Core Concepts in Information Systems
Transcript of Core Concepts in Information Systems
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Unit I
Core Concepts in Information Systems
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What is MIS?
An information system designed by an organization to collect collect, manipulate, and disseminate data or information on a program.
Includes hardware, software, people, communications systems, and data.
Allows managers to plan, monitor, and evaluate operations and performance of an activity Designed and used for administrative purposes
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Role of MIS in Business
Roles:
support of business operations
support of managerial decision making
support of strategic competitive advantage
‘In an organization, information is the blood and MIS is the heart’.
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Subsytems and Supersystems of IS
I
Organization:- business process- people- data- strategy
ISITITInformation Technology
Information Systems
BusinessEnvironment
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Progress in MIS
IN
REAL
TIME
AT
VERY
LOW
COST
Information can be created in multimedia
Information can be stored
Information can be retrieved
Information can be shared
Information can be distributed
Information can be processed
Information can be transmitted
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Enabling Role of Information Technology
Old Business Rule Technology intervention
New Business Rule
Information can appear only at one place
Shared databases Information appears simultaneously
Only experts can perform complex jobs
Expert Systems Generalists can act as experts
Businesses must choose between centralization and decentralization
Telecommunication networks
Centralization and decentralization possible
Managers make all the decisions
Software tools Decision making is part of everyone’s job
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Enabling Role of Information Technology
Old Business Rule Technology intervention
New Business Rule
Field persons need offices
Wireless/internet/laptops
Field offices can be virtual
Personal contacts Internet / email Effective contacts
Find out the information
Enterprise software Information comes to you
Plans get revised periodically
On line computing Plans get revised instantly
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Impact of MIS and IT on an Organization
As transactional Information Systems:
enables enterprise-wide shared and integrated databases through :
i. improved decision making
ii. improved MIS reporting
enables enterprise-wide cross functional work flow automation through :
i. improving Intra-organizational transactions
ii. reducing in business processes lead times
iii. improved inventory and working capital management
iv. improved financial reconciliation
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Impact of MIS on an organization
Improves business process performance through:
automation of business processes
simplification of business processes
elimination of non value adding business processes
reengineering of business processes
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Impact of MIS on an organization
MIS as a coordination and planning information system results in:
improved coordination among sales, production stores, purchase, and accounts due to close loop systems and online data.
dynamic scheduling of production and purchase based on feedback from sales and visa versa
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Sales Order Processing
Fin. Accounting
Hist./Stats.
Sales Quotations
SalesContracts
EDI
Manually
Order entry
Invoicing
Delivery
Close Order
Dispatch ListDispatch NotesConsignment Notes
Invoice
Margin ControlCustomer Monitoring
Inventory CheckAdditional Costs
InstallmentsSales Order/
Quotation Existence
Margin ControlCustomer Monitoring
Inventory CheckAdditional Costs
InstallmentsSales Order/
Quotation Existence
Sales Order
Order AcknowledgmentPicking Lists
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Sales Statistics
Display codes
Period Codes
Layout Codes
Sales Budget
Sorting CodesParameters
group 1budgetsales
col.1 diff.
group 2budgetsales
col.2
budgetsalesdifference
from/till
group 1 group 2
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The Competitive Edge • To be competitive today you need:
the flexibility to take on new business opportunities as they arise
a business framework that lets you
i. optimize business processes
ii. cut costs
ii. improve customer service
iv. shorten your time to market
comprehensive decision support tools to provide up-to-date information on revenues, budget performance, sales, and cash-flow
• E-business can help provide the competitive edge you need
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E-Business
Telecommunication
Information Technology
Business E-Business
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What is E-Business?• E-business is a new way of conducting, managing, and executing business transactions using IT and telecommunications networks (Internet and Extranet)
• E-business is remaking the business world by:
- redefining virtually every business process and function- changing conventional concepts and rules about strategic
alliances, outsourcing, competition, industry specialization, and customer relationships
- creating a wealth of information about customers, enabling businesses to anticipate and satisfy individual needs with pinpoint precision
- blurring the lines between industries- challenging every business to reinvent itself
It provides companies with new, more cost and time-efficient means
for working with customers, suppliers, and development partners