Information Technology on business

1. UNIT I

2. 1.1 NEED FOR INFORMATION SYSTEM
FOR BUSINESS
 Information System Definition :
Information System is a group of connected components
 Input data
 Process data
 Output data
 Feed back
Which are dependent on each other.
Example : ATM’s Reservation Systems.

3. NEED FOR IS
 Fast and Accurate Transaction Processing
 Storage with Large-capacity and Fast access.
 Fast communications.
 Competitive Weapons
 Support for Decision –making
 Reduction in Information Overload
 Cross Divisional Abilities

4. 1.2 BUSINESS IN THE INFORMATION
AGE
 These various trends put a lot of pressure on the
companies. Different Pressures the company has to
deal with are,
 Global competition for trade and Labor.
 Necessity of real time operations.
 Rapidly changing workforce.
 Customer orientation
 Technology Innovation
 Overload of Information
 Social responsibility
 Ethical issues.

5. CUSTOMER ORIENTATION
Customer satisfaction involves giving complete
information to the customers such as..
1. Cost of a Product
2. Lifetime of a Product
3. Various feature of the Product etc.
Different companies must keep updating their website
regularly with new information about their products.

6. ORGANIZATIONAL RESPONSES
1. Strategic Systems
2. Business Process Re-engineering(BPR)
3. E-Commerce
4. Business Alliances
5. Continuous improvement efforts.

7. STRATEGIC SYSTEMS - CHARACTERISTS
 ADHOCNESS
 UNEXPECTEDNESS
 PREDICTIVENESS
 SUMMARYNESS
 EXTERNAL SOURCE
 UNSTRUCTURED
 SUBJECTIVENESS

8. Accounting /
Finance
Marketing Production Human Resources
TACTICAL:
Budgeting Sales Management Materials
Requirements
Planning
Job analysis and
design
Cash Management Advertising and
Promotion
Just in time Recruiting
Capital Budgeting Pricing Capacity Planning Compensation and
benefits
Investment
Management
Distribution
Channel
Production
Scheduling
Succession Planning
Competitive
Tracking
Product design and
Development
Manufacturing
Resource Planning

9. BUSINESS PROCESS RE-ENGINEERING
(BPR)
 Re-engineering has impact on,
1. Job design
2. Organisational Structure
3. Career Path
4. Work Standards
5. Management Style
6. Training and
7. People needed.

10. E-COMMERCE
 E-Commerce applications are built on the existing
technology infrastructure that is myriad of
computers, communications networks and
communication software forming the information
superhighway.
 The uses of each of the building blocks in the
infrastructure are
i. Common business services
ii. Messaging and information distribution
iii. Multimedia Content and Network publishing
iv. The information Superhighway

11. BUSINESS ALLIANCES
 Different forms of business alliances are,
a) Transmission of resources properly.
b) Reliable relationship between customer and supplier.
These alliances are obtained by the following processes.
v. Supply chain management
vi. Enterprise resource planning

12. CONTINOUS IMPROVEMENT EFFORTS
 Various Efforts of Improvement are,
 Just – In – Time (JIT)
 Total Quality Management (TQM)

13. TOTAL QUALITY MANAGEMENT(TQM)
Global
competition For
trade and Labor
Necessity for real
time operations
Customer
orientation
Technology
innovation
Overload of
information
Social
responsibility
Rapidly changing
workforce
Ethical
issues
B
u
si
n
e
ss
P
re
ss
u
re
s
Business Pressures
Business
Alliance
Necessity for
real time
operations
Rapidly
changing
workforce
Continuous
improvement efforts
Business Process
Reengineering
(BPR)

14. INFORMATION SYSTEMS
CONCEPTS
 Information System
 Information is the processed form of a data.
 Types of Information Systems
 Operational
 Tactical
 Strategic Planning Systems
 Components of Information Systems
 Hardware
 Software
 People
 Data Storage
 Procedures

15. COMPUTER BASED IS (CBIS)
 CBIS:
 An Information System that utilizes the computer and
telecommunication technology to accomplish its tasks is
called CBIS.
 Components:
1. Hardware
2. Software
3. Database
4. Network
5. Procedure
6. People

16. CBIS
hardware
Network
internet or
communicati
on
CBIS
software database
people
procedures

17. Importance of CBIS
 Facilitates support organization by fulfilling information
needs of organizations workforce.
 The purpose of CBIS :
 Long term benefit
 Strategic planning to stand against its competitors
 It allows alteration of the structure of the organization
and improve existing ones
 CBIS capture , transform and distribute information.
 It also improves
 decision making
 Performance
 Increase profitability

18. CS Vs CBIS
 A Computer System is an
electronic system that takes
input, processes the input
and generates output-self in
the specified form.
 It can do calculation a a
much greater speed than
human beings.
 Moreover, It can store data
temporarily as well as
permanently.
 CBIS is a special type of IS
that is partially or completely
computerized.
 Some IS take data while
others may take information
from other IS’s.
 However, CBIS takes only
data as input.
 Generally CBIS is
interchangeably used with IS.

19. Arithmetic
Logic Unit
Control
Unit
Memory
Unit
Output
Unit
Input
Unit

20. Computer System (CS)
 Components:
 Input Unit
 Output Unit
 Memory Unit
 Central Processing Unit (CPU)

21. Categories of IS
Depending upon the level of support provided while
executing the operations of different levels of an
organization the following categories evolved.
3. Operation Support System
4. Management Support System

22. Operation Support System
 OSS closely monitors the on-going transactions with
the organizations.
 OSS mainly required for performing low level
operations. It provides support to the organization by
keeping track of information regarding activities,
which are performed on daily basis.
3. Transaction Processing System
4. Office Automation System

23. Management Support System
 MSS is used by tactical level managers as well as
strategic level managers.
 Its main objective is to Provide information and
support, which is required by managers in
performing decision –making process.
1. Management Information System
2. Decision Support System
3. Executive Information System

24. QUERIES