Business with Information Technology

WELCOME EVERYONE

It’s a “ Creative Thinkers” Presentation

Group Members of “Creative Thinkers”

Serial No Name

01. Rafiqul Alam Khan

02. Rakibul Haque

03. Helal Chowdhury

04. Md. Al Amin

Submitted To : Shaikh Masrick Hasan

LecturerDepartment of Finance

Jagannath University

Submitted ByRafiqul Alam KhanGroup representative of

“Creative Thinkers”Date of Submission:15/06/2013

An empirical study on “ Information System Increases the Efficiency of Business Organization”

Definition of Information System

• Information system is defined as the use of computers and telecommunications equipment to store, retrieve, transmit and manipulate information.

• Information system is the driving force behind globalization and is the key element of a small-time business transiting to a large scale business.

Background of Information System

• We can identify five eras of IS evolution corresponding to the five phases in the development of computing technology:

• Mainframe and minicomputer computing,• personal computers,• client/server networks, • enterprise computing, • Cloud computing.

Elements of IS

DataPeople Hardware Input User Output StorageSoftware

Information systems should have these characteristics

• They are flexible and provide many options for handling data and evaluating information.

• They are capable of supporting a variety of styles, skills, and knowledge.

• They have the ability to keep track of many alternatives and consequences.

• They are sensitive to the bureaucratic and political requirements of systems.

Business Information System

• Order Entry System• Billing System• Accounts Receivable System• Inventory Control System• Purchasing System• Accounts Payable System• Payroll System• General Ledger System

of Order Entry System

Input Function:Accept Customer

Order Data

Processing function:Check Inventory quantityCheck customer credit

Output function:Produce sales order

Storage function:Storage customer order dataAccess inventory master dataAccess customer order data

of IS

Information system has impacts on• Organization & Business Impacts• Economic Impacts• Organizational & Behavioral Impacts• Impact on Workplace• Impact over Personnel

How Information Systems Impact Organizations and Business Firms

• Change is the only constant in the relationship between information systems and organizations.

• The changes that have taken place in computing have affected the business environment in a big way. Over 40 percent of the equipment investment in the last decade has been on computing equipment.

• Organizations are finding more efficient ways to accomplish tasks via networking, either internal networks or by connecting to external networks. Technology has caused many changes in the way businesses connect to their customers and suppliers.

Relationship between Business Organizations and Information Systems

• The business organization needs to design information systems that serve the better services. At the same time the organization must be ready and willing to restructure the organization to take advantage of the improvements an information system can offer.

• Information systems use data as their main ingredient and organizations rely on people. However, the similarities are remarkable. Both are a structured method of turning raw products (data/people) into useful entities (information/producers).

Organizing the IS Function

Organizations and information systems influence each other. Each organization shares common characteristics that the information system can enhance.

Each organization has unique characteristics that should be taken into account when incorporating technology.

Organization should determine how the technology is incorporated and not let the information system totally dictate the organizational structure.

The Internet and Organizations Business-to-business commerce is growing at a tremendous

pace because of the cost savings the Internet allows. The innovative ways organizations are using the Internet,

intranets, and extranets to improve their business processes and lower costs are simply fascinating.

The integration of an information system into an organization naturally causes change for the organization. What isn't so simple to manage is the very fact that many people do not readily accept change.

It doesn’t matter how much technology we employ, it is still the organization's people who will make or break it.

Information Systems and Business Strategy

“If a business doesn’t have a plan, then it is planning to fail”

Using information systems should be a positive exercise. That is, the system should help managers at all levels make better decisions, more efficiently, to the benefit of a greater number of people, and to improve the organization.

Information Systems and Business

The levels of long-term strategic planning feasibility by the use of IS :

• Business level: a single firm • Firm level: multidivisional businesses

operating as one cohesive unit • Industry level: an entire industrial

environment or ecosystem By effectively using an information system in a

strategic role at any, or preferably all, levels of the organization, a digital firm can provide more value in their products than the competition.

Information System in

• A very effective use of strategic information systems is to create products or services that are so different from the competition's as to create barriers for the competition.

• Product differentiation is at the heart of the most companies success. IS provides the benefits of product differentiation.

Supply Chain Management and Efficient Customer Response Systems

• Because of the integration of information systems throughout an organization, a digital firm can reduce costs and prices well below the competitions.

• Supply chain management offers new opportunities for companies to integrate with suppliers and customers and lower costs for everyone.

• Another way firms can hold onto their customers is to raise the switching costs the customer would experience by using a different company.

Company rofile Lusaka Group is a pioneer, dynamic,

professionally managed business organization has Strong experience in the field of Garment Sector.

100% export oriented garments manufacturer. They are manufacturing shirts, trousers, shorts, sweaters and all kind of knit garments all round the year.

Objectives behind using Information Technology in LG

• LG want to ensure, • Highest product quality • Recruiting highest deserving employees • Best quality service to their customers • And many more minor plans by using

Information Technology

Strategies to Implement the Objective

As a company of RMG sector, LG fully related to the Information Technology.

LG use various Software and Hardware, which make the work easy and comfortable. Besides this it also have various strategy to reach in dominant position in RMG sector and helps to play a monopoly role in RMG sector.

Firm-level Strategy and Information Technology

• Legato services are an Internet Service Provider and Lusaka group produces garment items. So why did Legato services and Lusaka group linked their companies?

• Because these two companies see a lot of synergy between their products and services. As they continue to demand more content and entertainment through the Internet, Legato is well positioned to deliver the content.

• Lusaka has the content but not an efficient, low-cost method of delivering it through the Internet. By merging a delivery-based company with a content-based company, they can beat their competition through synergy.

• Esquire Knit Composite Limited is a composite circular knit garment manufacturer in Bangladesh.

• A privately owned company. • Esquire Knit Composite Limited is a sister

concern of Esquire Group which deals with woven, knit products and produces the goods from standard factories in Dhaka.

ESC following departments• 1.Human resource, • 2.Textile (knit dying, yarn dying, spinning,

washing, laboratory) • 3.Maintenance (warehouse, ETP, WTP) • 4.Garments (swing, merchandise)

Visible seen of IS we observed in management site

• Accounting (Financial, Sales, Inventory, Management, Inter branch)

• Payroll management (Employee database, Employee ID cards, shift’s and overtime, import data, analysis and reports)

• Fixed asset management (Asset life cycle, Asset database, Fixed asset register, Depreciation for income tax)

Visible seen of IS we observed in technical site• In all division we see that, textile division have

No of Machines 250. • All machine used high priced software. And this

machines also run manually. But it takes a lot of time and most of time it gives wrong result.

• So it is clear that by using information system it much better profitable

Supply Chain Management and Efficient Customer Response Systems

• For example Esquire Knit Composite provide branded garment products to its customers in hopes of creating switching costs so great the customer will continue to making deal with them.

• It also offers discounts on their retailing price if the retailers make the purchase through its Web site.

• By selling various products its web page become a selling point, It can also gather more data about its customers when they use its Web site.

• Customers are very much induced to this kind of innovative advantages.

Tools for Data Collection

• We’ve developed a questionnaire for collecting data from this two firms.

• Questionnaire_IS increases Business Efficiency1.pdf

• The survey was mailed to the executives of the Lusaka Group & Esquire Knit Composite Ltd., which enthusiastically supported the study.

• The survey was initially tested on individual executives who reviewed the survey and made several recommendations. The input of this test group was incorporated into the survey and the revised surveys were mailed to the executives of those organizations.

• We received 23 usable responses to our survey, giving us a response rate of 57 per cent.

Online surveying

Multi-part questions were broadly divided into the following categories:– Profile and characteristics of the business organization;– Technologies used by the business organization;– Investments in technology;– Alignment between IS and business goals;– Top management’s commitment to technology;– Role of IS in supporting organizational tasks;– Efficiency measures used to identify the contribution of IS;– Critical success factors.

Findings & Recommendations

We`ve try to find out the key features that is needed to be successful using of IS. They are;

Evaluating analysis the effect of IS (How IS effect the Organization’s)

How IS supports the activities of managers How IS support various business strategies for

competitive advantage.

Enhancing Core Competencies Managers develop routines called Standard

Operating Procedures which are précised rules, procedures and practices.

Employee learn these to tackle all expected and unexpected situations so that they become highly creative and capable to reduce costs and increases efficiency.

Findings

IS for achieving organizational goal There are different types of Organization’s

with different goals. For instance, we can say a contrast

manufacturing with an insurance company.

Findings

Basically the manufacturing company is targeting new buyers to sell their new products.

To achieve its goals they take the advantages of IS. On the other hand, the goal of insurance company is

to stable customers. So obviously they also use IS. Though both of these businesses are small and

entrepreneurial. But they must respond to IS.

Of Information System

Advantages are• Support business decision making• Reduce human labor • Support short and long term business goal• Distribute complex information• Globalize the business• More cheaper ,quicker and efficient communication• Has made the possibility for business to be open 24*7• Creation of new jobs.• Minimize the cost

Disadvantages are

• Unemployment• Outsourcing the jobs• Cost of maintains

Making Invest Decision

Information system changes the way of individual investment

IS change the way we invest in today’s market. we can gain the knowledge how other investment become succeed.

There are different types of software that can analysis the data where the firms should invest or not.

We can get the business forecast by experts through Websites ,blogs and social media. Business firms can get up to dated knowledge about the market.

• IS has expand the business operations which enables business too effectively and successfully plan, manage, execute strategies which leads to profit.

• Our surveyed groups have already successfully implement the IS functions.

• At the end, the most ethical thing that we should remember is that at the core of every organization are people because they run the Information System.

Thank you for not being asleep