Changing Environment And Its Impact On Business Information Technology Essay

Changing Environment And Its Impact On Business nurture Technology EssayWith the emergence of internet, melody organization of 20th century has underg star structural, cultural and qualitative change, the way personal credit line is done and a new organization structure has emerged k at presentn as E contrast endeavour. E stage strain enterprise enables employees, professionals, terms, groups, vendors, guests to perform business operations through electronic exchange of entropy and tuition anywhere at any cartridge clip. The business operations be performed through E communication and collaboration initiatives. Therefore, E business enterprise has a global commercialize, reach, source and global competition. Due to extensive physical exercise of technology, the enterprise is now called a digital firm. The business process argon considered through enterprise software like ERP (Enterprise vision Planning), SCM (Supply Chain counselling) and CRM (Customer Relationship Management) supported by info wareho design, determination support dodging, bonkledge counseling and satiate focusing constitution. tuition Technology (IT) consists of computer hardware, software, data and storage technology, and net wricks along with the human resources required to direct the technology. The managers and employees directly interact with these carcasss, it is important for the company now and in the future that the tuition architecture and IT al-Qaida meet the business requirements of the company and that the corpses eject work together where infallible.An Information System (IS) as interconnected components that work together to collect, process, store, and disseminate study to support termination fashioning, coordination, entertain, summary, and visualization in an organization.An Inofrmation System (IS) can be any organised combination of people, hardware, software, communication networks, and data resources that stores and retrieves, transfo rms and disseminates study in an organizationThe knit stitch of Information Systems encompasses many complex technologies abstract behavioral concepts, and specialized operation in countless business and nonbusiness areas. The interpret beside Illustrates a consumptionful conceptual framework that organizes the knowledge presented in the text and outlines what you need to know about information system.For Detailed Information Students are requested to refer MIS by James 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 provides an organization with support for business processes and operations, ratiocination do, and competitive advantage yield Business Process and Operations As a consumer, you regularly undertake information system that supports the business process and operations at the many retail stores where you shop. For example or so retail stores now call computer based information system to help them record customer purchases, keep track of account, pay employees, buy new mathematical product, and evaluate sales trends. Store operations would drive to a halt without the support of such information system stand-in finality Making Information System too help store managers and other business professionals reserve better finality. For Example, decisions on what lines of merchandise need to be added or discontinued, or on what kind of investment they require, are typically do after an analysis provide by computer based information systems. This not only supports the decision making of stores managers, buyers and other, solely withal helps them look 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 technologies. For exa mple, store guidance might make a decision to install touch interpenetrate kiosks in all of their stores, with link to their e-commerce web site for online shopping. This might attract new customers and manikin 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 degree advantage over its competitors.DATA INFORMATION AND ITS ATTRIBUTESDProjectsken pptslides imageslaudonf01-02.gifData Streams of raw facts representing events such as business trans legal effectsInformation Clusters of facts those are meaning(prenominal) 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 system produce the information that organizations need to make decision, control operations, go bad problem and create new products or services. These activities are input, bear upon and output. Input Captures or collects raw data from within the organization of from its immaterial environment. Processing 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 used. Information system also require feedback, which is output that is returned to appropriate members of the organization to help them evaluate or jog the input stageD mountain 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 succeeding(a) dash.Action Versus No-action InformationRecurring Versus Non-recurring informationInternal Versus External InformationPlanning Information concord InformationKnowledge Information cheekal 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 birth report calling a purchase action is an action information but the stock ledger showing the store relationss 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 seek 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, while the information g enerated through the government reports, the indus submit surveys, etc is termed as an foreign information, as the sources of the data are outside the organization.Planning information certain standards, norms and specification are used in the readiness of any activity. Hence, such information is called the planning information. The beat standards, the usable standards, the design standards are the examples of the planning information. carry 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 know as knowledge information. Such a collection is not directly connected to decision making, but the need of knowledge is p erceived 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 billetal or the operational information.Module 2Transaction processing systems (TPS) are basic business systems that serve the operational level of the organization by recording the passing(a) routine performances required to conduct business, such as payroll and sales receipts. Transactional Processing system is a computerized system that performs and records the daily routine proceeding necessary to conduct business. Examples of TPS are order insertion system, cheque processing system, accounts receivable systems, accounts payable systems and ticket reservation systems. T hese systems help any company to conduct operations and keep track of its activities. TPS was first becomeed in the year 1950s in write up 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 purpose of systems at this level is to cause 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 pre define and highly organise. The decision to grant credit to a customer, for instance, is made by a press down level supervisor according to predefined criteria. All that must be determined is whether the customer meets the criteriaHmis10eimagesimg02_06.jpgThe fi gure 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 linked to it. estimate 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 includeCalculationClassificationSortingStorageSummarizationTypes of Functional categories of TPS SystemsDKen ppt -Rituch2imageslaudonf02-04.gifManagement Information SystemThe MIS has More than one Definition, rough of which are given belowThe MIS is defined as a system which provides information support for decision making in the organization.The MIS is defined as an integrated system of man and machine for pro viding 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 pose managers interests by providing current and historical performance 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.Middle Management needs systems to help with monitoring, controlling, decision making, and administrative activities. The principal question addressed by such systems is this atomic number 18 things working well?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 major portion of the overheads g oes 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. usance of the Management Information System.The system ensures that an appropriate data is collected for the various sources, processed and sent save 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 effect in the transaction processing and answers their queries on the data pertain ing 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. stopping point Support systemHmis10eimagesimg02_08.jpgDSS is an interactive computer based system which facilitates the solution of unorganised problem.Scott Morton Defined determination Support system as Interactive computer based systems, which help decision producers utilize data and models to solve unstructured problemIt supports non routine decision making for middle management. They focus on problems that are unique and cursorily 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 enumerationd if we were to d ouble sales in the month of December? What would happen to our return on investment if a factory 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 test 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 interfaceIt is a way to organize information intended for use in decision makin gAbility to quickly and objectively try contrasting strategies under different configurationsOther CharacteristicsCost SavingsImproving managerial effectivenessExtensive range of support to managementSupport of individual / groupGraphic 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 simple 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 inquiry system The number 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 unique relationData analysis system These Decision systems are based on comparative analysis, and use of a formula or an algorithm. But 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 decision 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 content 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 computer programming rules, and the resource or asset or facilities planning systems are the examples.Executive Support SystemThese are management information systems tailored to be nefit the strategic information needs of the top management / elder 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(prenominal) 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 weak 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 organizational 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 clear 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 earlier than the long-term structured analysis of MIS. MIS are generally not flexible and provide little analytic 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 advanced 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 running(a) programming or forecasting. However, they often rely on external data and rely heavily on graphics.Describe the relationship between TPS, office 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 transactions 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.