Management Information System©

8: Organisational Needs and Role

of Information Systems
September 2024

© Zyxor Consulting: No part of this presentation may be copied, reproduced or used without prior written permission
Course Structure

 This course is structured around 14 sessions:

1. Data & Information 8. Organisational Needs & Role of
IS
2. Managing IS in Organizations
9. Enterprise Systems
3. Framework for MIS
10. Business Processes & ERP
4. Decision Making
11. MIS Procurement
5. Distributed Information
Systems 12. Implementing IS
6. Network Systems 13. New Trends in IS
7. Data & Databases 14. Contemporary Topics

MIS08 - Organisational Needs and Role of IS 2

8: Organisational Needs and Role of IS
 The Information Dream
 Addressing the Needs of the Organisation
 Information Systems Planning
 Information Security & Ethical Issues
 Technology Roadmap for the Organisation

MIS08 - Organisational Needs and Role of IS 3

MIS08 - Organisational Needs and Role of IS 4
 Information Dream
 Making all relevant information available to users:
o Information and Knowledge to be institutionalized
o Commonality of Information across organisation
o Information to be up-to-date
o Information to be available at place of choice
o Accessing Information not to require any great skills
 Activities to be made person non-specific, with suitable Decision Support
System
 Every knowledge worker to focus on respective functional area rather than
bother about Information

Using the lever of Information to move the world

MIS08 - Organisational Needs and Role of IS 5

 Leveraging Information for Competitive Advantage

Give me a lever long enough and a fulcrum on which to Class-1 Lever – from High
place it, and I shall move the world - Archimedes School Physics
 Information as a Lever: In modern organizations, information acts as the lever
that can move the business forward
 Impact of Information Leverage:
o Faster decision-making
o Improved productivity
o Increased customer satisfaction through informed service delivery
 Example: How Amazon uses real-time information to manage inventory,
shipping, and customer interactions efficiently
MIS08 - Organisational Needs and Role of IS 6
 The Information Systems Vision
To provide
an integrated business environment
where all defined information
is readily available
in a form everyone can use
to enable us to meet our internal needs
and to focus on our external customers.
 To create a seamlessly integrated business environment where:
o All critical information is not only readily available but consistent and
accurate across the organization
o Information is presented in a user-friendly format that empowers every
individual - regardless of their technical expertise - to access and utilize it
effectively
o Internal needs are addressed efficiently, ensuring operational excellence,
while allowing us to maintain a laser focus on delivering exceptional value
to our external customers
MIS08 - Organisational Needs and Role of IS 7
Commonality of Information Across the Organization

 Why Commonality Matters:

o Avoiding Silos: When information is not shared, it leads to
inefficiencies, misunderstandings, and delays
o Integrated Systems: Ensure that all departments - from finance to
marketing - have access to the same data sources
 Benefits:
o Reduces duplication of work
o Ensures consistency in decision-making
o Enhances collaboration across teams

 Example: In a retail chain, all outlets having real-time access to the

same sales and inventory data allows better stock management and
sales strategy

MIS08 - Organisational Needs and Role of IS 8

Up-to-Date Information: Keeping Pace with Change

 The Importance of Timely Data:

o In fast-moving environments, having real-time, up-to-date information
is crucial for responding to market changes, customer needs, and
operational issues
 Key Benefits:
o Improved forecasting and planning
o Ability to respond to disruptions (e.g., supply chain issues)
o Enhanced customer service and satisfaction

 Example: In logistics, up-to-date tracking of shipments allows

customers and teams to manage expectations and respond to delays
or issues promptly

MIS08 - Organisational Needs and Role of IS 9

Making Information Accessible

 Ease of Access:
o Democratizing Information: Information systems should be designed
so that employees, regardless of technical expertise, can easily access
the information they need
o User-Friendly Interfaces: Tools like dashboards, reports, and simple
search functionalities should be available
 Impact:
o Reduced dependency on IT staff
o Increased empowerment of employees to make decisions based on
available data

 Example: How user-friendly CRM systems enable sales teams to

track customer interactions and sales leads without needing
complex IT support

MIS08 - Organisational Needs and Role of IS 10

MIS08 - Organisational Needs and Role of IS 11
Understanding Organisational Needs

 What are Organisational Needs?

o Every organization has needs at multiple levels: Operational, Tactical,
and Strategic
o Operational Needs: Day-to-day efficiency (e.g., inventory
management, payroll)
o Tactical Needs: Short-term decision-making (e.g., sales performance
monitoring)
o Strategic Needs: Long-term goals (e.g., market expansion, customer
retention)

IS must support all these levels effectively for organizational success

MIS08 - Organisational Needs and Role of IS 12

Role of IS in Addressing Operational Needs

 Operational Efficiency:
o IS supports Transaction Processing Systems (TPS) for routine activities
such as order processing, payroll, and stock management
o Automation and Speed: IS allows automation of repetitive tasks,
improving efficiency and reducing human errors

 Examples:
o Retail systems using IS for inventory tracking and automated
reordering
o IS in manufacturing to track production lines and reduce waste

IS enhances operational efficiency by automating routine tasks, ensuring

accurate data processing, and allowing the organization to focus on value-
adding activities
MIS08 - Organisational Needs and Role of IS 13
Tactical Decision-Making: Supporting Middle Management

 Decision Support Systems (DSS):

o IS helps middle managers make better decisions by providing accurate,
real-time information and analytical tools
o Scenario Planning: IS allows managers to simulate different business
scenarios (e.g., pricing changes, supply chain adjustments)

 Example:
o A hotel chain using IS to adjust pricing based on occupancy rates and
market demand

IS enables mid-level managers to make informed decisions and optimize

day-to-day operations
MIS08 - Organisational Needs and Role of IS 14
Strategic Needs: Long-Term Goals and Planning

 Executive Information Systems (EIS):

o IS provides top executives with high-level reports, dashboards, and
analytics to make strategic decisions
o Aligning with Business Strategy: IS helps the organization track
performance metrics that are critical for long-term success (e.g.,
customer retention, market share growth)

 Example:
o A CEO using a real-time dashboard to monitor key metrics across
global operations and make data-driven strategic adjustments

IS Organizational critical for aligning day-to-day operations with long-term

strategic goals
MIS08 - Organisational Needs and Role of IS 15
IS as the Backbone for Business Functions

 IS supports Core Business Functions:

o Finance: Budgeting, financial reporting, and forecasting
o Marketing: Customer relationship management (CRM) and market
analysis
o Operations: IS helps optimize supply chain management, production
scheduling, and logistics; Tools like ERP systems improve process
efficiency, reduce waste, and ensure timely delivery
o Human Resources: Payroll, employee performance tracking, and talent
management

IS enables cross-functional coordination, leading to greater efficiency and

effectiveness across the organization
MIS08 - Organisational Needs and Role of IS 16
Organisational Development

 Fostering a Culture of Information Sharing:

o IS drives a shift towards a more collaborative, data-driven culture
within the organization
o Empowering Knowledge Workers: With easy access to accurate data,
employees can focus more on innovation and strategic tasks rather
than administrative functions

 Example:
o How Google fosters a culture of open data access for all employees,
encouraging innovation and data-driven decisions across teams

IS plays a key role in transforming the organizational culture by making

information accessible and actionable for everyone
MIS08 - Organisational Needs and Role of IS 17
The Central Role of IS in Securing Organisational Wealth

 Safeguarding Organisational Assets:

o IS ensures data integrity, security, and privacy, safeguarding the most
valuable organizational assets—its information
o Checks and Controls: Implementing IS helps in auditing, monitoring,
and controlling organizational processes to prevent fraud, errors, and
inefficiencies

 Example:
o Banking IS systems ensuring compliance with regulations and secure
customer data handling

A robust IS infrastructure not only addresses organizational needs but also

protects the business from risks
MIS08 - Organisational Needs and Role of IS 18
MIS08 - Organisational Needs and Role of IS 19
Introduction to Information Systems Planning

 What is Information Systems Planning (ISP)?

o The process of aligning the information system’s goals with the
organization’s objectives
o Strategic Role of ISP: Ensures that the IS infrastructure supports the
long-term vision and operational efficiency of the organization
 Key Elements of ISP:
o Assessment of current IS
o Defining future IS needs
o Developing a roadmap for technology investments

ISP is critical for ensuring that an organization’s technology infrastructure

supports both current and future business needs
MIS08 - Organisational Needs and Role of IS 20
The Role of ISP in Supporting Business Strategy

 Aligning IS with Business Goals:

o Information Systems Planning ensures that the technology
infrastructure enables the achievement of strategic business
objectives
o Helps define how technology can improve business processes,
increase efficiency, and support growth
 Key Considerations:
o Understanding the organization’s long-term strategy
o Mapping IS capabilities to business processes
 Example:
o An e-commerce business aligning its ISP to improve customer
experience by integrating advanced CRM systems and AI-driven
chatbots
ISP is not just a technical plan but a strategic tool to support long-term
business success
MIS08 - Organisational Needs and Role of IS 21
Steps in the Information Systems Planning Process

 Key Steps in ISP:

1. Assessment of Current IS: Evaluate existing infrastructure,
applications, and data management
2. Define Business Needs: Identify how technology can support business
goals
3. Gap Analysis: Identify gaps between current IS capabilities and future
needs
4. Developing the IS Strategy: Create a roadmap for implementing new
systems, upgrading infrastructure, and addressing gaps
5. Implementation Planning: Define timelines, budgets, and key
resources required

ISP is a structured process that involves assessing current systems, defining

future needs, and developing a plan for implementation
MIS08 - Organisational Needs and Role of IS 22
Challenges in Information Systems Planning

 Common Challenges in ISP:

o Rapid Technological Change: The fast pace of technology can make
long-term planning difficult
o Budget Constraints: Limited resources can restrict IS investments
o Integration with Legacy Systems: Challenges in integrating new
systems with outdated technology
o User Resistance: Employees may resist changes, making
implementation difficult
 Example:
o A traditional retail company struggling to integrate an e-commerce
platform with its legacy systems and facing resistance from staff
accustomed to manual processes

ISP requires careful consideration of technical, financial, and human factors

to be successful
MIS08 - Organisational Needs and Role of IS 23
Principles of Effective Information Systems Planning

 Key Principles:
o Support Business Strategy: ISP should directly support the firm’s
strategic objectives
o Scalability and Flexibility: IS should be adaptable to future business
needs
o Cost-Benefit Analysis: Evaluate the total cost of ownership, not just
acquisition costs
o User-Centric Design: Ensure systems are designed with the end-user in
mind
o Security and Risk Management: Include security measures and
disaster recovery planning

Effective ISP follows key principles that ensure long-term success,

adaptability, and alignment with business needs
MIS08 - Organisational Needs and Role of IS 24
Developing a Technology Roadmap

 What is a Technology Roadmap?

o A strategic plan that outlines the technology tools and systems
needed to support the organization’s future growth
o Roadmaps help align technology investments with business goals over
time, identifying key milestones and decision points
 Elements of a Technology Roadmap:
o Timeline for technology implementation
o Prioritization of technology investments
o Key milestones and success metrics
 Example:
o A healthcare provider developing a roadmap to integrate Electronic
Health Records (EHR) and telemedicine technologies over the next five
years
A well-developed technology roadmap guides the organization in making
strategic technology investments that align with business objectives
MIS08 - Organisational Needs and Role of IS 25
Case Study: Successful Information Systems Planning

 Case Study: Walmart’s Strategic use of ISP

o Situation: Walmart identified the need to enhance its supply chain
efficiency
o ISP in Action: Developed a technology roadmap that included
implementing RFID (Radio Frequency Identification) technology,
upgrading its inventory management system, and investing in data
analytics for better demand forecasting
o Outcome: Walmart reduced stockouts, improved customer
satisfaction, and maintained a competitive advantage in the retail
space

A successful ISP can transform how an organization operates and delivers

value to customers
MIS08 - Organisational Needs and Role of IS 26
MIS08 - Organisational Needs and Role of IS 27
Introduction to Information Security

 What is Information Security?

o The practice of protecting information from unauthorized access, use,
disclosure, disruption, modification, or destruction
 Key Areas:
o Confidentiality: Ensuring that sensitive information is accessible only
to those authorized to view it
o Integrity: Protecting information from being altered in an unauthorized
way
o Availability: Ensuring that authorized users have access to information
when needed

Information security is essential for safeguarding an organization’s data and

ensuring operational continuity
MIS08 - Organisational Needs and Role of IS 28
Common Threats to Information Security

Malware
Phishing

DDoS (Distributed Denial Man-in-the-Middle

of Service) Attacks Attacks
Organizations face numerous security threats, both external (cyber-attacks)
and internal (employee negligence or malicious actions)
MIS08 - Organisational Needs and Role of IS 29
Best Practices for Enhancing Security

Firewalls and Encryption: Using firewalls to

Multi-Factor Authentication (MFA):
block unauthorized access and encryption
Adding an extra layer of protection by
to protect sensitive data
requiring more than one form of
authentication

Regular Security Audits: Conducting Employee Training: Educating

regular reviews to ensure systems are employees about potential threats and
secure and vulnerabilities are addressed safe practices
A comprehensive approach to information security includes both
technological safeguards and proactive employee education
MIS08 - Organisational Needs and Role of IS 30
Understanding Social and Ethical Issues

Technology

Social & Ethical

Issues in IS
Society Ethics

 Social and ethical issues have real-world impacts on society

 Understanding these issues is crucial for IS professionals
 This section will explore how these issues impact IS and how they
can be managed responsibly
MIS08 - Organisational Needs and Role of IS 31
Introduction to Social & Ethical Issues
Social Issues in IS:
 Impact of IS on society, individuals, communities, and social
structures
 Example: Social media’s effect on mental health and spread of
misinformation

Ethical Issues in IS
 Principles guiding behavior in the use and management of IS
 Example: Ethical dilemma of data privacy versus personalized
advertising

MIS08 - Organisational Needs and Role of IS 32

Importance of Addressing Social & Ethical Issues
 Addressing these issues is important for the following reasons:
 Maintaining Public Trust: Ethical conduct builds and maintains trust
with stakeholders
 Ensuring Fairness and Equity: Prevents technology from worsening
societal inequalities
 Preventing Harm: Avoids negative consequences like identity theft
or privacy breaches
 Why have these issues gained prominence:
 Increased Digitalization: More aspects of life are being digitized,
raising new concerns
 Global Reach of Technology: IS has far-reaching impacts across
cultures and legal systems
 Complexity and Interconnectedness: Modern IS integrates multiple
technologies and stakeholders, complicating issue management
MIS08 - Organisational Needs and Role of IS 33
 Key Technology Trends that raise Ethical Issues
1. Doubling of computer power – More organizations depend on
computer systems for critical operations
2. Rapidly declining data storage costs – Organizations can easily
maintain detailed databases on individuals
3. Networking advances and the Internet – Copying data from one
location to another and accessing personal data from remote
locations is much easier
4. Advances in data analysis techniques – Companies can analyze vast
quantities of data gathered on individuals for:
o Profiling – Combining data from multiple sources to create dossiers of
detailed information on individuals
o Nonobvious relationship awareness (NORA) – Combining data from
multiple sources to find obscure hidden connections that might help
identify criminals or terrorists

MIS08 - Organisational Needs and Role of IS 34

Core Ethical Principles in IS
 The ethics in IS rests on four
• Responsibility: Individuals and
pillars:
organizations must accept the
consequences of their actions in
IS
• Accountability: Mechanisms must
exist to hold individuals and
organizations accountable for
their actions in IS
Accountability
Responsibility

Transparency
• Fairness: IS practices should
Fairness

ensure fairness and equality,

avoiding discrimination or bias
• Transparency: Actions and
decisions in IS should be open and
transparent, allowing for scrutiny
and understanding
MIS08 - Organisational Needs and Role of IS 35
The Role of Ethics in Information Security
 Organizations have a dual responsibility: to secure data while
ensuring ethical practices that respect privacy and prevent misuse
 Ethics in information security is essential for building trust and
fostering responsible data management
 Ethical Responsibilities in Data Protection:
o Organizations have a moral obligation to protect sensitive data,
including customer, employee, and business information
o Why it matters: A breach of security can harm individuals by exposing
private information or compromising financial data, leading to trust
erosion
 Balancing Security with Privacy:
o Ethical decisions often involve balancing data security with respect for
individual privacy
o Example: Security measures such as employee monitoring or data
tracking should not violate personal privacy rights; clear consent
should be obtained before data collection
MIS08 - Organisational Needs and Role of IS 36
The Role of Ethics in Information Security

 Transparency in Data Handling:

o Ethical security practices require transparency—organizations must
clearly communicate how they collect, use, and share data
o Example: Websites should provide users with information on how their
data will be used, including options to opt out of certain data-sharing
practices
 Preventing Data Misuse:
o Ethically, companies must ensure that security measures are not used
for misuse of data, such as unauthorized surveillance or selling
personal information without consent
o Example: Companies should not sell or share customer data for profit
without informing customers or obtaining their permission

Ethics in information security is about protecting data while respecting

privacy, being transparent in data handling, and ensuring that security
measures do not infringe on individual rights
MIS08 - Organisational Needs and Role of IS 37
MIS08 - Organisational Needs and Role of IS 38
Introduction to the Technology Roadmap

 What is a Technology Roadmap?

o A strategic plan that outlines the technology tools, systems, and

processes required to support an organization’s goals

o Purpose: To align technology investments with business objectives and

ensure scalability and adaptability as the organization grows

A technology roadmap is a forward-looking plan that helps organizations

stay competitive, efficient, and innovative
MIS08 - Organisational Needs and Role of IS 39
Components of a Technology Roadmap

1. Business Goals: Aligning technology initiatives with the

organization's strategic objectives
2. Current State of Technology: Assessing existing systems, tools, and
infrastructure
3. Future Technology Needs: Identifying the technologies needed to
meet future business challenges
4. Timeline for Implementation: Defining when and how new
technologies will be implemented
5. Resources Required: Budget, personnel, and training required for
successful implementation

A comprehensive technology roadmap includes a clear connection between

business goals and technology investments, with an actionable plan for the
future
MIS08 - Organisational Needs and Role of IS 40
Steps in Developing a Technology Roadmap – an Analogy

Suppose you are planning a road trip; you would do the following:
1. Assess Current Technology Infrastructure: Assess your vehicle - Is it
roadworthy? Does it need repairs? Are there upgrades you should
consider (e.g., GPS system, new tires)?
2. Define Business Objectives: Set your destination - Where do you
want to go? Define your final destination and any key stops along
the way
3. Identify Technology Gaps: Identify what you’ll need for the trip - Do
you have enough fuel? Do you need a map or GPS?
4. Develop a Timeline: Plan your route and stops - Determine how
long it will take, where you’ll stop for fuel or rest, and what the best
path is to get there
5. Allocate Resources: Ensure you have adequate budget and supplies
- Do you have enough money for fuel, lodging, and food? Do you
have backup supplies in case of emergencies?
MIS08 - Organisational Needs and Role of IS 41
Steps in Developing a Technology Roadmap

Developing a Technology Roadmap is so similar:

1. Assess Current Technology Infrastructure: Identify existing tools
and systems and evaluate their effectiveness
2. Define Business Objectives: Understand the organization’s short-
term and long-term goals
3. Identify Technology Gaps: Determine what technologies are
missing and what’s needed to meet future objectives
4. Develop a Timeline: Prioritize technology projects and set
implementation timelines based on urgency and business impact
5. Allocate Resources: Assign budgets, staff, and resources to execute
the roadmap

Developing a technology roadmap involves a clear process that bridges the

gap between current technology and future business needs
MIS08 - Organisational Needs and Role of IS 42
Case Study: Amazon’s Technology Roadmap

 Situation: As Amazon grew, it needed to continuously enhance its

technology to support its global operations and improve customer
experience

 Roadmap Development: Amazon’s roadmap included adopting

cloud computing, automating logistics through AI, and investing in
data analytics for personalized customer service

 Outcome: Amazon maintained its competitive edge, scaled

operations globally, and continuously innovated to meet customer
expectations

A well-executed technology roadmap positions organizations like Amazon to

lead their industries by aligning technology with long-term business strategy
MIS08 - Organisational Needs and Role of IS 43
Quiz Time
Q.No. Question Answer
1 A) Maximize profit,
What is the primary goal of B) Align IS goals with organizational objectives,
Information Systems Planning? C) Minimize operational costs,
D) Automate all processes
2 A) Internet Service Provider,
What does ISP stand for in the B) Information Strategy Planning,
context of MIS? C) Information Systems Planning,
D) Infrastructure Systems Planning
3 A) Rapid technological change,
What is a key challenge in B) Reducing employee numbers,
Information Systems Planning? C) Increasing software costs,
D) Outsourcing
4 A) Cost savings,
What key factor should be B) Support for business strategy,
considered in an effective ISP? C) Employee benefits,
D) Marketing campaigns
5 A) Speed up processes,
What is the purpose of multi- B) Add extra layers of security,
factor authentication (MFA)? C) Increase employee engagement,
D) Automate workflows
MIS08 - Organisational Needs and Role of IS 44
End of Session

Questions?
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