Introduction to Information Technology

Pankaj Kirit Adatiya IT Professional

Agenda


Introduction Business and Information Technology IT in the modern Organization

Information Technology as an Enabler



IT is generally interesting IT facilitates work in Organizations IT Offers Career Opportunities IT is used by all Departments

Information System


An Information System (IS) collects, processes, stores, analyzes, and disseminated information for a specific purpose An Information System includes inputs (data, instructions), outputs (reports, calculations) and a feedback mechanism to control the operation
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Information System


Data are raw fact or elementary descriptions of things, events, activities and transactions that are captured, recorded, stored and classified, but not organized to convey any specific meaning Information is a collection of facts (data) organized in some manner so that they are meaningful to a recipient Knowledge consists of information that has been organized and processed to convey understanding
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Computer- based Information System

Software Hardware

People

Database

Network

Procedures
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Computer- based Information System



Hardware : a set of devices such as a processor, monitor, keyword and printer that accepts data and information, processes them and displays them Software: a set of computer programs that enables the hardware to process data Database: an organized collection of related files or records that stores data and the association among them Network: a connecting system that permits the sharing of resources among different computers Procedures: the strategies, policies, methods, and rules for using the information system People: includes those persons who work with the information system or use its output
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Capabilities of Information System



     

Provide fast and accurate transaction processing Provide large-capacity, fast-access storage Provide fast communications Reduce information overload Span boundaries Provide support for decision making Provide a competitive weapon
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Information Infrastructure


Consists of the physical facilities ,services, and management that support all computing resources in an organization Five major components:
    

Computer hardware General purpose software Networks and communication facilities Databases and Information management personnel

Infrastructure include these resources as well as their integration, operation, documentation, maintenance and management

Information Infrastructure

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Information Architecture


It is a high-level map or plan of the information requirements in an organization and the manner in which these requirements are being satisfied Guide for current operations and a blueprint for future directions

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Information Architecture - Example

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Information Architecture - Example

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Case Study I

The Harper Group collaborates with Honda in International Trade

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Digital Divide

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Digital Divide


Refers to the gap between individuals, households, businesses and geographic areas at different socio-economic levels with regard both to their opportunities to access information and communications technologies (ICTs) and to their use of the Internet for a wide variety of activities

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Simputer

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Digital Divide in India

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Case Study II

Information Systems at Burlington Coat Factory

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Evolution of computer-based information systems

Scientific, military applications Client/server, executive information systems, PCs Integration, intelligent systems, the Web, intranets, software, ERP Web Services; mcommerce & icommerce; SCM, Data warehousing & mining; very intelligent systems

MIS, office automation

Routine business applications, TPS DSS, LANs

1940s

1950s

1960s

1970s

1980s

1990s

2000s

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elationships among Information Systems

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Information Systems

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Transaction Processing Systems (TPS)

Transaction processing systems are designed to process specific types of data input from ongoing transactions. TPSs can be manual, as when data is typed into a form on a screen, or automated by using scanners or sensors to capture data. Organizational data is processed by a TPSsales orders, payroll, accounting, financial, marketing, purchasing, inventory control, and so on. Transactions are either: Internal transactions: Transactions that originate from within the organization or that occur within the organization. Examples are payroll, purchases, budget transfers, and payments (in accounting terms, theyre referred to as accounts payable). External transactions: Transactions that originate from outside the organization, for example, from customers, suppliers, regulators, distributors, and financing institutions

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Transaction Processing Systems (TPS)

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Transaction Processing Systems (TPS)

Data Quality Processing improves data quality, which is important because reports and decisions are only as good as the data they are based upon. As data is collected or captured, it is validated to detect and correct obvious errors and omissions. For example, if a customer sets up an account with a company, such as Amazon.com , to purchase from its Web site, the TPS will validate that the address, city, and postal code are consistent and also that those data items match the address, city, and postal code of the credit card. If required fields of the online form are not completed or have obvious errors, the customer is required to make the corrections before the data is processed any further. Data errors detected later may be difficult to correct, may expose the company to legal action, or may never be detected and corrected. 25

Transaction Processing Systems (TPS)

Routine Business Transactions. Financial, accounting, and other repetitive business activities create routine business transactions. For example, employees are paid at regular intervals, customers place purchase orders and are billed, and expenses are monitored and compared to the budget. Table below presents a list of representative routine, repetitive business transactions in a manufacturing company.

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Management Information System (MIS)

The functional areas or departments accounting, finance, production / operations, marketing and sales, human resource, and engineering and design are supported by ISs designed for their particular reporting needs. Generalpurpose reporting systems are referred to as management information systems (MIS). Their objective is to provide reports to managers for tracking operations, monitoring, and control.

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Management Information System (MIS)

Typically, a functional system provides reports about such topics as operational efficiency, effectiveness, and productivity by extracting information from databases and processing it according to the needs of the user. Types of reports are the following:

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Decision Support Systems (DSS)

Decision support systems (DSS) are interactive applications that support decision making. Configurations of a DSS range from relatively simple applications that support a single user to complex enterprise-wide systems. A DSS can support the analysis and solution of a specific problem, evaluate a strategic opportunity, or support ongoing operations. These systems support unstructured and semi structured decisions, such as whether to make or buy products and what new products to develop and introduce into existing markets. Decisions range from structured to unstructured - Structured decisions are those that have a well-defined method for solving and the data needed to reach a decision. - An example of a structured decision is determining whether an applicant qualifies for an auto loan or whether to extend credit to a new customer and the terms of those financing options. - Unstructured decisions that depend on human intelligence, knowledge, and/or experienceas well as data and models to solve. - Examples include deciding which new products to develop or which new 29 markets to enter.

Decision Support Systems (DSS)

Three Defining DSS Characteristics. Three defining characteristics of DSSs are: An easy-to-use interactive interface Models that enable sensitivity analysis, what-if analysis, goal seeking, and risk analysis Data from both internal databases and external sources, added to by the decision maker, who may have insights relevant to the decision situation. Having models is what distinguishes DSS from MIS. Some models are developed by end users through an interactive and iterative process. Decision makers can manipulate models to conduct experiments and sensitivity, what-if, and goal-seeking analyses. What-if analysis refers to changing assumptions or data in the model to see the impacts of the changes on the outcome. For example, if sales forecasts are based on a 5 percent increase in customer demand, a what-if analysis would replace the 5 percent with higher and/or lower demand estimates to determine what would happen to sales if the demands were different. With goal seeking, the decision maker has a specific outcome in mind and needs to figure out how that outcome could be achieved and whether its feasible to achieve that desired outcome. A DSS can also estimate the risk of alternative strategies or actions.

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Decision Support Systems (DSS)

Building DSS Applications. Planners Lab is an example of software for building a DSS. The software is free to academic institutions and can be downloaded from plannerslab.com. Planners Lab includes: An easy-to-use model-building language An easy-to-use option for visualizing model output, such as answers to what-if and goal-seeking questions to analyze the impacts of different assumptions These tools enable managers and analysts to build, review, and challenge the assumptions on which their decision scenarios are based. With Planners Lab, decision makers can experiment and play with assumptions to assess multiple views of the future.

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Business Intelligence for Competitive Advantage (Case)

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Sample of a performance dashboard

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Types of Information Support Systems

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Organizational Structure
  

Profit / Not-for-profit Organizations Manufacture goods / Produce services Size and number of locations are the major determinants of an organizations structure Typically have a centralized HQs and divisions at different locations Divisions can be independent subsidiaries or integral parts of one corporation Departmental structure is a Functional structure
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Organizational Structure Departments

     

Accounting Finance Marketing and Sales Production or Operations Mgmt (POM) Human Resource Management Information Systems

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Hierarchical organizational structure

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Matrix Organization

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Mapping IS to OS


IT provides support in three major areas:

  

Communication Collaboration Data Processing and Access (including Knowledge sharing)

Specific types of support are usually given by an application program



An application is a system developed for a specific purpose, such as facilitating a production schedule, expediting a financial forecast, or executing the weekly payroll
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Mapping IS to OS


Departmental information systems Plant information systems Divisional information systems Enterprise wide information systems Inter organizational information systems
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Case Study III

An expert system increases productivity at Ford Motor

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IT Support at different Org levels



Individuals in org are supported by different types of information systems, depending on the roles and the task they perform:


Strategic decisions (Top Management) Tactical or managerial decisions (Middle Mgrs) Operational decisions (Line Mgrs / Operators)
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IT Support at different Org levels

PEOPLE SUPPORTED
Strategic Systems Staff Support Knowledge workers, Professional Top Mgrs

Managerial Systems

Middle Mgrs Line Mgrs / Operators Clerical Staff

Operational Systems

Office Automation and Communication Systems

Information Infrastructure and TPS

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ole of ISD
       

Initiating and designing specific strategic IS Infrastructure planning, development, and control Incorporating the internet and e-commerce into the business Managing systems integrations including the internet, intranets and extranets Educating the IS staff about the business Actively participating in business process reengineering Proactively using business and technical knowledge to seed the line mgrs with innovative ideas about IT Creating business alliances with vendors and IS departments in other org
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elationship ISD & End Users



  

 

A steering committee that represents all end users and the ISD. Sets IT policies, provides for priorities and coordinates IS projects Joint ISD/end-user project teams for planning, budgeting, App dev and maintenance Top Corporate executive committee Service agreements, defines computing responsibilities and provide a framework for services rendered to the end users A conflict resolution unit, to handle end-user complaints and resolve conflicts As information center, to help regarding purchase, operations and maintenance of h/w and s/w
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Information Technology Infrastructure Library (ITIL)

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IT Roles
      

Programmer Systems Analyst / Developer Telecomm / Network Specialist Systems Operations Specialist Business Analyst Database Administrator Webmaster / E-Commerce Specialist
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Application of IT in various functional departments



 

Accounting : Billing customers, preparing payrolls, and purchasing / paying for materials Finance: Forecasting and Portfolio Mgmt Marketing : Customer DBs, Marketing decision making and sales automation POM :Pricing, inventory, Quality control and logistics HRM : Dissemination of information (job opportunities, benefits information and educational materials)
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Case Study IV

Hershey Foods Enhances Group Work with an Intranet

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Business pressures and responses in todays Information Age

Thanks

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Business pressures and responses in todays Information Age



The main Business pressures in the information age are :  Global competition for trade and labor  Need for real-time operations  Changing workforce  Customer Orientation  Technological innovation and obsolescence  Information Overload  Social responsibility  Government regulation and deregulation  Ethical issues
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Business pressures and responses in todays Information Age



Major Organizational responses are :  Strategic Systems  Customer Focus and service  Continuous improvement efforts  Business process reengineering  Empowering employees and fostering collaborative work  Business alliances and e-commerce

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General Technological Trends for IT



 

    

Constantly improving costperformance ratio Storage and memory Graphical and other user-friendly interfaces Client/Server architecture Network computers (Thin clients) Enterprise wide computing Intranets and Extranets Data Warehousing

       

Data Mining Object Oriented environment Electronic document management Multimedia and Virtual reality Portable computing E-Commerce Integrated home computing Expansion of the Internet and completion of information superhighways

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