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How the business applications of information systems can support a firms business processes, managerial decision making and strategies for its competitive advantage. Business software or business application is any software or set of computer programs that are used by business users to perform various business functions. These business applications are used to increase productivity, to measure productivity and to perform business functions accurately. Some business applications are interactive i.e. they have a graphical user interface or user interface and user can query/modify/input data and view results instantaneously. They can also run reports instantaneously. Some business applications run in batch mode i.e. they are set up to run based on a predetermined event/time and business user does not need to initiate them or monitor them. Some business applications are built in-house and some are bought from vendors (off the shelf software products). These business applications either are installed on desktops or on big servers. The term covers a large variation of users within the business environment, and can be categorized by using a small, medium and large matrix:
The small business market generally consists of home accounting software, and office suites such as OpenOffice.org or Microsoft Office. The medium size, or small and medium-sized enterprise (SME), has a broader range of software applications, ranging from accounting, groupware, customer relationship management, human resource management systems, outsourcing relationship management, loan origination software, shopping cart software, field service software, and other productivity enhancing applications. The last segment covers enterprise level software applications, such as those in the fields of enterprise resource planning, enterprise content management (ECM), business process management (BPM) and product lifecycle management. These applications are extensive in scope, and often come with modules that either add native functions, or incorporate the functionality of third-party computer programs.

An information system (IS) is the concept of integrating computer technology in a business or organization. An information system can be small or large, and designed for any type of business or organization. Information systems are the main thrust of automating a department, division or branch which depends on data to make decisions, produce products or goods, perform logistical functions and develop software. At the executive management level, business information systems are designed to find solutions to corporate problems and provide a decision support system based on project scenarios. An information system can assist in determining scenarios such as mergers and acquisitions, and streamline the strategic planning process. Executive managers such as a Chief Operations Officer (COO) or Chief Financial Officer can make corporate decisions based on data provided by the IS. At the executive level, the focus of information systems is quality assurance and return on investment (ROI). The role of information systems in operations management is critical. Operations management is the heart of any corporation or business. In operations management, information systems design can apply to production control, research, development, and manufacturing. Even though these processes or departments are separate, information systems can integrate these processes to work efficiently to produce desired results of a product or service. Human resources management relies on information systems to maintain employee records, benefits information and historical information regarding employees. Information systems applications in the area of human resources can integrate employee

data into several processes used by human resource managers or personnel to process important data concerning employees. IS has applications for conducting research, workforce projections and mandates for compliance in labor relations. Logistics management includes processes of shipping, receiving or developing a structure for products or services. Information systems support logistical processes in various ways, such as real time inquiries to track an item from the point of shipment, receiving and storage of the item and inventory status of the item. The information system enhances services such as the tracking of goods on a transportation route and the arrival time of goods through a computerized tracking number. Most freight carriers such as United Parcel Service (UPS) and Federal Express (FedEx) use elaborate information systems to manage their logistical process. For businesses with "in-house" data processing function, information systems can provide the structure for programmers, database managers and data administrators to collaborate on new and existing projects. An information system can be partitioned into different areas while at the same time, through data security, allowing employees in computer operations to work on data or software development projects together. Business decision-making software enables the executive to access data easily in the effort to
make informed decisions. This type of software comes with business intelligence tools, such as metrics, forecasts and reports. The executive can use these tools to get a better understanding of how his company is performing. He can then make sound business decisions, such as if the company should expand its operations or launch new products or services. Making a decision is widely viewed as a process with a minimum of five steps. They are: defining the situation, generating alternative possibilities for action, gathering information, selecting the best alternative, and taking action. Software is a computer program that provides an operating system for a computer or performs some task. Decision making software (DMS) is software to help the user in the decision making process. Decision making software is considered a subset of decision support systems (DSS), which have a broader aim, while multi-criteria decision making systems (MCDM) have a narrower aim, which is to assist in making a decision about pre-selected alternatives in the face of conflicting criteria. Examples of decision making software include Logical Decisions, which uses matrices; Banxia Decision Explorer, which is cognitive mapping software; Lumenaut, which is a Microsoft Excel add-in that offers decision tree analysis; Vanguard Studio with Decision Tree Analysis Add-in, which also offers Markov simulations; and MindDecider, which offers mind mapping, as well as decision making. Decision-making software market. Presently the market for decision-making tools is rather saturated. Top 5 most interesting representatives can be identified: Expert Choice, MindDecider, Decision Manager, DPL Syncopation, TreeAge Pro.

2. Discuss the basic roles that information systems perform in the organization? Support your answer with suitable examples. 3. Define information system. 4. Describe the major components of an information system. 5. Discuss the benefits of information technology in doing successful business across the world. 6. Companies should factor the top technologies into their strategic planning process by asking key questions and making deliberate decisions about using them during the next two years. However, this doesnot necessarily mean adoption and investment in all of the technologies. They should determine which technologies will help and transform their individual business initiatives. Do you agree with the above statement? Support

your answer with reference of the technological trends in Hardware, Software, Communication networks and other supporting technologies. 7. Describe software suits advantages. 8. Define information system. Describe the major components of an information system. Discuss the benefits of information technology in doing successful business across the world. 9. Explain the value chain with an example of your choice. 10. What is value chain concept? 11. How and where information technologies can be applied to basic business processing using value chain framework. 12. What are the benefits and challenges of a CRM system to a business and its customers? 13. Draw a block diagram to implement CRM system in an organization and explain how it supports the business needs. 14. Customer Relationship Management and components and how they helped business 15. Enterprise Resource Planning and components and how they helped business 16. Supply Chain Management and components and how they helped business 17. 18. Advantages of RDBMS 19. Record ? File ? Field ? 20. What identify a record uniquely and how a file or a table gets related to other table in RDBMS? Example 21. Benefits and limitation of the relational database model for business application today 22. Traditional method of Information System development cycle 23. Prototype method of Information System Development cycle 24. Why prototyping become a popular way to develop business applications 25. Prototypings advantage and disadvantage 26. Discuss the basic roles that information systems perform in the organization? Support your answer with suitable examples. 27. Explain why a business needs to re-engineer its processes? Explain how Business Process Reengineering (BPR) helps in achieving a significant improvement in cost, quality, speed and services. 28. Define different wired and wireless technologies 29. Wired VS wireless with respect to cost and benefit. 30. The emergence and strengthening of the global economy is one of the worldwide changes altering todays business environment. Other than the Internet, how have information systems been part of this trend? * 31. Compare and contrast the characteristics and opportunities of the new Information manager and the traditional manager. 32. Describe the three major roles of the business application of Information systems. Who are the real users or organizational level of these three roles? 33. What does the term ergonomics mean? Say you had a small business and you were considering buying expensive ergonomically designed office furniture such as chairs and

desks for your knowledge workers. What would be intangible benefits your organization will have from your consideration? 34. On May 1, 2003, Nicholas Carr published an article title, IT Doesnt Matter in Hardvard Business Review that created quite a stir. He argued that as IT becomes more pervasive it will become more standardized and ubiquitous, more of a commodity that is absolutely necessary for every company. He reasoned then that companies should focus IT strictly on cost reduction and risk mitigation and that investing in IT for differentiation or for competitive advantage is futile. Do you agree or disagree with that argument? Explain. 35. How is credit card processed? Describe the role of customer, merchant, bank and card brand in this process to transfer fund. 36. What exactly is an information system? How does it work? How do information systems serve the various levels of management in a business? Information systems (IS) is the study of complementary networks of hardware and software
(see information technology) that people and organizations use to collect, filter, process, create, and distribute data. The study bridges business and computer science using the theoretical foundations of information and computation to study various business models and related algorithmic processes within a computer science discipline. Information System is some kind of combination of information technology and the activities of people associated to support and execute the necessary operations and management of the system with the responsibility of decision-making. It's a system of people and technology depending on each other to achieve some common goal. The very name suggests not only this co-operation of man and machine, but also the way in which the interactions between them work in support of various business processes. The main components of a typical Information system are computers, stored facts, instructions and procedures. Those instructions and procedures are applied on those facts in store to create new information or manage the existing ones. That's the basic structure of an information system and its working principle. q

37. "It's not the technology; it's how you use it that matters". Explain. 38. Discuss the basic roles that information systems perform in an organization? Support your answer with examples. [7]

Information Storage and Analysis

At the date of publication, many companies no longer manage their data and information manually with registers and hard-copy formats. Through the adoption of information systems, companies can make use of sophisticated and comprehensive databases that can contain all imaginable pieces of data about the company. Information systems store, update and even analyze the information, which the company can then use to pinpoint solutions to current or future problems. Furthermore, these systems can integrate data from various sources, inside and outside the company, keeping the company up to date with internal performance and external opportunities and threats.

Assist With Making Decisions

The long-term success of a company depends upon the adequacy of its strategic plans. An organizations management team uses information systems to formulate strategic plans and make decisions for the organization's longevity and prosperity. The business uses information systems to evaluate information from all sources, including information from

external references such as Reuters or Bloomberg, which provide information on the general economy. This analysis of and comparison to market trends helps organizations analyze the adequacy and quality of their strategic decisions.

Assist With Business Processes

Information systems aid businesses in developing a larger number of value addedsystems in the company. For example, a company can integrate information systems with the manufacturing cycle to ensure that the output it produces complies with the requirements of the various quality management standards. Adoption of information systems simplifies business processes and removes unnecessary activities. Information systems add controls to employee processes, ensuring that only users with the applicable rights can perform certain tasks. Further, information systems eliminate repetitive tasks and increase accuracy, allowing employees to concentrate on more high-level functions. Information systems can also lead to better project planning and implementation through effective monitoring and comparison against established criteria. 39. Identify and describe the four levels of the organizational hierarchy. What types of information system serve each level?
Developing a functional hierarchy helps you organize your business by dividing responsibilities among your personnel. The culmination of activities from each tier in the hierarchy creates a working organization, including an implemented managerial system. The benefit of an organizational hierarchy is the clear division of responsibility and skill specialization, allowing each member of an organization to refine his skills to a specific allocation.

Operational Level

The operational level of an organizational hierarchy performs the lowest level of activity within a company. These activities include sales, customer service, payroll, order tracking, cleaning and stocking. Personnel in the operational level have no managerial responsibilities, other than personal responsibility for individual work. Operational-level personnel have high technical skills, working directly with company products, customers or machinery.

Knowledge Level

Knowledge level tier's responsibilities involve the storage and reproduction of information for a company. Personnel working in this tier are responsible for working directly with data. This includes developing spreadsheets, databases and publishing information pamphlets informing employees about procedural changes in the company. Personnel in the knowledge level tier of a company prepare information for every other tier, such as expense reports, pay tracking, sales figures or customer information. Knowledge tier employees have high technical skills, working directly with computers and other technology to produce and store this data.

Management Level

The management level of an organizational hierarchy oversees the activities of lower tiers. This includes training, organizing, encouraging and disciplining operational tier personnel. Organizations arrange the management level in multiple levels, but all serving in the role of overseer and organizer to lower-ranking employees. The management tier is essential for successful operations in a company, both as organizers and in translating the

strategic plans from higher-tier personnel into specific responsibilities and tasks for lower-tiered employees. For instance, once the strategic tier decides a new goal or project, the managerial tier divides the project into specific tasks, such as a marketing plan for advertisers, assigning knowledge tier personnel with the task of printing product information and briefing operational employees on the changes.

Strategic Level

Strategic-level personnel are responsible for overseeing the long-term goals and plans for an organization. This includes analyzing new projects, reviewing market information and forecasting future changes. Strategic-level personnel are generally the highest tier in an organization. Strategic-level personnel have high analytical skills, working in a theoretical environment and analyzing projective information.

40. What are the different types of information systems (IS)? Discuss the uses of each type of IS. [8]

For most businesses, there are a variety of requirements for information. Senior managers need information to help with their business planning. Middle management need more detailed information to help them monitor and control business activities. Employees with operational roles need information to help them carry out their duties. As a result, businesses tend to have several "information systems" operating at the same time.
Information System Executive Support Systems Management Information Systems Description An Executive Support System ("ESS") is designed to help senior management make strategic decisions. It gathers, analyses and summarises the key internal and external information used in the business.

A management information system ("MIS") is mainly concerned with internal sources of information. MIS usually take data from the transaction processing systems (see below) and summarise it into a series of management reports. MIS reports tend to be used by middle management and operational supervisors.

Decision-Support Systems

Knowledge Management Systems

Decision-support systems ("DSS") are specifically designed to help management make decisions in situations where there is uncertainty about the possible outcomes of those decisions. DSS comprise tools and techniques to help gather relevant information and analyse the options and alternatives. DSS often involves use of complex spreadsheet and databases to create "what-if" models. Knowledge Management Systems ("KMS") exist to help businesses create and share information. These are typically used in a business where employees create new knowledge and expertise - which can then be shared by other people in the organisation to create further commercial opportunities. Good examples include firms of lawyers, accountants and management consultants. KMS are built around systems which allow efficient categorisation and distribution of knowledge. For example, the knowledge itself might be contained in word processing documents, spreadsheets, PowerPoint

presentations. internet pages or whatever. To share the knowledge, a KMS would use group collaboration systems such as an intranet. Transaction Processing Systems

As the name implies, Transaction Processing Systems ("TPS") are designed to process routine transactions efficiently and accurately. A business will have several (sometimes many) TPS; for example: - Billing systems to send invoices to customers - Systems to calculate the weekly and monthly payroll and tax payments - Production and purchasing systems to calculate raw material requirements - Stock control systems to process all movements into, within and out of the business

Office Automation Systems

Office Automation Systems are systems that try to improve the productivity of employees who need to process data and information. Perhaps the best example is the wide range of software systems that exist to improve the productivity of employees working in an office (e.g. Microsoft Office XP) or systems that allow employees to work from home or whilst on the move.

The Role of Management Information Systems in Decision-Making

You can make valid decisions if you have high-quality information. Management information systems (MIS), produce fixed, regularly scheduled reports based on data extracted and summarized from the firms underlying transaction processing systems to middle and operational level managers to identify and inform structured and semi-structured decision problems. Management information systems can help you make valid decisions by providing accurate and up-to-date information and performing analytic functions. You have to make sure the management information system you choose can work with the information formats available in your company and has the features you need. Suitable management information systems can structure the basic data available from your company operations and records into reports to present you with guidance for your decisions.

Information
When you base your decisions on data available from management information systems, they reflect information that comes from the operations of your company. Management information systems take data generated by the working level and organize it into useful formats. Management information systems typically contain sales figures, expenses, investments and workforce data. If you need to know how much profit your company has made each year for the past five years to make a decision, management information systems can provide accurate reports giving you that information.

Scenarios
The capability to run scenarios is a key decision-making tool. Some management information systems have this feature built in, while others can provide the information required for running scenarios on other applications, such as spreadsheets. Your decision is influenced by what happens if you decide a certain way. What-if scenarios show you how different variables change when you make a decision. You can enter reduced staff levels or increased promotion budgets and see what happens to revenue, expenses and profit for different levels of cuts or increases. Management information systems systems play a critical role in making realistic scenarios possible.

Projections
Any decisions you make result in changes in the projected company results and may require modifications to your business strategy and overall goals. Management information systems either have trend analysis built in or can provide information that lets you carry out such an analysis. Typical business strategies include projections for all fundamental operating results. A trend analysis allows you to show what these results would be in the current situation and how they will change once you have implemented the decisions you have taken. The new values form the basis of your strategic approach going forward.

Implementation

While you make your decisions with specific goals in mind and have the documentation from management information systems and trend analysis to support your expectations, you have to track company results to make sure they develop as planned. Management information systems give you the data you need to determine whether your decisions have had the desired effect, or whether you have to take corrective action to reach your goals. If specific results are not on track, you can use management information systems to evaluate the situation and decide to take additional measures if necessary.