Computerization is rapidly affecting all business functions. As computer use grows, it is changing organizational structures and centralizing decision making. Computers are reducing the role of middle managers by making their highly structured decisions algorithmic, while also enabling top managers to directly access and use computer systems through improved interfaces. Overall, computerization is making organizations more self-sufficient, increasing sales, reducing costs, and speeding up processes like research and development.

1. By
SONI P SOMAN

2. • Business organizations are today facing a period of rapid “computerization “
of almost all functions .
• The rapid growth of computer use in business, government and the military
service has led to much speculation concerning the impact computers will have
on the using organisations.
 Structure change
• This point of view is based on the tendency for an increasing number of
computer personnel to report directly to top management
• shows an increasing high-level involvement in this function and supports
the idea that a "new management" is evolving.

3. How Computer-Based Information Systems
Affect the Organizational Hierarchy
 Middle management
•The typical decision situation at the middle management level is highly
structured
• These decisions are composed of identifiable quantified elements capable
of being rigorously manipulated.

4. • Reducing the role of the middle manager, the computer has made
possible the expansion of existing operations and has resulted in the
addition of middle management positions
 Centralization
• That a computerized data system can provide one person in a central
position with the total information needed for decision-making and control.
• computers have become much more accessible, understandable, and,
easier to use. Because of teleprocessing, time sharing, and user-oriented
computer languages, top managers are now able to use computers directly.

5. Business Information Systems
 Types
 Transaction processing systems
 E-commerce systems
 Management information systems
 Decision support systems
 Expert systems

6. Transactions Processing Systems (TPS)
An organized collection of people, procedures, software,
databases, and devices used to record completed for
business related exchanges
Payroll Example
Hours
worked
Payroll Payroll
transaction checks
Pay processing
rate

7. E-Commerce System
Purchase Order - Traditional
 E-commerce
• Involves any business
transaction executed
electronically
• Conducting business on-line
Purchase Order – E-commerce

8. Management Information Systems
 An MIS is…
 An organized collection of
people, procedures, software, databases, and devices used
to provide routine information to managers and decision
makers
Decision Support Systems
 A DSS is…
 An organized collection of
people, procedures, software, databases, and devices used
to support problem-specific decision making
 A DSS helps a manger “do the right thing”

9. Expert Systems
 An expert system is…
 A computer application that performs a task that would
otherwise be performed by a human expert
 gives the computer the ability to make suggestions and to act
like an expert in a particular field
 Examples: diagnose human illnesses, make financial forecasts,
schedule routes for delivery vehicles
 Expert systems typically include “artificial intelligence”

10. Artificial Intelligence (1)
The branch of computer science concerned with making computers
behave like humans. The term was coined in 1956 by John McCarthy
at the Massachusetts Institute of Technology. Artificial intelligence
includes ;
 games playing
 expert systems
 natural language
 neural networks
 robotics

11. Computerized organization ; benefits
 Self-Sufficiency
 Sales
 Cost-Effective
 Speed
 Cheaper Research and
Development

12. Conclusion
Computers have tremendously improved
the way businesses operate in their
respective industries. Technology has
advanced so remarkably that those who are
not using computers in their business are
at a major disadvantage against their
competitors