INTRODUCTION TO IT AS A

MANAGEMENT TOOL

COURSE STRUCTURE
20 sessions Quizzes : 410 = 40 marks Class Participation : 10 marks Mid Term Exam : 20 marks End Term Exam: 30 marks

LEARNING OBJECTIVES
Why organizations should invest in IT based solution Should organizations invest in networking and processing capacity ahead of applications needs, or be driven by the current business; What are the major changes that needs to be addressed in terms of organization and management; The different level of activities being performed by various level of managers and their information solutions needs. The latest trends in Information Technology.

WHY ORGANIZATION SHOULD INVEST IN IT BASED SOLUTION?

Because the business is changing; competition is changing; and technology is changing. Because of emergence of Globalisation, Liberalisation and Privatisation Business Process Outsourcing Knowledge Process Outsourcing Digital Economy & Knowledge Economy Organization Level Transformation

WHY ORGANIZATION SHOULD INVEST IN IT BASED SOLUTION?

Information technology can help all kinds of businesses improve the efficiency and effectiveness of their business processes, managerial decision making, and workgroup collaboration, thus strengthening their competitive positions in a rapidly changing marketplace. 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.

DIGITAL ECONOMY
Digital Economy is defined as economy based on Information Technologies including computers, internet, intranets, and extranets. Allows management of Digitally-enabled relationships with Customers, Suppliers and Employees.

WHAT IS INFORMATION TECHNOLOGY

Collection of Computer hardware Software Databases Networking and Telecommunication devices To manage business processes more effectively and efficiently.

DATA, INFORMATION AND KNOWLEDGE

Data is a collection of raw facts. Information is collection of data arranged in a meaningful manner that helps in decision making. Knowledge is the experience and expertise gathered by an individual to interpret information.

USES OF INFORMATION
Identification Collection Controlling Measuring Decision making

INFORMATION SYSTEM
System A group of entities that work together to perform a predefined goal. Information System A set of procedures that collect, process, store and disseminate information to support decision making.

FEATURES OF INFORMATION SYSTEM

Intrinsic

Accurate Meet the objectives of the system

Should be accessible Users should be authenticated

Accessibility

Contextual Representation

Interoperable Ease of usage

Economical Flexible and Adaptable

ORGANIZATIONAL STRUCTURE

Organizations are structured in a many ways, which is dependant on their objectives and culture. The structure of an organization will determine the manner in which it operates and its performance. Structure allows the responsibilities for different functions and processes to be clearly allocated to different departments and employees. Organizational structures are created in such a way that it aims at maximizing the efficiency and success of the Organization. Common organization structures that exist are: Hierarchical, Flat and Matrix.

FUNCTIONS OF A MANAGER

Planning

Setting goals and objectives Determining how to achieve them

Division, coordination and control of tasks and flow of information

Organizing

Directing
Influencing staff through motivation, communication, group dynamics, leadership and discipline.

Controlling

Evaluating the firms performance against its objectives

DECISIONS AT DIFFERENT MANAGERIAL LEVELS

Decisional Roles
Decision Characteristics
Unstructured Strategic Management (Top Level)

In fo

ci si

Semistructured

rm

on

at

Tactical Management (Middle Level)

io n

Structured

De

Operational Management (Lower Level)

ORGANIZATIONAL FUNCTIONS
Factors of Production Accounting and Finance Human Resource Sales and Marketing Administration R&D

TYPES OF IS
Transaction Processing System Office Automation System Management Information System Decision Support System Expert System

TRANSACTION PROCESSING SYSTEMS

It collects, stores, processes and retrieves transaction data in an organization. Types of processing Batch Processing Real Time Processing

FEATURES OF TPS
Serves mostly at the operational level Performs daily transactions Tasks are predefined Major producers of information Feeder of information to other systems

APPLICATIONS OF TPS
Manufacturing and Production System Accounting and Finance System Human Resource System Sales and Marketing

MANAGEMENT INFORMATION SYSTEM

Supports the information needs of the middle level or tactical level managers. Gets the information from TPS Examples: Sales report, inventory system etc

FEATURES OF MIS
Provide reports to managers on organization performance Serves at the control level Address structured questions Relies on existing data

DECISION SUPPORT SYSTEM

Designed for top/strategic level managers for taking decisions Features For semi and unstructured decision making Modeling and knowledge based Known for effectiveness but not efficiency

EXAMPLES OF DSS
For fraud detection Analysis of customer profiles by banks Used for scheduling, forecasting etc

THANK YOU