Changing Environment And Its Impact On Business Information Technology Essay

Changing Environment And Its Impact On Business development Technology sampleWith the emergence of internet, business presidential term of 20th century has chthonicg unrivalled structural, cultural and qualitative change, the way business is d unmatchable and a new organization structure has emerged know as E business enterprise. E business enterprise enables employees, professionals, terms, groups, vendors, customers to perform business trading operations by means of electronic exchange of selective information and education any(prenominal)place at any time. The business operations ar performed done E communication and collaboration initiatives. Therefore, E business enterprise has a global market, reach, address and global competition. Due to extensive use of technology, the enterprise is now called a digital firm. The business process are conducted through enterprise software interchangeable ERP (Enterprise Resource Planning), SCM (Supply Chain Management) and CRM (Cu stomer Relationship Management) comported by selective information warehouse, stopping point wear formation, knowledge worry and content management system.Information Technology (IT) consists of ready reckoner hardware, software, entropy and storage technology, and networks along with the human resources required to operate the technology. The managers and employees directly interact with these systems, it is important for the company now and in the future that the cultivation figurer architecture and IT infrastructure meet the business requirements of the company and that the systems cornerstone work together where needed.An Information system (IS) as interrelated components that work together to collect, process, enclose, and dis seminate learning to support purpose making, coordination, control, analysis, and visualization in an organization.An Inofrmation System (IS) can be any organised combination of stack, hardware, software, communication networks, and data res ources that stores and retrieves, transforms and disseminates culture in an organizationThe Field of Information Systems encompasses many complex technologies abstract behavioral concepts, and specialized application in countless business and nonbusiness areas. The figure beside Illustrates a useful conceptual framework that organizes the knowledge pre moveed in the text and outlines what you need to know about information system.For Detailed Information Students are requested to refer MIS by jam A OBrien Page 6 7This framework Outlines the Major areas of InformationSystems Knowledge needed by business professionalsThe Three Major roles of the business applications of information systems. Information system proposes an organization with support for business processes and operations, decision making, and competitive advantageSupport Business Process and Operations As a consumer, you regularly encounter information system that supports the business process and operations at the m any retail stores where you shop. For example most retail stores now use computer tail endd information system to help them record customer purchases, keep track of inventory, pay employees, buy new merchandise, and evaluate gross revenue trends. Store operations would grind to a halt without the support of such information systemSupport finis Making Information System also help store managers and other business professionals make better decision. For Example, decisions on what lines of merchandise need to be added or discontinued, or on what kind of investment they require, are typically made after an analysis provide by computer found information systems. This not only supports the decision making of stores managers, buyers and other, exclusively also helps them fount for ways to gain an advantage over other retailers in the competition for customers.Support Competitive Advantage Gaining a strategic advantage over competitors requires innovative application of information te chnologies. For example, store management exponent make a decision to install touch screen kiosks in all of their stores, with link to their e-commerce meshwork site for online shopping. This might attract new customers and build customer loyalty because of the case of shopping and buying merchandise provide by such information system. Thus, strategic information systems can help provide products and services that give a business a comparative advantage over its competitors.DATA selective information AND ITS ATTRIBUTESDProjectsken pptslides imageslaudonf01-02.gifData Streams of raw facts representing events such as business trans go throughsInformation Clusters of facts those are meaningful and useful to human beings in the processes such as making decisionsThe Features / Attributes / Characteristics of InformationImproves representation of an entityUpdates the level of KnowledgeHas a surprise valueReduces uncertaintyAids in decision makingThree activities in an information syst em produce the information that organizations need to make decision, control operations, analyze problem and create new products or services. These activities are input, processing and output. arousal Captures or collects raw data from within the organization of from its external environment. process converts this raw input into a meaningful form. Output transfers the processed information to the people who will use it or to the activities for activities for which it will be utilise. Information system also require feedback, which is output that is returned to appropriate members of the organization to help them evaluate or correct the input stageDKen ppt -Rituch2imageslaudonf01-03.gifCLASSIFICATION OF THE INFORMATIONThe information can be classified in a number of ways provide to a better understanding. John Dearden of Harvard University classifies information in the following manner.Action Versus No- operation InformationRecurring Versus Non-recurring informationInternal Versus External InformationPlanning InformationControl InformationKnowledge InformationOrganizational InformationDatabase informationFunctional or Operational informationAction Versus No-action Information The information which induces action is called as action information. The information which communicates only the status of a situation is a no-action information. No buy in report calling a purchase action is an action information but the stock ledger showing the store transactions and the stock balance is a No-action information.Recurring versus non recurring information The information generated at regular intervals is recurring information. The monthly sales reports, the stock statements, the trial balance, etc are recurring information. The financial analysis or the report on the market research study is non recurring information.Internal versus External information the information generated through the internal sources of the organization is termed as an internal information, whil e the information generated through the government reports, the industry surveys, etc is termed as an external information, as the sources of the data are outside the organization.Planning information certain standards, norms and specification are used in the planning of any legal action. Hence, such information is called the planning information. The time standards, the working(a) standards, the design standards are the examples of the planning information.Control information Reporting the status of an activity through a feedback mechanism is called the control information. When such information shows a deviation from the goal or the objective, it will induce a decision or an action leading to control.Knowledge Information A collection of information through the library reports and the research studies to build up a knowledge base as an information source for decision making is known as knowledge information. Such a collection is not directly connected to decision making, but the need of knowledge is perceived as a power or a strength of the organization.Organization Information When the information is used y everybody in the organization, it is called as organization information.Database Information When the information has a multiple use and application, it is called the database informationFunctional or the operational information When the information is used in the operations of a business it is called functional or the operational information.Module 2Transaction processing systems (TPS) are basic business systems that give ear the operational level of the organization by recording the daily routine transactions required to conduct business, such as payroll and sales receipts. Transactional Processing system is a computerized system that performs and records the daily routine transactions necessary to conduct business. Examples of TPS are auberge entry system, cheque processing system, accounts receivable systems, accounts collectable systems and tic ket reservation systems. These systems help any company to conduct operations and keep track of its activities. TPS was first developed in the year 1950s in accounting departments of major corporations. It is the oldest type of information system and can be called as the work horse of the information system industry for the last 50 years.DKen ppt -Rituch2imageslaudonf02-02.gifThe principal nominate of systems at this level is to answer routine questions and to track the flow of transactions through the organization. How many parts are in inventory? What happened to Mr. Williams payment? To answer these kind of questions, information generally must be easily available, current, and accurate. At the operational level, tasks resources, and goals are predefined and highly structured. The decision to kick in credit to a customer, for instance, is made by a lower level supervisor according to predefined criteria. All that must be determined is whether the customer meets the criteriaHmis 10eimagesimg02_06.jpgThe figure illustrated beside is transaction processing system.Managers need TPS to monitor the status of internal operations and the firms the external environment. TPS are also major producers of information for the other types of systemTPS are often so central to a business that TPS failure for few hours can lead to a firms demise and perhaps that of other firms tie in to it. Imagine what would the airlines do without their computerized reservation system?Transaction processing is the set of procedures for handling the transactions.Common Activities in transaction processing includeCalculation assortmentSortingStorageSummarizationTypes of Functional categories of TPS SystemsDKen ppt -Rituch2imageslaudonf02-04.gifManagement Information SystemThe MIS has More than one Definition, some of which are given on a lower floorThe MIS is defined as a system which provides information support for decision making in the organization.The MIS is defined as an integrated s ystem of man and elevator car for providing the information to support the operations, the management and the decision making function in the organization.The MIS is defined as a system based on the database of the organization evolved for the purpose of providing information to the people in the organization.The MIS is defined as a computer based information system.It serve middle managers interests by providing current and historical cognitive process information to aid in planning, controlling, and decision making at the management level. MIS typically compress TPS data to present regular reports on the companys basic operations. set Management needs systems to help with monitoring, controlling, decision making, and administrative activities. The principal question addressed by such systems is this Are things working good?In any organization, small or big, a major portion of the time goes in data collection processing, documenting and communication it to the people. Hence, a m ajor portion of the overheads goes into this kind of unproductive work in the organization. Every individual in an organization is continuously looking for some information which is needed to perform his / her task. Hence, the information is people oriented and it varies with the nature of the people in t he organization.Role of the Management Information System.The system ensures that an appropriate data is collected for the various sources, processed and sent further to all the need destinations.The system is expected to fulfill the information needs of an individual, a group of individuals, the management functionaries the managers and the top management.The MIS satisfies the diverse needs through a variety of systems such as query systems, analysis system, modeling systems and decision support systemMIS helps in strategic planning , management control, operational control and transactional processingThe MIS helps the clerical personnel in the transaction processing and answers t heir queries on the data pertaining to the transaction, that status of a particular record and references on a variety of documentsThe MIS plays the role of information generation, communication, problem identification and helps in the process of decision making. The MIS, therefore, plays a vital role in the management, administration and operations of an organization.Decision Support systemHmis10eimagesimg02_08.jpgDSS is an interactive computer based system which facilitates the dissolvent of unstructured problem.Scott Morton Defined Decision Support system as Interactive computer based systems, which help decision makers utilize data and models to solve unstructured problemIt supports non routine decision making for middle management. They focus on problems that are ludicrous and rapidly changing, for which the procedure for arriving at a solution may not be fully predefined in advance. They try answering questions such as these what would be the impact on production scheduled i f we were to double sales in the month of December? What would happen to our return on investment if a milling machinery schedule were delayed for six months?Although DSS are internal information from TPS and MIS they often bring in information from external sources, such as current stock prices or product prices of competitors. These systems use a variety of models to analyze data, or they condense large amounts of data into a form in which decision makers can analyze them. DSSCharacteristics of DSSAbility to support the solution of complex problemFast response to unexpected situations that result in changed inputsDesigned to help support decisions that are formulated as semi structured, complex problemsMay be constructed to support one time decisionsDSS is typically designed for either a particular decision maker or a group of decision makersAllows the decision makers to interact in a natural manner due to careful design of the portIt is a way to organize information intended for use in decision makingAbility to quickly and objectively try different strategies under different configurationsOther CharacteristicsCost SavingsImproving managerial effectivenessExtensive range of support to managementSupport of individual / group natural DisplayDesigned and run managers incorporated data and modelsAttributes of Decision Support systemFlexibility The system are flexible so that any semi structured or unstructured decision making sitation can be tackled with ease and speedSimple models The systems use dim-witted models of decision making. The only change is that a different set of information is sought for the use of different models. The choice of a model depends upon the complexity of decision makingDatabase the decision support system needs database(s). The system calls for several inputs from database(s) from decision making. The use of information being common, input to the system is from the databaseTypes of Decision Support SystemStatus doubt system The nu mber of decisions in the operational management and some at the middle management are such that they are based on one or two aspects of a decision making situations. It does not call for any elaborate computations, analysis, choice, etc. for decision making. If the status is known, the decision is automatic, i.e., the status and solution is alone(p) relationData analysis system These Decision systems are based on comparative analysis, and use of a formula or an algorithm. precisely these processes are not structured and, therefore vary. The cash flow analysis, the inventory analysis and the personal inventory system are examples of the analysis systems. The use of simple data processing tools and business roles are required to develop this system.Information analysis system In this system, the data is analyzed and information reports are generated. The reports might be having exceptions as a feature. The decision makers use these reports for assessment of the situation for decisio n making. The sales analysis, the accounts receivable systems, the market research analysis, the MRP systems are examples of the systems.Accounting System These systems are not necessarily required for decision making but they are desirable to keep track of the major aspects of the business or a function. The contents of these systems are more data processing leading to formal reporting, with exceptions, if necessary. These systems account items such as cash, inventory, personnel and so on and relate it to a norm or norms developed by the management, for control and decisionModel based systems These systems are simulation model or optimization models for decisions making. These decisions, generally, are one time and infrequent and provide general guidelines for operation or management, the product mix decision, the material mix, the job scheduling rules, and the resource or asset or facilities planning systems are the examples.Executive Support SystemThese are management information systems tailored to benefit the strategic information needs of the top management / elderberry bush executive. ESS summarizes and presents data at the highest levels of aggregation. Usually, they involve presenting reports in standard formats and they often involve graphics.ESS is the newest of the five categories of MIS. They have had the least acceptance of the five types. The reason being that most executives started their careers prior to widespread use of computer.Executive Support systems provide critical information from a wide variety of internal and external sources in easy to use displays to executives and managers. For example, top executive may use touch screen terminals to instantly view text and graphics displays that highlight key areas of organisational and competitive performanceWhat are the characteristics of MIS? How do MIS differ from TPS? From DSS?MIS supports the management level by providing routine summary reports and exception reports for various purposes, including planning, controlling, and decision making. Examples include sales and profit per customer and per region, relocation summary and analysis, inventory control, capital investment analysis, and even a report on students who were here in the autumn but did not to return in the spring. MIS differs from TPS in that MIS deals with summarized and compressed data from the TPS and sometimes analysis of that summarized data.Decision-support systems provide material for analysis for the solution of semi-structured problems, which often are unique or rapidly changing. Typically, they provide the ability to do what if analysis. While MIS have an internal orientation, DSS will often use data from external sources, as well as data from TPS and MIS. DSS supports right now analysis rather than the long-term structured analysis of MIS. MIS are generally not flexible and provide olive-sized analytical capabilities. In contrast, DSS are designed for analytical purposes and are flexible.What are the characteristics of DSS? How do they differ from those of ESS?DSS provide sophisticated analytical models and data analysis tools to support semi structured and unstructured decision-making activities. DSS use data from TPS, MIS, and external sources, provide more analytical power than other systems, combine data, and are interactive. ESS support senior managers with unstructured strategic-level decision making. They may be less analytical than DSS with less use of models such as linear programming or forecasting. However, they often deposit on external data and rely heavily on graphics.Describe the relationship between TPS, note systems, KWS, MIS, DSS, and ESS.The various types of systems in the organization exchange data with one another. TPS are a major source of data for other systems, especially MIS and DSS. TPS are operational-level systems that collect transaction data. Examples of these are payroll or order processing that track the flow of the daily routine transa ctions that are necessary to conduct business. TPS provide data that are required by office systems, KWS, MIS and DSS, although these systems may also use other data. KWS and office systems not only use data from TPS but also from MIS. DSS not only use data from TPS but also from KWS, office systems, and MIS. MIS rely heavily on data from TPS but also use data from KWS and office systems. ESS obtains most of their internal data from MIS and DSS.