1. Business Information Systems
Lecture 2: The Case for Information Systems

2. Questions Posed What is the value of the Internet?
What is the value of data

3. Need for Information Systems
Development in ICT does not just enhance current ways of doing business but brings a radical new impetus to business.
24 hour Banking
The Postal Service Demise
The Demise of regular phone calls
Video calling
Smart Televisions
Internet at home
Online shopping
Online bill payments
Internet of things
Whatsapp calling
Big data and Data Analytics

4. Components of an Information Systems
Information Systems: Have the following components
People
Hardware
Software
Communication Systems
Data Resources
Interpretation (knowledge/decisions)

5. Computer BASED Information System
Computer Hardware
Computer Software
Telecommunication Systems
Databases/Data
People
Interpretation

6. Roles of IS in Business Support Business Processes
Online banking and payment systems
Online registration
Support Decision Making
Stocking of shelves due to automated inventory on store shelves
Instant replay in National Basketball League
Goal Line Technology in the World Cup and some Soccer Leagues
Support Competitive Advantage
Online shopping using a smartphone applet
Renewal of insurance via your cellphone applet
Online betting at (Borrowdale race course) due to connectivity
Data analytics of existing and dynamic data

7. Connectivity enables innovative business applications
E-business is the use of Internet-based connectivity to conduct various business processes
Intranet-based: The information systems that uses the internal network for connectivity and functionality
Extranet-based: The information systems that use the organization’s extended network for connectivity. i.e., organization and its business partners
Internet-based: The information system that uses the organization and its clients connectivity to the Internet

8. Kinds of Information Systems
Information Systems to support Operations
Business transaction: Accounting, Marketing
Industrial Processing control: car assembling, bottling and packaging
Enterprise Collaboration: , Chat, Discussion forums
Information Systems to Support Decision Making
Management information: Precast reporting, sales analysis, production performance
Decision support: profitability forecasting, risk analysis
Executive “Tailored” Information

9. Basic Strategies in The Business Use of ICT
Lowering of costs
Cost of business processes
Costs to customers and suppliers
Differentiate
Develop new ICT features to differentiate products and services
Reduce the differentiations advantages of competitors
Focus products and services at selected market niches
Innovate
Create new products
Develop unique new market niches
Make radical changes to business processes that dramatically cut costs, improve quality, efficiency, customer service, shorten time to market

10. Basic Strategies in The Business Use of ICT
Promote Growth
Manage regional and global expansion
Diversify and integrate into other products and services
Develop Alliances
Create virtual organizations and business partners
Using your extranet to develop systems that support strategic business relationships with customers, suppliers, subcontractors etc.

11. Talking Example
Your organization has fifteen retail outlets around the country and two warehouses from which goods are dispatched.
In each of the retail outlets there is:
Checking out of goods by customers at till points
Ordering of wares from the warehouse by the assistant shop manager
Production and submission of status reports by the shop manager
Adhoc stocktaking and product tagging by the controls department.
Competition has been stiff in the retail sector. After an initial surge in sales there has been a steady decline in your market share as both local and foreign players have been active in the retail space. It has come to your attention that globally a number of organizations have used on-line shopping or on-line selling quite successfully.

12. Online store Resident on internet in form website and/or app
Website hosting
Links of the database,
Extranet with your shipping agents
Payment system
Security to avoid hacking of online store
Backup of the system
Close some of the shops
Market products online/internet
Website with popups
Social media page (Facebook or Instagram)
lists with our target market
Make your old clients aware of the new platform
Visit your competition for prices and ideas
Live chat on the website/socialmedia (automated live chat elevated when out of range)
Customer feedback facility
JIT – turning your suppliers into distributors
Door to door delivery to steam local competition
Robots for delivery
Database of customer likes for relevant adverts
Loyalty cards
Server to control all the communication
Online receipts
Promotions by bringing

13. July 2016 Solution Reduce number outlets and invest in IT for
Online selling
Automate stock taking
Automate order levels (thus reducing assistant stock managers)
Huge operational costs because of the number of warehouses relative to the outlets.
Maintain the outlets for visibility, but reduce the number of workers through automation
Reorder automation is triggered by purchase at shop, hence change of role of assistant
Shops become warehouses as you are coupling with online shopping and where the customer is located.
Stock of the right goods through the sales analysis
Centralization of the purchasing processes to reduce costs
Monitoring of the goods through the scanning at till points through the bar codes system