1&2

MIS – IT Infrastructure
components &
Foundations of IS in
Business

Dr. Rangaraj. G
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 What is Information System?
A set of interrelated components with a clearly
defined boundary, working together to achieve a
common set of objectives
An IS is any organized combination people,
hardware, software, communications network,
data resources and policies and procedures that
stores, retrieves, transforms, and disseminates
information in an organization.

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Information System Types

Manual system
No hardware
No software

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 Management Information System

MIS is a computer-based system that

optimizes the collection, transfer, &
presentation of information throughout
an organization by using an integrated
structure of databases & information
flow.

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 Fundamental Roles of IS
Three vital roles:
Support of business processes and
operations (computer based information systems to record
customers purchase, keep track of inventory etc.,)

Support of Decision (Add or discontinue

merchandise)

Support of Strategies for competitive

advantage (touch-screen kiosks)

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Fundamental Roles of IS

Support Strategies for

Competitive Advantage

Support Business Decision

Making

Support Business Process and Operations

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 Information Systems
People- to help support Decision
making, coordination, control, analysis
and visualization in an organization

An
information
system has Technology –
Process – all 3 hardware
collects, software and
processes, stores dimensions
network that
and disseminates working support the
information together business
processes and
people

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 Information Systems
Anthony’s Triangle:

Executive Information
Systems (EIS) for
senior management
decision making
Strategic

Management
Information Systems
Tactical (MIS) for decision
making by middle
management

Operational Transaction
Processing Systems
(TPS) for daily
transactions of the
business

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 IT Infrastructure Components
Several components work together to
add value to an organization:
1.Hardware
2.Software Technology Related
3.Data
4.People Roles
5.Process

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IT Infrastructure Components
Information system is a system that
accepts data resources as input and
processes them into information products
as output
People, hardware software, data and
networks are the five basic resources of
information systems.
People resources include End users and
IS specialists

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IT Infrastructure Components
End-users (users/clients) are the people who
use the IS or the information it produces.
Invariably they form knowledge workers.
IS specialists re people who develop the
operate IS. Analysts, software developers,
system operators and other IS personnel.
Hardware Resources
Includes all physical devices and materials
used in info processing. It includes tangible
data, Computer systems and Computer
peripherals

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IT Infrastructure Components
Software Resources
Includes all sets of IS instructions. Programs and
procedures (sets of info processing instructions). Software
include System Software (OS) Application software
(programs that direct processing for a particular use of
computers by end users (payroll prog) and Procedures –
operating instructions.

Network Resources
Telecommunication Network (Internet, Intranet, Extranets)
consists of computers, communication processors .
Network includes communications media (fiber optic
cable), and Network infrastructure (network OS, modem
etc.)

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IS Activities
Irrespective of type of IS same basic IS
activities occur.
Input of Data Resources
Includes all sets of IS instructions. Programs and procedures
(sets of info processing instructions). Software include System
Software (OS) Application software (programs that direct
processing for a particular use of computers by end users (payroll
prog) and Procedures – operating instructions.

Network Resources
Telecommunication Network (Internet, Intranet, Extranets)
consists of computers, communication processors.
Network includes communications media (fiber optic
cable), and Network infrastructure (network OS, modem
etc.)

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 What Can IS Do?

Input Processing Output Storage

 Source Data Retrieve Hard copy Data
 Inquiry Record Soft copy Text
 Response to Update Control Images
prompt Summarize Other digital
 Instruction Select information
 Message Manipulate
 Change

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 Objectives

Importance of information systems

4 levels of users (filtering info)
Information system types
Different decision types

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 Why IS?

Understand your role in a system better

Know what systems are available to you

Be a better user to the IT group

Make good IT management decisions

Info Systems cost huge money

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The Competitive Advantage

Access to a world market

Improve quality
Aid employee communication
Reduce costs
Increase productivity
Improve company morale

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Cost, Risk, and Change

IT solutions can be
expensive and time
consuming
Element of risk in
the implantation of
IT
Implementing IT
means change

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Information Quality

Quality (GIGO)
Accessibility
Completeness
Timeliness
Relevance (Information overload)

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 Business System Model

Plan Strategic Management

Organize Tactical Management
Lead
Operational Management
Control
Lower Level

Products &
Resources Functions
Services

Financial Colleges/
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Employees Managers Government Customers Stockholders Media
Institutions agencies
 Filtering Information

The right information

- the right decision maker
- the right time - the right form.

Lower Level (Transaction Handling)

Operational Level (Exception Reports)
Tactical Level (What-if Reports)
Strategic Level (One-time Reports, What-if
Reports or Trend
Analyses) 21
 Making Decisions

Well-Defined Problem Programmed

Decisions

Information-Based
Decisions
Unstructured Problem

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 INFORMATION SYSTEMS

Manual
Data Processing – Filing cabinet
MIS – Timely inquiries, focused reports
DSS – interpret unstructured facts, what if
Expert Systems – move user through
process
Intelligent Agents – event triggers

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 Objective

Different decision types

Structured, semi-structured,
unstructured
4 levels of users (filtering info)
Lower, operational, tactical, strategic
information system types
Manual, DP, MIS, DSS, (EIS) Expert,
Intelligent Agent
Importance of information systems
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 Cloud Computing
In Cloud Computing, software and in some cases, virtualized
hardware resources are provided as a service over the
Internet.
Knowledge or Expertise or control over the technology
infrastructure in the “cloud” is not required by the user.
Some of the vendors providing Cloud Computing - SAP
Business ByDesign, Google Apps Salesforce. Com,
MidlandHR’s “iTrent as a Service”. The vendors provide
common business applications online that can be accessed
from a Web browser, while the software and data are stored on
the servers.
Majority of cloud computing infrastructure consists of reliable
services delivered through data centers and build on servers
with different levels of virtualization technologies.
The cloud appears as a single point of access for all the
computing needs. And services are accessible from anywhere
with networking infrastructure.
 Cloud Computing
A major advantage of In Cloud Computing is the avoidance of
capital expenditure on hardware, software and services.
Many Cloud computing offerings have adopted the utility
computing model which similar to “pay as you use”
Cloud Storage: In this type, data is stored in third-party
servers on the cloud. It can be accessed anytime from
anywhere by even multiple users at the same time. However,
in case the system is down and the backup provided also fails,
there’s no other way to access it. Additionally, It’s more
insecure compared to traditional storage.
 Internet of Things (IoT)
It is the way to interconnection with the help of the internet
devices that can be embedded to implement the functionality
in everyday objects by enabling them to send and receive
dataCustomers are complaining that orders are arriving late.
The internet of things, or IoT, is a system of interrelated
computing devices, mechanical and digital machines, objects,
animals or people that are provided with unique identifiers
(UIDs) and the ability to transfer data over a network without
requiring human-to-human or human-to-computer interaction.
Connectivity
Identity of Things – that which is tagged ,, designed to be
connected
Data
Network Communication/Communication
Intelligence
Scalability/Action
Architecture / Common Eco System
 Internet of Things (IoT)
Two types:
CloT and IIoT
CIoT often focuses on convenience for individual customers,
 IIoT is strongly focused on the industry sector, improving the
efficiency, security, and output of operations with a focus on
Return on Investment
Advantages:
Saves Time and Effort
Good for personal safety and security
Disadvantages
Increased unemployment rates
Highly dependent on Internet

Why IoT is used?

address many real-world issues – traffic congestion, city services,
economic development, citizen engagement, and public safety and
security. Smart cities often embed IoT sensors into the physical
infrastructure, such as streetlights, water meters and traffic signals.
 5G
The fifth generation of wireless technology—5G—represents
the changing face of connectivity. Designed for maximum
speed and capacity, 5G has the potential to vastly expand how
data is moved and will enable a wide range of new
applications and use cases that go far beyond the
smartphone.
Application domain – in three major areas (Hence called 5G
Triangle)
uRLLC: Ultra Reliable Low Latency Communication use cases.
mMTC: Massive Machine Type Communication (IoT) use cases. 
eMBB: Enhanced Mobile Broadband – high speed use cases
Traffic management
Instant weather update.
 Strategic IT
Importance of IS stems from the fact that it acts as a means of
organizational renewal, a necessary investment in
technologies that help the company in adopting strategies and
business processes that enable it to reengineer or reinvent for
its survival and succeed in dynamic business environment
Competitive Strategy concepts
Strategic information system can be any kind of IS (TIS, MIS…)
Several basic concepts define the role of competitive strategy since it is
applicable to IS.
Competitive Forces and Strategies
– Use of IS by the business to apply competitive strategies to confront five
competitive forces
1. Rivalry of competitors within industry
2. Thread of new entrants
3. Threat by substitute product
4. Bargaining power of customers
5. Bargaining power of suppliers
 Strategic IT- How applied?
Business can counter the threats of competitive forces by
implementing one or more of the five basic strategies.
1. Cost Leadership Strategy – Reduction in cost (Online build to
order; Online seller bidding, Online auctions)
2. Differentiation Strategy – by developing ways to differentiate
from competitors (Customer/suppliers of e-commerce;
Online customer design; Customer online shipping tracking)
3. Innovation Strategy – New ways of doing business;
developing unique products; entering new markets or market
niches (Online discount; Online package tracking and flight
management; Online full-service customer systems)
4. Growth Strategies - Expanding company’s capacity (Global
intranet; Merchandise ordering by global satellite network;
POS inventory tracking)
5. Alliance Strategies – Establishing new links with customers,
suppliers, other companies, including Mergers acquisitions,
joint venture (Automatic inventory replenishment; Online
one-stop shopping with partners)
 Strategic IT- uses
Business may use IS strategically or use IT to support efficient
operations.
1. BPR – fundamental rethinking and radical redesign of
business processes to achieve dramatic improvements in
cost, quality ,speed and services.
2. Agile Company – requires the business to follow four
strategies
1. Customers perceiving the product/services of agile companies
2. Cooperate with customers, suppliers and other companies
3. Organizes so that it thrives on change and uncertainty
4. Leverages the impact of its people and the knowledge that they possess
Customer Agility --- Co-opt Customers as innovators of ideas; co-creators of
innovations; users in creating ideas (Technologies for building virtual
customers)
Partnering – Ability to leverage assets, knowledge and competencies of
suppliers, distributors (Technology facilitating inter-firm collaboration)
Operational –Ability to accomplish speed accuracy and exploitation of
opportunities (Technologies for modularization and integration of
business process)
 Virtual, Knowledge creating
Companies and KMS
Virtual company (also – Virtual corporation; virtual
organization) is an organization that use IT to link people,
organizations, assets and ideas. The strategies of virtual
companies are:
Share infrastructure and risk with alliance partners
Link complementary core competencies
Reduce concept to cash time through sharing
Increase facilities and market coverage
Gain access to new markets and share market or customer loyalty
Migrate from selling products to selling solutions
Competitive advantage achieved if companies become
Knowledge creating companies. They exploit explicit
knowledge(data, document etc stored on computers( and tacit
knowledge (knowledge within organization that is not coded
and not shared)
KMS is built by many companies to manage organizational
learning and business know-how
 Role of e-Business in Business
E –Business is the use of internet technologies to work and
empower business processes, e-commerce and enterprise
collaboration within a company and with its customers,
suppliers and other business stakeholders.
E-business is thought of as online exchange of value
Internet, Intranet and Extranet (enterprise and trading
partners) supports e-business applications.
Business rely on such applications to:
Reengineer internal business processes
Implement e-commerce systems and
Promote enterprise collaboration among business teams and workgroups