enable users to access, store, transmit, and manipulate information
2. COMPONENTS OF ICT:

3. SIGNIFICANCE OF ICT:

• ICT have brought a slew of cost savings, opportunities and conveniences

• They range from highly automated businesses processes that have cut cost
• The big data revolution where organizations are turning the vast trove of data generated by ICT into
insights that drive new products and services
• ICT-enabled transactions such as internet shopping and telemedicine and social media that give
customers more choices in how they shop, communicate and interact
4. PROBLEMS CAUSED BY ICT:

• The digitization of data, the expanding use of high-speed internet and the growing global network
together have led to new levels of crime, where so-called bad actors can hatch electronically enabled
schemes or illegally gain access to systems to steal money, intellectual property or private information
or to disrupt systems that control critical infrastructure.
• ICT has also brought automation and robots that displace workers who are unable to transfer their
skills to new positions.
• ICT has allowed more and more people to limit their interactions with others, creating what some
people fear is a population that could lose some of what makes it human.

GUEST LECTURE BY MR. SUAJY SEN [L&T]

1. Reason for focus on experience

• There is a shift to self-service driver environment

• Best example of this is Uber. Uber have no call centres as they take up a lot off money
2. Employee experience plays a very important role in improving productivity of a company. A normal data
upload on SAP takes 20mins, so a company should work on reducing this time. It will reduce the time lost
by an employee, we increase the firm’s productivity.
3. CIO is internally focused to make the employees life better. Hence managing the budget to make sure
something is left for employee betterment is required.
4. L&T Case Study:

• Machinery was lying idle. 300,000 workers and 35,000 total assets
• Preventive measures are required to be put in place
• If lifts were less than 10, without asking site manager, remove the machinery
• Sensors to these machines would help the lifters
• For earth movers, operator doesn’t know the capacity of the earth mover. It can lift 2 tonnes, but if
lifted less - sensors installed would not let machines move
• Lift and sensors were put together
• This would increase the margins for L&T from 4% to 6% in 18months.