The document discusses information technology and its uses in business. It provides overviews of how IT can be used as a sales, management, and customer relationship management tool. It also describes common computer components like the CPU, memory, storage, buses, input/output devices, and networks. Finally, it discusses different types of information systems like transaction processing systems, management information systems, and decision support systems and how they relate to various business functions and organizational levels.

1. The Basic Concepts

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.

9. Computer Components
CPU
Secondary
Storage
Input
Devices
Output
Devices
Communications
Devices
Primary
Storage
Buses

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

16. SYSTEMSYSTEM
INPUT OUTPUTPROCESS
FEEDBACK

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

24. SOCIOLOGYSOCIOLOGY
POLITICALPOLITICAL
SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTERCOMPUTER
SCIENCESCIENCE
OPERATIONSOPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
APPROACHES TO INFO SYSTEMS
MISMIS
BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

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

40. Interrelationship among systems
ESS
MIS DSS
KWS
OAS
TPS

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,
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