Amity International Business School

Amity International Business School

MBA- IB, 4th Semetser Leveraging IT for Global Business

Dr. Loveleen Gaur

Classification by Organizational Amity International Business School 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

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While a departmental information system is usually related to a functional area, other information systems serve several departments or the entire enterprise. These information systems together with the departmental applications comprise the enterprise wide information system (EIS). One of the most popular enterprise applications is enterprise 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
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Some information systems connect two or more organizations. They are referred to as interorganizational information systems (IOSs). For example, the worldwide airline reservation system is composed of several systems belonging to different airlines. Of these, American Airlines SABRE system is the largest; thousands of travel agents and hundreds of airlines are connected to it

Who Performs What Activities in Organizations? Amity International Business School

Types of IS
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Operations support systems

What are they?
Efficiently process business transactions Control industrial processes Support communications and collaboration Update corporate databases

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Types of Operations Support Systems Amity International Business School

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 to monitor chemical processes

Enterprise Collaboration Systems

Enhance team and work group communications Examples: e-mail, videoconferencing

Two ways to process transactions Amity International Business School

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

Management Support Systems

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What are they?

Provide information and support for effective decision making by managers

Types of Management Support Systems

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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 to spend advertising dollars

Executive Information Systems (EIS)

Provide critical information for executives and managers Example: easy access to actions of competitors

Operational or Management Systems

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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

TPS

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A TPS is a computerized system that performs and records the daily routine transactions necessary to conduct 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 14 history.

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Characteristics of TPS
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Objective of TPS
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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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Flow of information in Transaction Processing/Transaction Processing Cycle Amity International Business School

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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 for nonscheduled information (such as, What was 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 Processing Systems Amity International Business School
Transaction processing systems may be fairly complex, involving customers, vendors, telecommunications, and different 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 transaction processing (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 the stores 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, suppliers can look at the firms inventory 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 to queries. 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

Case Study AUTOMATIC VEHICLE LOCATION AND Amity International Business School 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 its users to get an instant fix on the geographical position of each taxi.

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Heres how the system works: Customer orders are usually received via a cell phone, regular telephone, fax, or e-mail. Customers can also dispatch taxis from special kiosks (called CabLink) located in shopping centers and hotels. Other booking options include portable taxi-order terminals placed in exhibition halls. Frequent users enter orders from their offices or homes by keying in a PIN number over the telephone. That number identifies the user automatically, together with his or her pickup point. Infrequent customers use an operator-assisted system.
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Amity International Business School

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 to the 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 not able to pick and choose which trips they want to take, since the system will not provide the commuters destination.

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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 1,000 percent, providing a competitive edge to those cab companies that use the system. It also reduces misunderstanding between drivers and dispatchers, and driver productivity increase since 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 time of 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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Office is a part of organization helps in planning, Coordinating, and controlling organization operations through communication and records.

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Functions of Office
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Receiving and collecting information( Letters, Reports, Circulars, Telephone calls, Inquiries, fax messages etc) Recording and Preserving Information( recorded correspondence(according to companys act), list of charts, statements, books, registers entries so that they can be retrieved easily)
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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 office work. OAs is used by all the people who work in an office. Managers, Clerical Staff, Professionals and Secretraies.
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Model of OAS
Organization Problem Solvers Computer based OA applications

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Other solvers

Database

Input

Transformation

Output

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Office Automation Applications

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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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Advantages of Virtual Office

Reduced Facility Cost Reduced Equipment Cost Emphasis on Formal Communication Reduced work stoppages Social Interaction and Social Contribution

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Disadvantages
Lack of Belongingness Psychological fear of Job loss Increase in Family Tension

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Enterprise Collaboration System

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ECS are those which enable people to work together more efficiently, effectively and easily. These systems help people in the organization, outside the organization, without barriers of locations to communicate, coordinate and collaborate.
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Goal
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Communicate

To increase work group collaboration and get benefitted by varied skills , thoughts and Ideas.

Goal of Enterprise Collaboration Systems Coordinate Collaborate

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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.)
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Intranet Communications Amity International Business School & Collaboration

Electronic Mail

Groupware

Intranet Communication and Collaboration within an Enterprise

Voice Mail

Faxes

Paging

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Enterprise Collaboration Tools

Data Conferencing Discussion Forums

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Voice Conferencing

Groupware Enterprise Collaboration Tools

Chat Systems

Videoconferencing

Electronic Meeting Systems

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Group ware Software for Working together

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Group ware is also called as collaboration software. It helps the members of a work group collaborate on group projects at the same 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
Face to Face Meetings

Different Times
Teams in Place Team Room Tools Shift work Groupware

Same Place

Electronic Copy Boards Electronic Decision Room Tools Team Buildings Tools

Different Cross Distance Meetings Places

Audio Conferencing Desktop Video Conferencing Screen Sharing Teleconferencing

Ongoing Coordination Voice Mail E-mail Fax Project Schedulers Work Flow System

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Management Support System

MIS DSS EIS ES Functional Information System

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MIS
Definition An MIS is

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For integrated user machine system For providing information To support the operations, management , analysis and decision making functions In an organization The system utilizes Hardware, software, Procedures, Models fo analysis, control and decision making and a Database.

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Objective of MIS

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MIS provide a variety of information products to managers. 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 49 their requests.

Model of MIS

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Organization Problem Solver

Report Writing Software

Mathematical Models

Database

Environment

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MIS Components
INPUT
Processor (Summarize, Calculate, Sort, Classify

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OUTPUT

1. Sales in Unit by each salesman for a period say monthly, quarterly. 2. Estimated Sales in units of competitors corresponding to above. 3. Economic Conditions and trends

1. Sales by Product (Month wise / till date 2. Sales by salesman. 3. Sales by region 4. Sales Trend Analysis 5. Sales Forecasts
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Role and Importance of MIS

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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.
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