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MODULE-1
Introduction to Information Technology
( Digital Economy)
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Module01 2
Why Computers ? Speed
Accuracy
Consistency Reliability
Integration
Less Redundancy
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Module01 3
Information Data
Processed, Organised and integrated
To help Analyze data and take decisions
May not know ahead, what
information you want and what datato collect ?
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Module01 4
The Old Economy Taking Photos
1. Buy film in a store
2. Load your camera
3. Take pictures4. Take roll of film to store for processing
5. Pickup the film when ready
6. Select specific photos for enlargement
7. Mail to family and friends
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Module01 5
The New Economy Taking Photos
1st Generation Digital Photography
Old economy except 6 and 7 were replacedby using a scanner and emailing ie. Taking
care ofSelection and Mailing.
2nd Generation Digital Photography
Use a Digital Camera, no film, no processing.
3rd Generation Digital Photography
Your Digital Camera is now your mobilephone, in your binoculars or a palmtop
computer.
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Module01 6
Digital Economy New Economy
E-Business:
The use of electronic technologies
to transact business. Collaboration:
People and Organizations interact,communicate, collaborate and
search for information Information Exchange:
Storing, processing andtransmission of information.
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Module01 7
Digital Business
Your D om ain/UR L
Internet
POS
Appli
c
S
rv
r
St
r
3
T
i
li
t
Appli
c
On-line Multi-station Store
t
Appli
c
St
r
1
On-line
Single-station Store
On-line Customers
Consumer & Business
Commercial
E-commerce
H ub
AccountingPhone OrdersMail Orders
Order Fulfill ment
STARS
T
i
li
t
T
i
li
t
In-house operations
Purchasing
On-line
Salesperson
L i n u x C r e d i t C a r d A p p r o v a l
Ap a c h e S e r v e r
C o l d F u s i o n
Sybase ASE Database
L i n u x SSL
Ap a c h e S e r v e r
Be a c o n H i l l 's Sta r s
T a r e n te l l a
SC O U n i x Linux
Unix
Bu siness to B usiness
Server
E-Com m erce Server
W indow s 2000
O ffice Suite
Video Con ferencing
Server
IP Ad dress 1
IP Add ress 2
IP Add ress 3
STARS
Networks
Internet
Telecommunications
ConsumerIn-office
Field Sales
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Module01 8
Business Models
A business model is a method of doingbusiness by which a company cangenerate revenue to sustain itself. The
model spells out how the company addsvalue to create a product or service.
(Value Chain) Nokia makes and sells cell phones
A TV station provides free broadcasting. Its
survival depends on a complex model involvingadvertisers and content providers.
Internet portals, such as Yahoo, also use acomplex business model.
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Module01 9
Digital Age Business Models
Name-Your-Own Price
Reverse Auctions
Affiliate Marketing
E-Marketplaces and Exchanges
Electronic aggregation (buying
groups)
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Module01 10
Dri ers Forcing Changes In Business
Models
Environmental, organizational, and technologicalfactors are creating a highly competitive businessenvironment these factors or forces can changequickly, sometimes in an unpredictable manner.
Therefore, companies need to react frequentlyand quickly to both the threats and theopportunities resulting from this new business
environment.
A response can be a reaction to apressure already in existence, an initiativeintended to defend an organization against futurepressures, or an activity that exploits anopportunity created by changing conditions.
Business Pressures
Business Critical Response Activities
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Module01 11
The Dri ers of change
Business Pressures on an Organization thatforce change.
Market
Technology
Society
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Module01 12
The Dri ers of change Continued
Business Pressures on an Organization.
MarketSociety
Technology
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Module01
13
Organizational Response to these
Dri ers
Strategic Systems
Continuous Improvement Operational Efficiency
Restructuring business processes
Manufacturer to order
Customer Focus Strategy Employ E-business tools
Business Alliances
Technology is required toTechnology is required toeffectively implementeffectively implementthese critical responses.these critical responses.
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Module0114
Information ystems - Components
Input
ProcessOutput
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Module0115
Information ystem Types
Strategy
TacticsOperations
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Module0116
Information ystem
An information system (IS) collects, processes, stores,analyzes, and disseminates information for a specificpurpose. Like any other system, an information systemincludes inputs (data, instructions) and outputs (reports,calculations). Itprocesses the inputs by using technologysuch as PCs and produces outputs that are sent to users
or to other systems via electronic networks and afeedbackmechanism that controls the operation.
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Module0117
Information ystem Is A ystem
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Module0118
Computer Based Information ystem
Hardware
Software
Data Network
Procedures
People
Hardware
Software
People
DataApplicationApplication
More than hardwareMore than hardwareand softwareand software
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Module0119
Applications and Operations
Retail operations
Wholesale
Manufacturing Human Resources
Marketing
Content management
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Module0120
Information ystems
MarketingMarketing
Identify customers
Determine what they want Planning products
Advertising and promoting products
Determine prices for products
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Module0121
Information ystems
SalesSales
Contact customers
Sell the product Take the order
Follow-up on the sale
5 year sales forecast
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Module0122
Information ystems
ManufacturingManufacturing
Control Equipment and machinery
Design new products When and quantity ofproducts to produce
New production facilities
Generate the work order
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Module0123
Information ystems
Functional PerspectiveFunctional Perspective
PurchasingPurchasing
Which vendors Quantity to purchase
Coop, rebate tracking
Handle delivery discrepancies
Generate the purchase order
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Module0124
Information ystems
Functional PerspectiveFunctional Perspective
FinanceFinance
Financial Assets Investment management
Banking
Long term budgets
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Module0125
Information ystems
AccountingAccounting
Accounts Receivable
Disbursements Payroll
Depreciation
Earned Coop and Rebates
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Module0126
Information ystems
Human ResourcesHuman Resources Employee wages, salaries & benefits
Long term labor requirements
Tracking vacation, sick,
Track employee skills
Interview and review employees
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Module0127
PROBLEM FACED IN
INFORMATION Y TEM
Processing Over Load
System Slow Down
Data Accuracy
Insufficient Storage
Data Not Recd in TimeTimely output
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Module0128
Trends in Technology
Cost-performance ratio of chips keeps improving.Moores Law, his prediction was that the processingpower of silicon chips would double every 18 months.
According to McGarvey &tenornetworks.com, statesthat the performance of optical communicationnetworks is growing by a factor of 10 every threeyears
Several new devices and methods to increase storagecapacity price performance
Object technology enables the development of self-contained units of software that can be shared
Networked and distributed computing is emergingrapidly Metcalfes Law.
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Module0129
Trends in Technology (continued)
Internet
Mobile Computing and M-Commerce
Wireless networks Pervasive Computing
Smart Devices
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Module0130
Trends in Technology (continued)
The Network Computer
Optical Networks
Storage Area Networks
Intranets &Extranets
The Internet
The Networked EnterpriseThe Networked Enterprise
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Module01
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MANAGERIAL ISSUES
Recognizing opportunities for using IT and Web-based systems.
Who will build, operate, and maintain the information systems. This is acritical issue because management wants to minimize the cost of IT whilemaximizing its benefits. Some alternatives are to outsource portions, or even all, ofthe IT activities, and to divide the remaining work between the IS department andthe end users.
How much
IT? This is a critical issue related to IT planning. IT does not come free,but not having it may be much costlier.
How important is IT? In some cases, IT is the only approach that can helporganizations. As time passes, the comparative advantage of IT increases.
Is the situation going to change? Yes, the pressures will be stronger as timepasses. Therefore, the IT role will be even more important.
Globalization. Global competition will have an impact on many companies. However,globalization opens many opportunities, ranging from selling and buying productsand services online in foreign markets, to conducting joint ventures or investing inthem. IT supports communications, collaboration, and discovery of informationregarding all the above.
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MANAGERIAL ISSUES Continued
Ethics and social issues. The implementation of IT involves many ethical andsocial issues that are constantly changing due to new developments in technologiesand environments. These topics should be examined any time an IT project isundertaken.
Transforming the organization to the digital economy. The transformation canbe done on several fronts. Management should study the opportunities, consideralternatives and prioritize them.