unit 1.ppt mis ppt

7/27/2019 unit 1.ppt mis ppt

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KIRUBAHARAN.M Asst.Professor,

Department of Management Studies,

Pavendar Bharathidasan College of Engg. & Tech.,

Trichy-24.

Email: [email protected]

MANAGEMENT

INFORMATION SYSTEMS

KIRUBAHARAN.M



UNIT 1

• What do you mean by IS?

•What do you mean by IT?

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INTRODUCTION



Information technology and systems have revolutionized firmsand industries, becoming the largest component of capitalinvestment in the U.S. and many industrialized societies.

Investment in information technology accounts for approximately50 percent of all capital invested in the United States.

Information systems are transforming business and the visible

results of this include the increased use of cell phones andwireless telecommunications devices, a massive shift towardonline news and information, booming e-commerce and Internetadvertising, and new federal security and accounting laws thataddress issues raised by the exponential growth of digitalinformation.

The Internet has also drastically reduced the costs of businessesoperating on a global scale.

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These changes have led to the emergence of the digital firm,a firm in which:

Most of the firm's significant business relationships withcustomers, suppliers, and employees are digitally enabledand mediated.

Core business processes, or logically related businesstasks, are accomplished through digital networks.

Key corporate assets (intellectual property, corecompetencies, and financial and human assets) are

managed through digital means.

Business responses to changes in their environment areenhanced through digital communications, allowing for time shifting (business being conducted 24x7) and space

shifting (business being conducted globally or beyondtraditional geographic boundaries).

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THE INTERDEPENDENCE BETWEEN

ORGANIZATIONS AND INFORMATION SYSTEMS

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Business firms invest heavily in information systems to achieve six strategic businessobjectives:

Operational excellence: Efficiency, productivity, and improved changesin business practices and management behavior

New products, services, and business models: A business model describes how a company produces, delivers, and sells a product or service to create wealth. Information systems and technologies createopportunities for products, services, and new ways to engage in business.

Customer and supplier intimacy: Improved communication with andservice to customer’s raises revenues and improved communication withsuppliers lowers costs.

Improved decision making: Without accurate and timely information,business managers must make decisions based on forecasts, bestguesses, and luck, a process that results in over and under-production of

goods, raising costs, and the loss of customers.

Competitive advantage: Implementing effective and efficient informationsystems can allow a company to charge less for superior products, addingup to higher sales and profits than their competitors.

Survival:

:

Information systems can also be a necessity of doing business. A

necessity may be driven by industry-level changes, as in the

implementation of ATMs in the retail banking industry. A necessity

may also be driven by governmental regulations, such as federal or



INFORMATION SYSTEMS

An information system is a set of interrelated

components working together to collect, process,

store and disseminate information to support

decision making, coordination, control, analysis

and visualization in an organization.

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•Information is data, or raw facts, shaped into useful form for humans

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FUNCTIONS OF AN INFORMATION SYSTEM

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Input, processing, and output are the three activities in aninformation system that produce the information anorganization needs.

Input captures or collects raw data from within the organizationor from its external environment.

Processing converts this raw input into a meaningful form.

Output transfers the processed information to the people whowill use it or to the activities for which it will be used.

Information systems also require feedback, which is outputthat is returned to appropriate members of the organization tohelp them evaluate or correct the input stage.

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INFORMATION SYSTEMS ARE MORE THAN COMPUTERS

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LEVELS IN A FIRM

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Senior management makes long-range strategicdecisions and ensures the firm's financial performance.

Middle management carries out the plans of senior management and operational management monitorsthe firm's daily activities.

Knowledge workers such as engineers and scientistsdesign products and create and distribute newknowledge for the organization.

Data workers such as secretaries process theorganization's paperwork.

Production or service workers produce the products or services.

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BUSINESS PROCESSES AND INFORMATION SYSTEMS

THE ORDER FULFILLMENT PROCESS

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Business Models

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An abstraction of what and how the enterprise

delivers a product / service, showing how the

enterprise creates wealth.

www.Amazon.com – online book store www.Icicidirect.com - share brokers



INTERNET BUSINESS MODELS

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VIRTUAL STOREFRONT:

- Sells physical goods / services on-line instead of through aphysical storefront or retail outlet.

- Delivery of non-digital goods and services takes placethrough traditional means.

Eg: www.amazon.com

SYNDICATOR :

- aggregates content or applications from multiple sources

and resells them to other companies.

Eg: www.thinq.com

www.screamingmedia.com

http://www.amazon.com/

http://www.thinq.com/

http://www.screamingmedia.com/

http://www.screamingmedia.com/

http://www.thinq.com/

http://www.amazon.com/



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MARKET PLACE CONCENTRATOR:

- Concentrates on information about products and services from multipleproviders at one central point.

- Purchasers can search , compare – shop and sometimes complete thesales transaction.

Eg: www.shopnow.com

www.industrialmall.com

ONLINE EXCHANGE:

- Bid-ask system where multiple buyers can purchase frommultiple sellers.

Eg: www.covisint.com

www.asiacapacityexchange.com

http://www.shopnow.com/

http://www.industrialmall.com/

http://www.covisint.com/

http://www.asiacapacityexchange.com/

http://www.asiacapacityexchange.com/

http://www.covisint.com/

http://www.industrialmall.com/

http://www.shopnow.com/



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INFORMATION BROKER:

- Provides Product, Pricing and availability information.

- Some facilitate transactions but their main value is the

information they provide.

Eg: www.partnet.com

www.travelocity.com

TRANSACTION BROKER:

- Buyers can view rates and terms, but the primary businessactivity is to complete the transaction.

Eg: www.ETrade.com

www.Ameritrade.com

http://www.partnet.com/

http://www.etrade.com/

http://www.etrade.com/

http://www.partnet.com/



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AUCTION:

- Provides electronic clearing house for products where price

and availability are constantly changing, sometimes in response to

customer actions.

Eg: www.ebay.com

www.bigequip.com

REVERSE AUCTION:

- Consumers submit a bid to multiple sellers to buy goods /

services at a buyer-specified price.

Eg: www.priceline.com

www.import quote.com

http://www.ebay.com/

http://www.bigequip.com/

http://www.priceline.com/

http://www.import/

http://www.import/

http://www.priceline.com/

http://www.bigequip.com/

http://www.ebay.com/



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AGGREGATOR:

- Group of people who want to purchase a particular product

signup and then seek a volume discount from vendors.

Eg: www.mobshop.com

DIGITAL PRODUCT DELIVERY:

- Sells and delivers software, multimedia and other digital

products over the net.

Eg: www.photodisc.com

www.regards.com

http://www.mobshop.com/

http://www.photodisc.com/

http://www.regards.com/

http://www.regards.com/

http://www.photodisc.com/

http://www.mobshop.com/



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CONTENT PROVIDER:

- Creates revenue by providing content.

- the customers may pay to access the content or revenuemay be generated by selling advertising space or by havingadvertisers pay for placement in an organized listing in asearchable database.

Eg: www.salon.com

www.thestreet.com

ONLINE SERVICE PROVIDER:

- Provides services and support for hardware and software

users.

Eg: www.xdrive.com

www.PCsupport.com

http://www.salon.com/

http://www.thestreet.com/

http://www.xdrive.com/

http://www.pcsupport.com/

http://www.pcsupport.com/

http://www.xdrive.com/

http://www.thestreet.com/

http://www.salon.com/



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VIRTUAL COMMUNITY:

- Provides online meeting place where people with similar

interests can communicate and find useful information.

Eg: www.orkut.com

www.tripod.com

www.fortunecity.com

PORTAL:- Provides initial point of entry to the web along with specialized

content and other services.

Eg: www.yahoo.com

http://www.orkut.com/

http://www.tripod.com/

http://www.fortunecity.com/

http://www.fortunecity.com/

http://www.tripod.com/

http://www.orkut.com/

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