AIS gathers data describing the firm s activities, transforms data into information and makes the information

available to users both inside and outside the firm.AIS performs four basic data processing tasks Data gathering:-is the accumulation of data describing the firm s internal actions and its environmental transactions. The environmental transactions include the actions related to the movement of products and services to its environment. Data manipulation:-is the transformation of data into information. It includes1) Classifying :-it s the process of encoding certain data elements such that they can be identified and grouped using those codes.2) Sorting :-it s the process of arranging records in a certain sequence based on the codes or other data elements.3) Calculating:-it includes the arithmetic & logical operations performed on the data elements to produce additional data elements.4) Summarizing:-it s the process of synthesizing large amounts of data by creating totals, averages etc.

Data storage:-it s the accumulation of all necessary accounting data of the entire firm in the form of digital data storage using computers. Document preparation:-it s the output that is normally got from any AIS. The documents are created in two main cases1) By action:-Outputs are produced when some event happens which demands an output like preparation of customer bills as soon as the customer does its purchase.2) By a time schedule:-Outputs are produced at a regular interval of time, like payroll sheets.

Management information

Data processing software information

Data base information

Physical resources Transformation

1)It is implemented by the firm to achieve and maintain control as the AIS maintains the record of all the financial activities of the firm. 2)It adheres to all the standard procedures, regulations and accepted practices performed during data processing. 3)It handles data in a detailed and authentic manner hence it can provide an audit trial where the financial activities can be traced from beginning to end and also reverse. 4)It contains the data gathered during past hence it has a detailed focus on historical financial events of the firm. 5)The output from AIS gives the primary solution to the problems.

1)It produces some information output in the form of standard accounting reports. These reports are valuable in the financial area of the firm and at top management levels. 2)It provides a rich database that can be very useful in problem solving. This rich database provides much of the information for MIS, DSS and to some extent knowledge-based systems.

1)MKIS is based in the pioneering work of several marketing theorists. 2)There are manly two types of subsystems that can be seen in an MKIS, the Input subsystem and Output subsystem. The input subsystem includes 1)AIS, 2) Marketing research, 3) Marketing intelligence subsystem 3)The AIS provides sales order data for the software that produces information in the form of 1)Periodic reports, 2) Special reports, 3) Outputs from Mathematical -models and Expert systems. 4)Marketing research utilizes a variety of data gathering techniques 1)Surveys, 2) In-depth interviews, 3) Observations, 4) Controlled -experiments. 5)Most of the MKIS activity is aimed at establishing an intelligencegathering capability.

The Input Subsystem The Accounting Information System gathers data describing the firm s marketing transactions. The Marketing Intelligence Subsystem gathers information about the firm s marketing operations. The Marketing Research Subsystem conducts studies of the marketing operations for the purpose of learning customer needs and improving marketing efficiency.DatabaseIt contains the necessary data and information that is gathered by the Input Subsystem, which is then utilized by the Output Subsystem.

The Input Subsystem The Accounting Information System gathers data describing the firm s marketing transactions. The Marketing Intelligence Subsystem gathers information about the firm s marketing operations. The Marketing Research Subsystem conducts studies of the marketing operations for the purpose of learning customer needs and improving marketing efficiency.DatabaseIt contains the necessary data and information that is gathered by the Input Subsystem, which is then utilized by the Output Subsystem.

Manufacturing information system

In Manufacturing Information Systems, manufacturing management uses the computer both as a 1.Physical system. 2.Conceptual system.The computer as part of Physical System consists of a)Computer Aided Design (CAD) b)Computer Aided manufacturing (CAM) c)Robotics.

the computer as part of physical system computer aided design

It uses computers to assist in the design of a product that is to be manufactured. The design engineer can use a visual display terminal equipped with a light pen as an input device, to create designs. The CAD software refines the drawings, the engineer can subject the design to various virtual tests that can detect the defects in the design (if any). The CAD software can simulate the moving parts of the design to show real like movements, closer to practical situations. Once the design is confirmed the CAD software can prepare the detailed specifications that are required for manufacturing the product. These specifications are stored in a Design Database.

The computer as part of Physical System Computer Aided Manufacturing

It s the application of computers in the production process. These applications control the production machines such as drills, lathes etc. to produce products according to the specifications obtained from the Design Database. A single minicomputer can control several production machines as now a days the many production machines have built-in microprocessors .Robotics It includes the use of Industrial Robots (IR) which automatically perform manufacturing processes. Robots enable firms to cut costs & achieve high levels of quality and also perform hazardous tasks.

The computer as an information system just in-time approach system

It attempts to minimize inventory costs by producing in smaller quantities. Here the ideal lot size is 1. The single unit should move from various workstations of production until its production is completed. Timing is the key of JIT systems,as the supply of raw materials arrive from the supplier just before a production run is scheduled to begin.

The computer as an information system reorder point system

It s the task of managing the firm s inventory using computer based systems. Here a reactive approach is followed. So if an item balance reaches a particular level called Reorder Point ( ROP ), it then triggers a purchase order. The formula for calculating Reorder Point is R=L*U+S Where:R reorder point. L Supplier lead time( the amount of time the supplier needs to --fill the order ) U Usage rate ( number of units used or sold per day ) S Safety stock level ( precautionary stock in units )

The model of manufacturing information system input subsystem

The Accounting Information System gathers internal data describing the manufacturing operation and environmental data that describes the firm s transactions with its suppliers.

The Industrial Engineering Subsystem consists of special datagathering projects from inside the firm. It provides proper production standards.

The manufacturing Intelligence Subsystem gathers data from the environment. The data collected includes recent updates from the activities of labor unions and suppliers.

The model of manufacturing information system output subsystem

The Production Subsystem measures the production process in terms of Time i.e. tracking the work flow step by step. The Inventory Subsystem measures the production process in terms of Volume of production transformation of raw materials in to finished products. The Quality Subsystem measures the quality of materials as they are transformed during the production process. The Cost Subsystem monitors and measures the cost required during the production process.

Model of the Financial information system input system

The Accounting Information subsystem and Financial Intelligence subsystem are dedicated to gathering information about accounts and financial resources. The Internal Audit subsystems consist of firm s internal auditors who analyze the firm s conceptual systems to ensure that they process financial data properly as required. The Financial Intelligence subsystem seeks to identify the best sources of additional capita and the best investment of surplus funds. It gathers data and information from stockholders and financial community

Model of the financial information system output subsystem

It exerts influence on the firm s money flow. The Forecasting subsystem projects the firm s long-range future activity in an economic environment. The forecasting methods are classified mainly in to two groups 1) Non quantitative forecasting, where no computation is involved as the forecasting is done using subjective estimates. There are mainly two methods for subjective estimation. a) Panel consensus technique, it consists of a group of experts who analyze the present scenario and predict the future. b) Delphi method, it involves a group of experts who do not meet in person but instead submit responses to a series of questionnaires that are prepared by the coordinator. These questionnaires are refined by going through various rounds thus refining the contents for forecasting. 2)Quantitative forecasting methods use various computation methods like regression analysis.

The Funds Management subsystem manages the money flow to make it more balanced and positive. The flow can be managed to achieve the goals in the following manner 1)To ensure that the revenue inflow is greater than the expense outflow.

2)To ensure that the above condition remains as stable as possible throughout the year.

The Control subsystem helps the managers to take effective advantage from all types of resources of the system.

Human resource information system human resource basic activities recruiting and hiring
HR helps bring new employees into the firm by publishing ads through media ( audio & visual ) By taking the help of both government & private employment agencies. By conducting campus interviews. By conducting general tests. Education & Training To enhance the employees job related skills and knowledge the firms conduct educational and induction programs. A motivation factor is added like promotion benefits for those who attend and learn from the induction programs.

Basic HR activities contd.. Data Management HR maintains a database of employees related data and processes those data to meet the information needs of the users ( usually sister concerns) Termination and Benefit Administration During employment the employees receive in addition to their basic salary, additional benefits like hospital, housing, profit sharing etc.

When employees leave their jobs or are terminated, the HR processes the necessary paperwork and often conducts exit interviews. HR administers the firm s retirement program for the former employees who are eligible.

HRIS MODEL INPUT SUB SYSTEM

Accounting Information System Personal data elements :-they are relatively permanent and non financial in nature. These personnel data elements are created by HR at the time of employment and are kept updated as long as the employee is working for the firm. Similar data is kept for retired employees. Accounting data elements :-they are financial and tend to be more dynamic like monthly salary, income tax etc. Human Resource Research Subsystem Succession studies :-are conducted for the purpose of identifying those people in the firm who are candidates for the positions that become available including promotionS Job analysis and evaluation :-is done to identify the scope, qualifications and skills required for all the jobs in the firm. Grievance studies :-are conducted for the solution of the problems faced by the employees, where employees file complaints.

HRIS model contd. .Human Resource Intelligence Subsystem Government Intelligence :-The govt. provides data and information that assist the firm in complying with various employment related laws and regulations. Supplier Intelligence :-Here the suppliers mean such firms and organizations which provide employee benefits like insurance companies. Also employment agencies. They provide data and information that help the firm for recruitment and hiring of people. Labor Union Intelligence :-The data and information provided by the labor unions are used for administering labor contracts between the unions and firms. Global Community Intelligence :-The global community provides information that describe local resources like housing, education, recreation etc. Competitor Intelligence :-Includes the data and information about the employees of the competitors who are very efficient, also called potential recruits and various effective strategies for better human resource development & management used by the competitors.

HRIS Database Database Contents Employee data :-contains the data of all the present employees of the firm. Non employee data :-contains the data related to organizations like employment agencies, colleges, labor unions and government. It also contains data related to the employees like dependents, survivors and beneficiaries. Output Subsystems Work Force Planning Subsystem The basic work here is the future planning of the personnel needs of the firm. It also includes salary forecasting and job analysis & evaluation.

HRIS output subsystems contd.. Recruitment Subsystem It includes activities related to tracking of job applicants prior to recruitment. Ascertaining the authenticity of the applicants. Workforce Management Subsystem It includes the various manpower evaluation and strengthening activities. Performance appraisal and training are its most popular tasks. Development efforts, in position control activities, competency checks and succession evaluation are also its parts.

HRIS output subsystems contd.. Compensation Subsystem It includes various compensation calculation activities. It mainly includes extra money to be paid to the employees. Benefits Subsystem It includes the activities related to defined contribution and defined benefits plans that allow the employees to accumulate retirement funds to meet a specified standard of living. Flexible benefits plans enable employees to select the benefits that they want to take, which they are eligible for.

Environmental Reporting Subsystem It includes reporting of firm s personnel policies and practices to the government and also the labor unions.

INTRODUCTION TO E COMMERCE
eCommerce is the use of international networked computers to create and transform business relationships. Applications provide business solutions that improve the quality of goods and services, increase the speed of service delivery, and reduce the cost of business operations. Its a new methodology of doing business in three focal areas: y Business-to-business y Business-to-consumer y Intra-business It is most commonly associated with buying and selling information, products, and services via the Internet, but it is also used to transfer and share information within organizations through Intranets to improve decision-making and eliminate duplication of effort. The new paradigm of eCommerce is built not just on transactions but on building, sustaining and improving relationships, both existing and potential. eCommerce is a new way of doing business, available to companies of all sizes, to create new relationships and extensions to existing business built on relationships, networks and webs of activities. ECommerce levels the playing field for any organization that chooses to participate, small or large.

THE WAY TO OPERATE

eCommerce facilitates the current reengineering of business processes which is widespread in most large companies. The goals of eCommerce are similar to the goals of reengineering: y reduced costs y lower product cycle times y faster customer response y improved service quality

IN NEW WAY ECOMMERCE OPERATE

eCommerce has begun to transform the business operation into a networked environment of virtual organizations, where each can focus on its own core competence to deliver a whole product solution to the customer base. eCommerce is instrumental in creating and enabling a number of new ways of doing work: y Workflow systems y Video conferencing; y Multicasting information y Training y Financial interactions y New electronic-based relationships between companies. y New economics of make/buy y New modes of marketing y Information search and packaging y Collaboration y New and cheaper channels y New business combinations y Support for alternative work lives

HISTORY & FUTURE OF E COMMERCE

We will discuss the evolution of the E-commerce through an example (reservation in the airlines). American Airlines' first pioneering effort with reservations was the "request and reply" system used in the 1930s. A reservations agent would telephone the central control point where inventory was maintained to inquire about space available on a flight, and a response would be returned via Teletype. 2.1.1 1940s: Through the mid-1940s reservations were recorded manually with a pencil on different colored index cards, and flights were controlled by half a dozen employees. In some reservations offices, a wall-sized status board was installed to display seat space available on each flight. It has been quickly discovered that the normal manner of reservations and transacting businessaccompanied by paper orderscould not keep up with the necessary needs . In order to break the paper bottleneck, Edward A. Guilbert , set up a system of ordering via telex, radio-teletype, and telephone. American developed the industry's first electrical/mechanical device for controlling seat inventory in 1946. It was called the Availability Reservisor, and it applied basic computer file technology to the task of tracking American's seats and flights. Even though it couldn't sell the seat or cancel a reservation, the system represented a milestone in adapting electronics to airline reservations. 2.1.2 1950s: By 1952, the airline had added basic computer file technology a random access memory drum and arithmetic capabilities to the Reservisor. With the Magnetronic Reservisor a reservations agent could check seat availability and automatically sell or cancel seats on the electronic drum. As advanced as this was for its time, the airline reservations process was still intensely manual. In 1953, Mr. Smiths and Los Angeles developed a data processing system that would create a complete reservation and make all the data available to any location throughout American's system. It was called a Semi-Automated Business Research Environment better known today as SABRE. American's initial research, development and installation investment in this system was almost $40 million.

2.1.3 1970s:

In May 1976, American installed its first SABRE unit in a travel agency. By the end of the decade, SABRE had more than 1,000 travel agency customers. Today, more than 300,000 devices in 74 countries on six continents are connected to SABRE.

2.1.4 1980s & 1990s: What began as a system for American Airlines to keep track of seats sold on its flights has evolved into an electronic travel supermarket used by travel professionals, corporations and consumers worldwide to book airline, car and hotel reservations as well as to order theater tickets, bon voyage gifts, flowers and other travel-related goods and services. The introduction of easy SABRE in 1985 allowed personal computer users to tap into SABRE to access air, hotel and car reservations. Through SABRE - the recognized leader in the travel industry - an estimated $45 billion in travel products is booked each year. SABRE has evolved into the world's largest privately owned real-time computer network and has processed a record high 4,176 message per second. In 1995 SABRE helped develop Travelocity allowing ticket purchase and flight information via the Web.

GROWTH RATE OF E COMMERCE

One-fourth of all US business-to-business purchasing will be done online by the year 2003, according to a study by The Boston Consulting Group (BCG). The research estimates that between 1998 and 2003, US business-to-business e-commerce will grow by 33 percent each year and reach $2.8 trillion in transaction value. "In 1998, US business-to-business e-commerce was $671 billion, comprising $92 billion in Internet-based transactions and $579 billion in transactions using Electronic Data Interchange (EDI) over private networks," said BCG Senior VP David Pecaut. "By 2003, the transaction value of business-to-business e-commerce over the Internet will be 2.0 trillion, and an additional $780 billion in purchases will be made over private networks using EDI". EDI is the transfer of data between different companies using networks such as the Internet. According to BCG, the research shows the size of the B2B e-commerce market is far greater than is commonly reported, in part because it recognizes the established base of EDI using private networks and its extensions into the Internet. While EDI over private networks represented the lion's share of 1998 volume (86 percent), nearly all of the additional volume in 2003 (90 percent, or $2.0 trillion) will be Internet-based transactions. BCG predicts that business-to-business e-commerce will account for 24 percent of total business-to-business commerce by 2003. While business-to-business e-commerce takes place all over the globe, the North American market currently dominates. The $700 billion North American market is twice the size of B2B e-commerce in the rest of the world combined ($330 billion).

North America will likely retain its significant lead over the next few years, but the global dynamics of B2B e-commerce will shift. According to BCG, Western Europe lags 18 months behind North America in B2B E-commerce adoption, but several Western European nations have accelerated their e-commerce investments and will significantly close this gap. Asia and Latin America remain further behind, but this may change as global supply chains go online. For local suppliers in local markets, B2B e-commerce presents significant growth opportunities, as they expand their networks and customer bases by accessing new export markets. BCG's research found that growth will be strong in every market: In North America, B2B e-commerce penetration will triple from 7 percent to 24 percent In Western Europe it will grow from 3 percent to 11 percent In Asia/Pacific it will grow from 2 percent to 9 percent Latin America will move from 2 percent to 7 percent

By 2003, North America will reach $3.0 trillion in business-to-business e-commerce and the rest of the world will reach $1.8 trillion. More than 65 percent of all B2B e-commerce purchases made in the US by 2003 will be made in six sectors: retail, motor vehicles, shipping, industrial equipment, high tech, and government, according to BCG. The initial adoption of B2B e-commerce will be driven by cost savings rather than strategic opportunities. BCG also reports that companies that have moved aggressively into B2B e-commerce report cost savings on materials of up to 15 percent. Reported transaction cost savings alone, in the purchase and ownership of indirect materials, could reach almost 65 percent as buyers' internal purchasing and record keeping processes are simplified.