1. Federal Express, founded in 1971, handles an average of 3million package-tracking request
Every day. To stay ahead in a highly competitive industry, the company focuses on customer
Service by maintaining a comprehensive web site, to assist customers and
Reduce costs.
For example, every request for information that is handled at the web site instead of by the call
Center saves an estimated $1.87.
Federal Express has reported that customer calls have decreased by per day since 2000,
Which saves the company $ million per year. And since each package-tracking request
Costs Federal Express 3 cents, costs have been reduced from
More than $1.36 billion per year to $21.6 million per year by
Customers using the Web site instead of the call center.
Another technology that improves customer service is Ship
Manager, an application installed on customer’s sites so that
Users can weigh packages, determine shipping charges, and
print shipping labels. Customers can also link their
invoicing, billing, accounting, and inventory
systems to ship manager.

2. However , Federal Express still spends almost $326 million per year on its call center to reduce
Customers frustration when the Web site is down or when customers have difficulty using it.
Federal Express uses customer relationship management software called Clarify in its call
centers to make customer service representatives jobs easier and more efficient and to speed up
Response time.
Is technology by itself enough to ensure high-quality customer service?
What are Federal Express’s estimated annual savings from using information technology?
What are a couple of examples of information technologies used by Federal Express?

3. Management Information System.

4. Term Management :
Term Information :
Term System : It is a set of interrelated components, with a clearly defined boundary,
Working together to achieve a common set of objectives.
Components of System
Data
People
Information
Systems
Hardware
Telecommunications
Software

5. Management Information System Definition
A system to convert data from internal and external sources into information
And to communicate that information in an appropriate form to managers at
All Levels in all functions to enable them to make timely and effective decisions
For planning , directing and controlling the activities for which they are
Responsible.
MIS is
- A system
It combines human and computer based resources
It is meant to provide information to managers
This information enables managers to make timely and effective decisions.

6. Management Information Systems Resources and Products
People Resources
Specialists: Systems analysts, Software developers, System Operators.
End Users: any one else who uses information system.
2. Hardware Resources:
Machine: Computers, video monitors, printers, optical scanner.
Media: Floppy disks, magnetic tape,
3. Software Resources:
Programs: operating system programs, spreadsheet programs, word processing
Programs, payroll programs.
Procedures: data entry procedures, error correction programs.
4. Data Resources: Product descriptions, customer records, employee files, inventory
database.

7. 5. Network Resources: Communication media, communications processors, network
access and control software.
6. Information Products: Management reports and business documents using text and
graphics displays, audio responses, and paper forms.

8. Basic Characteristics of MIS
Management-oriented: MIS should start its journey from appraisal of
management needs, mission and goal of the business organization. It may be
individual or collective goals of an organization.
The MIS is such that it serves all the levels of management in an organization
i.e. top, middle and lower.
2. Management directed: When MIS is management-oriented, it should be
directed by the management because it is the management who tells their needs
and requirements more effectively than anybody else.
3. Integrated:. Development of information must be integrated so that all the
operational and functional information sub systems should be worked together
as a single entity.
4. User friendly/Flexibility
5. Common database ----Master Table Transaction Table
6. Computerized

9. The Importance of Information System
HRIS (Human Resource Inf. Sys.)
Choosing the best job candidate
Scheduling and assigning employees
Predicting the organization’s future personnel needs.
2. LIS (Logistics Information System)
Improving routing and delivery schedule
Selecting the best mode of transportation
Improving transportation budgeting
Improving the shipment planning.
3. MFIS(Manufacturing Inf. Sys.)
Maintaining the manufacturing cost.

10. Product Cost Calculation
Space Utilization
Analysis of Price changes and discounts
4. FIS (Financial Inf. System)
Improving budget allocation
Minimizing capital investment risks
Monitoring cost trends
Managing cash flow
5. MKIS(Marketing Information System)
Analyzing market share, sales and sales personnel
Sales forecasting
Price and cost analysis of items sold.

11. Wal-Mart Stores, Inc.
Wal-mart, the largest retailer in the world, built the Wal-Mart Satellite Network,
Which is the largest private satellite communication system in the United States.
It links branch stores with the home office in Bentonville, Arkansas, by using two-way
Voice communication. Wal-mart uses the following information technologies to gain a
Competitive advantage:
Telecommunication is used to link stores with the central computer system and then
to supplier’s computers. This system creates a seamless connection among all parties.
Network technologies are used to manage inventory and implement a
just-in-time inventory system. As a result, products and services are provided at the
lowest possible prices.
Wal-Mart uses an extranet, called Retail Link, to communicate with suppliers.
Suppliers can use this extranet to review product sales records in all stores and track
Current sales figures and inventory levels.
Wal-Mart is a major user of RFID technologies which have improved its Supply Chain
and Inventory Management System.

12. The Business Information Value chain
Business Processes
Supply Enterprise customer knowledge
Chain manage mange management
Manage ment ment
ment
Firm
Profitability and Strategic position
Data Transfor Dissemi
Collection mat ion nation
and Data into
storage Business
Systems
Planning coordination controlling Modeling and
decision making
Information processing
activities
Management Activities

13. Topic No—2 Types of Information System
Strategic Level
Executive
Support Systems (ESS)
Sales mngt.
Sales region analysis
Inventory control
Production schedule
Groups
Served
Management
level
Middle
Managers
Annual Budgeting
Profitability analysis
Management Information
Systems (MIS)
Decision support Systems
(DSS)
Transaction
Processing
Systems
(TPS)
Operational
level
Sales and
marketing
Manufacturing
& production
Finance&
accounting
Human
Resources
Functional Areas

14. On 12th September 2002, Blue Dart and DHL signed a Sales
Alliance Agreement which came into effect from 1st October 2002
on a principal to principal basis. This alliance was further strengthened in
2005 when DHL Express (Singapore) Pvt. LTD. acquired 81.03% stake in
Blue Dart and currently holds 75% stake since 23rd November, 2012 
While Blue Dart is the leader of the air express industry in India,
DHL Express is the No.1 international air express services provider in
India offering its customers the entire spectrum of express services
from international air express to high-end logistics solutions including
repair and return, strategic inventory management and direct
express inventory distribution. The coming together of the world's No. 1 international air express
service provider and India's No. 1 domestic express services provider is a
logical step in a win-win relationship to benefit all the parties involved,
the customer and the stakeholders of both organizations. 

15. Information Systems To Achieve Competitive Advantage
Chapter 3
Information Systems To Achieve Competitive Advantage
Firms that “do better” than the others are said to have a
competitive advantage over other:
They either have access to special resources that others do not, or
They are able to use commonly available resources more efficiently-
Usually because of superior knowledge or information asset.

16. Why do some firms do better than others and how do they achieve
Competitive advantage?
How can you analyze a business and identify its strategic advantages?
How can you develop a strategic advantage for your own business?
How do information systems contribute to strategic advantages?
Michael Porter’s competitive model.

17. The most widely used model for understanding competitive advantage
Is Michael Porter’s competitive forces model
General view of the firm
General view of its competitors
General view of the firm’s environment .
which includes
New market entrants
Substitute product
Suppliers
customers

18. Porter’s Competitive forces Model
Potential
Entrants
Threat of
new entrants
Industry
Competitors
Bargaining power
Of supplier
Bargaining power
Of Buyers
Buyers
Suppliers
Rivalry among
existing
Competitors
Threat of
Substitutes products
Or services
Substitutes
In this model, five competitive forces shape the fate of the firm.

19. Low-Cost Leadership: Use Information Systems to produce products
and services at a lower price than competitors while enhancing quality
and level of service.
example: Big Bazar.
2. Product Differentiation: Use Information systems to differentiate products,
and enable new
example: Rediff.com, Google, eBay,
Focus on market niche: Use information systems to enable a focused strategy
on a single market niche; specialize.
4. Customer and Supplier intimacy: Use information systems to develop strong
ties and loyalty with customers and suppliers.
example: Amazon.com

20. Example

21. Database Systems, Data Warehouses, And Data Mart
Ch-4,
Database Systems, Data Warehouses, And Data Mart
Databases : Database is a collection of related data that can
be stored in a central location or in multiple locations.
Data Hierarchy : is the structure and organization of data, which
involves fields, records, and files.
Mary Smith
S.E. Barber
File
Alan Bidgoli
N.E. Morrison
John Brown
S.W.Broadway
Records

22. Interaction between the User, DBMS, and database
User makes a
Request for
information
DBMS searches the
database
Database
User
DBMS
DBMS returns
Information to
The user
DBMS retrieves the
information

23. Database Systems, Data Warehouses, and Data Marts

24. Types Of Data in a Database
To Generate Business Intelligence the database component
of an information systems needs access to two types of data:
Internal Data: Collected from the organization.
ex: Transaction records
Sales Record
Personnel Records
2. An Organization might use internal data on customer’s past purchase
to generate BI about future buying patterns .
3. External Data: Collected from outside the organization.
ex: Competitors, customers and suppliers
Distribution network
Economic indicators (consumer price index)
Government regulations
Labor and population statistics
Tax records

25. Data Warehouses
Data warehouse is a collection of data from a variety of sources
Used to support decision-making, application and generate business
Intelligence.
Data warehouses store multi dimensional data, so they’re sometimes called
“Hypercube ”.
Data Warehouse Configuration

26. External data sources
Databases
OLAP analysis
Transaction
files
Extraction
Transformation
and loading
Raw data
Summary data
Metadata
Enterprise
Resource
Planning systems
Data-mining
analysis
Customer
Relationship
Management
Decision-making
reports

27. Data can come from variety of sources
ERP system collect, integrate, and process data that can be used by all functional
areas in an organization.
2. CRM systems collect and process customer data to provide information for
improving customer service.
3. Extraction, Transformation, and loading (ETL) refers to the process used in a
data warehouse. Extraction means collecting data from a variety of sources and
converting it into a format that can be used in a transformation processing.
Extraction process can also parse (divide into pieces) data to make sure it
meets the data warehouse’s structural needs.
ex: parsing can be used to separate the street number, street name, city etc.
Transformation processing is done to make sure data meets the data warehouse’s
need. It is basically sorting and filtering of the data. It is also aggregating and
and summarizing data before loading it in the data warehouse.
Loading is the process of transferring, data to the data warehouse depending o
on the organization’s need and the data warehouse’s storage capacity .

28. Collected information is organized in a data warehouse as
Raw data : Is the information in its original form.
Summary data : Gives users subtotals of various categories, which can be useful.
Metadata : Is information about data – its content, quality, condition, origin, and other
Characteristics.
Metadata tells users how, when, and by whom data was collected and how
data has been formatted and converted into its present form.
ex: Metadata in a financial database could be used to generate
a report for shareholders explaining how revenue , expenses
and profits from sales transactions are calculated and stored in
the data warehouse.

29. Online Transaction Processing: Systems are used to facilitate and manage
transaction –oriented applications, such as
point of sale
data entry
retrieval transaction processing
Online Analytical Processing: It generate business intelligence. It uses multiple
sources of information and provides multidimensional analysis, such as viewing data based on time, product and location.
Data-mining Analysis: is the process of analyzing data from different perspective and summarizing it into useful information that can be used for increasing revenue.
Decision –Making Reports: A data warehouse can generate all types of information as well as reports used for decision making.

30. Data Marts : is usually a smaller version of data warehouse , used by a
Single department or functions.

31. Protecting Information Resources
A comprehensive security system can protect an organization’s
information resources, which are its most important asset after
human resources.

32. Types of Threats
Malicious Software: Malicious software programs referred to as malware
Include a variety threats such as:
Computer viruses
Worms
Trojan horses
>> Computer viruses: Computer virus is a rogue software program that
attaches itself to other software programs or data files in order to be
executed, usually without user knowledge or permission.
* It destroys data.
* clogging computer memory.
* Reformatting a computer’s hard drive.
* Causes program to run improperly.

33. >> Worms: Many recent attacks have come from worms. Which are
independent computer programs that copy themselves from one
computer to others over network. They are independent in nature.
worms can destroy
* data and programs
* It also disrupt or even halt the operation of computer network.
Worms and viruses are often spread over
the internet from files of Downloaded software
Files attached to transmissions, or from compromised messages.
>> Trojan horse: A Trojan horse is a software program that appears to be
gentle, but then does something other than expected. The Trojan
horse is not itself a virus because it does not replicate, but is often a
way for viruses or other malicious code to be introduced into a
computer system.

34. Hackers and Cyber vandalism: A hacker is an individual who intends to gain
Unauthorized access to computer system.
Hacker activities have broadened beyond mere system intrusion to include
Theft of goods and information as well as system damage and cyber vandalism.
Spoofing and Sniffing : Hackers attempting to hide their true identity often spoof, or
Misrepresent themselves by using fake address or camouflaged as someone
Else.
Spoofing also can involve redirecting a web link to an address different from the intended
One,
A sniffer is a type of eavesdropping program that monitors information
Traveling over a network. When used legitimately, sniffer can help identify
Potential network trouble-spots or criminal activity on networks but when
Used for criminal purpose they can be damaging and very difficult to detect.

35. Types of Information systems Control
General Controls: General controls include software control, physical
hardware controls, computer operations controls, data security control etc.
Application controls: Application controls include both automated and
manual procedures that ensures that only authorized data are completely
and accurately processed by that application.
> Input control: checks data for accuracy and completeness when they
enter the system.
> Processing control: establishes that data are complete and accurate during
updating.
> Output controls: ensures that the results of computer processing are
accurate, complete, and properly distributed.

36. Technologies and Tools for Security and Control.
It includes :
Tools for authentication
Firewall
Intrusion Detection system
Antivirus software
Encryption

37. Access Control: Access control consists of all the policies and procedures
a company uses to prevent improper access to systems by unauthorized
insiders and outsiders. To gain access a user must be authorized and
authenticated.
Firewall: The use of firewalls to prevent unauthorized users from accessing
private networks. A firewall is a combination of hardware and software
that controls the flow of incoming and outgoing network traffic.
3. Intrusion Detection Systems: In addition to firewalls, commercial security
vendors now provide intrusion detection tools and services to protect
against suspicious network traffic and attempts to access files and
databases.
4. Antivirus software: Antivirus software is designed to check computer
systems and drives for the presence of computer viruses.
Encryption: Many organizations rely on encryption to protect sensitive
information transmitted over the internet and other networks. Encryption
is the coding and scrambling of messages to prevent unauthorized access
to or understanding of the data being transmitted.
It can be encrypted with the help of numerical codes.
Eg; Credit card information.