Information Technology for Management

M. Minhaj mminhaj@sdmimd.ac.in

ICT News Briefs

Youtube clocks 100 crore average monthly visitors. EMC pips IBM to become largest storage player. HomeShop18 launches a Scan N Shop, Indias first shopping wall at IG Airport. NASSCOM launches program to incubate 10,000 start-ups. Sibel unveils roadmap for IPv6. Plan for complete migration to IPv6 by December 2017.

ICT News Briefs

14 Million requests to switch mobile operator rejected. 2G Scam : JPC unlikely to call Raja as witness. The public cloud services market to grow 18.5% in 2013 to $131 billion globally Gartner. Smart Phones sales are expected to touch 918 million units worldwide in 2013 and by end of 2017, 1.5 Billion IDC.

ICT News Briefs

India ranked third on distributing spam. The infrastructure budget for world cup soccer and Olympics in Brazil is pegged at $180 billion Technology has forced politicians to update themselves - Modi

Why Study Information Systems?

IT is pervasive in all types of businesses It is almost impossible to run a competitive business without a computerized information system Managers should know the strategic use of IT to compete successfully Managers will be more effective in their chosen career if they understand how successful information systems are built, used, and managed Managers will be more effective if they know how to recognize and avoid unsuccessful systems and failures

Course Outline
Objectives Approach Evaluation Components Recommended Text and Reference Material

Digital Economy
E-Business: The use of electronic technologies to transact business Collaboration: People and Organizations interact, communicate, collaborate and search for information Information Exchange: Storing, processing and transmission of information

Digital economy
An economic system (a way of doing business and making transactions) based on digital (or computer-based) technologies. The key to these systems are reliable, rapid telecommunications systems which include Internet service, corporate intranets and so on. The digital economy is global and in many respects, borderless, allowing people and organizations from around the world to share knowledge, interact and collaborate.

Digital Enterprise
Defined by Davis (2005)

Digital Enterprise is a new business model that uses IT in a fundamental way to accomplish one or more of three basic objectives :
Reach and engage customers more effectively Boost employee productivity Improve operating efficiency

Business Models
A business model is a method of doing business by which a company can generate revenue to sustain itself. The model spells out how the company adds value to create a product or service. Nokia makes and sells cell phones A TV station provides free broadcasting. Its survival depends on a complex model involving advertisers and content providers Internet portals, such as Yahoo, also use a complex business model.

Representative Business Models of the Digital Age

Reverse Auctions Affiliate Marketing Product or Service Customization E-Marketplaces and Exchanges

Drivers Forcing Changes In Business Models

Drivers Forcing Changes In Business Models

Business Pressures Environmental, organizational, and technological factors Organizations are forced to react frequently and quickly to both the threats and the opportunities resulting from this new business environment Business Critical Response Activities A response can be a reaction to a pressure already in existence, an initiative intended to defend an organization against future pressures, or an activity that exploits an opportunity created by changing conditions

Case IT at Work Success Story Diamonds Forever

1994 : Started with a small amount of seed money 2002 : revenue reached $9.8 million Reason : e-com portal (85% of the companys revenue)

Case IT at Work Failure Story Nikes Air Terra Humara 2 Running shoes
Before 2001 : $ 100 After 2001 : < $ 50 Reason : Breakdown in Nikes supply chain system

Information Systems
The term Information System refers to a system of persons, data records and activities that process the data to give useful information in an organization

Classification of Information Systems based on organizational levels

Functional (Departmental) Information Systems Ex. Marketing IS Enterprise Information Systems Ex. ERP Interorganizational Systems Ex. Core Banking System

Different Information Systems based on type of support provided

MIS Decision Support System Expert Systems etc.

Management Information System

It is a planned system of collecting, processing, storing and disseminating information needed to carry out the functions of management Ex. Product costing

Customer relationship management

It focuses on creating two-way exchanges with customers so that firms have an intimate knowledge of their needs, wants, and buying patterns. CRM is intended to help companies understand, as well as anticipate, the needs of current and potential customers. Functions that support this business purpose include sales, marketing, customer service, training etc

Supply Chain Management

Supply chain management (SCM) is the process of planning, implementing and controlling the operations of the supply chain as efficiently as possible. Supply Chain Management spans all movements and storage of raw material, work-in-process inventory, and finished goods. From point-of-origin to point-of-consumption.

Enterprise Resource Planning

Enterprise resource planning (ERP) attempts to integrate several data sources and processes of an organization into a unified system A key ingredient of most ERP systems is the use of a unified database to store data for the various system modules. Ex. of ERP software - SAP