Itm Lecture 6

Information Technology Management

INFORMATICS

Unit 11: Issues in E-Commerce

Information Technology Management

Lecture 6

14th July 2006 ITM Lecture 6 Advanced Diploma (Thames College)

Electronic Payment System Implementation of electronic payment systems is in its infancy and still evolving. z Electronic payments are far cheaper than using the dead-tree method of mailing out paper invoices and then later processing received payments. z Electronic billing and payment systems is a win-win situation:

z

There are currently three basic ways to pay for your purchases: z z z

z

z

It is convenient for customers and it saves companies a lot of money. ITM Lecture 6 Advanced Diploma (Thames College)

2

Electronic Payment Systems -Payment Method

z

z

ITM Lecture 6 Advanced Diploma (Thames College)

1

z

3

Cash Cheque Credit card

Electronic cash distribution and payment can be handled by wallets, smart cards, or through proprietary, limited-use scrip (Scrip is a digital cash minted by a small number of thirdparty organizations). Electronic checks are encrypted representations that resemble electronic cash. Over 80% of Internet purchases are paid for with credit (or debit) cards. ITM Lecture 6 Advanced Diploma (Thames College)

4

Electronic Cash

Concerns on Electronic Cash

Credit card-issuing banks make money, by charging merchants a processing fee ranging from 1-3% of the value of the transaction. z Small purchases are not profitable for merchants who accept only credit cards for payment. z Compaq and IBM are among several companies that think electronic cash schemes are in their infancy, and these companies envision a rosy future for such methods. z Electronic cash is attractive in the sale of goods and services of Micropayments (Internet payments for items costing US$1 or less are called Micropayments)

z

All electronic payment schemes have some issues that must be satisfactorily resolved to allay consumers'fears and give them confidence in the methodology. z Concerns about electronic payment methods include Privacy and Security, Independence, Portability, Divisibility and Convenience. z These issues are particularly important when considering electronic cash payment systems. z Privacy and security questions are probably the most important issues that have to bee addressed with any consumer.

z

ITM Lecture 6 Advanced Diploma (Thames College)

ITM Lecture 6 Advanced Diploma (Thames College)

5

Characteristics of Electronic Cash

An Effective Web Presence

z Electronic

z The

only contact that customers and other stakeholders have with a firm on the Web might be through its presence there. z Creating an effective Web presence can be critical even for the smallest and newest firm operating on the Web, and the tasks are:

cash should have two important characteristics in common with real currency. It must be possible to spend electronic cash only one, just as real currency is. z Security procedures should be in place to guarantee that the entire electronic cash transaction occurs between two parties such that the recipient knows that the electronic currency being received is not counterfeit or being used in two different transactions. z

ITM Lecture 6 Advanced Diploma (Thames College)

6

Identifying Web Presence Goals z Achieving Web Presence Goals z

7

ITM Lecture 6 Advanced Diploma (Thames College)

8

Identifying Web Presence Goals

Achieving Web Presence Goals

When a business creates a physical space in which to conduct its activities, its managers focus on very specific objectives. z They must find a location that will be convenient for customers to find, with sufficient floor space and features to allow the selling activity to occur, and they must balance the need for room to store inventory and provide employee working space with the costs of obtaining that space. z The presence of a physical business location results from satisfying these other objectives and is rarely a main goal of designing the space.

z

An effective site is one that creates an attractive presence that meets the objectives of the business or other organization. z These objectives include:

z

ITM Lecture 6 Advanced Diploma (Thames College)

z z z z z

z

z

z

10

Web Presence for Not-for-profit Organizations

On the Web, businesses and other organizations have the luxury of intentionally creating a space that creates a distinctive presence. A Web site can perform many image-creation and imageenhancing tasks very effectively - it can serve as a sales brochure, a product showroom, a financial report, an employment ad, or a customer contact point. Each entity that establishes a Web presence should decide which tasks the Web site must accomplish and which tasks are the most important to include. Different firms, even those in the same industry, might establish different Web presence goals. ITM Lecture 6 Advanced Diploma (Thames College)

ITM Lecture 6 Advanced Diploma (Thames College)

9

Important of Web Presence z

Attracting visitors to the Web site Making the site interesting enough that visitors stay and explore Convincing visitors to follow the site's links to obtain information Creating an impression consistent with the organization's desired image Reinforcing positive images that the visitor might already have about the organization

11

Use their Web sites as a central resource for integrated communications with their varied and often geographically disperse constituencies. z Integrate information dissemination with fund-raising while providing a two-way contact channel with persons engaged in the organization's work. z This combination of information dissemination with a twoway contact channel is a key element in any successful electronic commerce Web site. z Use the Web to stay in touch with existing stakeholders and identify new opportunities for serving them. z

ITM Lecture 6 Advanced Diploma (Thames College)

12

Strategies for Purchasing, Logistic and Support Activities

Issues in Setting up a Website z Use

of E-commerce software z Development of the website z Digital cash: Payment z Delivery z CRM facility

z

z z

z

ITM Lecture 6 Advanced Diploma (Thames College)

Businesses use electronic commerce to improve their primary activity of purchasing and all of the support activities creating a Web presence and selling to new customers on the Web. An emerging characteristic of purchasing, logistics and support activities is that they need to be flexible. Economic organizations are evolving from the hierarchical structures they have used since the Industrial Revolution to new, more flexible network structures. These network structures are made possible by the reductions in transaction costs caused by the emergence of the Internet and the Web. ITM Lecture 6 Advanced Diploma (Thames College)

13

Purchasing Activities

Purchasing Activities Strategies

Purchasing activities include identifying vendors, evaluating vendors, selecting specific products, placing order, and resolving any issues that arise after receiving the ordered goods or services. z These issues might include late deliveries, incorrect quantities shipped, incorrect items shipped, and defective items. z The term Procurement generally includes all purchasing activities, plus the monitoring of all elements of purchase transactions. It also includes the job of managing and developing relationships with key suppliers.

z

z

ITM Lecture 6 Advanced Diploma (Thames College)

15

14

A number of manufacturers that deal in general industrial merchandise and standard machine tools that are used in a variety of industries have created Web sites through which businesses can purchase items to fulfill recurring needs. z Many of the products that companies buy on a recurring basis are commodities; that is, standard items that buyers usually select using price as their main criterion. ITM Lecture 6 Advanced Diploma (Thames College)

16

Purchasing Activities Strategies

What is Logistics Activities?

These products are often called Maintenance, Repair and Operating (MRO) supplies. z By using a Web site to process orders, the vendors in this market can save the cost of printing and shipping catalogs, and the cost of handling telephone orders. z Office equipment and supplies are also items that are used by a wide variety of businesses. z Well-designed Web sites devoted to helping business purchasing departments buy these routine items are easily as possible.

z

z

ITM Lecture 6 Advanced Diploma (Thames College)

z

z

z z

z

18

Support Activities

Businesses have been increasing their use of information technology to achieve this objective. Information system delivers real-time shipment information to Web browsers on its customers' computers. Firms that run their own tracking operations have also begun implementing tracking systems that use satellite global positioning technology to monitor vehicle movements. The Web and the Internet are providing an increasing number of opportunities to better manage these activities as they lower transaction costs and provide constant connectivity between firms engaged in logistics management. ITM Lecture 6 Advanced Diploma (Thames College)

ITM Lecture 6 Advanced Diploma (Thames College)

17

Logistics Activities Strategies z

Logistics activities include managing the inbound movements of materials and supplies and the outbound movements of finished goods and services. The activities of Receiving, Warehousing, Inventory Control, Vehicle Scheduling and Control, and Finished Goods Distribution are all logistics activities. The classic objective of logistics is providing the right goods in the right quantities in the right place at the right time.

19

z Support

activities include the general categories like z Finance

and Administration z Human Resources z Technology Development

ITM Lecture 6 Advanced Diploma (Thames College)

20

Finance and Administration

Human Resource Activities

Finance and Administration includes activities such as making payments, processing payments received from customers, planning capital expenditures, and the budgeting and planning that ensure sufficient funds will be available to meet the organization's obligations as they come due. z The operation of the computing infrastructure of the organization is also an administration activity.

z Human

z

ITM Lecture 6 Advanced Diploma (Thames College)

ITM Lecture 6 Advanced Diploma (Thames College)

21

Developing Technology

22

Support Activities - Training Strategies

z Developing

Technology can include a wide variety of activities, depending on the nature of the business or organization. z It can include the networking of research scientists into virtual collaboration work-groups, posting of research results, publishing research papers online, and providing connections to outside sources of research and development services. ITM Lecture 6 Advanced Diploma (Thames College)

Resource activities include hiring, training, and evaluating employees; benefits administration, and complying with government record-keeping regulations.

23

z

The training function can be handled by the human resources department, or decentralized and administered by individual departments. z In addition to saving the costs of running classroom sessions in multiple locations, many companies found that the training was producing sales increases in specific product lines. z The company also began tracking the courses that a salesperson or reseller's salesperson had taken and began assigning sales leads for specific products to the salespersons that had taken the course for that product. z To keep salespersons updated after they have taken a course, they send course graduates an e-mail notification whenever new information about a product becomes available. ITM Lecture 6 Advanced Diploma (Thames College)

24

Business Plan for Implementing E-Commerce

Setting Objectives z

z Setting

Objectives z Benefit Objectives z Cost Objectives z Comparing Benefits to Costs

Objectives for e-commerce initiatives should include expected benefits and expected costs. It can inspire businesses to undertake activities: z z z z z z z z z

z

ITM Lecture 6 Advanced Diploma (Thames College)

z

z

z z

z

26

Benefit Objectives z

In the early days of e-commerce (the mid-1990s), companies that had good ideas could launch a business activity on the Web and not face competition. As e-commerce is now beginning to mature, more companies are taking a closer look at the benefits and costs of their electronic commerce projects. A good business plan will set specific objectives for benefits to be achieved and costs to be incurred. A company will create a pilot Web site to test an electronic commerce idea, and then release a production version of the site when it works well. These companies must specify clear goals for the pilot test so that they know when the site is ready to scale up. ITM Lecture 6 Advanced Diploma (Thames College)

Although the success of each of these activities is measurable to some degree, many companies have undertaken these activities on the Web without setting specific, measurable goals. ITM Lecture 6 Advanced Diploma (Thames College)

25

Cost and Benefit Evaluation

Building brands Enhancing existing marketing programs Selling products and services Selling advertising Improving after-sales service and support Purchasing products and services Managing supply chains Operating auctions Creating virtual communities and Web portals

Some companies build Web sites to build their brands or enhance existing marketing programs in order to increased brand awareness, as measured by market research surveys and opinion polls. z Companies that want to sell goods or services on their sites can measure sales volume in units or dollars. z A good marketing staff or outside consulting firm can help a company sort out the causes and effects of marketing and sales programs and may be needed to help set and evaluate these kinds of goals for electronic commerce initiatives. z Companies that want to use their Web sites to improve customer service or after-sales support might set goals of increasing customer satisfaction or reducing the cost of providing the customer service or support. 27

ITM Lecture 6 Advanced Diploma (Thames College)

28

Measurement of Benefit z z z

z

z

Cost Objectives

The benefits of other electronic commerce initiatives can be assessed by using a variety of measurements. Supply chain managers can measure supply cost reductions, quality improvements, or faster deliveries of ordered goods. Auction sites can set goals for the number of auctions, the number of bidders and sellers, the dollar volume of items sold, the number of items sold, or the number of registered participants. Virtual communities and Web portals measure the number of visitors and try to measure the quality of their visitors' experiences. Some sites use online surveys to gather these data; most settle for approximations provided by measuring the length of time each visitor remains on theITM site and how often visitors return. Lecture 6 Advanced Diploma (Thames College)

z

z

z z

z

z

Managers found that the cost of information technology projects can be equally difficult to estimate and control. Since Web development uses relatively new hardware and software technologies, managers have little experience on which they can draw to make estimates. E-Commerce initiatives tend to have a shorter timeframe than many other information technology projects, the rapid changes in Web technology can destroy a manager's best-laid plans very quickly. In addition to hardware and software costs, the project budget must include the costs of hiring, training, and paying the personnel who will design the Web site, write or customize the software, create the content, and operate and maintain the site. ITM Lecture 6 Advanced Diploma (Thames College)

30

Cost-Benefit Evaluation of ECommerce Strategy Elements

Most companies have procedures that call for an evaluation of any major expenditure of funds. These major investments in equipment, personnel, and other assets are called capital projects or capital investments. The techniques that companies use to evaluate proposed capital projects range from very simple calculations to complex computer simulation models. No matter how complex the technique, it always reduces to a comparison of benefits and costs. If the benefits exceed the cost of a project by a comfortable margin, the company invests in the project. ITM Lecture 6 Advanced Diploma (Thames College)

z

29

Comparing Benefits to Costs z

z

31

A key part of creating a business plan for e-commerce initiatives is the process of identifying potential benefits, identifying the costs required to generate those benefits, and evaluating whether the benefits exceed the costs. z Companies should evaluate each element of their ecommerce strategies using this cost-benefit approach. z

ITM Lecture 6 Advanced Diploma (Thames College)

32

Information Technology Management

E-Commerce: Go or Stop? z

z

z

Capital project evaluation (such as the payback method or the net present value method) provide a quantitative expression of what a comfortable benefit-to-cost margin is for a specific company. Managers often use the term Return on Investment (ROI) calculation to describe any capital investment evaluation technique. The value of early position in a new market is so great that many companies are willing to invest very large amounts of money with no near-term prospects of profit. ITM Lecture 6 Advanced Diploma (Thames College)

Unit 12: Data Files and Databases

ITM Lecture 6 Advanced Diploma (Thames College)

33

Data Files & Databases

Data Files

z Before

z

databases were introduced, all data was stored in files. z Files are still used today, but are much less common. z A file stores only 1 type of record. z Databases can store different types of records.

Manual office systems used files to structure the information and computer systems to group common data together in files. z The way in which data files for computerized systems are structured follows a set pattern. z z z z

ITM Lecture 6 Advanced Diploma (Thames College)

34

35

The file is divided into records. Each record is divided into fields. The field is a particular data item which relates to a record. Each record in a file would have the same set of fields. ITM Lecture 6 Advanced Diploma (Thames College)

36

Storing Data in Files

File Organization

z Traditional

z Data

Method

Keep paper documents in 2-ring binder or file. z Each file contains information about a particular subject z E.g. students data, there could be many registration forms. Each form may include name, student number, address, etc... z

z Earlier

file

z

z

z

Organization z Direct Organization z Indexed-sequential Organization

z

For example, if the file contains employee data, then the data field chosen to be the record is the Employee Number.

Sequential Files can be stored on both magnetic tape and magnetic disks. Data which is stored sequentially can only be accessed sequentially is called Sequential Access Method (SAM) file. ITM Lecture 6 Advanced Diploma (Thames College)

ITM Lecture 6 Advanced Diploma (Thames College)

38

Direct File Organization

This is the simplest form of file organization. Records are stored in sequential order by a particular record key. z

z Sequential

37

Sequential File Organization z

files and be accessible and updated as needed. z There are three major methods of file organization

application system each had their own ITM Lecture 6 Advanced Diploma (Thames College)

files must be organized logically into

z

z

z 39

In a direct file, the data management systems is able to determine the exact location on the disk (address) where the data record is stored. This method of access is called direct access and the file is called Direct Access Method (DAM) file which is only found in disks. The data management system determine the address on the disk to store and retrieve a particular data record by using a program specially created for this purpose. The input will be the record key field, and the output from this program is the address. ITM Lecture 6 Advanced Diploma (Thames College)

40

Indexed-Sequential File Organization z z z z

z

z

z

Data records are stored sequentially by record key. A few data records are stored on any one track. An index is created by the data management system. When a particular record is to be accessed, the index is looked up to find the track where the record can be found. Then the records in this track are read sequentially until the particular record desired is found. It is found only on disks.

ITM Lecture 6 Advanced Diploma (Thames College)

Redundancy in Data Files z

In the traditional data files, the same data may be stored in several functional files. This situation duplicates data unnecessarily, creating what is referred to as Redundancy.

ITM Lecture 6 Advanced Diploma (Thames College)

41

Databases

DBMS

zA

z

Database is a data store for accepting, storing and providing on demand data for multiple independent users. z It is essentially a means of organizing data in related file structure to allow quick, user specified access and manipulation of the data. z They are controlled by systems software called Database Management Systems (DBMS). ITM Lecture 6 Advanced Diploma (Thames College)

43

42

The Database Management System (DBMS) is the software that manage (builds and maintains) the database. z This includes Adding, Deleting and Changing records in the database. z The DBMS will also control access to the data. z

A financier user, for example, may not be able to view personnel data, even though both finance and personnel data are kept in the same database. ITM Lecture 6 Advanced Diploma (Thames College)

44

DBMS

Functions of a DBMS

z The

z What

are the functions performed by a DBMS?

DBMS makes it easier for programmers to develop application systems.

z Record

Creation and Updates z Record Selection by Search Criteria z Minimize Data Redundancy z Security

ITM Lecture 6 Advanced Diploma (Thames College)

ITM Lecture 6 Advanced Diploma (Thames College)

45

Record Creation and Updates

Record Selection by Search Criteria

z The

z

database is maintained by the user creating, deleting or amending records. z The Database Management System will also allow the user to process selected groups of records, the whole file or individual records. z This is accomplished by selecting the required option from a menu displayed on the video screen or by keying in the relevant command from the keyboard. ITM Lecture 6 Advanced Diploma (Thames College)

z z

z z

47

46

Involve the extraction of information from the selected records according to specified search criteria. A database has searching facilities ranging from limited searches on keywords to full text searching. This facility provides the means of extracting from a large volume of data useful facts which could not possibly be found by physical search methods in sufficient time to make a decision. A query language is used to specify the search criteria. This language facilitates enquiries using English-style word to define commands, so greatly assisting users to find the information they are seeking. ITM Lecture 6 Advanced Diploma (Thames College)

48

Minimize Data Redundancy

Security

z If

z The

a data element or record (e.g. an employee address) appears twice in an organization's records, this is called Data Redundancy, since logically, it should not be necessary to hold the data twice, hence one copy is redundant. z In a database, data redundancy should be eliminated, or at least, minimized and this is the task of the DBMS. ITM Lecture 6 Advanced Diploma (Thames College)

Database Management System is also responsible for providing security for the database, ensuring against unauthorized access and data corruption. z For

example, if many end-users are given access to common data, there must be a way of controlling that access to ensure that no two users are able to change the data simultaneously.

49

Data Dictionary z z z z z

ITM Lecture 6 Advanced Diploma (Thames College)

50

ITM Lecture 6 Advanced Diploma (Thames College)

52

Example

A data dictionary contains details of the data in a database. Just like an English-language dictionary, each data item is recorded together with its definition and explanation. The dictionary assists in the design of a database since the meaning of various types of data are easily located. It can be used to reduce the level of redundancy to a necessary minimum. It is easier to identify synonyms (data groups having more than one name). ITM Lecture 6 Advanced Diploma (Thames College)

51

Advantages of Databases

Disadvantages of Database

z Reduces

z Data

data duplication which occurs using conventional file structure. z Avoids duplicating input data to update multiple functionality independent files holding the same date. z Offers useful query and report generation languages. z Provides fast and flexible access to information. ITM Lecture 6 Advanced Diploma (Thames College)

structures in a database are complex and therefore takes a longer time to design and implement. z Costs more than conventional file systems. z Requires high caliber, experienced and specialized personnel.

Creating a Database Environment z z z z

z

Departments have all along maintained their own data and have been jealous of it. Inter-departmental rivalry leads to reluctance to divulge data, let alone make it available in a central database. There must be a change of attitude in terms of who actually owns data. Appointing a Chief Information Officer is one way to give direction and focus, as the CIO will be responsible for the overall use of data and information in the company. A data administration function must be established and the CIO must plan the current and future data needs. ITM Lecture 6 Advanced Diploma (Thames College)

ITM Lecture 6 Advanced Diploma (Thames College)

53

55

54

Physical and Logical Records z The

form in which data which is actually stored is not the same as the form presented to the application program. z The data structure that is actually on the computer media (e.g. disk, tape ) is called a Physical Structure. z The structure that the application program uses is a Logical Structure. ITM Lecture 6 Advanced Diploma (Thames College)

56

Data Files and Databases

Multilist

z

zA

z

z z

Database Management Systems (DBMS) do not replace the traditional method of storing data in data files. The data is still stored in sequential, direct or indexed sequential file structure even though a database management system is used to provide greater flexibility in accessing data. There are a variety of methods that could be used by a DBMS to logically structure the data. Two methods that will be discussed are z z

list links common items in a database. z A list is like a chain and each link in that chain is a record with the desired attribute. z By starting at the first record, the DBMS can retrieve, one by one, the records in the chain which share the desired attribute.

Multi-lists Inverted Files ITM Lecture 6 Advanced Diploma (Thames College)

ITM Lecture 6 Advanced Diploma (Thames College)

57

Multilist

Inverted Files

zA

z

list links common items in a database. z A list is like a chain and each link in that chain is a record with the desired attribute. z By starting at the first record, the DBMS can retrieve, one by one, the records in the chain which share the desired attribute.

z

z

ITM Lecture 6 Advanced Diploma (Thames College)

59

58

In an inverted file, the addresses of each record with a desired attribute are stored in an index. In a fully inverted file, there will be one index for each type of data item. In a partially inverted file, only some of the attributes are indexed. ITM Lecture 6 Advanced Diploma (Thames College)

60

Computer Configurations

Information Technology Management

zA

computer processing center will be set up in a company to control and manage the computer servers. z In a company with multiple sites, there are different possible hardware setups, depending on the number of computer servers and their location. z The computer systems could be Centralized or Decentralized.

Unit 13: Computer Configurations

ITM Lecture 6 Advanced Diploma (Thames College)

ITM Lecture 6 Advanced Diploma (Thames College)

61

62

Centralized Environment

Benefits for Centralized Environment

z Facilities,

z

systems & resources installed in a central location z Other business units gain access through telecommunications networks z User interface through dumb terminals or PCs with terminal simulation software ITM Lecture 6 Advanced Diploma (Thames College)

z z z z z z z z 63

Provides Access to Large Systems Sharing of Resources Easier to Manage Monitor Lower Cost Faster Delivery of Output Elimination of Redundancy Increased Security Greater Responsiveness ITM Lecture 6 Advanced Diploma (Thames College)

64

Decentralized Processing z

z

Distributed Processing

With the availability of cheaper computers (e.g. minicomputers), it becomes possible for each department or branch of a company to have its own computer system. Each site can then carry out their processing independently.

z

z z z z z z

ITM Lecture 6 Advanced Diploma (Thames College)

Distributed processing involves having computers systems at each site, but these systems work together to achieve the same business objectives. There could be sharing of corporate databases as well as local processing. Distributed processing has increased in popularity. It is seen as a viable alternative to centralized processing and decentralized processing. Both local and shared data processing are possible. Each site may need to process data unique to its own location. At the same time, transactions can span across sites. ITM Lecture 6 Advanced Diploma (Thames College)

65

Reasons for Implementing Distributed Systems

Developing a Telecommunications System

z Improved

z

Response Time z Reduced Costs z Improve Accuracy z Reduced Mainframe Costs z Smoother Growth z Increased Reliability z Resource Sharing z Increased User Satisfaction ITM Lecture 6 Advanced Diploma (Thames College)

z

z

z 67

66

In any large organization, communications and information sharing depends on a good telecommunications system and facilities. The computer network depends on the telecommunications infrastructure for the transmission of data. In developing a telecommunications plan for your company, it is important to start with the requirements of your company rather than just looking at the desirable features. A telecommunications system must advance the business objectives of the organization. ITM Lecture 6 Advanced Diploma (Thames College)

68

Developing a Telecommunications System

Effectively Work as Telecommuters

z Reduced

z Video

travel time which can be more productively used for work. z Flexible work schedule which can motivate staff. z Conducive work environment which reduces stress. z Reduced overheads. z Greater workplace efficiency. ITM Lecture 6 Advanced Diploma (Thames College)

conferencing z Teleconferencing z E-mail z Net meetings/Online chat facilities z Groupware z Blackberry for instant access anytime, anywhere ITM Lecture 6 Advanced Diploma (Thames College)

69

Factor to Consider in Developing a Telecommunications System

Globalization

z There

z

are several factors that should be consider when developing a telecommunications plan and in choosing telecommunications equipment.

Globalization refers to the worldwide phenomenon of technological, economic, political and cultural exchanges, brought about by modern communication, transportation and legal infrastructure as well as the political choice to consciously open cross-border links in international trade and finance. z The term Global Culture is used to describe how human beings are becoming more intertwined with each other around the world economically, politically, and culturally.

Distance - If the communications are mainly local and internal to the organization, then there is little need to consider long-distance telecommunications features. z Type of Service - The type of service to be supported must also be considered. z

ITM Lecture 6 Advanced Diploma (Thames College)

70

71

ITM Lecture 6 Advanced Diploma (Thames College)

72

Global Systems Infrastructure z z

z z

z

The basic requirements for data communications and a global information system is in place. There are several factors that must be considered to ensure a successful global data communications capability. These include factors like establishing standards and human resource policies. Imagine the scenario of each site having its own computers, software and procedures for developing systems and processing data. There would be tremendous problems trying to make these sites communicateITMeffectively. Lecture 6 Advanced Diploma (Thames College)

Information Technology Management

Unit 14: Information Systems – Types and Presentations

ITM Lecture 6 Advanced Diploma (Thames College)

73

What is a Computer-based Information System?

Classification of Information Systems

z This

z

is one that uses technology to perform some or all of its intended tasks which include the handling of inputs such as business problems, processing the problems and producing as output, reports and recommendations. z The typical components of such a system are hardware, software, a database, network, procedures and people. ITM Lecture 6 Advanced Diploma (Thames College)

75

z z z z z z z

74

There are various ways of classifying information systems. One common approach is to classify according to its main functions. Transaction Processing Systems (TPS) Information Reporting Systems (IRS) Decision Support Systems (DSS) Expert Systems (ES) Executive Information Systems (EIS) Office Automation (OA) ITM Lecture 6 Advanced Diploma (Thames College)

76

Transaction Processing Systems (TPS)

Types of Information Systems

z Automated

clerical and operational functions z Track data at the most elementary level

ITM Lecture 6 Advanced Diploma (Thames College)

ITM Lecture 6 Advanced Diploma (Thames College)

77

Information Reporting System (IRS)

Decision Support System (DSS)

z Provide

z Supports

routine summary and exception reports, often drawing on transaction level data.

ITM Lecture 6 Advanced Diploma (Thames College)

79

78

management decisions that are semistructured or cannot be specified in advance z Interactive and user-friendly

ITM Lecture 6 Advanced Diploma (Thames College)

80

Expert System (ES) z z z z

z

Executive Information System (EIS)

Captures human expert knowledge to solve problems Gives the computer the ability to make suggestions and act like an expert Captures the use of the wisdom of experts and specialists Years of experience and specific skills are not completely lost when a human expert dies, retires or leaves the company To solve complex problems and support difficult decisions ITM Lecture 6 Advanced Diploma (Thames College)

z

z z

ITM Lecture 6 Advanced Diploma (Thames College)

82

Management Information Systems z Another

common term used loosely is Management Information Systems (MIS). z We will consider it to be any information system that supports the timely use, management and processing of data or information pertaining to an organization's operations by authorized people in the organization's environment. z In this definition, the relevant parts of any TPS, IRS, DSS, ES, EIS and OA can be considered components of an organization's MIS.

Office Automation (OA) refers to a wide variety of computer-based technologies that make office workers more productive at their jobs. This improvement in productivity can be achieved through increases in effectiveness or efficiency.

ITM Lecture 6 Advanced Diploma (Thames College)

z

Utilizes heavy graphics displays, draws together data from numerous internal and external sources Determine how certain data was produced For senior managers Drill down capabilities

81

Office Automation (OA) z

z

83

ITM Lecture 6 Advanced Diploma (Thames College)

84

Transaction Processing Systems (TPS)

Example of TPS

z It

z There

is a system that supports the processing of a firm's business transactions. z These systems are designed to keep an organization running smoothing by automating the processing of the huge amounts of paperwork that must be handled daily.

ITM Lecture 6 Advanced Diploma (Thames College)

are several examples of TPS.

Order Entry z Inventory z Distribution z Sales Invoicing z Accounts Receivable z Purchasing z Receiving z Accounts Payable z Payroll z

ITM Lecture 6 Advanced Diploma (Thames College)

85

Example of TPS - Order Entry

Example of TPS - Inventory

z This

z An

is the TPS which processes customer orders. z Orders may arrive by a variety of means : mail, phone, fax etc. z In cases of repeat orders, a trigger within the system will be the source.

ITM Lecture 6 Advanced Diploma (Thames College)

86

inventory system monitors the quantity of each product available for sale and helps ensure that the proper amount of stock is maintained. z All movement of goods in and out of the store or warehouse will be recorded.

87

ITM Lecture 6 Advanced Diploma (Thames College)

88

Example of TPS - Distribution

Example of TPS - Sales Invoicing

z This

z The

involves ensuring the best mode of transport is selected to deliver goods to the customer on time. z Customs clearance, insurance and freight forwarding are the areas of concern here.

ITM Lecture 6 Advanced Diploma (Thames College)

main role of the sales invoicing system is to receive delivery information from the Distribution System and to prepare invoices to be sent to the customer. z Discounts are applied where appropriate. In some systems, monthly statement of accounts are also prepared.

ITM Lecture 6 Advanced Diploma (Thames College)

89

Example of TPS - Accounts Receivable

Example of TPS - Purchasing

z As

z Many

the name implies, this TPS records the amount owed by customers and the payments made. z The data comes from the sales invoicing system. z In companies with cash sales, there is little or no receivables. z A large amount of money may be tied in A/R and the results of this system often receive close attention. ITM Lecture 6 Advanced Diploma (Thames College)

91

90

companies have central department to handle procurement of its goods and services. z The advantages are to gain maximum volume discounts, obtain the lowest price or best deal from various vendors and to achieve standardization where necessary.

ITM Lecture 6 Advanced Diploma (Thames College)

92

Example of TPS - Receiving

Example of TPS - Accounts Payable

z The

z This

role of the receiving system is to record the receipt, inspection, acceptance or rejection of goods. z The inspection serves to identify damaged or incomplete goods which must be rejected.

ITM Lecture 6 Advanced Diploma (Thames College)

system records the invoices received from vendors, determines the optimum time to pay and prepares and prints cheques. z Cash forecasting is another important task of the A/P system.

ITM Lecture 6 Advanced Diploma (Thames College)

93

Example of TPS - Payroll

Information Reporting Systems

z This

z

system calculates the salary to be paid to employees, taking into account any relevant deductions (e.g. pension fund ) or additions (e.g. allowances). z The payroll system must produce income tax reports and should also keep track of pension fund or union fees which have to be credited to another organization. ITM Lecture 6 Advanced Diploma (Thames College)

94

An Information Reporting Systems (IRS) is an information system that provides predefined types of information to management for relatively structured types of decisions. z Many of the traditional hard copy reports are now also available in screen form. z Printouts like invoices or remittance advice are not traditionally considered "reports" and are more closely associated with the Transaction Processing System (TPS) that produced them. z Information Reporting Systems are used for both management planning and management control functions. 95

ITM Lecture 6 Advanced Diploma (Thames College)

96

Methods of Information Presentation z z z

z

Common methods of presentation used in information systems are via the PC screen or printed page. Information can also be presented vocally, either by face to face communication, telephone or pre-recorded message, The aim of an information system, beyond presenting the required information at the required time, must be to present it in such as way that it may be readily absorbed. A number of factors contribute to this: z Visual Presentation z Use of Graphics z Format and layout ITM Lecture 6 Advanced Diploma (Thames College)

Visual Presentation z About

70% of all the information that we absorb is acquired visually rather than through the other senses. z This already the primary method used in information systems as both screen and paper printouts show information visually.

ITM Lecture 6 Advanced Diploma (Thames College)

97

Use of Graphics

Format and Layout

z Although

z Use

text forms the bulk of the contents of information being provided, alternatives should be sought. Graphics is a useful supplement. z Examples are pie charts, line charts, etc.

ITM Lecture 6 Advanced Diploma (Thames College)

99

98

of different fonts and different font sizes, underlining and so on help to highlight important points and make the presented information easier to absorb. z Even the way sentences and paragraphs are positioned is important in making the page or screen look more appealing. z Imagine how boring a textbook looks if all you see are lot of words arranged close together on each page. ITM Lecture 6 Advanced Diploma (Thames College)

100

Questions & Discussion

ITM Lecture 6 Advanced Diploma (Thames College)

101