Module 2 (Part I)LITGB

8/12/2019 Module 2 (Part I)LITGB

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Amity International Business School

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MBA- IB, 4th Semetser

Leveraging IT for Global Business

Dr. Loveleen Gaur


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Amity International Business SchoolClassification by Organizational

Levels

Organizations are made up of components

such as divisions, departments, and work

units, organized in hierarchical levels.

Typical information systems that follow the

organizational structure are

functional (departmental),

enterprisewide, and

interorganizational.

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FUNCTIONAL (DEPARTMENTAL) INFORMATION SYSTEMS


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ENTERPRISE INFORMATION SYSTEMS

While a departmental information system is usually related to a

functional area, other information systems serve severaldepartments or the entire enterprise.

These information systems together with the departmental

applications comprise the enterprise wide informationsystem (EIS). One of the most popular enterprise

applications is enterpr ise resources planning (ERP), which

enables companies to plan and manage the resources of an

entire enterprise.

A special enterprise system that crosses several departments is

the transaction processing system (TPS).


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INTERORGANIZATIONAL SYSTEMS

Some information systems connect two or more

organizations. They are referred to as interorganizational

information systems (IOSs).

For example, the worldwide airline reservation systemis composed of several systems belonging to different

airlines. Of these, American AirlinesSABRE system is the

largest; thousands of travel agents and hundreds of

airlines are connected to it


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Who Performs What Activities in

Organizations?


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Types of IS


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Amity International Business SchoolOperations support systems

What are they?

Efficiently process business transactions

Control industrial processes

Support communications and collaboration

Update corporate databases


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Amity International Business SchoolTypes of Operations Support Systems

Transaction Processing Systems Record and process data from business transactions

Examples: sales processing, inventory systems,accounting systems

Process Control Systems Monitor and control physical processes

Example: in a petroleum refinery use sensors tomonitor chemical processes

Enterprise Collaboration Systems Enhance team and work group communications

Examples: e-mail, videoconferencing


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Amity International Business SchoolTwo ways to process transactions

Batch Processing:

Accumulate transactions over time and

process periodically

Example: a bank processes all checks

received in a batch at night

Online Processing:

Process transactions immediately

Example: a bank processes an ATM

withdrawal immediately


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Management Support Systems

What are they?

Provide information and support for effective

decision making by managers


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Types of Management Support Systems

Management Information Systems (MIS) Provide reports and displays to managers

Example: daily sales analysis reports

Decision Support Systems (DSS) Provide interactive ad hoc support for decision

making

Example: A what-if-analysis to determine where tospend advertising dollars

Executive Information Systems (EIS) Provide critical information for executives and

managers

Example: easy access to actions of competitors


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Operational or Management Systems

Expert Systems

Provide expert advice

Example: credit application advisor

Knowledge Management Systems

Support creation, organization and

dissemination of business knowledge

throughout company

Example: Intranet access to best business

practices


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Amity International Business SchoolTPS A TPS is a computerized system that performs and

records the daily routine transactions necessary toconduct the business.

The transaction processing system monitors, collects,

stores, processes, and disseminates information for

all routine core business transactions.

These data are input to functional information

systems applications, as well as to decision support

systems (DSS), customer relationship management

(CRM), and knowledge management (KM).

The TPS also provides critical data to e-commerce,

especially data on customers and their purchasing

history. 14


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Characteristics of TPS

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Obj i f TPS


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Objective of TPS

The primary goal of TPS is to provide all the

information needed by law and/or by organizational

policies to keep the business running properly and

efficiently.

To allow for efficient and effective operation of the

organization,

to provide timely documents and reports, to increase the

competitive advantage of the corporation,

to provide the necessary data for tactical and strategic

systems such as Webbased applications, to ensure

accuracy and integrity of data and information,

and to safeguard assets and security of information.

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Fl f i f ti i T ti


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Flow of information in Transaction

Processing/Transaction Processing Cycle

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The flow of information in a typical TPS is shown in Figure.

An event, such as a customer purchase, is recorded by the

TPS program.

The processed information can be either a report or an activity

in the database.

In addition to a scheduled report, users can query the TPS fornonscheduled information (such as, Whatwas the impact

of our price cut on sales during the first five days, by

day?).

The system will provide the appropriate answer by accessing

a database containing transaction data.


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Various TPS Activities

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Web Based and Online Transaction


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Web-Based and Online Transaction

Processing Systems

Transaction processing systems may be fairly complex,

involving customers, vendors, telecommunications, anddifferent types of hardware and software.

Traditional TPSs are centralized and run on a mainframe.

However, innovations such as online transaction processing

require a client/server architecture. In online transactionprocessing (OLTP), transactions are processed as soon

as they occur. For example, when you pay for an item at a

POS at a store, the system records the effects of the sale by

reducing the inventory on hand by a unit, increasing thestores cash position by the amount you paid, and increasing

sales figures for the item by one unit.

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With OLTP and Web technologies such as an extranet, supplierscan look at the firmsinventory level or production schedule in real

time.

The suppliers themselves, in partnership with their customers, can

then assume responsibility for inventory management and

ordering.

Internet transaction processing software and servers allow

multimedia data transfer, fast response time, and storage of large

amount of graphics and videoall in real time and at low cost.

The interactivity feature allows for easy and fast response toqueries. OLTP also offers flexibility to accommodate unpredictable

growth in processing demand (scalability) and timely search and

analysis of large databases. Companies that accept and process

large number of orders, such as Dell Computer, tend to have a

sophisticated Web-based ordering system. 22


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Case Study

AUTOMATIC VEHICLE LOCATION AND

DISPATCH SYSTEM IN SINGAPORE

Taxis in Singapore are tracked by a global

positioning system (GPS), which is based

on the 24 satellites originally set up by the

U.S. government. The GPS allows itsusers to get an instant fix on the

geographical position of each taxi.

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The computerized ordering system is connected

to the GPS. Once an order has been received,

the GPS finds a vacant cab nearest the caller,

and a display panel in the taxi alerts the driver tothe pickup address. The driver has ten seconds

to push a button to accept the order. If he does

not, the system automatically searches out the

next-nearest taxi for the job.

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The system completely reengineered taxi order

processing. First, the transaction time for

processing an order for a frequent user is much

shorter, even during peak demand, since they are

immediately identified. Second, taxi drivers are notable to pick and choose which trips they want to

take, since the system will not provide the

commutersdestination.

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This reduces the customers average waiting

time significantly, while minimizing the travel

distance of empty taxis. The system increases

the capacity for taking incoming calls by 1,000percent, providing a competitive edge to those

cab companies that use the system. It also

reduces misunderstanding between drivers and

dispatchers, and driver productivity increasesince they utilize their time more efficiently.

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Finally, customers who use terminals do

not have to wait a long time just to get a

telephone operator (a situation that exists

during rush hours, rain, or any other timeof high demand for taxis). Three major taxi

companies with about 50,000 taxis are

connected to the system.

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OAS(Office Automation System)


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OAS(Office Automation System)

Office is a part of organization helps in

planning, Coordinating, and controlling

organization operations through

communication and records.

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Processing and Arranging Information

charts and diagram have to be prepared

and statements and reports have to be

drawn in a readily usable form.

Communication of Information

Periodical statements, staff attendance,

stock position, cash and bank balance,credit information about customer.

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An OAS is defined as any application of IT

that intends to increase productivity of the

office.

The scope of OAS is quite broad which

may result virtually into paper-less officework.

OAs is used by all the people who work in

an office. Managers, Clerical Staff,Professionals and Secretraies.

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Offi A t ti A li ti


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Office Automation Applications

Word Processing

Desktop Publishing

Document Imaging E-Mail

Voice Mail

Electronic Calendaring Fax

Audio and Video Conferencing

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Virtual Office Just like physical office but devoid of

physical space and facilities.

Employees interact with others though

portable communication tools such as

email, cellular phone, think pad, voice mail

system, laptops, fax and audio and video

sysems

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Disadvantages Lack of Belongingness

Psychological fear of Job loss

Increase in Family Tension

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Goal


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Goal

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Communicate

CollaborateCoordinate

Goal of Enterprise

Collaboration

Systems

To increase workgroup collaboration

and get benefitted by

varied skills ,

thoughts and Ideas.


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Value of ECS

Operational employees can work together

more Easily and Effectively

Avoid traveling(telephone or video

conferencing)

Enhanced coordination(document merging,

calendaring, scheduling, workflow systems)

Enhanced collaboration(project

management tools, discussion forums,

instant messaging, etc.)

Intranet Communications


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Intranet Communications

& Collaboration

Groupware

ElectronicMail

VoiceMail

PagingFaxes

IntranetCommunication

and Collaborationwithin an Enterprise

Enterprise Collaboration Tools


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Enterprise Collaboration Tools

DataConferencing

Videoconferencing

DiscussionForums

Electronic

Meeting

Systems

VoiceConferencing

Chat Systems

GroupwareEnterprise

CollaborationTools

Group ware Software for Working together


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Group ware Software for Working together

Group ware is also called as collaboration software. It helps the

members of a work group collaborate on group projects at thesame or different times and at the same or different places. It

provides Office automation, Information Management and

retrieval, Decision support and application development tools

required to accomplish specific tasks.

Categories of Groupware :

1. E-mail

2. Group Scheduling

3. Electronic Meeting System

4. Whiteboard

5. Videoconferencing


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Same Time Different

Times

Same

Place

Different

Places

Face to Face Meetings

Electronic Copy Boards

Electronic Decision Room

Tools

Team Buildings Tools

Teams in Place

Team Room Tools

Shift work Groupware

Cross Distance Meetings

Audio ConferencingDesktop Video Conferencing

Screen Sharing

Teleconferencing

Ongoing Coordination

Voice MailE-mail

Fax

Project Schedulers

Work Flow System


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Amity International Business SchoolManagement Support System

MIS

DSS

EIS ES

Functional Information System

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Amity International Business SchoolObjective of MIS

MIS provide a variety of information products tomanagers. The three major reporting

alternatives provided by such systems are:

Periodic Scheduled Reports (Monthly statements,

Weekly sales analysis etc.)

Exception reports (customer information

exceeding their credit limits, Promotion related

reports for a particular product) Demand Reports and Responses( DBMS Query

Languages and report generators allow managers

at online workstations to get immediate reponses fo

their requests. 49


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Amity International Business SchoolRole and Importance of MIS

Timely information helps in efficient and quick

decision making.

Flexibility in IS to incorporate future

requirements of management on need basis. Information flow based on system approach

linking diverse activities of diverse departments

within an organization to exchange information.

Information communication based on relevancy

with respect to diverse needs of management at

different levels.

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Pitfalls in MIS Development Organization does not have a reliable

management.

Organization has not defined its mission clearly.

Organization objectives have not been specified. Management lacks interest in MIS development

process and relies solely on MIS Specification

development.

Communication gap exists between the MIS

development team and the management.

MIS development team is incompetent.

Documents

Module 2 (Part I)LITGB