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The Role Of Information Technology In Management Managing Organisation Introduction: No invention has ever influenced the human beings as computer has. In less than seven decades of its existence it has managed, materializing the C oncept of a global village. Technologies like Computational Intelligence, Neural Networks, Genetic Algorithms, Data Communication & Networks, Telecommunication, Databases, and Evolutionary Computing etc. Collectively offer the business comm unity a broad set of tools capable of addressing problems that are much harder o r virtually impossible to solve using the more traditional techniques from stati stics to operations research. Country running and putting it on the track of the development is very complex task and might require the decisions making on the basis of the countrys past experience and present situation which is obviously av ailable in the form data. Todays best technology to manage and process data is th e Information technology. IT must be seen as an investment and not an expense. I T is laying a vital and expanding role in business. IT helps the manager to impr ove the efficiency and effectiveness of their business processes, managerial dec ision making, and workgroup collaboration, thus helping the managers to strength en the positions of their company in a Rapidly changing environment. IT has beco me a necessary ingredient for Managers to succeed in todays dynamic global enviro nment. Definition Information Technology (IT) was described by Chaffey and Wood as technology resources used for business information management. These resources in clude software, hardware and telecommunication networks used for managing inform ation. According to Benemati et al.,IT is changing rapidly and considering the i ncreasing strategic impact of IT on business operations, its successful manageme nt is of utmost importance. Irani and Love suggested that for IT management to b e successful, it must be perceived as an iterative business process capable of p roviding organisational learning throughout the lifecycle of the technology. How ever, even when IT is managed successfully, the question arises, as to what role IT plays in the achievement of organisational strategic goals and objectives In response to this question, Venkatraman et al and Franz and Klepper postulated t hat the proper role of IT in an organisation is usually epitomised as a fit or a lignment with the strategic goals of the organisation. Therefore, IT can only be appropriately aligned when infrastructure put in place to implement the IT stra tegy is adequate; the strategy supports the organisations strategy and business p rocesses. EDBM5 -1 19.The Role Of Information Technology In Management Managing Organisation Concepts Information System And Technologies in Business WHY INFORMATION SYSTEMS ARE IMPORTANT An understanding of the effective and resp onsible use and management of information systems is important for managers and other business knowledge workers in todays global information society. Informatio n systems and technologies have become a vital component of successful businesse s and organizations. Information systems constitute an essential field of study in business administration and management, as they are considered a major functi onal area in business operations. An IS Framework for Business Professionals: Fi gure 1.2 Foundations of Information Systems and Technologies in Business Managers or busi ness professionals are not required to know the complex technologies, abstract b ehavioral concepts, or the specialized applications involved in the field of inf

ormation systems. Figure 1.2 illustrates a useful conceptual framework that outl ines what a manager or business professional needs to know about information sys tems. It emphasizes five areas of knowledge: Foundation Concepts Information Tec hnologies Business Applications Development Processes Management Challenges Foun dations of Information Systems and Technologies in Business EDBM5 -2 19.The Role Of Information Technology In Management Managing Organisation What is an Information System? An information system (IS) can be any organized combination of people, hardware, software, communications networks, and data resources that collect, transforms, and disseminate information in an organization. Information Technologies:Busine ss professionals rely on many types of information systems that use a variety of information technologies. For example: Types of IS - Manual (paper-and-pencil) information systems Informal (word-of-mouth) information systems Formal (written procedures) information systems Computer-based information systems Computer-bas ed information systems (IS) use hardware, software, the Internet, and other tele communications networks, computer-based data resource management techniques, and other forms of information technologies (IT) to transform data resources into a variety of information products for consumers and business professionals. EDBM5 -3 19.The Role Of Information Technology In Management Managing Organisation SYSTEM CONCEPTS - A FOUNDATION System concepts underlie the field of information systems. Understanding system concepts will help you understand many other concepts in the technology, applica tions, development, and management of information systems. System concepts help you understand: o Technology. That computer networks are systems of information processing components that uses a variety of hardware, software, data and teleco mmunication technologies. o Applications. That electronic business and commerce involves interconnected business information systems. o Development. That develo ping ways to use information technology n business includes designing the basic components of information systems. o Management. That managing information techn ology emphasizes the quality, strategic business value, and security of an organ izations information systems. Other System Characteristics: A system does not exi st in a vacuum; rather, it exists and functions in an environment containing oth er systems. Subsystem: A system that is a component of a larger system, where th e larger system is its environment. System Boundary: A system is separated from its environment and other systems by its system boundary. Interface: Several sys tems may share the same environment. Some of these systems may be connected to o ne another by means of a shared boundary, or interface. Open System: A system th at interacts with other systems in its environment is called an open system (con nected to its environment by exchanges of inputs and outputs). Adaptive System: A system that has the ability to change itself or its environment in order to su rvive is called an adaptive system. An information system model expresses a fund

amental conceptual framework for the major components and activities of informat ion systems. An information system depends on the resources of people, hardware, software, data, and networks to perform input, processing, output, storage, and control activities that convert data resources into information products. The i nformation systems model outlined in the text emphasizes four major concepts tha t can be applied to all types of information systems: o People, hardware, softwa re, data, and networks, are the five basic resources of information systems. o P eople resources include end users and IS specialists, hardware resources consist of machines and media, o Software resources include both programs and procedure s, data resources can include data and knowledge bases, and network resources in clude communications media and networks. o Data resources are transformed by inf ormation processing activities into a variety of information products for end us ers. Information processing consists of input, processing, output, storage, and control activities. The basic IS model shows that an information system consists of five major resources: o People resources o Hardware resources o Software res ources o Data resources o Network resources EDBM5 -4 19.The Role Of Information Technology In Management INFORMATION SYSTEM ACTIVITIE S Information processing (or data processing) activities that occur in informati on system include the following: o Input of data resources o Processing of data into information o Output of information products o Storage of data resources o Control of system performance BUSINESS APPLICATIONS, DEVELOPMENT, AND MANAGEMENT The Fundamental Roles Of Is Applications In Business Information systems perfor m three vital roles in any type of organization. That is, they support an organi zations: o Business processes and operations o Decision making by employees and m anagers o Strategies for competitive advantage Managing Organisation Information Technology is increasingly important in the competitive marketplace. Managers need all the help they can get. Information systems perform three vita l roles in business: Support Business Operations. From accounting to tracking cu stomers orders, information systems provide management with support in day-to-d ay business operations. As quick response becomes more important, the ability of information systems to gather and integrate information across business functio ns is become crucial. Support Managerial Decision Making. Just as information sy stems can combine information to help run the business better, the same informat ion can help managers identify trends and to evaluate the outcome of previous de cisions. IS helps managers make better, quicker, and more informed decisions. Su pport Strategic Advantage. Information systems designed around the strategic obj ectives of the company help creates competitive advantages in the marketplace. C ompetitive Advantage is created or maintained with the company succeeds in perfo rming some activity of value to customers significantly better than does its com petition. EDBM5 -5 19.The Role Of Information Technology In Management According to Porter, followi ng one or more of these strategies can develop competitive advantage: Cost Strat egies. Becoming a low-cost producer in the industry allows the company to lower prices to customers. Competitors with higher costs cannot afford to compete with the low-cost leader on price. Differentiation Strategies. Some companies create

competitive advantage by distinguishing their products on one or more features important to their customers. Unique features or benefits may justify price diff erences and/or stimulate demand. Innovation Strategies. Unique products or servi ces or changes in business processes can cause fundamental changes in the way an industry does business. Growth Strategies. Significantly expanding production c apacity, entering new global markets, diversifying into new areas, or integratin g related products or services can all be a springboard to strong company growth . Alliance Strategies. Establishing new business linkages and alliances with cus tomers, suppliers, former competitors, consultants, and others can create compet itive advantage Managing Organisation History of the role of Information Systems 1950-1960 Data Processin g Electronic Data Processing -TPS 1960-1970 Management Reporting 1970-1980 Decision Support 1980-1990 Strategic & User 1990-2000 Electr onic Commerc e Management Information Systems Decision Support System -Ad hoc Reports End User Computing Exec Info sys Expert systems SIS Electronic Business & Commerce -Internet worked E-Business & Commerce Data Processing: 1950s - 1960s: Electronic data processing systems. Transaction p rocessing, record keeping, and traditional accounting applications. Management R eporting: 1960s - 1970s: Management Information systems. Management reports of pr e-specified Information to support decision-making. Decision Support: 1970s - 19 80s: Decision Support systems. Interactive ad hoc support of the managerial deci sion-making process. Strategic and End User Support: 1980s - 1990s: o End User co mputing systems. Direct computing support for end user productivity and work gro up collaboration. o Executive information systems (EIS). Critical information fo r top management Expert systems: Knowledge-based expert advice for end users Str ategic Information Systems. Strategic products and services for competitive adva ntage. EDBM5 -6 19.The Role Of Information Technology In Management o Expert Systems (ES) and ot her Knowledge-Based Systems Role: Expert systems can serve as consultants to use rs by providing expert advice in limited subject areas. o Strategic Information Systems (SIS) Role: Information technology becomes an integral component of busi ness processes, products, and services that help a company gain a competitive ad vantage in the global marketplace Electronic Business and Commerce: 1990s - 2000s: Internet worked e-business and e-commerce Systems. Internet worked enterprise a nd global ebusiness operations and e-commerce on the Internet, intranets, extran ets, and other networks. Managing Organisation Types of Information Systems Information Systems can be classified by the type of the support they provide an organization. Therefore, several types of information systems can be classified conceptually as either: Operations Support Systems Management Support Systems

 Operations support systems process data generated by and used in Business operat ions. They produce a variety of information products for internal and external u se. Operations support systems do not emphasize producing the specific informati on products that can best be used by managers. Further processing by management information systems is usually required. The role of a business firms operations support systems is to: 1 2 3 4 Effectively process business transactions Control industrial processes Support enterprise communications and collaboration Update corporate databases. EDBM5 -7 19.The Role Of Information Technology In Management Focus on processing the data generated by business transactions and operations. Transaction processing syste ms record and process data resulting from business transactions (sales, purchase s, inventory changes). TPS also produce a variety of information products for in ternal or external use (customer statements, employee paychecks, sales receipts etc.). TPS process transactions in two basic ways: Batch Processing - transactio ns data is accumulated over a period of time and processed periodically. Real-ti me (or on line) processing - data is processed immediately after a transaction o ccurs. Process Control Systems (PCS) - Process control systems are systems, whic h make use of computers to control ongoing physical processes. These computers a re designed to automatically make decisions, which adjust the physical productio n process. Examples include petroleum refineries and the assembly lines of autom ated factories. Enterprise Collaboration Systems - Enterprise collaboration syst ems are information systems that use a variety of information technologies to he lp people work together. Enterprise collaboration systems help us: o Collaborate - to communicate ideas o Share resources o Co-ordinate our cooperative work eff ort as members of the many formal and informal process and project teams. The go al of enterprise collaboration systems is to use information technology to enhan ce the productivity and creativity of teams and work groups in the modern busine ss enterprise. Managing Organisation Management support systems focus on providing information and support for effect ive decision making by managers. They support the decision-making needs of strat egic (top) management, tactical (middle) management, and operating (supervisory) management. Conceptually, several major types of information systems support a variety of decision-making responsibilities: o Management Information Systems (M IS) o Decision Support Systems (DSS) o Executive Information Systems (EIS) Management information systems are the most common form of management support sy stems. They provide managerial end users with information products that support much of their day-to-day decision-making needs. MIS provide a variety of pre spe cified information (reports) and displays to management that can be used to help them make more effective, structured types of day-to-day decisions. Information products provided to managers include displays and reports that can be furnishe d: o On demand o Periodically, according to a predetermined schedule o Whenever exceptional conditions occur Decision support systems provide managerial end use rs with information in an interactive session on an ad hoc (as needed) basis. Ma nagers generate the information they need for more unstructured types of decisio ns in an interactive, computer-based information system that uses decision model s and specialized databases to assist the decision-making processes of manageria l end users. Executive information systems provide top and middle management wit h immediate and easy access to selective information about key factors that are critical to accomplishing a firms strategic objectives. EIS are easy to operate a

nd understand. EDBM5 -8 19.The Role Of Information Technology In Management Managing Organisation Other Classifications of Information Systems: Several other categories of inform ation systems that support either operations or management applications include: o Expert Systems o Knowledge Management Systems o Functional Business Informati on Systems o Strategic Information Systems o Cross-functional Information System s Management Challenges of the Information Technology . Business Strategies IS Human Resources IS Development . Business Process . Business Needs . Customer Relationship . Business Partners . Suppliers IT Infrastructure IS Performance . Business Customers . Ethical Considerations . Potential Risks? . Potential Laws . Organization Structure . And Culture . User Acceptance . Possible Response For managerial end users, the information systems function represents: o A major functional area of business that is important to a business success o An importa nt factor affecting operational efficiency, employee productivity and morale, an d customer service and satisfaction. o A major source of information and support needed to promote effective decision making by managers. o An important ingredi ent in developing competitive products and services that gives an organization a strategic advantage in the marketplace. o A major part of the resources of an o rganization and its cost of doing business o A vital, dynamic, and challenging ca reer opportunity for many men and women. Prospective managers and business professionals should become aware of the probl ems and EDBM5 -9 19.The Role Of Information Technology In Management opportunities presented by t he use of information technology and learn how to effectively confront such mana gerial challenges. Information systems can be mismanaged and misapplied so that they create both technological and business failure. Managing Organisation Top Five Reasons for Success User involvement Executive management support Clear

statement of requirements Proper planning Realistic expectations Top Five Reasons for Failure Lack of user input Incomplete requirements and Spec ifications Changing requirements and Specifications Lack of executive support Te chnological incompetence Developing IS Solutions: [Figure 1.20] Developing successful information system solutions to business problems is a maj or challenge for business managers and professionals today. As a business profes sional, you will be responsible for proposing or developing new or improved use of information systems for your company. As a business manager, you will also fr equently manage the development efforts of information systems specialists and o ther business end users. Most computer-based information systems are conceived, designed, and implemented using some form of systematic development process. Fig ure 1.20 shows that: o Several major activities must be accomplished and managed in a complete IS development cycle. o In the development process, end users and information specialists design information system applications based on an anal ysis of the business requirements of an organization. o Investigating the econom ic or technical feasibility of a proposed application. o Acquiring and learning how to use the software required implementing the new system, and making improve ments to maintain the business value of a system. Challenges of Ethics and IT: EDBM5 - 10 19.The Role Of Information Technology In Management As a prospective managerial end user and knowledge worker in a global society, you should also become aware of the ethical responsibilities generated by the use of information technology. For example: o What uses of information technology might be considered improper, irresponsible, or armful to other individuals or to society? o What is the prop er use of an organizations information resources? o What does it take to be a res ponsible end user of information technology? o How can you protect yourself from computer crime and other risks of information technology? Ethical dimensions of information systems deal with ensuring that information technology and informat ion systems are not used in an improper or irresponsible manner against other in dividuals or to society. A major challenge for our global information society is to manage its information resources to benefit all members of society while at the same time meeting the strategic goals of organizations and nations. For exam ple, we must use information systems to find more efficient, profitable and soci ally responsible ways of using the worlds limited supplies of material, energy, a nd other resources. Challenges of IT Careers: o Information technology and its u ses in information systems have created interesting, highly paid, and challengin g career opportunities. o Employment opportunities in the field of information s ystems are excellent, as organizations continue to expand their use of informati on technology. o Employment surveys continually forecast shortages of qualified information systems personnel in a variety of job categories. o Job requirements in information systems are continually changing due to dynamic developments in business and information technology. The IS Function: The information systems fu nction represents: o A major functional area of business that is as important to business success as the functions of accounting, finance, operations management , marketing, and human resource management. o An important contributor to operat ional efficiency, employee productivity and morale, and customer service and sat isfaction. o A major source of information and support needed to promote effecti ve decision making by managers and business professionals. o A vital ingredient in developing competitive products and services that gives an organization a str ategic advantage in the global marketplace. o A dynamic, rewarding, and challeng ing career opportunity for millions of men and women. o A key component of the r esources, infrastructure, and capabilities of todays internet worked e-business e

nterprise. Managing Organisation IT TOOLS AND TECHNOLOGIES FOR MANAGERS: Customer-Focused e-Business EDBM5 - 11 19.The Role Of Information Technology In Management A key strategy by managers f or becoming a successful e-business is to maximize customer value. This strategi c focus on customer value recognizes that quality rather than price becomes the primary determinant in a customers perception of value. A Customer-Focused e-busi ness, then, is one that uses Internet technologies to keep customer loyal by ant icipating their future needs, responding to concerns, and providing top quality customer service. Such technologies like intranets, the Internet, and extranet w ebsites create new channels for interactive communications within a company, wit h customers, and with suppliers, business partners, and others in the external b usiness environment. Thereby, encouraging cross-functional collaboration with cu stomers in product development, marketing, delivery, service and technical suppo rt. A successful Customer-Focused e-business attempts to own the customer s total business experience through such approaches as: o Letting the customer place ord ers directly, and through distribution partners o Building a customer database t hat captures customers preferences and profitability, and allowing all employee s access to a complete view of each customer. o Letting customers check order, h istory and delivery status. o Nurturing an online community of customers, employ ees, and business partners. Managing Organisation For many companies, the chief business value of becoming a customer-focused e-bu siness lies in its ability to help them: EDBM5 - 12 19.The Role Of Information Technology In Management Keep customers loyal Anticip ate customers future needs Respond to customer concerns Provide top quality custo mer service The concept of customer-focused e-business focuses on customer value . This strategy recognizes that quality, rather than prices, has become the prim ary determinant in a customers perception of value. From a customers point of view , companies that consistently offer the best value are able to: Keep track of th eir customers individual preferences Keep up with market trends Supply products, services and information anytime and anywhere Provide customer services tailored to individual needs. Increasingly, businesses are serving many of their custome rs and prospective customers via the Internet. This large and fast-growing group of customers wants and expects companies to communicate with them and service t heir needs at commerce websites. The Internet has become a strategic opportunity for companies large and small to offer fast, responsive, high-quality products and services tailored to individual customer preferences. REENGINEERING BUSINESS PROCESSES Business Quality Improvement Business Reengineering Radically Redesigning Busine ss Systems Strategic Business Processes 1100--Fold Improvements High Big Job Cut s; New Jobs; Major Job Redesign IT and Organizational Redesign Managing Organisation Definition Target Potential Payback Risk What Changes? Primary Enablers

Incrementally Improving Existing Processes Any Processes 1100%%--5500%% Improvem ents Low Same Jobs --More Efficient IT and Work Simplification One of the most popular competitive strategies today is business process reengin eering most often simply called re engineering. Re engineering is the fundamenta l rethinking and radical redesign of business processes to achieve dramatic impr ovements in cost, quality, speed, and service. BPR combines a strategy of promot ing business innovation with a strategy of making major improvements to business processes so that a company can become a much stronger and more successful comp etitor in the marketplace. The potential payback of re engineering is high, but also is its level of risk and disruption to the organizational environment. The Role of Information Technology Information technology plays a major role in re e ngineering business processes. The speed, information processing capabilities, a nd connectivity of computers and Internet technologies can substantially increas e the efficiency of business processes, as well as communications and collaborat ion among the people responsible for their operation and management. IMPROVING B USINESS QUALITY No single approach to organizational change is appropriate for a ll circumstances. One important strategic thrust is continuous quality improveme nt, popularly called total quality management (TQM). Previous to TQM, quality wa s defined as meeting established standards or specifications for a product or se rvice. Statistical quality control programs were used to measure and correct any deviations from standards. EDBM5 - 13 19.The Role Of Information Technology In Management Total Quality Management: Qu ality is defined as meeting or exceeding the requirements and expectations of cu stomers for a product or service. This may involve many features and attributes such as: Performance Reliability Durability Responsiveness Aesthetics Reputation Total quality management uses a variety of tools and methods to seek continuous improvement of quality, productivity, flexibility, timeliness, and customer res ponsiveness. According to quality guru, Richard Schonberger, companies that use TQM are committed to: Even better, more appealing, less-variable quality of the product or service. Even quicker, less-variable response - from design and devel opment through supplier and sales channels, offices, and plants all the way to t he final user. Even greater flexibility in adjusting to customers shifting volume and mix requirement. Even lower cost through quality improvement; rework reduct ion, and non-value-adding waste elimination. BECOMING AN AGILE COMPETITOR Managing Organisation Agility in competitive performance is the ability of a business to prosper in ra pidly changing, continually fragmenting global markets for high-quality, high-pe rformance, customer-configured products and services. An agile company can: Make a profit in markets with broad product ranges and short model lifetimes. Proces s orders in arbitrary lot sizes. Offer individualized products while maintaining high volumes of production. Agile companies depend heavily on information techn ology to: Enrich its customers with customized solutions to their needs. Coopera te with other businesses to bring products to market as rapidly and cost-efficie ntly as possible. Combine the flexible, multiple organizational structures it us es. Leverage the competitive impact of its people and information resources. The Free.Perfect.Now model developed by AVNET Marshall embodies these principles in to a succinct model for serving its customers in the most CREATING A VIRTUAL COMPANY A virtual company (also called a virtual corporation or virtual organization) is an organization that uses information technology to

link people, assets, and ideas. People and corporations are forming virtual comp anies as the best way to implement key business strategies that promise to ensur e success in todays turbulent business climate. Virtual Company Strategies: EDBM5 - 14 19.The Role Of Information Technology In Management Managing Organisation Several major reasons why people are forming virtual companies include: Share in frastructure and risk Link complementary core competencies Reduce concept-to-cas h time through sharing Increase facilities and market coverage Gain access to ne w markets and share market or customer loyalty Migrate from selling products to selling solutions BUILDING THE KNOWLEDGE-CREATING COMPANY To many companies toda y, lasting competitive advantage can only be theirs if they become knowledge-cre ating companies or learning organizations. That means consistently creating new business knowledge, disseminating it widely throughout the company, and quickly building the new knowledge into their products and services. Knowledge-creating companies exploit two kinds of technology: Explicit Knowledge - data, documents, things written down or stored on computers. Tacit Knowledge how-tos of knowledge, which reside in workers. Successful knowledge management creates techniques, te chnologies, and rewards for getting employees to share what they know and to mak e better use of accumulated workplace knowledge. Knowledge Management Systems: [ Figure 2.16] EDBM5 - 15 19.The Role Of Information Technology In Management Managing Organisation Knowledge management has become one of the major strategic uses of information t echnology. Many companies are building knowledge management systems (KMS) to man age organizational learning and business know-how. The goal of KMS is to help kn owledge workers create, organize, and make available important business knowledg e, wherever and whenever its needed in an organization. This includes processes, procedures, patterns, reference works, formulas, best practices, forecasts, and fi xes. Internet and Intranet web sites, groupware, data mining, knowledge bases, d iscussion forums, and videoconferencing are some of the key information technolo gies for gathering, storing, and distributing this knowledge. Characteristics of KMS: KMS are information systems that facilitate organizational learning and kn owledge creation. KMS use a variety of information technologies to collect and e dit information, assess its value, disseminate it within the organization, and a pply it as knowledge to the processes of a business. KMS are sometimes called ad aptive learning systems. Thats because they create cycles of organizational learn ing called learning loops, where the creation, dissemination, and application of knowledge produces an adaptive learning process within a company. KMS can provi de rapid feedback to knowledge workers, encourage behavior changes by employees, and significantly improve business performance. As an organizational learning p rocess continues and its knowledge base expands, the knowledge-creating company integrates its knowledge into its business processes, products, and services. Th is makes it a highly innovative and agile provider of high quality products and customer services and a formidable competitor in the marketplace.

Enterprise Resource Planning Enterprise resource planning (ERP) is a cross-funct ional enterprise system hat serves as a framework to integrate and automate many of the business Processes that must be accomplished within the manufacturing, l ogistics, distribution, accounting, finance, human resource functions of a busin ess. ERP software is a family of software modules that supports the business act ivities involved in these vital back office processes. ERP is being recognized a s a necessary ingredient for the efficiency, agility, and responsiveness to cust omers and suppliers that an e-business enterprise needs to succeed in the dynami c world of eEDBM5 - 16 19.The Role Of Information Technology In Management commerce. Companies are find ing major business value in installing ERP software in two major ways: 1. ERP cr eates a framework for integrating and improving their back-office systems that r esults in major improvements in customer service, production, and distribution e fficiency. 2. ERP provides vital cross-functional business processes and supplie r and customer information flows supported by ERO systems. Online Analytical Pro cessing Online Analytical Processing (OLAP) is a capability of management, decis ion support, and executive information systems that enables managers and analyst s to interactively examine and manipulate large amounts of detailed and consolid ated data from many perspectives. Basic analytical operations include: Consolida tion. This involves the aggregation of data. It can be simple rollups or complex groupings involving interrelated data. For example, sales offices can be rolled up to districts and districts rolled up to regions. Managing Organisation Drill-Down. OLAP can go in the reverse direction and automatically display detai led data that comprises consolidated data. For example, the sales by individual products or sales reps that make up a region s sales can be accessed easily. Sli cing and Dicing. This refers to the ability to look at the database from differe nt viewpoints. For example, one slice of a database might show all sales of a pr oduct within regions. Another slice might show all sales by sales channel. By al lowing rapid alternative perspectives, slicing and dicing allows a manager to is olate the information of interest for decision-making. Data is retrieved from co rporate databases and staged in an OLAP multi-dimensional database. Corporate Databese Laptop Client OLAP Server Multi Dimensional Databese .Operational DB .Data Marts .Data Warehouse Web-enabled OLAP Server Intelligent Agents EDBM5 - 17 19.The Role Of Information Technology In Management An Intelligent Agent (IA) is a software surrogate that fulfils a stated need or activity. The IA uses builtin and learned knowledge about how an end user behaves or in answer to posed que stions, to implement a software solution --such as the design of a presentation template or spreadsheet -- to solve a specific problem of interest to the end us er. IAs can be grouped into two categories for business computing: User Interfac

e Agents. Interface Tutors. These observe computer operations, correct user mist akes, and provide hints and advice on efficient software use. Presentation Agent s. These show information in a variety of reporting and presentation forms and m edia based on user preferences. Network Navigation Agents. These discover paths to information and provide ways to view information that are preferred by a user . Role-Playing Agents. These play what-if games and other roles to help users un derstand Information and make better decisions. Information Management Agents. S earch Agents. These help users find files and databases, search for desired info rmation, and suggest and find new types of information products, media, and reso urces. Information Brokers. These provide commercial services to discover and de velop information resources that fit the business or personal needs of a user. I nformation Filters. These receive, find, filter, discard, save, forward, and not ify users about products received or desired, including E-mail, voice mail, and all other information media. Managing Organisation Interface Tutors Search Agent Information Brokers Information Filters Presentations Agents Network Navigation Agents Role Playing Agents EDBM5 - 18 19.The Role Of Information Technology In Management Expert Systems An Expert Sys tem (ES) is a knowledge-based information system that uses its knowledge about a specific, complex application area to act as an expert consultant to end-users. The components of an ES include: Knowledge Base. A knowledge base contains know ledge needed to implement the task. There are two basic types of knowledge: Fact ual knowledge. Facts, or descriptive information, about a specific subject area. Heuristics. A rule of thumb for applying facts and/or making inferences, usuall y expressed as rules. Inference Engine. An inference engine provides the ES with its reasoning capabilities. The inference engine processes the knowledge relate d to a specific problem. It then makes associations and inferences resulting in recommended courses of action. User Interface. This is the means for user intera ctions. To create an expert system a knowledge engineer acquires the task knowle dge from the human expert using knowledge acquisition tools. Using an expert sys tem shell, which contains the user interface and inference engine software modul es, the KE then encodes the knowledge into the knowledge base. A reiterative app roach is used to test and refine the expert system s knowledge base until it is deemed complete. Managing Organisation Decision Management Diagnostic/Troubleshooting Maintenance/Scheduling Major Application Categories Of Expert Systems Design/Configurations Selection/Classification Process Monitoring/Control Managing the IS Function EDBM5

- 19 19.The Role Of Information Technology In Management The IT organization structur e has radically changed in the last few years. The shift towards decentralized I S teams and decentralized IS management, evident in the 1980s and 90s, has recentl y been replaced with a return to centralized control and management of IS resour ces. This has resulted in the development of hybrid organization structures with both centralized and decentralized elements. Some companies have spun-off there IS organizations into subsidiaries or business units. Others have relied on out sourcing IS functions to either application service providers or system integrat ors. Regardless of these organizational changes, the IS organization function st ill involves three major components: Application Development Management. Involve s managing activities such as systems analysis and design, project management, a pplication programming and systems maintenance for all major e-business IT devel opment projects. IT Operations Management. Involves the management of hardware a nd software, network resources. Operational activities that must be managed incl ude computer system operations, network management, production control, and prod uction support. Many of these management activities are automated. For example, system performance monitors monitor the processing of computer jobs and in some cases actually control operations at large data canters. Most system performance monitors supply information needed by chargeback systems. These are systems tha t allocate costs to users based on the information services rendered. Human Reso urce Management. Involves recruiting, training, and retaining qualified IS perso nnel. Such personnel may include managerial, technical, as well as clerical supp ort staff. Managing Organisation Application Development -System analysis - System Design - Programming - System Maintenance Human Resource Management -IS Recruting - Training - Retainment Programs -Suppor ts Staff IT Operation Management - Network Management - Production control - Production S upport - System Performance EDBM5 - 20 19.The Role Of Information Technology In Management Conclusion The role of infor mation technology system was adopted to aid the achievement of the organisations strategic development goals. The introduction of a new business system to cover the major business areas in the organisation greatly improved operational effici ency and profitability. Now, data is effortlessly accessible and reports can eas ily be generated thereby providing management with information to make long-term strategic plans and decisions. The role of IT in the attainment of strategic go als has been an area of constant debate. Managing Organisation The characteristics of the management s role in IT development are not straightf orward. They can be summarized in terms of a typology of behaviours; five distin ct patterns are discernible. These patterns represent characteristic types which display markedly different levels of personal involvement. The behaviour patter ns can be arranged in order of personal involvement, each subsequent pattern req

uiring increasing levels of time and effort expenditure, and technical expertise from the manager. The adoption of a particular behaviour pattern is thought to be largely dependent on organizational resource constraints, and hence indirectl y on organizational size. However, personal characteristics, experience and pred ilections will also play a part in moulding the involvement level adopted. A typ ical pattern in the smaller firms shows the top manager to be closely involved i n cycles of IT development and implementation. Recognition of the marked differe nces in top manager involvement patterns in IS has significant implications for the design of training and education intended for business, and for further rese arch into business IT implementation. References Management Information Systems Managing Information Technology in the Internetworked Enterprise. Boston: Irwin McGraw-Hill. (HANDBOOK)(25/01/2010) ht tp://www.sjsu.edu/isystems/ -(25/1/2010) Kotler, Philip; Keller, Kevin Lane (200 6). Marketing Management (12 ed.). Pearson Education (28/01/2010) M.K. Badawy (1 998), Technology Management Education: Alternative Models. California Management Review. 40 (4), pp. 94115 (28/01/2010) http://www.pmhut.com/it-managers-and-proj ect-management (28/01/2010) http://www.gartner.com/it/products/research/topics/t opics.jsp (28/01/2010) Genevive Bassellier , Izak Benbasat , Blaize Horner Reich, The Influence of Busin ess Managers IT Competence on Championing IT, Information Systems Research, v.1 4 n.4, p.317336.(20/01/2010) Keith Schildt, Suzann Beaumaster, Marcie Edwards, " Strategic Information Technology Management: Managing Organizational, Political, and Technological Forces," hicss, vol. 5, pp.126a, Proceedings of the 38th Annu al Hawaii International Conference on System Sciences EDBM5 - 21 19.The Role Of Information Technology In Management Chaffey, Wood Business infor mation management: improving performance using information systems. Essex: Pears on Education Limited, 2005(5/2/2010) The role of information technology in achie ving the organisations strategic development goals: A case study Mojisola Olugbod ea,_, Rhodri Richardsb, Tom Bis(5/2/2010) Hicks, J. O. (1990). Information syste ms in business: An introduction. St. Paul, MN: West Publishing Company(5/2/2010) Management information systems team page. (2001). Management information system s team. Retrieved March 28, 2001 from http://rochesterhills.org/mis.htm.(6/2/201 0) Advertising, marketing, and public relations managers. (no date). Occupationa l outlook handbook. Retrieved 29 March 2001 from http://stats.bls.gov/oco/ocos02 0.htm.(6/2/2010) Competing with information technology(chapter 2)james A. O Brie n, and George Marakas. Management Information Systems with MISource 2007, 8th ed . Boston, MA: McGraw-Hill, Inc., 2007. ISBN: 13 9780073323091(7/2/2010) [AP&QC, 1997] Using Information Technology to Support Knowledge Management. Consortium B enchmarking Study: Final Report. 1997(7/2/2010) Managing Organisation Duff, W.M., Asad, M.C. (1980), Information Management: An Executive Approach, Ox ford University Press, London, p. 243(15/2/2010) [AP&QC, 1997] Using Information Technology to Support Knowledge Management. Consortium Benchmarking Study: Fina l Report. 19979(15/2/2010) [Nonaka and Takeuchi, 1995] I. Nonaka and H. Takeuchi . The Knowledge-Creating Company. New York, Oxford: Oxford University Press. 199 5(15/2/2010) T.H. Davenport, Process Innovation: Reengineering Work through Info rmation Technology, Harvard Business School Press, 1993.(20/2/2010) P. Alpar, M. Kim, A microeconomic approach to the measurement of information technology valu e, Journal of Management Information Systems 7(2), 1990, pp. 55 69.(25/2/2010) Cha pter 2 Competing with

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