THE INFORMATION SYSTEMS REVOLUTION TRANSFORMING BUSINESS AND MANAGEMENT By ELITE GROUP
Information system Technically as a set of interrelated components-
collect, process, store, and distribution. CBIS. i.e. SCADA, LOTUS Help in : decision making, coordination, control in an organization. Well arranged database.
Information system (CBIS)
FUNCTION OF INFORMATION SYSTEM
GUESS Goes digital. Faced competition. Implemented new concept. Suppliers: ApparelBuy.com Customer : GUESS.com Employee: GUESSExpress- Intranet
Why information systems Lesser time consumption. Continuous. Mass information sharing. Arranged Database. Reduces manpower. Eco-friendly.
Why information systems Essential for managers. For organizational Survival. Reach to far away locations. Offer new product and services.
Emerging Digital Firms Emergence of global economy:
1.Imports and exports. 2.Ability to operate globally. 3.Global scale communication and analytical power. 4.24X7. 5.Domestic business Vs Global business. 6. 7.
Transformation of Industrial Economies 1.Products that require a great deal of learning & knowledge to produce. 2.Employing Millions of People. 3.Optimize within Organization and Maximize Firm’s Knowledge Resources.
LABOR FORCE COMPOSITION 19001997 (Figure 1-1)
70% 60% 50% 40% 30% 20%
% SERVICE
10% % WHITE COLLAR
0%
% BLUE COLLAR
YEAR % FARMING
Transformation of enterprise 1.Flattening. 2.Decentralization. 3.Flexibility. 4.Empowerment.
The Emerging Digital Firm Fully digitally enabled.
(ebay.com, amezon.com) Business process- unique manner. (organized, coordinated, focused to product) Key Corporate assets- support. Rapid sharing-Flexibility.
CISCO Use of internet in everyway it can. 90% sales via internet. Actual customer order not of projection. Direct to customer. Cuts delivery time 70%. “We do not touch product at all”. Online customer service. 8,00,000 quires/
month, 85% resolved.
SYSTEM Set of inter-related components that
collect,process,store and distribute information to support decision making,coordination and control in an organization. Help managers and workers in decision making.
What is SYSTEM ?
INPUT
PROCESS
OUTPUT
FEEDBACK
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Data, Information, and Systems The Three Stages of Data Processing Input: Data is collected and entered into
computer.
Data processing: Data is manipulated into
information using mathematical, statistical, and other tools.
Output: Information is displayed or presented. 18
There is a feedback mechanism that monitors
the output with respect to objectives. For example room air conditioners
COMPUTER BASED INFORMATION SYSTEM Fundamental work is to manage information in
an efficient way such that it can utilize by manager effectively to solve the problems.
Computer and programs are hammer,nails and
lumber of CBIS but alone they cannot produced the information The users of computer based information are
1.Managers.
2.Non managers.
3.Persons and organizations included in the firm
BUSINESS PROSPECTIVE OF INFORMATION SYSTEM To understand organization a manager can
understand …..
INFORMATION SYSTEMS
ORGANIZATIONS
TECHNOLOGY
INFORMATION SYSTEMS
MANAGEMENT 1-
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ORGANIZATION People of different kinds Knowledge workers Data workers Production or service workers
Management People at different level (a)Senior manager (b)Middle manager (c)Operational manager
Technology Computer software Storage technology Communication technology
APPROACHES TO INFO SYSTEMS TECHNICAL APPROACHES
COMPUTER
OPERATIONS
SCIENCE
RESEARCH MANAGEMENT SCIENCE
MIS SOCIOLOGY
PSYCHOLOGY
POLITICAL SCIENCE
BEHAVIORAL APPROACHES 1-
27
Sociotechnical perspective
Optimize system performance: Technology & organization mutually adjust to one another Until fit is satisfactory
A Sociotechnical Perspective on IS
SYSTEM INTERDEPENDENCE INTERDEPENDENCE HARDWARE
BUSINESS
SOFTWARE
DATABASE
Strategy Rules
TELECOMMUNICATIONS
Procedures ORGANIZATION
INFORMATION SYSTEM 1-
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Socio-technical Systems It is found on two main principles:
Interaction of social and technical factors creates
the condition for successful organizational performance. Secondly, optimization of each aspect alone tends
to increase not only the quantity of unpredictable relationships and are weakens the system’s performance.
New Options For Organizational Design Flattening Organization. Separating Work from Location. Reorganizing workforce . Increasing Flexibility of Organization. Redefining Organizational Boundaries.
Flattening Organization Large, bureaucratic organization are often
inefficient, slow to change and less competitive. Digital firms develop optimal hierarchy that balance the decision making load across an organization.
Flattening Organizations
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Separating Work From Location Communication tech has eliminated distance
as a factor for many types of work. Employees can work remotely. Entire parts of Organization can disappear.
Reorganizing Workflows Information systems are replacing manual work
procedures with automated work procedures. Reduced cost of operations in many companies.
Increasing Flexibility of Organization Increasing the ability of a company to sense
and response changes in the market. Small companies can use information systems to acquire some of the muscle and reach of larger organization.
Redefining Organizational Boundaries Ability of a digital firm to conduct business
across firm boundaries. Using electronic modes for transactions. Sharing business data, catalogs or mail messages through networks.
Commonly Known as electronic marketing It is an information system that links together
buyers and sellers
E commerce includes: Online business to business transactions Online business to consumer transactions Digital delivery of products and services Online merchandising Automated telephone transactions eg phone banking
Benefits of E commerce Internet links buyers, sellers Lowers transaction costs Goods & services :advertised, bought,
exchanged worldwide Business-to-business transactions increase
Electronic business Defined as: Utilization of information and
communication technologies (ICT) in support of all the activities of business Intranet: business builds private, secure network E-mail, web documents, group software extends effective communication & control Virtual organization
EC & EB in Networked Enterprise
Ecommerce Security Issues Customer Security: Basic Principles
1.privacy: information must be kept from unauthorized parties. 2.integrity: message must not be altered or tampered with. 3.authentication: sender and recipient must prove their identities to each other. 4.non-repudiation: proof is needed that the message was indeed received.
Some Of E commerce Tools Finacle- used in banking ERP(Enterprise Resource Planning) CRM(Customer Relationship Management) SAP
On the web Drugstore.com Travelocity.com Gilbaraco.com Ebay.com Tradeus.in
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