UNIT 1INTRODUCTION

INTRODUCTIONBusiness intelligence – key role in operations & strategy

Quality business information – manager’s essential IM – applied field that combines computer science with business management practices

IM – acquisition, custodianship and distribution of useful information.

CONTDSix closely related activities:1. Identification of information needs2. Acquisition & creation of information3. Analysis & interpretation4. Organization & storage5. Information access & dissemination6. Information use

BENEFITS OF IMReduce costsReduce uncertaintyAdd valueCreate value

DATAStream of raw facts such as values or measurementsCan be numbers, words, measurements, observations or just a description

Examples:57,63,45,77,84Chocolate, vanilla, strawberry, mango25-08-1992, 23-07-1994, 10-12-1990Consist of alpha numeric as well as images & soundsDatum – singular, Data - plural

TYPES OF DATA

INFORMATIONProcessed data that gives meaning is informationData that is categorized, counted and thus gives meaning & relevance

Critical business resource used every day

DATA PROCESSING CYCLE

TYPES OF INFORMATION

INTELLIGENCEThe ability to solve problems and to adapt & learn from everyday experiences

Intelligence is a way of manipulating information and knowledge to get certain things done one of which is acquiring information & knowledge

KNOWLEDGEFacts, feelings or experiences known by a personKnowledge is knowing what works & how it works Information with beliefs, experience and internalized

INFORMATION TECHNOLOGY (IT)

INTRODUCTION IT is the application of computers and telecommunication equipment to store, retrieve, transmit & manipulate data

Used in the context of a business or enterprise Involves processing of information by a computerToday’s competitive environment has led businesses to integrate IT in every processes.

COMPONENTS OF IT1. Hardware2. Software3. Data4. Network5. People

ADVANTAGES OF IT1. Globalization2. Communication3. Cost effectiveness4. Bridging cultural gap5. 24X7 operation6. Creation of new jobs

DISADVANTAGES OF IT1. Unemployment2. Privacy & safety issues3. Lack of job security4. Dominant culture

APPLICATIONS OF IT1. Education2. Business & industry3. Entertainment4. Medicine

CHALLENGES OF IT1. Challenge of globalization2. Challenge of insularity3. Challenge to privacy4. Challenge of ethics

INFORMATION SYSTEMS (IS)

INTRODUCTION IS - set of people, procedures & resources that collects, transforms & disseminate information in organization

Two categories:1. Manual Information Systems2. Computer Based Information System (CBIS)

EVOLUTION OF IS

COMPONENTS OF IS/CBIS

Hardware resources Data

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TYPES OF IS

ROLE OF IS IN BUSINESS TODAY

1. Operational excellence2. New products, services & business models3. Customer/supplier intimacy4. Improved decision making5. Competitive advantage6. Day to day survival

IS ACTIVITIES/FUNCTIONS1. Input of data resources2. Processing of data into information3. Output of information4. Storage5. Control of system performance

CAPABILITIES OF IS1. Provide fast & accurate transaction processing2. Provide large capacity, fast access storage3. Provide fast communications4. Reduce information overload5. Span boundaries6. Provide support for decision making7. Provide a competitive edge

SYSTEM DEVELOPMENT

METHODOLOGY

INTRODUCTIONThe “How” of systems engineering Includes methods, tools, procedures, processes, practices and skills

Rough outline & working of the systemEssential for managers to know

OBJECTIVESShows how the system worksExamines the components that work to produce a system & outcome of components

Diagrammatic representation – relation between each system activity & impact

Valuable to see the overall pictureReveals data collection needsHelps in monitoring performance

TYPES OF SDM1. System Development Lifecycle (SDLC)2. Waterfall model3. Prototyping model4. Spiral model5. Rapid Application Development (RAD)

1.SDLC

Advantages

ControlAccountabilityError detectionSystematic approachFormal documentation

Disadvantages

InflexibleTime consumingLack of changesTranslation issuesPoor documentation

2. WATERFALL MODEL

Advantages

EasyWell defined i/p & o/p at each phase

Helps PM in project planning

Provides a template

Disadvantages

SequentialLacks overlap & interaction

Uncertainty

3. Prototyping Model

Advantages

ClarityBest for Non-IT usersProvides judgement to developer

Risk identificationTakes less time

Disadvantages

High costNot useful after getting full requirements from clients

Involvement of clientsPossibility of disruption during changes

4. Spiral Model

Advantages

Early risk identificationVisible prototype to users

For high risk projectsFlexible

Disadvantages

CostlyRisk dependentNot for small projectsDifficult to meet budget

5. RAD MODEL

Advantages

Fast product o/pEfficient documentation Interactive with user

Disadvantages

Requires live-ware support

Lack of balance between interface & components

Not suitable for technical risks

KMS, GIS & IIS

KNOWLEDGE MANAGEMENT SYSTEMS (KMS)Process of identifying, collecting, preserving & transforming information into knowledge

Information is used to create something actionable

COMPONENTS OF KMS1. Business process management2. Content management3. Web content management4. Knowledge applications management

TYPES1. Enterprise – wide system2. Knowledge work system – eg: CAD, 3D visualization,

etc.3. Intelligent techniques – eg: Data Mining, Fuzzy logic,

etc.

Advantages

Information sharingElimination of redundancy of work

Self - learning

Disadvantages

Investment decision non justifiable

Encouraging employees to share knowledge

Aligning KMS with current practices

Potential for over – reliance

Not staticOver – ambitious project

GEOGRAPHIC INFORMATION SYSTEMS (GIS)

GISSpecial category of DSS that uses data visualization technology to analyze & display data for planning & decision making

GIS uses colored maps, statistical tables, graphs & images to yield useful knowledge

Uses location, distribution pattern, geographic frame work, etc.

Used in administrative, geology, climatology & related deptartments

INTERNATIONAL INFORMATION SYSTEM