Information Systems

MSI 101

Manu K. Gupta
Department of Management Studies,

IIT Roorkee.

Session 1
Welcome to this Module!

• Session 1 - Introduction to Information Systems and IT Value

• Session 2 - Aligning IT with Business Strategy and Operating Models
• Session 3 - IT-based Business Models
• Session 4 - IT-Based Decision Making and Data-Driven Organization
• Session 5 - IT Governance, IT Investment, and Healthcare IT

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Textbooks

Figure 1: Useful textbooks for this module.

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Session 1
Learning Objectives

• Understand what Information Systems (IS) and Information

Technology (IT) are.
• Explore the value of IT in modern businesses.
• Learn how IT creates a competitive advantage in various industries.

3
Key concepts

• Definition of Information Systems (IS) and Information Technology

(IT).
• Role of IS/IT in modern organizations
• IT Value: How IT contributes to business value (productivity,
efficiency, innovation)

Discussion Points:

• Examples of IT transforming industries (e.g., retail, banking,

logistics).
• Benefits and challenges of adopting IT in businesses.

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Data Vs Information

Figure 2: Raw, unorganized data and structured, meaningful information

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Data vs Information

Data: Consists of raw fact.

Examples - Employee number, An inventory part number, Number of
units produced on a production line.

Source (Industry) – Company Name

• Sensor Readings (IoT/Manufacturing): Tata Steel, Mahindra &

Mahindra
• Survey Responses (Customer Feedback): Flipkart, Zomato
• Social Media Posts (User Interaction Data): Byju’s, Swiggy
• Emails or Customer Support Tickets (Telecom/Banking)–
Airtel, ICICI Bank
• Financial Statements (Banking/Consulting): HDFC Bank, Tata
Consultancy Services (TCS)

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Data vs Information

Information: Collection of data organized and processed sothat it has

additional value beyond the value of individual facts.
Examples : Sales manager may want individual sales data summarized so
it shows total sales for the month.

• Sales Report (E-commerce) : Flipkart

• Customer Satisfaction Dashboard (Food Delivery/E-commerce) :
Swiggy, Zomato
• Employee Performance Evaluation (IT/Consulting) : Infosys, Tata
Consultancy Services (TCS)
• Website Analytics Dashboard (E-commerce/Tech) : Myntra,
MakeMyTrip
• Project Status Report (Infrastructure/Real Estate) : Larsen &
Toubro (L&T), Godrej Properties

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Why learn about Information Systems?

Computers and information systems are all around you

• Online classes
• Grading
• Grocery and retail
• smartphones
• Internet

Businesses can use information systems to increase revenues and reduce

costs.
Information systems used by: Sales representatives, Managers, Financial
advisors

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What are Information Systems?

An information system is a set of interrelated component that col-

lect, process, store data and information and provide feedback to
meet an objective.
- Fundamentals of Information Systems by Stair and Reynolds

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CBIS - Computer based information systems

• Hardware – Computer Equipment

• Software – Computer Programs
• Telecom – Electronic Transmission
• Databases – Organized collection of
data
• People – End Users, Clients
• Procedure – Rules for using CBIS

CBIS is a single set of hardware, software, databases, telecommu-

nications, people, and procedures that are configured to collect,
manipulate, store, and process data into information.
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Examples of Information Systems

• A university
• University stores all student data in a database
• Built-in query capability
• Other types of analysis can be done
• Teletech
• International textile company
• Database stores data on products, suppliers, sales personnel, costs
• Process components
• Forecasting models

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• Smartphones and Mobile Apps - Google Maps
• E-Commerce Platforms - Amazon
• Public Transportation Systems - Transit App
• Healthcare Systems - Patient Portals
• Banking and Financial Services - Online Banking
• Home Automation Systems - Amazon Echo
• Education Technology - Moodle
• Customer Service Systems - Zendesk
• Supply Chain Management - Inventory Management System
• Entertainment Systems - Netflix

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What is Information Technology (IT)?

Definition: Refers to the use of computers, software, networks, and other

technologies to store, retrieve, transmit, and manipulate data.

Components:
• Hardware (computers, servers)
• Software (applications, operating systems)
• Networking (internet, intranet)
• Databases (data storage solutions)

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IT vs IS

Focus

• IT focuses on technology and infrastructure

• IS focuses on the application of technology to support business
processes and decision-making.

Purpose

• IT is about managing technology.

• IS is about managing data and processes to provide insights and
support organizational goals

While IT provides the tools and infrastructure, IS encompasses the

broader context of how those tools are used within organizations.

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Three fundamental types of information systems

• Personal IS
• Group IS
• Enterprise IS

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Personal IS

Definition:

• Designed for individual users to support personal tasks and

decision-making.

Characteristics:

• Focused on personal productivity.

• Typically software applications (e.g., word processors, spreadsheets).

Examples:

• Personal finance software (e.g., Mint).

• Task management apps (e.g., Todoist). todolist
Todoist is a popular task management and productivity app that helps
individuals and teams organize, prioritize, and track their tasks and
projects.
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17
Group IS

Definition:
• Facilitate collaboration among members of a team or group.

Characteristics:

• Support group decision-making and coordination.

• Often include communication and collaboration tools.

Examples:

• Project management software (e.g., Trello).

• Communication platforms (e.g., Slack, Microsoft Teams).

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19
Enterprise IS

Definition:

• Integrated systems that support and manage organizational

processes across departments.

Characteristics:

• Enable data sharing and process integration.

• Support strategic decision-making and resource management.

Examples: SAP is "Systems, Applications, and Products in Data

Processing
• Enterprise Resource Planning (ERP) systems (e.g., SAP).
• Customer Relationship Management (CRM) systems (e.g.,
Salesforce).

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21
Three fundamental types of information systems

Personal IS Group IS Enterprise IS

Examples Personal produc- Email, instant Transaction pro-
tivity software, messaging, project cessing systems,
decision-support management enterprise systems,
system software interorganizational
systems
Benefits Improved productiv- Increased collabo- Increased standard-
ity ration ization and ability to
monitor work
Manager’s Ensure that em- Demonstrate how Identify and put into
role ployees understand technology can be place the full set
and connect to the used. Set norms of organizational
change. Encourage for participation complements prior
use. Challenge to adoption. Inter-
workers to find new vene forcefully and
uses continually to ensure
adoption
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Importance of Information Systems

Personal Information Systems

• Efficiency, Customization, Accessibility

Group Information Systems

• Coordination, Communication, Productivity, Collaboration

Enterprise information system

• Integration, Strategic Decision-Making, Resource Management,

Scalability.

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Key Roles of IS/IT in Business

• Streamline operations
• Improve communication
• Enable decision-making through data analysis
• Support customer engagement and relationship management
• Drive innovation and new business models

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Leading IT services and consulting companies in India and their net sales.

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IT spending worldwide

IT spending worldwide

Source: Gartner
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IT export from India

IT Exports Contribution to India’s GDP is : 7.5%

Value of export revenue of the IT sector across, Source: Meity

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IT Value in Modern Business

Definition: IT value refers to the benefits that IT brings to an

organization, such as increased efficiency, enhanced innovation, cost
savings, and improved customer experiences.

• Efficiency gains (automated processes)

• Better decision-making (data analytics)
• Competitive advantage (e.g., Amazon’s use of AI/ML for
recommendations)
• Innovation and new business models (Airbnb, Uber)

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Summary

• Data vs Information
• Information systems – three fundamental types
• Information technology vs information systems
• Importance of IS and its key role in business
• IT value in Modern businesses

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 Thank you!
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