Key System Applications for

Digital Age
MIS_U4
 What is Strategic Information Management ?
• Strategic information systems (SIS) are information systems that are
developed in response to corporate business initiative.
• They are intended to give competitive advantage to the organization.
• They may deliver a product or service that is at a lower cost, that is
differentiated, that focuses on a particular market segment, or is
innovative.
• A SIS is a computer system that implements business strategies;
• They are those systems where information services resources are
applied to strategic business opportunities in such a way that the
computer systems affect the organization’s products and business
operations.
• Strategic information systems are always systems that are developed in
response to corporate business initiative
Firm-Level Strategy(Corporate Level) Vs. Business-Level Strategy

Feature Firm-Level Business-Level Strategy

(Corporate Level)Strategy
Focus Overall direction and scope of the company Competitive advantage within a
specific industry

Decision Level Top management (executives) Operational level (managers and

teams)

Timeframe Long-term (years to decades) Short to medium-term (3-5 years)

Question "In what businesses should we be?" "How do we compete in this

Addressed market?"

Examples Diversification, acquisitions, divestitures, Cost leadership, differentiation,

strategic alliances focus, value-based competition
 Components of Strategic Information Planning

1.The Strategic Information Systems Planning Process

2. Strategic Business Planning.
3. Information Systems Assessment
4. Information Systems Vision
5. Information Systems Guidelines
6. Strategic Initiatives
 Components of Strategic Information Planning

1.The Strategic Information Systems Planning Process

• The Strategic Information Systems Planning Process SISP planners
have to consider the preparatory steps that ensure that business,
organizational and information strategies are aligned in a
complementary fashion.
• The overall role of technology and information systems within the
organization must be determined, and the internal and external
assessments need to be addressed.
• The most important point to remember is that the SISP process
must be part of the overall organization plan.
 Components of Strategic Information Planning
2. Strategic Business Planning: Prerequisite to systems planning:
a. It outlines an organization’s overall direction, philosophy, and purpose.
b. It examines its current status in terms of its strengths, weakness, opportunities,
and threats.
c. It sets long-term objectives.
d. It formulates short-term tactics to reach them.

3.Information Systems Assessment: Evaluation of the system to assess its status

(current information systems resources) in terms of original or current expectations
and how they are serving the organization.

4.Information Systems Vision: Ideal role that should be pursued for use of
information systems resources.

5. Information Systems Guidelines: Set of statements that clarify use of

organization’s technical and information systems resources. Strategic Initiatives:
Three to five-year long-term proposals that specify new initiatives for information
systems organization.
 Enhanced decision making process
(Customer POV)
• Step 1. Customer problem identification
• Step 2. Providing Solution to Customers
• Step 3. Providing Alternatives to Customers
• Step 4. Final Decision making by Customer
• Step 5. Evaluation of Decision by Customers
Enhanced decision making process (Customer
POV)
1.Customer problem identification
• The Customer Recognizes They Have a Problem That Needs To
Be Solved.
• The customer decision making process begins with a consumer
realizing facing a problem. The problem can be anything minor
like needing a new watch or sunglasses.
• If merchants can predict when their customers tend to
recognize these problems, they can drive serious increases in
revenue.
• Some merchants can predict when their customers will need to
refill or rebuy their products based on the average lifespan of
their product.
 Enhanced decision making process
(Customer POV)
2. Providing Solution to Customers
• Customers use search engines like Google to find solutions i.e
suitable products.
• Merchants who view the written product reviews and video
testimonials and optimize their website or products
for organic search results can publicize their brand/product
awareness
 Enhanced decision making process
(Customer POV)
3. Providing Alternatives to Customers
• Once consumers are aware of all of their options, they will
compare prices, quality and other contributing factors they
find important.
• Merchants can provide optimized alternatives to the
customers by providing comparison charts of the options.
• Other helpful tools include how-to guides for product use,
product videos and photos from various angles.
 Enhanced decision making process
(Customer POV)
4.Final Decision making by Customer
• Consumers take a decision on what product to
purchase that solves their needs.
• Advertisements and product prevalence plays a role
in the customer decision making process
 Enhanced decision making process
(Customer POV)
5. Evaluation of Decision by Customers
• After purchasing and using the product, customers evaluate
the product and decide whether it was worth it.
• To avoid buyer’s hate and win customers over again,
merchants need to be transparent with their return policy and
follow up with customers.
• Provide tutorials or whatever is relevant to your product or
service to win customers over again.
• Asking for a written review on the product that the customer
bought is a great way to ensure they are satisfied.
 Enhanced decision making process
(Business POV)
• Step One: Define Your Goals
• Step Two: Formulate Survey Questions
• Step Three: Gather Survey Data
• Step Four: Analyze Your Data
• Step Five: Evaluate the Findings
• Step Six: Take Action Based on the Data
 Enhanced decision making process
(Business POV)
• Step One: Define Your Goals
• The initial and pivotal step involves clarifying and setting your
objectives.
• You must clearly understand what you intend to achieve with
the data-driven decision-making process.
• Step Two: Formulate Survey Questions
• Crafting well-structured customer survey questions is
essential to collect relevant and actionable data.
• Each question should be designed to elicit specific information
that directly relates to your objectives.
Enhanced decision making process (Business
POV)
Step Three: Gather Survey Data
• With your survey questions prepared, the next step is to
gather data from your target audience.
• Data can be gathered through various methods, such as
online surveys, phone interviews, face-to-face interactions, or
observations.
• Step Four: Analyse Your Historical Data
• It will give valuable insights derived from purchase frequency,
product return rates, customer service interactions, and
more.
• Analyzing this data can unveil trends and patterns, customer
preferences, pain points, and areas of improvement.
Enhanced decision making process (Business POV)
• Step Five: Evaluate the Findings
• After obtaining substantial data, the next step is analyzing the
collected information by processing, organizing, and interpreting the
data to extract meaningful in sights, employing statistical analysis,
data visualization techniques, or qualitative analysis methods.
• Data analysis helps in identify patterns, trends, correlations, or
anomalies that reveal the factors impacting the objectives.
• Step Six: Take Action Based on the Data
• The final step is translating the findings into actionable steps by
executing data-driven strategies, refining existing processes,
developing new initiatives, or altering marketing approaches.
• The key is aligning your actions with the insights from the analysis.
• It also involves establishing a timeline, assigning responsibilities, and
monitoring progress.
What is a Project ?
 What is Project Management?

• Project management is the application of knowledge, skills,

tools, and techniques to project activities to meet project
requirements.
• It’s the practice of planning, organizing, and executing the
tasks needed to turn a brilliant idea into a tangible product,
service, or deliverable.
• Key aspects of project management include:
Defining project scope
Identifying deliverables
Managing risks
Effective communication across teams
Phases in Project Management?
 How to choose Project Management software

At its core, project management software is a digital tool that

helps plan, track, and manage projects effectively.

It should have the following features

• Task assignment and tracking
• Real-time collaboration tools
• Timeline and milestone visualization
• Document sharing and storage
• Reporting and analytics for progress insights
 Project Management Tools
– Wrike, the best for cross-functional collaboration
– Asana, the best for attractive visuals
– Monday, the best for use case templates
– Adobe Workfront, the best for Adobe Integration
– Smartsheet, the best for spreadsheet-style functionality
– Jira, the best for development teams
– ClickUp, the best for mind mapping
– Microsoft Project, the best for Microsoft integration
– Basecamp, the best for small businesses and teams
– Trello, the best for simple projects
– Zoho Projects, the best for the real estate industry
MANAGING PROJECT RISK

(Risk Management)
 Risk Management
Risk management is a systematic process of identifying,
assessing, and mitigating threats or uncertainties that
could negatively impact an organization's objectives.
 Steps in Risk Management

• Risk Identification:
This involves recognizing potential risks that could affect the
organization's operations, projects, or strategic goals.
• Risk Assessment:
Once risks are identified, they need to be evaluated based on their
likelihood of occurring and the potential impact they could have.
• Risk Mitigation:
This stage focuses on developing and implementing strategies to
reduce or eliminate the identified risks.
• Risk Monitoring:
Risk management is an ongoing process, so it's crucial to
continuously monitor the effectiveness of mitigation strategies and
adjust them as needed.
 Benefits of Risk Management

Focus on Uncertainty:
• Risk management deals with uncertainty and the potential for
negative outcomes.
Proactive Approach:
• It's a proactive approach to managing potential problems rather
than a reactive one.
Organizational Benefit:
• Effective risk management helps organizations achieve their
objectives, protect assets, and maintain a positive reputation.
Types of Risk:
• Risks can be categorized into financial, operational, strategic, and
other types.
 Global Value Chain (GVC)
• A Global Value Chain (GVC) is an interconnected series of
activities involved in producing a good or service, where different
stages occur across multiple countries.
• This includes activities like design, manufacturing, marketing, and
distribution, all of which contribute value to the final product.
• Participation in global value chains (GVCs), the international
fragmentation of production, can lead to increased job creation
and economic growth
• About 70% of international trade involves global value
chains (GVCs), as services, raw materials, parts, and components
cross borders
Global Value Chain (GVC)
Primary & Support Activities in a GVC
 Key Characteristics/Importance of GVCs
• International Production Sharing:
GVCs involve dividing production activities across different countries, with each country
specializing in specific stages of the process.
• Value Addition at Each Stage:
Each stage of the chain adds value, whether through design, manufacturing, or other processes.
• Multi-Country Involvement:
At least two stages of production must occur in different countries for a chain to be considered a
GVC.
• Inter-firm Collaboration:
GVCs involve multiple firms, including suppliers, manufacturers, and distributors, working
together.
• Knowledge Transfer:
GVCs facilitate the flow of knowledge and technology between countries.

• Increased Productivity and Economic Growth: GVCs can lead to higher productivity, job
creation, and increased living standards in participating countries.
• Technological Advancements: GVCs encourage the development and transfer of new
technologies and knowledge.
• Global Integration: GVCs facilitate integration of countries into the global economy.
 Examples of GVCs
• A smartphone, with design in one country, components from
several countries, and assembly in another.
• An airline, with parts from different manufacturers around
the world.
• A shirt, with cotton fabric imported from one country, and
assembled in another.
• A bike assembled in Finland with parts from Italy, Japan, and
Malaysia and exported to the Arab Republic of Egypt is a
GVC.
 What is a Digital Market ?
• A digital market refers to a marketplace where goods and
services are traded online, typically involving digital
channels like websites, social media, and online
platforms.
• It encompasses all marketing activities that utilize digital
platforms and technologies to connect businesses with
potential customers.
 Key Aspects of a Digital Market:

• Online Transactions:
Digital markets facilitate transactions that occur on the internet, such as online
retail, online advertising, and digital content distribution.
• Digital Channels:
Businesses use various digital channels to reach and engage with their target
audience, including websites, social media, email, and online advertising
platforms.
• Marketing Strategies:
Digital marketing involves a range of strategies to promote products and
services online, such as search engine optimization (SEO), social media
marketing, email marketing, and paid advertising.
• Focus on Digital Consumers:
Digital markets target consumers who are online and active on digital
platforms.
• Measurable Results:
Digital marketing efforts are typically measurable, allowing businesses to track
their progress and optimize their strategies.
 Examples of Digital Markets:

• Online Retail:
E-commerce platforms like Amazon and Flipkart facilitate the buying
and selling of physical goods online.
• Digital Content Distribution:
Platforms like Netflix and Spotify offer digital content like movies,
music, and books.
• Online Advertising:
Google Ads and social media advertising platforms allow businesses
to target potential customers with online ads.
• Online Services:
Platforms like Uber and Airbnb connect customers with services like
transportation and accommodation.
 Drawbacks of Digital Markets
• Security and Privacy Issues:
Digital platforms can be vulnerable to cyber attacks and data breaches, posing risks to
both businesses and consumers.
• Accessibility Challenges:
While digital markets offer broad reach, they may not be accessible to everyone,
especially those with limited internet access or digital literacy.
• Reliance on Technology:
Digital marketing heavily relies on technology, and any technical issues, such as platform
outages, can disrupt campaigns and negatively impact brand reputation.
• Negative Feedback and Complaints:
Negative reviews and criticisms are readily visible on social media and review platforms,
potentially damaging a business's reputation if not managed effectively.
• High Competition:
The digital landscape is highly competitive, making it challenging for businesses to stand
out and gain visibility.
• Ethical and Privacy Concerns:
The collection and use of customer data raise ethical questions, and businesses must
comply with privacy regulations to avoid legal and reputational risks.
What are Digital Goods ?
 What are Digital Goods ?

• Digital goods are products that exist in digital form and can be sold and

consumed online, unlike physical goods. Examples include e-books, music,

software, online courses, and streaming media. They are intangible and don't

require physical shipping.

Key characteristics of digital goods:

• Intangible: They are not physical objects and cannot be touched or held.
• Digital delivery: They are typically downloaded, streamed, or accessed online.
• Online purchase: They are bought and sold over the internet.
• Various forms: They can include software, media, content, and subscriptions.
 Examples of digital goods:

• Software: Applications, programs, and tools that can be

downloaded and installed on computers or mobile
devices.
• E-books: Digital versions of books that can be read on e-
readers, tablets, or smartphones.
• Music and media: Digital audio and video files, streaming
services, and downloadable media.
• Online courses: Educational content accessible through
the internet.
• Subscriptions: Recurring payments for access to digital
services, such as streaming platforms or software.
• Digital subscriptions: Access to online content, like
magazines, newspapers, or streaming services.
 Advantages of digital goods

1. Scalability and cost-efficiency

• Digital products can be reproduced infinitely without any additional manufacturing or distribution

costs. This scalability allows you to generate passive income, as your digital products can continue to

sell without requiring ongoing effort.

• Additionally, digital products are cost-effective compared to physical goods. There’s no need for

storage, shipping, or handling, which significantly reduces overhead costs. This makes it easier to

maintain a healthy profit margin and invest more in marketing or product development.
2. Global reach and instant accessibility

• Digital products have the ability to reach a global audience with minimal barriers. You can sell your

products to customers anywhere in the world, expanding your market far beyond your local area.

• Digital products are also highly accessible. Customers can purchase and download them instantly,

regardless of their location, increasing customer satisfaction and loyalty.

• By selling digital products, you can connect with a wide range of customers, from different cultures

and regions, all while reducing the challenges associated with physical distribution.
 Advantages of digital goods

3. Flexibility and creativity

• Digital products can easily updated to keep them relevant and valuable. This
adaptability allows to respond quickly to market trends and customer feedback,
ensuring the content always meets the needs of your audience.
• Creators can experiment with various formats and mediums to deliver their
digital products. This variety keeps your offerings fresh and engaging, appealing
to different learning styles and preferences.
• Successful ventures include subscription-based content libraries, interactive
learning modules, and personalized coaching sessions delivered through
downloadable content.

4. Instant delivery and convenience

• One of the biggest benefits of digital products is instant delivery. As soon as a
customer makes a purchase, they can immediately download and access the
content. This instant gratification enhances the customer experience and reduces
the wait time associated with physical goods.
 Advantages of digital goods
5. Minimal environmental impact
• Selling digital products is also a great way to reduce your
environmental footprint. Unlike physical goods, digital products don’t
require manufacturing, packaging, or shipping, all contributing to
waste and pollution. By focusing on digital products, you can
significantly lower your environmental impact.
6. Ease of updates and scalability
• Digital products offer the advantage of easy updates and scalability.
You can quickly modify and enhance your digital products based on
customer feedback or market demands. This adaptability ensures your
offerings remain relevant and valuable over time.
7. Lower barriers to entry
• Creating and selling digital products often requires less upfront
investment compared to physical goods. With lower production costs
and no need for inventory or shipping, digital products provide a more
accessible entry point for entrepreneurs.
 Disadvantages of Digital Goods

1. Limited personal interaction

• Unlike traditional retail stores, selling digital products online lacks
face-to-face interaction with customers. This absence of personal
connection can make building trust and establishing strong
customer relationships harder.
2. Security risks
• Selling digital products online involves handling sensitive customer
information, such as payment details and personal data.
Cybersecurity threats, such as hacking attempts and data breaches,
pose significant risks to your business and customers.
3. Dependency on technology
• Online selling relies heavily on technology infrastructure and
platforms. Technical glitches, server outages, or website errors can
disrupt your business operations and lead to lost sales.
 Disadvantages of Digital Goods

4. Shipping and logistics

• While digital products eliminate the need for physical shipping, the
logistical challenges can still be complex. For instance, managing your
digital inventory, ensuring download links work correctly, and handling
customer support inquiries related to access issues can be time-
consuming.
5. Intellectual property concerns
• Digital products are susceptible to intellectual property infringement.
Unauthorized copying, sharing, or distribution can lead to revenue loss
and undermine the value of the product.
6. Perceived value and intangibility
• While digital products offer convenience, their intangible nature can
sometimes make it challenging for customers to perceive their value.
Without the physical presence of a tangible item, customers may question
the worth or durability of digital products.