Post on 14-Nov-2014
description
The Basic Concepts
Information Technology
A science that has evolved over a period of time to assist businesses in doing better business!!
Why IT?
• Management & Control• Stiff competition in world markets• Global Work Groups• Global delivery systems
IT as a Sales Tool
IT as a Sales Tool
• Email• Websites• Short Messages• Audio-Visual Presentations (ex-Pharma,
etc.)• Flash Presentations (ex-Pharma,
Manufacturing, Construction, etc)• CD’s,DVD’s• E-Learning sites
IT as a Management Tool
• Specifically tailored IT applications to suit various businesses (ex-Insurance, Banking, etc)
• Enterprise wide applications enable transparency across the organization
• Streamline processes thus reducing costs and increasing productivity
• Effective reporting systems facilitated by IT applications (ex-MIS,DSS,EIS,etc.)
• IT applications specifically designed to retain precious tacit knowledge of the organization
• Specific CRM tools developed to retain customer data(choices,preferences,habits,etc)
• Tools to handle the supply chain (SCM)
IT as a Management Tool-A brief overview
• MIS (management Information System)
• ERP(Enterprisewide Resource Planning)
• CRM (Customer Relationship Management)
• SCM (Supply Chain Management)
• KM (Knowledge Management)
CRM
• A tool specifically developed to record and retain customer interactions, habits, preferences, likes/dislikes, etc.
• Empowers the management with critical customer data.
Computer Components
CPU
Secondary Storage
Input Devices
Output Devices
CommunicationsDevices
PrimaryStorage
Buses
CPU & Primary Storage
InputDevices
OutputDevices
SecondaryStorage
CPU PrimaryStorage
Data Bus
Address Bus
Control Bus
CENTRAL PROCESSING UNIT (CPU)
RAMRAM
PRIMARY (MAIN) MEMORYPRIMARY (MAIN) MEMORY
CONTROL UNITCONTROL UNITARITHMETIC/LOGICARITHMETIC/LOGIC
UNITUNIT
ROMROMCLOCKCLOCK
TYPES OF MEMORY
• RAM: Random Access Memory– Dynamic: Changes thru processing– Static: Remains constant (power on)
• ROM: Read Only Memory (preprogrammed)– PROM: Program can be changed once– EPROM: Erasable thru ultraviolet light– EEPROM: Electrically erasable
*
• CD-ROM: 500-660 MEGABYTES–LAND: Flat parts of disk surface reflects
light
–PITS: small scratch on surface scatters light
• WRITE ONCE / READ MANY (WORM):–CD-R: Compact Disk - Recordable–CD-RW: CD - Rewritable
• DIGITAL VIDEO DISK (DVD): CD size, up to 10 gigabytes of data
*
OPTICAL STORAGEOPTICAL STORAGE
DATA & INFORMATION
• DATA: STREAMS OF RAW FACTS REPRESENTING EVENTS SUCH AS BUSINESS TRANSACTIONS
• INFORMATION: CLUSTERS OF FACTS MEANINGFUL & USEFUL TO HUMAN BEINGS IN PROCESSES SUCH AS MAKING DECISIONS
DATABASE MANAGEMENT SYSTEM (DBMS)
SOFTWARE TO CREATE & MAINTAIN DATA
ENABLES BUSINESS APPLICATIONS TO EXTRACT DATA
INDEPENDENT OF SPECIFIC COMPUTER PROGRAMS
SYSTEMSYSTEM
INPUT OUTPUTPROCESS
FEEDBACK
FUNCTIONS OF AN INFORMATION FUNCTIONS OF AN INFORMATION SYSTEMSYSTEM
INPUT OUTPUTPROCESS
FEEDBACK
INFORMATIONINFORMATION SYSTEMSYSTEM
ENVIRONMENTENVIRONMENT
Customers Suppliers Customers Suppliers
Regulatory Stockholders CompetitorsRegulatory Stockholders CompetitorsAgenciesAgencies
ORGANIZATIONORGANIZATION
COMPUTER-BASED INFORMATION SYSTEMS (CBIS)
• FORMAL SYSTEMS
• FIXED DEFINITIONS OF DATA, PROCEDURES
• COLLECTING, STORING, PROCESSING, DISSEMINATING, USING DATA
ORGANIZATIONS
• PEOPLE: Managers, knowledge workers, data workers, production or service workers
• STRUCTURE: Organization chart, groups of specialists, products, geography
ORGANIZATIONS
• OPERATING PROCEDURES: Standard Operating Procedures (SOP), rules for action
• POLITICS: Power to persuade,get things done
• CULTURE: Customs ofbehavior
MAJOR BUSINESS FUNCTIONS
• SALES & MARKETING
• MANUFACTURING
• FINANCE
• ACCOUNTING
• HUMAN RESOURCES
TRANSFORMATION OF ENTERPRISE
• FLATTENING• DECENTRALIZATION• FLEXIBILITY• LOCATION INDEPENDENCE• LOW TRANSACTION COSTS• EMPOWERMENT• COLLABORATIVE WORK
INFORMATION SYSTEMSINFORMATION SYSTEMS
ORGANIZATIONSORGANIZATIONS TECHNOLOGYTECHNOLOGY
MANAGEMENTMANAGEMENT
INFORMATIOINFORMATIONN
SYSTEMSSYSTEMS
SOCIOLOGYSOCIOLOGY
POLITICAL POLITICAL SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTER COMPUTER
SCIENCESCIENCEOPERATIONS OPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
APPROACHES TO INFO SYSTEMS
MISMIS
BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES
Major Types of Systems
• Executive Support Systems (ESS)
• Decision Support Systems (DSS)
• Management Information Systems (MIS)
• Knowledge Work Systems (KWS)
• Office Automation Systems (OAS)
• Transaction Processing Systems (TPS)
Management Information System
• Management Level-– Inputs-High volume data– Processing-Simple models– Outputs-Summary reports– Users-Middle Managers
• Example-Annual Budgeting
Typical TPS ApplicationsSales & Marketing Systems
• Major Functions-– Sales Management, Market Research,
Promotion, Pricing, New Products
• Major Applications-– Sales Order info systems, Market research
system, pricing system
Typical TPS ApplicationsManufacturing & Production
Systems• Major Functions-
– Scheduling, purchasing, shipping, receiving, engineering, operations
• Major Applications-– Material resource planning systems,
Purchase order control systems, engineering systems, quality control systems
Typical TPS ApplicationsFinance & Accounting Systems
• Major Functions-– Budgeting, general ledger, billing, cost
accounting
• Major Applications-– General ledger, Accounts receivable,
accounts payable, budgeting, funds management systems
Typical TPS ApplicationsHuman Resources Systems
• Major Functions-– Personnel records, benefits, compensation,
labor relations, training.
• Major Applications-– Payroll, employee records, benefit systems,
career path systems, personnel training systems
Typical TPS ApplicationsOther Types (ex-University, etc)
• Major Functions-– Admissions,Grade records, Course records,
Alumni
• Major Applications-– Registration system, student transcript
system, curriculum class control system, alumni benefactor system.
Knowledge Work Systems
• Knowledge Level– Inputs-Design specs– Processing-Modeling– Outputs-Design, Graphics– Users-Technical staff
• Example-Engineering work station
Office Automation System
• Towards a “Paperless” office
• Redesign a workflow
• Integrated Software
• Bright, Cheerful workplace
Management Information System
• Structured & semi-structured decisions
• Report control oriented
• Past & present data
• Internal orientation
• Lengthy design process
TPS Data for MIS Applications
TPS
Order File
Production Master File
Accounting File
Order ProcessingSystem
MRP System
General LedgerSystem
SalesData
UnitProductCost
ProductChange Data
Expense Data
MIS Reports
Managers
MIS
Decision Support Systems
• Management Level– Inputs-Low volume data– Processing-Interactive– Output-Decision Analysis– Users-Professionals, Staff
• Example-Contract Cost Analysis
Decision Support Systems
• Flexible, Adaptable, Quick
• User controls Inputs/Outputs
• No professional programming
• Supports decision process
• Sophisticated Modelling tools
Executive Support Systems
• Strategic Level– Inputs-Aggregate data– Processing-Interactive– Outputs-Projections– Users-Senior Managers
• Example-5 Yrs operating plan
Executive Support Systems
• Top level Management
• Designated to Individual
• Ties CEO to all levels
• Very expensive to keep up
• Extensive support staff
Interrelationship among systems
ESS
MIS DSS
KWS
OASTPS
Systems from a Functional Perspective
• Sales & Marketing Systems
• Manufacturing & Production Systems
• Finance & Accounting Systems
• Human Resource Systems
Sales & Marketing Information Systems
System Description Organizational Level
Order Processing Enter, Process, Track orders
Operational
Market Analysis Identify customers & Markets
Knowledge
Pricing Analysis Determine Prices Management
Sales Trends Prepare 5-Year Forecasts
Strategic
Manufacturing Information Systems
System Description Organizational Level
Machine Control Controls action of equipment
Operational
Computer Aided Design Design new products Knowledge
Production Planning Decide number, Schedule of products
Management
Facilities Location Decide where to locate facilities
Strategic
Finance & Accounting information System
System Description Organization Level
Accounts receivable Track money owed to firm
Operational
Portfolio Analysis Design firms investment Knowledge
Budgeting Prepare short-term budgets
Management
Profit Planning Plan long-term profits Strategic
Human Resources Information System
System Description Organizational Level
Training & Development Track training, skills, appraisals
Operational
Career Pathing Design employee career paths
Knowledge
Compensation Analysis Monitor wages, Salaries, Benefits
Management
Human Resources Planning
Plan long-term manpower needs
Strategic
SYSTEM INTERDEPENDENCE
BUSINESSBUSINESS
StrategyStrategy
RulesRules
ProceduresProcedures
ORGANIZATION ORGANIZATION INFORMATION SYSTEMINFORMATION SYSTEM
HARDWAREHARDWARE
SOFTWARESOFTWARE DATABASEDATABASE
TELE-TELE-COMMUNICATIONSCOMMUNICATIONS
INTERDEPENDENCEINTERDEPENDENCE
Examples of Business Processes
• Manufacturing & Production– Assembling product, checking quality,
producing bills of materials
• Sales & Marketing– Identifying customers, creating customer
awareness, selling
Examples of Business Processes
• Finance & Accounting– Paying creditors, creating financial
statements, managing cash accounts
• Human Resources– Hiring employees, evaluating performance,
employee benefit plans, etc.