20-01-2025 17:33

Information System: Primary Perceived Utility

Collects data, processes it into information then converts

information into knowledge for a specific purpose.

Data: Elementary description of things, events, activities,

and transactions that are recorded, classified, and stored

Information: Data that has been organized so that they

have meaning and value to the recipient

Knowledge: Information that has been organized and

processed to convey understanding to a problem

20-01-2025 17:33
 How does data flow within an organization

20-01-2025 17:33
 Information Systems & Role

20-01-2025 17:33
20-01-2025 17:33
 IS Classification:
A Hierarchical View based on System Complexity

20-01-2025 17:33
 IS Classification By Data Enabled Function
•5-year sales trend
•Profit Planning
•5-year budget forecasting
Executive Support System •Product development

•Sales Management
•Inventory Control
Decision Support System •Annual budget
•Production Scheduling
Intelligent Support Systems •Cost Analysis
Management Information System •Pricing Analysis

•Simulation
•Pgm coding
Knowledge Management System •System support
•Word Processing
Office Automation System •Desktop Publishing

•Order Processing
•Fulfillment
•Material Movement
Transaction Processing System •A/R, A/P, GL
•Payroll
•POS

20-01-2025 17:33 Chapter 2 8

20-01-2025 17:33
 Transaction Processing System (TPS)

TPS automate routine and repetitive tasks that are critical to the operation of
the organization, such as attendance, payroll, billing, PoS & Warehouse Ops.

Data collected from this operation supports the MIS and DSS systems
employed by Middle Management

Computerizes the primary and most of the secondary activities on the Value
Chain.

Primary purpose to perform transactions, collect data and perform simple

operations

20-01-2025 17:33
 • Nature of
usage in
process
• Who uses it?
Velocity • Issues of usage
• Technological
challenges?
Volume

Veracity

Variety

Examples are sales order entry, hotel reservation systems,

payroll, employee record keeping, and shipping.

20-01-2025 17:33
 Office Automation Systems (OAS)

Electronic communication is only one aspect of what is now known as an

office automation system (OAS).

Other aspects include word processing systems, spreadsheets, document

management systems and desktop publishing systems.

OAS systems are predominantly used by front office workers who support
managers at all levels.

Among clerical workers, those who use, manipulate, or disseminate

information are referred to as data workers.

20-01-2025 17:33
 • Degree of
usage in
process
• Sophistication
Velocity of usage
• Who uses it?
• Issues of usage
Volume • Technological
challenges?
Veracity

Variety

20-01-2025 17:33
 Knowledge Management Systems (KMS)

An additional level of staff support now exists between top and middle
management, namely the knowledge workers.

These are professional people, such as financial, sales and marketing analysts
that act as advisors and assistants to both top and middle management.

They are responsible for finding or developing new knowledge (External Content)
for the organization and integrating it with existing knowledge (Internal Content).

KMS that support knowledge workers and external stakeholders range from
search engines, onedrive and sharepoints, to Web-based computer-aided design
and sophisticated data management systems

20-01-2025 17:33
 • Nature of
usage in BAU
• Who uses it?
• Issues of usage
Velocity • Technological
challenges?

Volume

Veracity

Variety

20-01-2025 17:33
20-01-2025 17:33
 Management Information Systems (MIS)

These systems access, organize, summarize, and displayed information for

supporting routine decision making in the functional areas.

Geared toward middle managers, MIS are characterized mainly by their

ability to produce periodic reports

E.g. daily list of employees and the hours they work, or a monthly report
of expenses as compared to a budget

Typical uses would be in Replenishment, Pricing Analysis (Markdowns)

and Sales Management

Primary purpose to process data into information

20-01-2025 17:33
 • Nature of
usage in
process
• Who uses it?
Velocity • Issues of usage
• Threats it may
create?
Volume

Veracity

Variety

Some popular MIS software in the market are

EAMbrace Asset Management, HRiS365, MenuSquare
20-01-2025 17:33
 Decision Support Systems (DSS)

These systems support complex non-routine decisions.

Primary purpose to process data into actionable information

Typically employed by tactical level management whose decisions and what-if analysis
are less structured.

This information system not only presents the results but also expands the
information with alternatives.

Some DSS focus areas

• Mathematical Modeling
• Simulation and scenario building
• Multidimensional queries

20-01-2025 17:33
 • Nature of
usage in
process
• Who uses it?
Velocity • Issues of usage
• Implications to
practice (say in
Volume purchasing)

Veracity

Variety

The IBM Z Decision Support V1.9.0

20-01-2025 17:33 Hub and Spoke Architecture in Tivoli
20-01-2025 17:33
 AI Based systems
Intelligent Support Systems (ISS)
Using AI/ML and data mining algorithms, these systems support intelligent problem solving
or data driven dynamic decision making.

One application of AI is recommender systems which provides recommendation on friends

in social networks, content on news website and products on e-commerce websites.

These advisory systems differ from TPS, which centered on data, and from MIS and DSS,
which concentrated on processing information.

With DSS, users make their decisions according to the information generated from the
systems.

With ISS, the system makes recommended decisions for the users based on the built-in
expertise and knowledge.

20-01-2025 17:33
 • Nature of
usage in
process
• Who owns it?
Velocity • Who uses it?
• Issues of usage
• Technological
Volume challenges?
• Issues in
Veracity practice

Variety

Netflix, YouTube, Tinder, and Amazon are all e.g. Amazon Personalize
examples of recommender systems in use. in Sagemaker
20-01-2025 17:33
20-01-2025 17:33
 Executive Support Systems (ESS)
 ESS systems or Enterprise Information Systems (EIS) originally were implemented
to support Senior Management. These systems have been expanded to support
other managers within the enterprise.
 At the senior management level they support Strategic activities which deal with
situations that significantly may change the manner in which business is done.

20-01-2025 17:33
 • Nature of
usage in
process
• Who owns it?
Velocity • Issues of usage
• Technological
challenges?
Volume

Veracity

Variety

Cambridge Systematics has ESS to support the investment

planning process for the Ministry of Transportation.

20-01-2025 17:33
 Types and usage of major IS

20-01-2025 17:33
 Types and usage of major IS (cont..)

20-01-2025 17:33
20-01-2025 17:33
How does information flow within organizations

20-01-2025 17:33
 Understanding the interrelationships

Note: Systems down the

hierarchy do not directly
interact with systems higher
in the hierarchy of users
1. Protects sanctity of
information
2. Enables better
reporting policies
3. Manages costs

20-01-2025 17:33
20-01-2025 17:33
 Parameters of deliberation (VH, H, M, L, VL)

TPS Input
OAS
Velocity Volume Veracity Variety
MIS

DSS

ISS Output

ESS Accuracy Complexity Value

20-01-2025 Lecture Presentation | © Dr. A. K. Kar 33

20-01-2025 17:33
 IS Classification:
Merging the hierarchical and functional views

20-01-2025 17:33
 IS Classification:
A functional view

20-01-2025 17:33
 Extending the functional view (cont..)

20-01-2025 17:33
 Extending the functional view (cont..)

20-01-2025 17:33
20-01-2025 17:33
 IS Classification:
Organizational Structure & Function

/ Enterprise wide IS

Information systems are usually connected by means of electronic networks

20-01-2025 17:33
 Inter-Organizational Information Systems (IOIS)

Two or more organizations

20-01-2025 17:33
20-01-2025 17:33 Nakamoto (2010)
20-01-2025 17:33
 Caselet A - Cell C & TCS

Cell C was looking to improve their existing learning management system (LMS) that was resource intensive
and dated. TCS helped by deploying a robust Oracle based cloud solution that could cater to dynamic business
requirements, streamline training processes and deliver a superior customer service.

Business Challenge
Cell C needed to transform their learning department to offer its customer care agents, franchisees and sales
teams a robust, timely and effective training program that could maximize their skills and ensure superior
customer service. This required migration of their existing Human Capital Management system to an Oracle
cloud based solution. With TCS' expertise in Cloud HCM, Cell C was able to centralize and improve its LMS and
meet the growing training requirements of its stakeholders during new product launches.

TCS’ Solution
TCS implemented Oracle Taleo Learn Cloud Service, a comprehensive learning solution by migrating the
required data from the existing E-Business Suite Human Capital Management (EBS HCM) to the cloud based
system. The solution was designed to support all education models and design a centralized system that not
only helped with end-to-end instructor led training at multiple locations, but also allowed administrators to
publish content and evaluate trainers, online. With advanced LMS, Cell C was able to effectively train and
assess customer care and franchise staff members before the launch of each new product.
Identify the types of systems which may be used in such a scenario.
http://www.tcs.com/enterprise-solutions/client-successes/Pages/CellC-cloud-learning-management-system.aspx

20-01-2025 17:33
 Caselet A - Cell C & TCS (Results and Benefits)

Able to conduct relevant training programs by assessing knowledge gaps among customer
service agents and sales consultants

Enhance its sales performance and customer satisfaction by better informed and trained
employees

Up-skill employees in remote areas

Ensure market readiness for new product launches with accelerated trainings

Streamline their content management and delivery

Access to best practices from centralized repository for continuous improvement

20-01-2025 17:33
 Caselet B – TCS in Retail

TCS helped a leading retailer improve fault detection in their refrigeration systems. We developed
a first of its kind refrigeration monitoring solution that detects and identifies faults in supermarket
refrigeration systems, even in the absence of comprehensive onboard sensor information, using data
logs from an ensemble of stores.
The customer : The client is a leading retail chain in the United States offering home goods, clothing,
electronics, groceries, and other products.
Business scenario: Refrigerated systems are used in supermarkets to maintain perishable goods at the
required temperature. Any fault in refrigeration systems can further push up energy consumption
levels. A leading retailer wanted to ensure proactive detection and rehabilitation of faults to reduce
energy consumption and avoid service disruption to customers in the stores.
TCS Solution: TCS developed an energy model that leverages the energy consumption patterns of
refrigeration systems and identifies even the smallest irregularity in the energy signal and helps
maximize the likelihood of detecting an anomaly. If the actual energy consumption of a system
deviates significantly from the value predicted by the model, it is flagged as a potential fault in the
system. The TCS team used the magnitude and the direction of the deviation in energy from the
expected value to perform root cause analysis of the fault. Additionally, information on non-energy
parameters (such as pressure and temperature at various points of the refrigeration system) helped
narrow down possible causes and sub classify the root cause of the anomaly.
Key benefits: With our solution, the retailer can monitor refrigeration systems without complex and
expensive instrumentation. The solution also enables the identification of the individual component
that is at fault. Faults can be identified 3-21 days (depending on the fault type) before they are
detected by store employees with the false positives rate limited to less than 0.2%.
http://www.tcs.com/research/client-successes/Pages/leading-retailer-proactive-fault-detection-refrigerations-systems.aspx

20-01-2025 17:33
20-01-2025 17:33
 3 Varieties of IT

IT Category Definition Characteristics Examples

Function IT Assists •Can be adopted without Simulators,
execution of complements spreadsheets,
discrete •Impact increases when CAD, CAM,
tasks complements are in place LISRELL, SPSS
Network IT Facilitates •Doesn’t impose complements but Email, Instant
interaction lets them emerge over time Messaging, Wikis,
without •Doesn’t specify tasks or sequences Blogs, Mashups
specifying •Accepts data in many formats
parameters •Use is optional
Enterprise Specifies •Imposes complements throughout ERP systems, CRM
IT business the organization Systems, SCM
processes •Defines tasks and sequences systems, HRM
•Mandates data formats Systems, etc
•Use is mandatory

20-01-2025 17:33
 Objectives of Each Variety of IT asset

Function IT
• Enhancing experimentation capacity
• Increasing efficiency in operations
• Increasing precision in outcomes

Network IT
• Facilitating collaboration
• Allowing expression of judgments
• Emergence of knowledge from low level interactions

Enterprise IT
• Redesigning business processes at macro level
• Standardizing workflows
• Monitoring and control

20-01-2025 17:33
 Managing the three types of IT

IT Selection IT Adoption IT Exploitation

Identifying a gap addressable by IT driven innovation

Identifying requirements and its key stakeholders

Identifying potential solutions and conducting fitness of scope

Stakeholder management and buy in for mandatory vs non-mandatory IT

Understanding root causes of resistance among users

Development and improving complements

20-01-2025 17:33
 Explore Mary Kay’s IT Systems case
(in Laudon & Laudon)

What was the business challenge?

What was the technology challenge?

What were the IT solutions used?

Analyse the implementation from the perspective of people, process & technology.

20-01-2025 17:33