1_information systems in business

8/8/2019 1_Information Systems in Business

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Information Systems in Business


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Why should we have a basic knowledge about

Information System??

y To understand functional areas in business.

y To make right managerial decisions

y To improve efficiency and effectiveness of business process

y Transform organizations.

y Act as a part of corporate strategy

y

Helps Knowledge management


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Contd

y Ultimately, MIS should improve the workers productivity.

y Improved work environment for employees


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What is Information System??

y A set of interrelated components that collect process, store

and distribute information to support decision making and

control in an organization.

y Also helps to analyze problems, visualize complex subjects

and create new products.


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y Information Technology : Various hardware components

necessary for the systems to operate.


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Role of e-Business in Business.

y The internet and related technologies and applications plays a

major role in business.

y E-business (electronic business), is the conduct of business on

the Internet, not only buying and selling but also to providecustomer service and collaboration with business

partners.


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y E-business includes e-commerce but also covers internal

processes such as production, inventory management,

product development, risk management, finance, knowledge

management and human resources.


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y One of the first to use the term E-business was IBM, in October,

1997.y Companies are using the Web to buy parts and supplies from

other companies, to collaborate on sales promotions, and to do

joint research.

yExample: DELL,CISCO.


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y Electronic Commerce, commonly known as (electronic

marketing) e-commerce, consists of the buying and selling ofproducts or services over electronic systems such as the Internet

and other computer networks.

y Examples: Amazon, eBay


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Types of information Systems

Information

Systems

Operations

Support Systems

Management

Support Systems

Transaction

Processing

System

Process

Control

Systems

Enterprise

Collaboration

SystemsMIS DSS EIS


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Operations Support Systems

y For traditional telecom service providers, Operations

Support Systems (OSSs) were mainframe-based systems

designed to support telephone company staff members to

automate their daily jobs. (such as order processing, billing,

etc.)

y Business firms operations support systems is to efficiently

process business transactions, control industrial processes,support enterprise communications and collabration,and

update corporate database


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Process Control Systems

Monitor and control industrial processes.

Examples: Petroleum refining, power generation and steel

production systems


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Enterprise collaboration system

Support team, workgroup and enterprise communications and

collaboration.

Examples: e-mail, chat and videoconferencing groupwaresystems


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Management Support Systems

When IS applications focus on providing information and

support for effective decision making by managers its called

MIS.

P

rovides information in the form of reports


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Major Management Challenges to build

and use IS

y Obtaining business value from information systems

y Providing appropriate complementary assets to use

information technology effectively.

yUnderstand the system requirements

y Creating flexible IT infrastructure.

y Creating user friendly systems.

y Ethics and security


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y The challenge of change

y Organizational Structure

y Give customers what they want, when and how they want.


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Success and Failure with IT

Success should NOT be measured only

by its efficiency in terms of minimizing costs, time and the

use of information resources.

Success should be measured by the effectiveness of IT insupporting an organizations

business strategies

Business processes

Enhancing organizational structures, culture

Increasing the customer and business value of the enterprise.


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ITCs e Choupal

Its a multilingual, web based e-procurement solution

provided comprehensive information targeted at the farmers.

The existing supply chain was typically

Village-> Mandi->ITCFactory

Farmers had only one option to sell their produce.

Mandi was run by middle men who often cheated the

farmers in terms of weight and of price.


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y Farmers were usually in the dark about the meteorological

information during the sowing time.

y They were unaware of the latest techniques in farming, soil

analysis ,fertilizer application etc.y Most importantly, they were unaware of the actual prices at

which middlemen sold their produce.


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y In May 1999,the eChoupal plan took concrete shape

y www.soyachoupal.com

y As per this concept each village was provided with

y A PCy Connection lines

y UPS and A printer


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Challenges

y Low availability of electric power and fluctuations in supply

y Transportation issue

y Telecom infrastructure was very poor

y 100% computer illiterate consumer base


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System Specifications

y Organizational

y Information

y Application

y Technical


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How it works??

y A literate member is chosen as Sanchalak

y Samyojaks

help establish eChoupal kiosks


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eChoupal is a bighit with farmers

y ITC puts up its offer prices on the site.

y eChoupal system gave farmers an option to sell his produce

to ITC anytime he wanted

y

Transparency in the system was there.y System is multilingual

y Entire system is used by the villagers


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eChoupal gives farmers a lot of

relevant information's

Weather information

Best farming practices

Market information

Crop information FAQ

Soil testing

Feed back

F

armer information State and central government schemes

News


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y www.aquaculture

y www.plantersnet.com

y Futer plans

y Now benefiting over 2.4 million farmers over 4100 e-choupals covering 21000 villages

y In next decade will cover over 100,000 villages


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Case discussion

1. Identify the difficulties that eChoupal may face.

2. What are the other areas where the eChoupal concept may

be applied in rural India?

3. What is innovative about eChoupal?

1_information systems in business

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