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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
Communications
Devices
Primary
Storage
Buses
CPU & Primary Storage
Input
Devices
Output
Devices
Secondary
Storage
CPU
Primary
Storage
Data Bus
Address Bus
Control Bus
CENTRAL PROCESSING UNIT
(CPU)
RAMRAM
PRIMARY (MAIN) MEMORYPRIMARY (MAIN) MEMORY
CONTROL UNITCONTROL UNIT
ARITHMETIC/LOGICARITHMETIC/LOGIC
UNITUNIT
ROMROM
CLOCKCLOCK
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 SYSTEMFUNCTIONS OF AN INFORMATION SYSTEM
INPUT OUTPUTPROCESS
FEEDBACK
INFORMATIONINFORMATION SYSTEMSYSTEM
ENVIRONMENTENVIRONMENT
Customers SuppliersCustomers Suppliers
Regulatory Stockholders CompetitorsRegulatory Stockholders Competitors
AgenciesAgencies
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 of
behavior
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
INFORMATIONINFORMATION
SYSTEMSSYSTEMS
SOCIOLOGYSOCIOLOGY
POLITICALPOLITICAL
SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTERCOMPUTER
SCIENCESCIENCE
OPERATIONSOPERATIONS
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 Applications
Sales & 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 Applications
Manufacturing & 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 Applications
Finance & Accounting Systems
• Major Functions-
– Budgeting, general ledger, billing, cost
accounting
• Major Applications-
– General ledger, Accounts receivable,
accounts payable, budgeting, funds
management systems
Typical TPS Applications
Human 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 Applications
Other 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
Processing
System
MRP System
General
Ledger
System
Sales
Data
Unit
Product
Cost
Product
Chang
e Data
Expens
e 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
OAS
TPS
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
ORGANIZATIONORGANIZATION 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.
About us
Renewable Energy Federation is a Non-Profit-Non-Governmental organization
(NGO), Registered with Department of Charity Commissioner. The Renewable
Energy Federation representing renewable energy producers and promoting the
use of renewable energy. We are committed to the development of the renewable
energy sector. It includes the promotion of the benefits of composting and other
biological treatment techniques for the enhancement of the environment, business
and society. Our interests cover all aspects of renewable energy, including
characteristics, effects and methods of use, and common ground to all those
concerned with the nature and utilization of this renewable non-polluting resource.
Furthermore, Federation strengthens and rationalities the research, demonstration
and development efforts in all renewable energy technologies. Renewable We plan,
monitor and implement projects, emphasizing the development of local institutions,
leadership and skills at all levels. Our internal support structure ensures that each
activity is managed professionally, and we take pride in matching global resources
to local requirements in an optimal and cost-effective manner.
visit us @: www.renewableenergyfederation.org
Contact us @: renewableenergyfederation@gmail.com
Be with us in twitter: https://twitter.com/fedrenew
Join us face to face us in
facebook: http://www.facebook.com/renewableenergyfederation

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Basic Concepts of IT

  • 2. Information Technology A science that has evolved over a period of time to assist businesses in doing better business!!
  • 3. Why IT? • Management & Control • Stiff competition in world markets • Global Work Groups • Global delivery systems
  • 4. IT as a Sales Tool
  • 5. 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
  • 6. 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)
  • 7. 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)
  • 8. CRM • A tool specifically developed to record and retain customer interactions, habits, preferences, likes/dislikes, etc. • Empowers the management with critical customer data.
  • 10. CPU & Primary Storage Input Devices Output Devices Secondary Storage CPU Primary Storage Data Bus Address Bus Control Bus
  • 11. CENTRAL PROCESSING UNIT (CPU) RAMRAM PRIMARY (MAIN) MEMORYPRIMARY (MAIN) MEMORY CONTROL UNITCONTROL UNIT ARITHMETIC/LOGICARITHMETIC/LOGIC UNITUNIT ROMROM CLOCKCLOCK
  • 12. 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 *
  • 13. • 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
  • 14. 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
  • 15. DATABASE MANAGEMENT SYSTEM (DBMS) SOFTWARE TO CREATE & MAINTAIN DATA ENABLES BUSINESS APPLICATIONS TO EXTRACT DATA INDEPENDENT OF SPECIFIC COMPUTER PROGRAMS
  • 17. FUNCTIONS OF AN INFORMATION SYSTEMFUNCTIONS OF AN INFORMATION SYSTEM INPUT OUTPUTPROCESS FEEDBACK INFORMATIONINFORMATION SYSTEMSYSTEM ENVIRONMENTENVIRONMENT Customers SuppliersCustomers Suppliers Regulatory Stockholders CompetitorsRegulatory Stockholders Competitors AgenciesAgencies ORGANIZATIONORGANIZATION
  • 18. COMPUTER-BASED INFORMATION SYSTEMS (CBIS) • FORMAL SYSTEMS • FIXED DEFINITIONS OF DATA, PROCEDURES • COLLECTING, STORING, PROCESSING, DISSEMINATING, USING DATA
  • 19. ORGANIZATIONS • PEOPLE: Managers, knowledge workers, data workers, production or service workers • STRUCTURE: Organization chart, groups of specialists, products, geography
  • 20. ORGANIZATIONS • OPERATING PROCEDURES: Standard Operating Procedures (SOP), rules for action • POLITICS: Power to persuade, get things done • CULTURE: Customs of behavior
  • 21. MAJOR BUSINESS FUNCTIONS • SALES & MARKETING • MANUFACTURING • FINANCE • ACCOUNTING • HUMAN RESOURCES
  • 22. TRANSFORMATION OF ENTERPRISE • FLATTENING • DECENTRALIZATION • FLEXIBILITY • LOCATION INDEPENDENCE • LOW TRANSACTION COSTS • EMPOWERMENT • COLLABORATIVE WORK
  • 23. INFORMATION SYSTEMSINFORMATION SYSTEMS ORGANIZATIONSORGANIZATIONS TECHNOLOGYTECHNOLOGY MANAGEMENTMANAGEMENT INFORMATIONINFORMATION SYSTEMSSYSTEMS
  • 25. 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)
  • 26. Management Information System • Management Level- – Inputs-High volume data – Processing-Simple models – Outputs-Summary reports – Users-Middle Managers • Example-Annual Budgeting
  • 27. Typical TPS Applications Sales & Marketing Systems • Major Functions- – Sales Management, Market Research, Promotion, Pricing, New Products • Major Applications- – Sales Order info systems, Market research system, pricing system
  • 28. Typical TPS Applications Manufacturing & 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
  • 29. Typical TPS Applications Finance & Accounting Systems • Major Functions- – Budgeting, general ledger, billing, cost accounting • Major Applications- – General ledger, Accounts receivable, accounts payable, budgeting, funds management systems
  • 30. Typical TPS Applications Human Resources Systems • Major Functions- – Personnel records, benefits, compensation, labor relations, training. • Major Applications- – Payroll, employee records, benefit systems, career path systems, personnel training systems
  • 31. Typical TPS Applications Other 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.
  • 32. Knowledge Work Systems • Knowledge Level – Inputs-Design specs – Processing-Modeling – Outputs-Design, Graphics – Users-Technical staff • Example-Engineering work station
  • 33. Office Automation System • Towards a “Paperless” office • Redesign a workflow • Integrated Software • Bright, Cheerful workplace
  • 34. Management Information System • Structured & semi-structured decisions • Report control oriented • Past & present data • Internal orientation • Lengthy design process
  • 35. TPS Data for MIS Applications TPS Order File Production Master File Accounting File Order Processing System MRP System General Ledger System Sales Data Unit Product Cost Product Chang e Data Expens e Data MIS Reports Managers MIS
  • 36. Decision Support Systems • Management Level – Inputs-Low volume data – Processing-Interactive – Output-Decision Analysis – Users-Professionals, Staff • Example-Contract Cost Analysis
  • 37. Decision Support Systems • Flexible, Adaptable, Quick • User controls Inputs/Outputs • No professional programming • Supports decision process • Sophisticated Modelling tools
  • 38. Executive Support Systems • Strategic Level – Inputs-Aggregate data – Processing-Interactive – Outputs-Projections – Users-Senior Managers • Example-5 Yrs operating plan
  • 39. Executive Support Systems • Top level Management • Designated to Individual • Ties CEO to all levels • Very expensive to keep up • Extensive support staff
  • 41. Systems from a Functional Perspective • Sales & Marketing Systems • Manufacturing & Production Systems • Finance & Accounting Systems • Human Resource Systems
  • 42. 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
  • 43. 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
  • 44. 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
  • 45. 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
  • 46. SYSTEM INTERDEPENDENCE BUSINESSBUSINESS StrategyStrategy RulesRules ProceduresProcedures ORGANIZATIONORGANIZATION INFORMATION SYSTEMINFORMATION SYSTEM HARDWAREHARDWARE SOFTWARESOFTWARE DATABASEDATABASE TELE-TELE- COMMUNICATIONSCOMMUNICATIONS INTERDEPENDENCEINTERDEPENDENCE
  • 47. Examples of Business Processes • Manufacturing & Production – Assembling product, checking quality, producing bills of materials • Sales & Marketing – Identifying customers, creating customer awareness, selling
  • 48. Examples of Business Processes • Finance & Accounting – Paying creditors, creating financial statements, managing cash accounts • Human Resources – Hiring employees, evaluating performance, employee benefit plans, etc.
  • 49. About us Renewable Energy Federation is a Non-Profit-Non-Governmental organization (NGO), Registered with Department of Charity Commissioner. The Renewable Energy Federation representing renewable energy producers and promoting the use of renewable energy. We are committed to the development of the renewable energy sector. It includes the promotion of the benefits of composting and other biological treatment techniques for the enhancement of the environment, business and society. Our interests cover all aspects of renewable energy, including characteristics, effects and methods of use, and common ground to all those concerned with the nature and utilization of this renewable non-polluting resource. Furthermore, Federation strengthens and rationalities the research, demonstration and development efforts in all renewable energy technologies. Renewable We plan, monitor and implement projects, emphasizing the development of local institutions, leadership and skills at all levels. Our internal support structure ensures that each activity is managed professionally, and we take pride in matching global resources to local requirements in an optimal and cost-effective manner. visit us @: www.renewableenergyfederation.org Contact us @: renewableenergyfederation@gmail.com Be with us in twitter: https://twitter.com/fedrenew Join us face to face us in facebook: http://www.facebook.com/renewableenergyfederation