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    Piyush Mistry

    [email protected] 34009

    Course for ITM-Session-1

    mailto:[email protected]:[email protected]
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    Information System (IS) refers to a system ofpeople, data records and activities that process thedata and information in an organization.

    Devices used to aid computation for thousands ofyears.

    Using one-to-one correspondence with ourfingers

    Mechanical Calculators Log tables

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    The word "calculus" comes from the Latin word forpebble

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    The first use of the word "computer" wasrecorded in 1613, referring to a person whocarried out calculations, or computations, andthe word continued to be used in that sense

    until the middle of the 20th century.

    From the end of the 19th century onwardsthough, the word began to take on its more

    familiar meaning, describing a machine thatcarries out computations.

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    Computer based information system refersto the specific that isused to store data records in a computersystem and automates some of theinformation processing activities of theorganization.

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    An CIS is a set of interrelated componentsthat collect or retrieve, process, store, anddistribute information to support decisionmaking and control in an organization.

    Information systems can also be used toanalyze problems, visualize complexsubjects, and create new products.

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    Input captures or collects raw data from within theorganization or from its external environment.

    Processing converts this raw input into a meaningful form. Output transfers the processed information to the people who

    will use it or to the activities for which it will be used.

    is , or raw facts, shaped into useful form forhumans.

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    Using IS effectively requires an understanding of the organization,management, and information technology shaping the systems.

    An information system creates value for the firm as an organizational andmanagement solution to challenges posed by the environment.

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    makes long-range strategic decisionsand ensures the firm's financial performance.

    carries out the plans of seniormanagement and monitors thefirm's daily activities.

    such as engineers and scientists designproducts and create and distribute new knowledge for the

    organization. such as secretaries process theorganization's paperwork. produce the products or services.

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    Mgt. perceives business challenges and they set org. strategies torespond to it, they provide resources to overcome and succeed.

    Mgt. should enable managers to create new products/services,adopt newer techniques and ideas.

    Mgt. should encourage change

    Mgt. should impose change and new process with an iron hand

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    A firm's is atechnology platform or foundation on which a firm can buildits information systems. IT infrastructure consists of:

    : The physical equipment and computingdevices used for input, storage, processing, output, andtelecommunications

    : The detailed, preprogrammedinstructions that control and coordinate the computerhardware components

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    : The software governing theorganization of data on physical storage media

    : Hardwareand software used to link the various pieces of hardware andtransfer data from one physical location to another; acomputer links two or more computers together to

    share data, such as files, images, sounds, video, or shareresources, such as a printer.

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    Business firms invest heavily in information systems to achieve sixstrategic business objectives:

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    Using IS achieve efficiency, productivity

    IS enables the org. to improved changes inbusiness practices and managementbehavior

    E.g. Wal-Mart has IS that enables its

    suppliers to monitor the inventory and shipthe item.

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    A business model describes how a company

    produces, delivers, and sells a product orservice to create wealth.

    Information systems and technologies createopportunities for new products, services, andnew ways to engage in business.

    e.g. digital music, videos, e-books, games,apps.

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    Improved communication with and service to

    customers raises revenues

    The customer generally stays loyal to the brand

    if served well. E.g. a hotel maintains thecustomers preferences.

    Improved communication with suppliers .Themore you engage your supplier he gives vital

    inputs and lowers costs.

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    Without accurate and timely information,business managers make decisions basedon forecasts, best guesses, and luck, aprocess that results in over and under-production of goods, raising costs, and theloss of customers.

    Real time dashboard enable them to takeright decisions rather than guesses.

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    Implementing effective and efficient

    information systems can allow a company tocharge less for superior products, adding up to

    higher sales and profits than their competitors.

    Responding to customers and suppliers realtime adds us to your benefits and profits. E.g.Dell

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    Information systems can also be a necessity

    of doing business. A necessity may bedriven by industry-level changes, as in theimplementation of ATMs in the retailbanking industry.

    A necessity may also be driven by

    governmental regulations, such as federalor state statutes requiring a business toretain data and report specific information.

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    http://www.google.com/imgres?imgurl=http://www.pages2send.com/smileforyou/smile2.jpg&imgrefurl=http://profile.myspace.com/index.cfm%3Ffuseaction%3Duser.viewprofile%26friendID%3D210785949&h=451&w=581&sz=74&tbnid=zOWax-56USsJ::&tbnh=104&tbnw=134&prev=/images%3Fq%3Dsmile%2Bimage&hl=en&usg=__0X8phV_3RC-e-_hu_TcvUv7Ni6s=&sa=X&oi=image_result&resnum=3&ct=image&cd=1
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    Information systems are transforming business and thevisible results of this include the increased use of cell phonesand wireless telecommunications devices.

    A massive shift toward online news and information, boominge-commerce and Internet advertising, and new federal

    security and accounting laws that address issues raised bythe exponential growth of digital information.

    E-commerce is the part of e-business that deals with thebuying and selling of goods and services over the Internet. Itencompasses activities supporting those market transactions,

    such as advertising, marketing, customer support, security,delivery, and payment.

    The Internet has also drastically reduced the costs ofbusinesses operating on a global scale.

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    These changes have led to the emergence of the digital firm,a firm in which:

    Most of the firm's significant business relationships withcustomers, suppliers, and employees are digitally enabledand mediated.

    Core , or logically related business tasks,are accomplished through digital networks.

    Key corporate assets (intellectual property, corecompetencies, and financial and human assets) are managedthrough digital means

    Business responses to changes in their environment areenhanced through digital communications, allowing for

    (business being conducted 24x7) and (business being conducted globally or beyond traditionalgeographic boundaries).

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    Information systems are essential for conductingday-to-day business as well as achieving strategicbusiness objectives.

    The ability of a firm to use IT is becoming

    intertwined with the firm's ability to implementcorporate strategy.

    Some firms, such as eBay, Amazon, and E*Trade,would be nonexistent without information systems.

    Some service industries such as finance,insurance, and BPO/KPO would not operate withoutinformation systems.

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    There are various types of information systems,critical to most information systems areinformation technologies, which are typicallydesigned to enable humans to perform tasks for

    which the human brain is not well suited. e.g.Handling large amounts of information, performingcomplex calculations, and controlling manysimultaneous processes.

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    Types of IS :

    Transaction processing

    Management information

    Decision support or Business Intelligence Expert or Artificial Intelligence

    Executive support

    Office Automation

    Enterprise Systems-CRM/ERP

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    TPS automate the handling of data about business activities ortransactions, which can be thought of as simple, discrete eventsin the life of an organization.

    Data about each transaction are captured, transactions areverified and accepted or rejected and validated transactions are

    stored for later aggregation. The goal of TPS development is to improve transaction

    processing by speeding it up, , improvingefficiency and accuracy, integrating it with other organizationalinformation systems or providing information not previouslyavailable.

    TPS are basic business systems that serve the operational level ofthe organization by recording the daily routine transactionsrequired to conduct business, such as payroll and sales receipts.

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    MIS is a subset of the overall internal controls of abusiness covering the application of people, documents,technologies, and procedures by managementaccountants to solve business problems such as costinga product, service or a business-wide strategy.

    MIS distinct from regular information systems in thatthey are used to analyze other information systemsapplied in in the organization.

    MIS serve middle managers' interests by providing

    current and historical performance information to aid inplanning, controlling, and decision making at themanagement level.

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    DSS or Business Intelligence (BI) systems are a specific classof computerized information systems that supports businessand organizational decision-making activities.

    DSS helps managers with non-routine decisions that areunique, rapidly changing, and not easily specified in advance.DSS are more analytical than MIS, using a variety of models to

    analyze internal and external data or condense large amountsof data for analysis..

    Typical information that a decision support application mightgather and present would be:

    an inventory of all of your current information assets,

    comparative sales figures between one week and the next, projected revenue figures based on new product sales

    assumptions

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    An expert system is software that attempts toreproduce the performance of one or more humanexperts, most commonly in a specific problemdomain, and is a traditional application and/or

    subfield of artificial intelligence. A wide variety of methods can be used to simulate

    the performance of the expert

    Typically as an aid to human workers or asupplement to some information system.

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    provide a generalized computing and communicationsenvironment that help senior managers address strategicissues and identify long-term trends in the firm and itsenvironment.

    ESS address non-routine decisions requiring judgment,

    evaluation, and insight because there is no agreed-onprocedure for arriving at a solution.

    ESS present graphs and data from many internal and externalsources through an interface that is easy for senior managersto use. Often the information is delivered to senior executives

    through a , which uses a Web interface to presentintegrated personalized business content.

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    Office automation refers to the varied computer machinery andsoftware used to digitally create, collect, store, manipulate, andrelay office information needed for accomplishing basic tasksand goals.

    Raw data storage, electronic transfer, and the management ofelectronic business information comprise the basic activities of

    an office automation system. Office automation helps inoptimizing or automating existing office procedures.

    The backbone of office automation is a LAN, which allows usersto transmit data, mail and even voice across the network. Alloffice functions, including dictation, typing, filing, copying, fax,Telex, microfilm and records management, telephone and

    telephone switchboard operations, fall into this category. Office automation was a popular term in the 1970s and 1980s as

    the desktop computer exploded onto the scene.

    h f h h

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    The various types of systems in the organization haveinterdependencies. TPS are major producers of information that isrequired by many other systems in the firm, which, in turn, produceinformation for other systems. These different types of systems areloosely coupled in most business firms, but increasingly firms are

    using new technologies to integrate information that resides in manydifferent systems.

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    Enterprise Resource Planning

    Supply chain management

    Customer relationship management

    Knowledge management

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    Operating system

    MS Office (word, excel, Power point, outlook)

    Browsers

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