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Information System
Mr. Anuranjan
Citysearch is a leading online lifestyle guide with the most up-to-date information on businesses, from restaurants and spas, to hotels and retail. Citysearch helps people make informed decisions about where to spend their time and money by delivering trusted content, local expertise, and useful tools -- including 14.5 million business listings, over 600,000 user reviews, and ratings on over 2 million business locations nationwide.
In March 2007, Citysearch expanded its coverage of local businesses by acquiring Insider Pages. With over 600,000 customer reviews from members across the U.S. and over two and half million people, InsiderPages.com was created to help people find the best local businesses through recommendations from their friends and neighbors.
“Living” Online
Information system Defined
Information systems (IS), are combinations of
hardware, software, and telecommunications networks
that people build and use to collect, create and distribute useful information, typically in organizational setting
Information System
Data People
Telecommunication
SoftwareHardware
InformationSystem
Data/ Information: The root & purpose of IS
Information is a product of data. Davis & Olson have defined information as
follows
“Information is data that has been processed into a form that is meaningful to the recipient & is of real or perceived value in current or prospective actions or decisions”
(MIS, New York: McGraw Hill 1985.)
The relation of data to information
Management Level
Operational Level
Transaction Data
Summarized Data
Raw material-finished product relationship between data and
information
Characteristics of useful Information
“Having accurate, real time information is critical to business success.”
(Info Flow, Tom Polischuk,
PackagePrinting;
Jul 2008;) Timeliness Adequacy Form
The technology side of IS
Technology
IT
Computer based
IS
Computer-based IS are a subset of IT & technologies in general.
Does IS matter?
On May 1, 2003, Nicholas Carr published an article title “IT Doesn’t Matter” in Harvard Business Review.
On May 1, 2004, CIO magazine’s editor in chief, Abbie Laudberg, published an interview with Carr on subject along with an invited counterpoint essay titled “The Engine That Drives Success: The best companies have the best business models because they have best IT strategies”, by noted technology and business strategies author, Don Topscott.
Dual nature of IS
An information system that works: FedEx
An information system awry : The Denver International Airport.
Denver International Airport
The system which cost $200 million, included the following features:
21 miles of steel track 4,000 independent “telecars” that would rout &
deliver luggage among the counters, gates, & claim areas of 20 different airlines.
100 networked computers. 5,000 eclectic eyes. 400 radio receivers. 56 bar-code scanners.
Denver International Airport
Due to problem in the software the system opened, damaged, and misrouted cargo forcing airport authorities to leave the system sitting idle for nearly one year.
Because of this they wasted $1.1 million interest and operating cost per day
Denver International Airport
Guest Services Courtesy Telephones Lost and Found Ambassadors Baggage Carts, Lockers and Storage Credit Union and ATM Services Interfaith Chapel and Islamic Prayer Hall Internet Access Pet Exercise Area Post Office Rocky Mountain USO Center at DIA Smoking Lounge
FedEx, now $25 billion family of companies, is the worlds largest express transportation company and delivering millions of packages and millions of pounds of freight to 215 countries each business today.
FedEx Express uses extensive, interconnected information system to coordinate more than 245,00 employees, hundreds of aircraft, and ten thousands of ground vehicles worldwide.
To improve its services and sustain a competitive advantage, FedEx now offers services on the internet.
During the last three years, the management team took the following steps to transform Kinko's into a world-class business services company. Create a network operations center and digitally
connected network of 1,200 stores. Utilize technology as a competitive weapon—both
back-end as well as customer-facing systems. Segment and tailor its services to corporate, mobile
professional and retail customers. Establish a world-class, professional sales force
targeting the lucrative commercial print market. Implement hub-and-spoke stores in local markets to
better utilize equipment and capacity. Broaden product and service offerings to meet the
growing needs of its customer base.
Need for information in an organization
Decision Making
Strategic Planning
Management Control
Operational planning & Control
Need for IS in an organization
For automating: doing things faster. For information learning: doing things
better. For supporting strategy: doing things
smarter.
Primary activity of loan processing
Manual loan process
(time)
Technology Supported process
Fully automated process
Complete & submit
loan application
Customer take the application home, complete it ,return it (1.5days)
Customer take the application home, complete it ,return it (1.5days)
Customer fills out application from home via web (1hrs)
Check application for errors.
Employee does this is batches (2.5days)
Employee does this is batches (2.5days)
Computer does this as it is being completed (3.5sec)
Input data from application into IS
Application kept in paper form, although there is handling time involved (1hrs)
Employee does this is batches (2.5days)
Done as part of the online application process (no extra time)
Assess loan applications under 2,50,000 to determine whether to found them
Employee does this completely by hand (15 days)
Employee does this with the help of computer (1hrs)
Computer does this automatically (1sec)
Committee decides on any loan over RS. 2,50,000
(15 days) (15 days) (15 days)
Applicant notified Employee generates letter manually in batches (1week)
Employee generates letter with the help of computer (1day)
System notifies applicant via e-mail (3.5sec)
Total time From 25 to 40 days From 5 to 20 days From 1 hour to 15 days
For information learning: doing things better.
“Skilled at creating, acquiring, and transforming knowledge, and at modifying its behavior to reflect new
knowledge and insights ”
David Garvin, Harvard Business Review, 1993
Computer based loan processing system
Jan - April May - August Spt - Dec
Home loan
Auto loan
Personal loan
Home loan
Personal loan
Auto loan
Home loan
Personal loan
Auto loan
For supporting strategy: doing things smarter.
Type of competitive advantage being pursued
Lower cost Differentiation
Best-Cost provider strategy
Overall low-cost leadership
strategy
Broad differentiation
strategy
Focused low-cost strategy
Focused differentiatio
n strategy
A broad range of buyers
market wide
A particular buyer
segment or market niche