The document discusses Aerosoles, a 20-year-old footwear company. It launched its website in 1999 but later realized it needed an upgrade. The current site had limited capabilities, was not scalable, and had no integration with their ERP system. Most customers used the call center instead of the site. The VP of Direct Marketing said they wanted a stronger online presence and a more seamless customer experience similar to the physical store. It was time to relaunch the site on a new, more flexible platform.

1. INFORMATION SYSTEMS

2. INFORMATION SYSTEMS

3. OPENING CASES
 Aerosoles
 IPL

4. AEROSOLES

5. AEROSOLES SCENARIO
 Aerosoles is a 20 year old footwear company that has
been providing high quality, fashionable shoes at
affordable prices to department stores and specialty
stores internationally. Aerosoles has over 700 employees
to help design, import, distribute, and market a broad
range of shoes such as boots, casual, dress, sandals,
and sport alongwith accessories.
 Moving beyond its reputation as a designer brand,
Aerosoles has evolved into a multichannel retailer with
130 retail stores in the United States and worldwide. It
also operates a direct channel comprised of a catalog
and ecommerce site.
 The company launched www.aerosoles.com in 1999, but
later Aerosoles realized the site was in need of an
upgrade. "The site was hosted by our technology partner,
but this presented its share of challenges," Magnus
Gustafsson, VP of Direct Marketing, Aerosoles, told
Chain Store Age magazine.

6.  The current site offered very limited marketing and
reporting capabilities, was not scalable, and had no
integration with their ERP system. Thus, majority of
Aerosoles customers turned to the call center to
check inventory, place orders, and track shipments.
 "The configuration affected data inventory upgrades
and the company lacked insight into customer
information. Most importantly it was merely an order
taking vehicle," he said. We were ready for a stronger
web presence, a better online experience, and a more
seamless customer experience that mimicked the
physical store experience. It was time to re-launch the
site on a new, more flexible platform." said
Gustafsson

7. Information system and business
Business
•Develop team strategy challenges •Lack of performance
statistics
•Evaluate players
•Coach players Management •High cost of players
•Intense competitive
pressure
•Match videos of plays Information Business
with statistical data Organization Solutions
•Tag and index plays system
•Improve performance
•Analyze player
Capture video •Increase revenue
Technology performance
Maintain protected web
•Analyze team
site
performance
Download video to
ipods

8. ROLE OF INFORMATION
TECHNOLOGY
 In Asia Pacific SMB’s spent around US $153 billion on IT and
telecomm.
 China ,Korea and India alone make up more than 50% of Asia Pacific
spending according to the latest study by New York based Access
Markets International (AMI) Partners Inc

9. INFORMATION
TECHNOLOGY CAPITAL
INVESTMENT
900
800
700
600
500
IT INVESTMENT
400
300
200
100
0
81
87
93
99
04
06
08
19
19
19
19
20
20
20

10. INFORMATION SYSTEMS AND TRANSFORMATION IN
BUSINESS
 58% Americans have used a cell phone or mobile handheld devices for
activities other than voice communications such as texting, emailing taking
a picture, looking for maps or directions or recording video
 By june 2008 more than 80 billion businesses had dot com internet sites
registered ( 60 million in US alone ) ( verisign 2008 )
 85% of the online users engaged in e commerce . Ireland 91%,
86% in turkey ,India and UAE jointly 84%.
 67 million Americans read blog,21 write blogs .
 Myspace and Facebook attract over 70 and 30 million visitors a month
 E commerce and internet advertising are booming google’s online ad
revenue surpassed $ 16.5 billion in 2007 and internet advertising continues
to grow at more than 25 % a year reaching more than $28 billion in
revenues in 2008

11. OPENING CASES
 Aerosoles
 IPL

12. AEROSOLES

13. AEROSOLES SCENARIO
 Aerosoles is a 20 year old footwear company that has
been providing high quality, fashionable shoes at
affordable prices to department stores and specialty
stores internationally. Aerosoles has over 700 employees
to help design, import, distribute, and market a broad
range of shoes such as boots, casual, dress, sandals,
and sport alongwith accessories.
 Moving beyond its reputation as a designer brand,
Aerosoles has evolved into a multichannel retailer with
130 retail stores in the United States and worldwide. It
also operates a direct channel comprised of a catalog
and ecommerce site.
 The company launched www.aerosoles.com in 1999, but
later Aerosoles realized the site was in need of an
upgrade. "The site was hosted by our technology partner,
but this presented its share of challenges," Magnus
Gustafsson, VP of Direct Marketing, Aerosoles, told
Chain Store Age magazine.

14.  The current site offered very limited marketing and
reporting capabilities, was not scalable, and had no
integration with their ERP system. Thus, majority of
Aerosoles customers turned to the call center to
check inventory, place orders, and track shipments.
 "The configuration affected data inventory upgrades
and the company lacked insight into customer
information. Most importantly it was merely an order
taking vehicle," he said. We were ready for a stronger
web presence, a better online experience, and a more
seamless customer experience that mimicked the
physical store experience. It was time to re-launch the
site on a new, more flexible platform." said
Gustafsson

15. Information system and business
Business
•Develop team strategy challenges •Lack of performance
statistics
•Evaluate players
•Coach players Management •High cost of players
•Intense competitive
pressure
•Match videos of plays Information Business
with statistical data Organization Solutions
•Tag and index plays system
•Improve performance
•Analyze player
Capture video •Increase revenue
Technology performance
Maintain protected web
•Analyze team
site
performance
Download video to
ipods

16. ROLE OF INFORMATION
TECHNOLOGY
 In Asia Pacific SMB’s spent around US $153 billion on IT and
telecomm.
 China ,Korea and India alone make up more than 50% of Asia Pacific
spending according to the latest study by New York based Access
Markets International (AMI) Partners Inc

17. INFORMATION
TECHNOLOGY CAPITAL
INVESTMENT
900
800
700
600
500
IT INVESTMENT
400
300
200
100
0
81
87
93
99
04
06
08
19
19
19
19
20
20
20

18. INFORMATION SYSTEMS AND TRANSFORMATION IN
BUSINESS
 58% Americans have used a cell phone or mobile handheld devices for
activities other than voice communications such as texting, emailing taking
a picture, looking for maps or directions or recording video
 By june 2008 more than 80 billion businesses had dot com internet sites
registered ( 60 million in US alone ) ( verisign 2008 )
 85% of the online users engaged in e commerce . Ireland 91%,
86% in turkey ,India and UAE jointly 84%.
 67 million Americans read blog,21 write blogs .
 Myspace and Facebook attract over 70 and 30 million visitors a month
 E commerce and internet advertising are booming google’s online ad
revenue surpassed $ 16.5 billion in 2007 and internet advertising continues
to grow at more than 25 % a year reaching more than $28 billion in
revenues in 2008

19. WHAT’S NEW IN MIS
TECHNOLOGY
CHANGE BUSINESS IMPACT
Cloud computing platform emerges as a A flexible collection of computers on the internet
major business area of innovation begin to perform tasks traditionally performed on
corporate computers
More powerful, energy efficient computer Intel’s new PC processor chips consume 50% less
processing and storage devices power , generate 30% less heat , and are 20%
faster than the previous models ,packing over 400
million transistors on dual core dual core chip
Growth in software as SaaS ( Software Major business applications are now delivered
as a service) online as Internet service rather than a boxed
software or custom systems
Netbooks emerge as a growing Small , lightweight , low cost , energy- efficient ,
presence in the PC marketplace , net- centric notebooks use Linux,Google Doc s
suboften using open source software ,open source tools , flash memory , and the
internet for their applications , storage and
communications
A mobile digital platform emerges to Apple opens its iphone software to developers, and
compete with PC as a business system then opens an Applications store on iTunes where
business users can download hundreds of
applications to support collaboration ,location-
based services , and communication with
colleagues

20. WHAT’S NEW IN MIS
MANAGEMENT
CHANGE BUSINESS IMPACT
Managers adopt online collaborations and Google Apps,Google Sites,Microsoft’s Windows
social networking software to improve Sharepoint services and IBM’s Lotus Connections
coordination, collaboration , and are used over 100 million business decision makers
knowledge sharing worldwide to support blogs ,project management ,
online meetings , personal profiles ,social bookmarks
and online communities
Business intelligence applications More powerful data analytics and interactive
accelerate dashboards for providing real –time performance
management to managers to enhance management
control and decision making
Managers adopt million of mobile tools Rhe emerging mobile platform greatly enhances the
such as smartphones and mobile internet accuracy , speed , richness of decision making as
devices to accelerate decision making well as responsiveness to customers
and improve performance
Virtual meeting proliferate Managers adopt telepresence video conferencing
and web conferencing technologies to reduce travel
time , and cost , while improving collaboration and
decision making

21. WHAT’S NEW IN MIS
ORGANIZATION
CHANGE BUSINESS IMPACT
Web 2.0 applications are widely adopted Web-based services enable employees to interact
by the firms as online communities using blogs ,wikis , email and
instant messaging services.facebook and MySpace
create new opportunities for business to collaborate
with customers and vendors
Telework gains momentum in the The internet ,wireless laptops ,iphones , and
workplace BlackBerrys make it possible for growing numbers of
people to work away from traditional office
Outsourcing production Firms learn to use technologies to outsource
production work to low wage countries
Co- creation of business value Sources of business value shift from products to
solutions and experiences and from internal sources
to networks of suppliers and collaboration with
customers .Supply chains and product development
becomemore global and collaborative; customer
interaction helps firms define new product and
services

22. GLOBALIZATION
opportunities and challenges
 Foreign trade as a percentage of GDP ( in rupee terms ) was over
25% in 2006 up from 14.1 percent in 1990-1991.
 India’s share in global trade , including trade in merchandise and
service sector , has increased from 1.1 percent in 2004 to over 2.0
percent in 2009 .
 U.S exports to India $4,101.1 million and imports from India worth
$11,818.3
 Many firms derive half their revenues from foreign operations.For
instance ,revenues are about $25 million a year and profits are
“several million dollars”
 80% of toys sold in the US are manufactured in China ,while
about 90% of PC manufactures in China use American –made
Intel or Advanced Micro Design (AMD ) chips

23.  Manufacturing is now a very small part of US employment (less than
12%)
 About 300,000 service jobs move offshore to lower wage countries

24. DIGITAL FIRM
 A digital firm is one in which nearly all of the organization’s significant
business relationships with customers , suppliers and employees are
digitally enabled and mediated.Core business processes are accomplished
through digital networks spanning the entire organization or linking multiple
organizations.
 Key corporate assets –intellectual property ,core competencies and financial
and human assets – are managed through digital means
 Any piece of information required to support key business decisions is
available anytime and anywhere in the firm
 Digital firms sense and respond to their environment far more rapidly than
traditional firms, giving them more flexible global organization and
management
 In digital firms, both time shifting and space shifting are the norm
 Eg Cisco and Dell

25. Strategic business objectives of information
systems
THE INTERDEPENDENCE BETWEEN ORGANIZATIONS AND
INFORMATION SYSTEMS
Hardware
Business strategic
Objectives software Data Management
Business processes
Business firm Information system
Telecommunication

26. OBJECTIVES
 Operational excellence
 eg Walmart achieved close to US $379 billion in sales –nearly one tenth
of retail sales in the United States.
 New products ,services and business models
 Eg online music industry
 Customer and supplier intimacy
 Improved decision making
 Competitive advantage
 Survival

27. Information system
Definition:
IS can be defined technically as a set of interrelated components that
collect ( or retrieve ), process ,store and distribute information to support
decision making and
In addition to support decision making , coordination and control
information systems may also help managers and workers analyze
problems ,subjects and create new products.
Information systems contain information about significant people ,places
and things within the organization or in the environment surrounding it
Three activities in the information system :
Input
Output
Processing

28. Functions of an information system
ENVIRONMENT
CUSTOMERS
SUPPLIERS
ORGANIZATION
INFORMATION SYSTEM
PROCESSING
INPUT CLASSIFY
OUTPUT
ARRANGE
CALCULATE
FEEDBACK
REGULATORY
STOCK HOLDERS COMPETITORS
AGENCIES

29. DIMENSIONS OF INFORMATION
SYSTEM
INFORMATION SYSTEMS ARE MORE THAN COMPUTERS
organizations technology
Information
System
management

30. ORGANIZATIONS
LEVELS IN THE FIRM
Senior
Management
Middle Management
Scientists and knowledge workers
Operational management
Production and service workers
Data workers

31. INFORMATION SYSTEM AS A VALUE ADDITION
(Organization and Management)
Business Process
Supply chain Enterprise Customer Knowledge
Management Management Management
Management
Firm
Profitability
And
stategic position
Data Transform Dissemination
ation into
collection
business
And systems
storage
planning coordinating controlling Modelling and
coordinating decision
making
Management activities

32. COMPLEMENTARY ASSETS
Are those assets required to derive value from a primary investment.
eg new business models ,new business processes ,management
behavior , organizational culture ,or training
These investments in organization and management are known as
organizational ad management capital.

33. COMPLEMENTARY SOCIAL, MANAGERIAL , AND
ORGANIZATIONLA ASSETS REQUIRED TO OPTIMIZE
RETURNS FROM INFORMATION TECHNOLOGY
INVESTMENT
 Organisational Assets
 Supportive organizational culture that values efficieny and effectiveness
 Appropriate business model
 Efficient business process
 Decentralized authority
 Distributed decision- making rights
 Strong IS development team
 Managerial Assets
 Strong senior management
 Incentives for management innovation
 Teamwork and collaborative work environments
 Training programs to enhance management decision skill
 Social Assets
 The internet and telecommunication environment
 IT enriched educational programs raising labor force computer literacy
 Standards ( both government and private sector)
 Laws and regulations creating fair , stable market environments

34. CONTEMPORARY APPROACHES TO
INFORMATION SYSTEMS
Technical Computer Operations
Science Research
Approaches
Management Sociology
MIS
Science
Psychology Economics

35. CASE STUDY
CONTINENTAL AIRLINES:
THIS CALL IS BEING MONITORED

36.  If you’ve ever placed a call to any big company’s customer service department
.you’ve heard the caveat “ This call may be monitored for quality assurance
purposes” But is anyone really listening? Someone is – or atleast the computers
are –at continental Airlines.
 To build the customer loyalty Continental enlisted the help of Witness Systems
whose call center software does more than a eavesdrop. it records conversations
and captures every keystroke ,so managers know whether the right actions are
taken.And because the exchanges reveals what customer really customers really
want, Continental is also mining the data to craft marketing plans and shape
overall strategy
 Before the s/w was installed in 2001,Continental’s agents were unable to resolve
about 6%of the 60 million calls they fielded annually . Instead these problems
were routed to an internal help desk .The witness data revealed that some agents
“weren’t attempting to look up the answers on their own” says Andre Harris
“,director of reservations training and quality .New standards were put up in a
place and within a year nearly 20% fewer calls were being sent to help desk
,saving the company $1
 Harris soon realized that the data could be a treasure trove for marketing and
service operations too. “We thought we were just replacing tape recorders, “ she
says ,” but it dawned on us that we could use this system to drive business
decisions ”.Now if enough calls come in on one topic ,Continental can
respond .For instance ,when the company learned that as many as 14 percent of
customers were reconfirming flights ,it ran a notice in its in-flight magazine to
assure fliers that such calls were unnecessary
 To make the call monitoring more effective ,Continental added CallMiner ,a labor-
saving Witness program that automatically transcribes conversations into text .”it
gives me more time to analyze the data ,”Harris says ,”rather than just collect it”

37.  Tying speech system to mainstream corporate IT system, and the use of internet
based voice system such as voice over IP (VoIP) ,are making it easier to mine
database of voice records ,much as companies have mined other customer record
for years .IVR analysis tools usually can keep track of the report on a caller’s
choices based on which menu paths the caller has taken. But CallMiner and few
other tools can go into the voice record and look for specific words or word
combinations. Continental recorded a sample of its 5 million monthly calls and
then used CallMiner to turn the dialogues into text and mine it for certain things
.In doing so ,it discovered that about 10% of the calls contain the actual word
reconfirm
 Calls to reconfirm a flight are quite frankly, low value calls,” says Harris .she
says she used the CallMiner analysis to justify the deployment of a new IVR
system just for flight confirmation.
 Continental currently has eight people listening to samples of calls in order to
manually prepare a “call mix report”.which is used for analytical purposes by
marketers and business planners at the airline.”The pilot test helped me realize
ver quickly that I can do this with one person instead of eight,” she says
 And do it better.from the manually prepared call mix report, Continental should
see that it make a sale on only half of all calls , but it couldn’t tell why sales were
lost.Telephone agents do try to elicit the reasons , and soon automated call
mining will enable the airline to analyze callers responses, Harris says .it may
also save passengers some money the next time they book a continental flight

38. Case Study Questions:
 What are the business benefits of CallMiner system ? Provide some
additional examples beyond those discussed in the case.
 How can new technologies like CallMiner help companies improve
their customer service and gain competitive edge in the marketplace?
Explain.
 Andre Harris refers to calls to reconfirm as flight as “ quite frankly low
value calls “why are they classified as low value? Why do you think so
many customers are placing such calls?