Ppt Fr It Fr Managers

8/6/2019 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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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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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

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Ppt Fr It Fr Managers