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