Download - Ppt Fr It Fr Managers
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Foundations of
Information Technologyin Business
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Why Study Information
Technology? Information technology can help all kinds of
businesses
improve the efficiency and effectiveness oftheir business processes, managerial decision
making, and workgroup collaboration, thus
strengthening their competitive positions in a
rapidly changing marketplace.
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Why Study Information Technology
Internet-based systems have become a
necessary ingredient for business success in
todays dynamic global environment.
Information technologies are playing an
expanding role in business.
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What is a System?
A system can most simply be defined as a group of
interrelated or interacting elements forming a unified whole.
Three basic interaction components or functions of a system:
Input this involves capturing and assembling elements thatare required to be processed.
Output this involves transferring the information generatedby the system to their ultimate destination
Processing is the transformation process that converts theinput into output.
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What is an Information System?
An Information System is a set of inter-related
components that collect (or retrieve), process,
store , and distribute information to support
decision making and control in an organization.
Any organized combination of people, hardware,
software, communications networks, and dataresources that stores, retrieves, transforms, and
disseminates information in an organization.
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Information Systems vs.
Information Technology
Information Systems (IS) all components
and resources necessary to deliver
information and information processing
functions to the organization
Information Technology (IT) various
hardware components necessary for thesystem to operate
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A Business System
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Types of Information Resources
Computer Hardware Resources
including microcomputers, midsize servers, and large
mainframe systems, and the input, output, and storage
devices that support them
Computer Software Resources
including operating system software, Web browsers, software
productivity suites, and software for business applications like
customer relationship management and supply chain
management
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Types of Information Resources
Telecommunications Network Resources including the telecommunications media, processors, and
software needed to provide wire-based and wireless
access and support for the Internet and private Internet-based networks
examples include twisted-pair wire, coaxial and fiber-opticcables, microwave, cellular, and satellite wirelesstechnologies
examples include communications processors such asmodems and internetwork processors, andcommunications control software such as networkoperating systems and Internet browser packages.
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Types of Information Resources
Data Resource Management Resources
including database management system software
for the development, access, and maintenance ofthe databases of an organization
People Resources
end users or Clients Accountants, Clerks, customers IS Specialists people who develop and operate the
Information Systems System analyst, System Developers,System operators
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Conceptual Framework of IS
Knowledge
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Roles of IT in Business
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The Managers JobThe most important task of managers is making decisions. IT changes the
manner in which many decisions are made
Automation of routine decisions
Less expertise required for many decisions.
More rapid identification of problems and opportunities
Less reliance on experts to provide support to top executives.
Empowerment of lower and middle levels of management.
Decision making undertaken by non-managerial employees.
Power redistribution among managers
Thinner organizations.
Organizational intelligence that is more timely,comprehensive, accurate, and available
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Information Systems Activities
Input of Data Resources
Processing of Data into Information
Output of Information Products
Storage of Data Resources
Control of System Performance
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Types of Information required by an
organization
Strategic Information
Tactical Information
Operational Information
Statutory Information
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Strategic Information:
Information needed for long term planning
Directing the course the business should take
Less structured
Volume of important information in strategic planning is small and difficult to obtain.
Tactical Information:
Needed for taking short range decisions to run the business effectively
Requires specifically designed processing of data
Mostly obtained form the day-to-day collection of routine data
Much more in volume
Operational Information: Needed for day-to-day operations of a business organization
Easily obtained by simple clerical processing of data
volume is much more than that of tactical information.
Statutory Information:
Information and reports required by law to be sent to government authorities
Clearly specified
Require straight forward processing of data.
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Impact Of IT On Personnel Issues
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MANAGERIAL ISSUES
The effects of offshore outsourcing. Offshore outsourcing may be either anopportunity or a threat to an organization. To improve organizational efficiency,companies should explore the opportunities to outsource certain noncore activitiesto firms in other parts of the world. However, managers should be aware ofvarious legal and ethical considerations surrounding this issue as well as the impactof outsourcing on the size and morale of their workforce.
Managing and evaluating remote workers. Telecommuting increases thenumber of employees working away from the office. To manage these employees,it is vital to place a greater emphasis on regular formal communications. Effectiveperformance evaluation is also different and requires a closer examination of theactual outputs produced by each employee.
Dealing with information overload. In many workplaces, the capacity of
information systems to collect and generate information has outpaced the ability ofhuman employees to absorb it. The resulting information overload negativelyimpacts employees and their productivity. A greater investment in knowledgemanagement systems, decision support systems, and related tools may help tosolve this problem
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MANAGERIAL ISSUES
Providing high-quality information. As companies continue to rely on
increasingly larger volumes of information, the issue of information quality
becomes critically important to the success of the organizations.
Furthermore, recent laws, such as the SarbanesOxley Act, make CEOs and
CFOs personally liable for the quality and accuracy of financial information
disclosed to the public.
Displacement of employees with information technology. In any
occupationblue-collar, clerical, or white-collarmachines are acquiring
the capabilities to perform human tasks more effectively and efficiently.
Although this trend is unlikely to result in massive worldwide unemployment,
it can have dramatic results on individual organizations and on individual
employees. Thus, managers should be aware of the potentially disruptive
technologies that may displace them or their colleagues and subordinates. Use of electronic surveillance. Proliferation of computer and white-collar
crime impels employers to use information technology to monitor their
employees. While electronic surveillance may reduce the incidence of unlawful
activities, it may also result in employee resentment and other unintended consequences.
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Organizational Pyramid vs Information Pyramid
Top
Middle
Operational
Top
Middle
Operational
Strategic
decision
Tactical
decision
Operational
decision
Environment al
Info
Internal
Info
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Responsiveness to Change
like a chameleon, an
organization must
respond to rapidly
changing environments
I/T may be used in
numerous ways tofacilitate
responsiveness
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Competitive StrategyCompetition is a fact of life
for organizations
I/T is a necessary tool forimplementing effective
organizational strategies
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Competitive Strategies
I/T facilitates the
integration of
suppliers,
customers, andmarkets
this shrinks time
and distance,
reducing
organizationaland international
boundaries
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Organizational Management
an organization is composed of
individuals who cooperate to accomplish
goals
management refers to the activities
required to keep an organization alive and
functioning
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Current Trends in Management
Process-based management
Customer satisfaction (customer-driven
organizations) Co-opetition
Information dissemination (empowering
employees
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Measures of Success
Efficiency Minimize costs
Minimize time
Minimize the use of information resources
Effectiveness
Support an organizations business strategies
Enable its business processes
Enhance its organizational structure and culture
Increase the customer business value of the enterprise
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THANKU