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BY: Asst.Prof. DIPTI PUROHIT
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Information technology What is management Definition of information and data System and subsystem Information system Types of information Trends in information system
Information Technology is a broad term which covers all aspects of the use of computer technology. It includes not only hardware and software, but also communication technology applied to linking computer systems, software engineering, and the administration and use of computer systems.
What is management?
Henri Fayol defines Management as “The concept, the techniques and process that enables goals to be achieved efficiently and effectively”
Definition of data and information
Data is a collection of facts, figures and statistics related to an object. Data can be processed to create useful information. Data is a valuable asset for an organization. The manipulated and processed form of data is called Information. It is more meaningful than data. It is used for making decisions.
What is system?
A System is a set of interacting components that operate together to accomplish a purpose. System that plays a role in our every day lives includes our bodies' circulatory & digestive system as well as society's transportation & communication system.
What is Subsystem?
It is a component of system, even though it can also be considered a system in its own right. The systems with which we are concerned are always subsystem of larger systems and typically contain subsystem that perform different part of the work.
To understand system and subsystem we take an example of a manufacturing firm
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INTRODUCTION: INFORMATION SYSTEM
In a general sense , the term Information System (IS) refers to a system of people, Combination of hardware,software,communications networks, and data resources that stores and retieves,trasforms and disseminates information in an organization and it includes the organization's manual and automated processes. In a narrow sense, the term information system (or computer-based information system) refers to the specific application software that is used to store data records in a computer system and automates some of the information-processing activities of the organization.
Definition of BIS
“A business information system is a group of interrelated components that work collectively to carry out input, processing, output, storage and control actions in order to convert data into information products that can be used to support forecasting, planning, control, coordination, decision making and operational activities in an organisation ”
Computer Based Information System
A computer-based information system (CBIS) is an information system in which the computer plays a major role.
Such a system consists of the following elements:
• Hardware: The term hardware refers to machinery.
This category includes the computer itself, which is often referred to as the central processing unit (CPU), and all of its support equipments. Among the support equipments are input and output devices, storage devices and communications devices.
Software: The term software refers to computer programs and
the manuals (if any) that support them. Computer programs are machine-readable instructions that direct the circuitry within the hardware parts of the CBIS to function in ways that produce useful information from data. Programs are generally stored on some input / output medium-often a disk or tape.
Data: Data are facts that are used by program to produce useful
information. Like programs, data are generally stored in machinereadable from on disk or tape until the computer needs them.
• Procedures: procedures are the policies that govern the
operation of a computer system. "Procedures are to people what software is to hardware" is a common analogy that is used to illustrate the role of procedures in a CBIS.
• People: Every CBIS needs people if it is to be useful. Often
the most over-looked element of the CBIS is the people: probably the components that most influence the success or failure of information system.
Types of Information Systems
Levels of Management
Upper or Top or Strategic Management Strategic Middle or Tactical Management
Lower level Management
Three levels of management
Lower or Operational level Management
They make structured decisions (Operational decisions).
Structured decision It’s a predictable decision that can be made following a well defined set of routine procedures. Most decisions at this level require easily defined information that relates to the current status and activities within the basic business functions. Information is gained from detailed reports which contain information about routine activities. Detailed tasks defined by middle management are carried out by people at operational level.
Middle or Tactical Management
Acquire and arrange the resources (Computers, people etc) to meet the goals of an organization. Define the detailed tasks to be carried out at the operational level. Information needed involves review, summarization and analysis of data to help plan and control operations and implement policy that has been formulated by upper management. Information is usually given to middle managers as summarized reports. Deals with semi structured decisions. (Tactical decisions)
Semi structured decisions that must be made without a base of clearly defined informational procedures. In most cases a semi structured decision is complex, requiring detailed analysis and extensive computations.
Upper or Top or Strategic Management
Decides on the broad objectives of an organization. Make unstructured decisions. (Strategic decision).
Unstructured decisions are the most complex type of decisions and are rarely based on predetermined routine procedures. They involve subjective judgments of the decision maker.
Types of Information Systems
•Transaction processing systems (TPS) •Management Information Systems (MIS) •Decision support Systems (DSS) •Executive Information Systems (EIS) •Expert Systems (ES)
•These systems capture and process data about business transactions. •Some times called as data processing systems •Mostly used at operational level •Usually creates detailed reports of daily transactions or future transactions •Reports generated are useful only to lower level managers •One functional area of a business consists of an TPS
Transaction Processing Systems (TPS)
Management Information Systems (MIS) •Provides middle level management with reports that
summarize and categorize information derived from company databases. (In pre determined format) •Supplements Transaction processing Systems •Able to produce detailed information, summary information, exception information •Information produced is based on accepted management or mathematical/statistical models
Decision Support Systems (DSS) users with decision oriented information •Provides its
whenever a decision-making situation arises •Analyses information already captured by TPS and MIS in order to support unstructured decision making at top management level •Facts •DSS does not make decisions, it helps some one to make a decision by providing information •TPS or MIS does not analyze information they produce
Is a DSS which is especially meant for top level management and specifically support unstructured decision making Also called Executive Support Systems (ESS)
Executive Information System (EIS)
Information in an EIS are presented in charts and tables that show trends, ratios and other managerial statistics and is stored in data warehouses. Draws data not only from the organization, able to draw information from outside sources such as news services and marketing –research databases.
Expert Systems (ES)
•ES is an information system that captures and stores the knowledge of human experts and then imitates human reasoning and decision making processes for those who have less expertise. •Captures knowledge expertise of a problem solver or decision maker and then simulates thinking of that expertise for those who have less expertise. •Includes logic and reasoning within there respective fields •Emerged from the filed of artificial intelligence (Creating computer systems that simulate human reasoning and sensation)
TRENDS IN IT EVOLUTION
Until the 1960s, the role of most information systems was simple. They were mainly used for electronic data processing (EDP),purposes such as transactions processing, record-keeping and accounting. EDP is often defined as the use of computers in recording, classifying, manipulating, and summarizing data. It is also called transaction processing systems (TPS), automatic data processing, or information processing.
In the 1960s, another role was added to the use of computers: the processing of data into useful informative reports. The concept of management information systems (MIS) was born. This new role focused on developing business applications that provided managerial end users with predefined management reports that would give managers the information they needed for decision-making purposes.
By the 1970s, these pre-defined management reports were not sufficient to meet many of the decision-making needs of management. In order to satisfy such needs, the concept of decision support systems (DSS) was born. The new role for information systems was to provide managerial end users with ad hoc and interactive of their decision-making processes.
In the 1980s, the introduction of microcomputers into the workplace ushered in a new era, which led to a profound effect on organizations. The rapid development of microcomputer processing power (e.g. Intel’s Pentium microprocessor), application packages (e.g. Microsoft Office), and telecommunication networks gave birth to the phenomenon of end user computing. End users could now use their own computing resources to support their job requirements instead of waiting for the indirect support of a centralized corporate information services department. It became evident that most top executives did not directly use either the MIS reports or the analytical modeling capabilities of DSS, so the concept of executive information systems (EIS) was developed. Executive information systems – provide critical information from
Moreover, breakthroughs occurred in the development and application of artificial intelligence (AI) techniques to business information systems. With less need for human intervention, knowledge workers could be freed up to handle more complex tasks. Expert systems (ES) and other knowledge management systems (KMS) also forged a new role for information systems. ES can serve as consultants to users by providing expert advice in limited subject areas. The mid- to late 1990s saw the revolutionary emergence of enterprise resource planning (ERP) systems. This organization-specific form of a strategic information system integrates all facets of a firm, including its planning, manufacturing, sales, resource management, customer relations, inventory control, order tracking, financial management, human resources and marketing – virtually every business function. The primary advantage of these ERP systems lies in their common interface for all computer-based organizational functions and their tight integration and data sharing needed for flexible strategic decision making.
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