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Amity International Business School
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.