ITM Lecture 6

INFORMATICS Information Technology Management
Information Technology Management Unit 11:

Issues in E-Commerce
Lecture 6
14th July 2006
ITM Lecture 6 ITM Lecture 6

Advanced Diploma (Thames College) 1 Advanced Diploma (Thames College) 2
Electronic Payment System Electronic Payment Systems -Payment Method
z Implementation of electronic payment systems is in z There are currently three basic ways to pay for your purchases:
z Cash
its infancy and still evolving. z Cheque
z Electronic payments are far cheaper than using the z Credit card
z Electronic cash distribution and payment can be handled by
dead-tree method of mailing out paper invoices and wallets, smart cards, or through proprietary, limited-use scrip
then later processing received payments. (Scrip is a digital cash minted by a small number of third-
party organizations).
z Electronic billing and payment systems is a win-win
z Electronic checks are encrypted representations that resemble
situation: electronic cash.
z It is convenient for customers and it saves companies a z Over 80% of Internet purchases are paid for with credit (or
lot of money. debit) cards.

Electronic Cash Concerns on Electronic Cash
z Credit card-issuing banks make money, by charging z All electronic payment schemes have some issues that must
merchants a processing fee ranging from 1-3% of the value be satisfactorily resolved to allay consumers'fears and give
of the transaction. them confidence in the methodology.
z Concerns about electronic payment methods include
z Small purchases are not profitable for merchants who
Privacy and Security, Independence, Portability,
accept only credit cards for payment.
Divisibility and Convenience.
z Compaq and IBM are among several companies that think z These issues are particularly important when considering
electronic cash schemes are in their infancy, and these electronic cash payment systems.
companies envision a rosy future for such methods. z Privacy and security questions are probably the most
z Electronic cash is attractive in the sale of goods and important issues that have to bee addressed with any
services of Micropayments (Internet payments for items consumer.
costing US$1 or less are called Micropayments)
Characteristics of Electronic Cash An Effective Web Presence

z Electronic cash should have two important z The only contact that customers and other
characteristics in common with real currency. stakeholders have with a firm on the Web
z It must be possible to spend electronic cash only might be through its presence there.
one, just as real currency is.
z Creating an effective Web presence can be
z Security procedures should be in place to guarantee
that the entire electronic cash transaction occurs
critical even for the smallest and newest firm
between two parties such that the recipient knows operating on the Web, and the tasks are:
that the electronic currency being received is not z Identifying Web Presence Goals
counterfeit or being used in two different z Achieving Web Presence Goals
transactions.
Identifying Web Presence Goals Achieving Web Presence Goals
z When a business creates a physical space in which to z An effective site is one that creates an attractive presence
conduct its activities, its managers focus on very specific that meets the objectives of the business or other
objectives. organization.
z These objectives include:
z They must find a location that will be convenient for
z Attracting visitors to the Web site
customers to find, with sufficient floor space and features
z Making the site interesting enough that visitors stay and explore
to allow the selling activity to occur, and they must balance
z Convincing visitors to follow the site's links to obtain
the need for room to store inventory and provide employee information
working space with the costs of obtaining that space. z Creating an impression consistent with the organization's
z The presence of a physical business location results from desired image
satisfying these other objectives and is rarely a main goal of z Reinforcing positive images that the visitor might already have
about the organization
designing the space.
Important of Web Presence Web Presence for Not-for-profit

Organizations
z On the Web, businesses and other organizations have the z Use their Web sites as a central resource for integrated
luxury of intentionally creating a space that creates a communications with their varied and often geographically
distinctive presence.
disperse constituencies.
z A Web site can perform many image-creation and image-
enhancing tasks very effectively - it can serve as a sales z Integrate information dissemination with fund-raising while
brochure, a product showroom, a financial report, an providing a two-way contact channel with persons engaged
employment ad, or a customer contact point. in the organization's work.
z Each entity that establishes a Web presence should decide z This combination of information dissemination with a two-
which tasks the Web site must accomplish and which tasks are
the most important to include. way contact channel is a key element in any successful
z Different firms, even those in the same industry, might electronic commerce Web site.
establish different Web presence goals. z Use the Web to stay in touch with existing stakeholders and
identify new opportunities for serving them.
Issues in Setting up a Website Strategies for Purchasing, Logistic
and Support Activities
z Use of E-commerce software z Businesses use electronic commerce to improve their primary
activity of purchasing and all of the support activities creating
z Development of the website a Web presence and selling to new customers on the Web.
z An emerging characteristic of purchasing, logistics and
z Digital cash: Payment support activities is that they need to be flexible.
z Delivery z Economic organizations are evolving from the hierarchical
structures they have used since the Industrial Revolution to
z CRM facility new, more flexible network structures.
z These network structures are made possible by the reductions
in transaction costs caused by the emergence of the Internet
and the Web.

Purchasing Activities Purchasing Activities Strategies

z Purchasing activities include identifying vendors, evaluating z A number of manufacturers that deal in general
vendors, selecting specific products, placing order, and industrial merchandise and standard machine tools
resolving any issues that arise after receiving the ordered
that are used in a variety of industries have created
goods or services.
Web sites through which businesses can purchase
z These issues might include late deliveries, incorrect
quantities shipped, incorrect items shipped, and defective
items to fulfill recurring needs.
items. z Many of the products that companies buy on a
z The term Procurement generally includes all purchasing recurring basis are commodities; that is, standard
activities, plus the monitoring of all elements of purchase items that buyers usually select using price as their
transactions. It also includes the job of managing and main criterion.
developing relationships with key suppliers.
Purchasing Activities Strategies What is Logistics Activities?
z These products are often called Maintenance, z Logistics activities include managing the inbound
Repair and Operating (MRO) supplies. movements of materials and supplies and the outbound
z By using a Web site to process orders, the vendors movements of finished goods and services.
in this market can save the cost of printing and
shipping catalogs, and the cost of handling z The activities of Receiving, Warehousing, Inventory
telephone orders. Control, Vehicle Scheduling and Control, and Finished
z Office equipment and supplies are also items that Goods Distribution are all logistics activities.
are used by a wide variety of businesses. z The classic objective of logistics is providing the right
z Well-designed Web sites devoted to helping goods in the right quantities in the right place at the
business purchasing departments buy these routine right time.
items are easily as possible.
Logistics Activities Strategies Support Activities

z Businesses have been increasing their use of information z Support activities include the general
technology to achieve this objective.
z Information system delivers real-time shipment information categories like
to Web browsers on its customers' computers.
z Financeand Administration
z Firms that run their own tracking operations have also
begun implementing tracking systems that use satellite z Human Resources
global positioning technology to monitor vehicle
movements. z Technology Development
z The Web and the Internet are providing an increasing
number of opportunities to better manage these activities as
they lower transaction costs and provide constant
connectivity between firms engaged in logistics
management.
Finance and Administration Human Resource Activities
z Finance and Administration includes activities z Human Resource activities include hiring,
such as making payments, processing payments training, and evaluating employees;
received from customers, planning capital
benefits administration, and complying
expenditures, and the budgeting and planning that
ensure sufficient funds will be available to meet with government record-keeping
the organization's obligations as they come due. regulations.
z The operation of the computing infrastructure of
the organization is also an administration activity.

Developing Technology Support Activities - Training Strategies

z Developing Technology can include a wide z The training function can be handled by the human resources
department, or decentralized and administered by individual
variety of activities, depending on the nature of departments.
the business or organization. z In addition to saving the costs of running classroom sessions in
multiple locations, many companies found that the training was
z It can include the networking of research producing sales increases in specific product lines.
scientists into virtual collaboration work-groups, z The company also began tracking the courses that a salesperson or
reseller's salesperson had taken and began assigning sales leads for
posting of research results, publishing research specific products to the salespersons that had taken the course for
papers online, and providing connections to that product.
outside sources of research and development z To keep salespersons updated after they have taken a course, they
send course graduates an e-mail notification whenever new
services. information about a product becomes available.
Business Plan for Implementing Setting Objectives
E-Commerce
z Objectives for e-commerce initiatives should include expected
z SettingObjectives benefits and expected costs. It can inspire businesses to undertake
activities:
z Benefit Objectives z Building brands
z Enhancing existing marketing programs
z Cost Objectives z Selling products and services
z Selling advertising
z Comparing Benefits to Costs z Improving after-sales service and support
z Purchasing products and services
z Managing supply chains
z Operating auctions
z Creating virtual communities and Web portals
z Although the success of each of these activities is measurable to
some degree, many companies have undertaken these activities on
the Web without setting specific, measurable goals.
Cost and Benefit Evaluation Benefit Objectives

z In the early days of e-commerce (the mid-1990s), companies that z Some companies build Web sites to build their brands or enhance
had good ideas could launch a business activity on the Web and not existing marketing programs in order to increased brand awareness,
face competition. as measured by market research surveys and opinion polls.
z As e-commerce is now beginning to mature, more companies are z Companies that want to sell goods or services on their sites can
taking a closer look at the benefits and costs of their electronic measure sales volume in units or dollars.
commerce projects. z A good marketing staff or outside consulting firm can help a
z A good business plan will set specific objectives for benefits to be company sort out the causes and effects of marketing and sales
achieved and costs to be incurred. programs and may be needed to help set and evaluate these kinds of
z A company will create a pilot Web site to test an electronic goals for electronic commerce initiatives.
commerce idea, and then release a production version of the site z Companies that want to use their Web sites to improve customer
when it works well. service or after-sales support might set goals of increasing customer
z These companies must specify clear goals for the pilot test so that satisfaction or reducing the cost of providing the customer service
they know when the site is ready to scale up. or support.
Measurement of Benefit Cost Objectives
z The benefits of other electronic commerce initiatives can be z Managers found that the cost of information technology
assessed by using a variety of measurements. projects can be equally difficult to estimate and control.
z Supply chain managers can measure supply cost reductions, z Since Web development uses relatively new hardware and
quality improvements, or faster deliveries of ordered goods. software technologies, managers have little experience on
which they can draw to make estimates.
z Auction sites can set goals for the number of auctions, the
number of bidders and sellers, the dollar volume of items sold, z E-Commerce initiatives tend to have a shorter timeframe than
the number of items sold, or the number of registered many other information technology projects, the rapid changes
participants. in Web technology can destroy a manager's best-laid plans
very quickly.
z Virtual communities and Web portals measure the number of
visitors and try to measure the quality of their visitors' z In addition to hardware and software costs, the project budget
experiences. must include the costs of hiring, training, and paying the
personnel who will design the Web site, write or customize
z Some sites use online surveys to gather these data; most settle
the software, create the content, and operate and maintain the
for approximations provided by measuring the length of time
site.
each visitor remains on theITM
site and how often visitors return.
Lecture 6 ITM Lecture 6
Comparing Benefits to Costs Cost-Benefit Evaluation of E-

Commerce Strategy Elements
z Most companies have procedures that call for an evaluation z A key part of creating a business plan for e-commerce
of any major expenditure of funds. initiatives is the process of identifying potential benefits,
z These major investments in equipment, personnel, and identifying the costs required to generate those benefits,
other assets are called capital projects or capital and evaluating whether the benefits exceed the costs.
investments.
z Companies should evaluate each element of their e-
z The techniques that companies use to evaluate proposed
capital projects range from very simple calculations to commerce strategies using this cost-benefit approach.
complex computer simulation models.
z No matter how complex the technique, it always reduces to
a comparison of benefits and costs.
z If the benefits exceed the cost of a project by a comfortable
margin, the company invests in the project.

E-Commerce: Go or Stop? Information Technology Management
z Capital project evaluation (such as the payback method
or the net present value method) provide a quantitative
expression of what a comfortable benefit-to-cost
margin is for a specific company. Unit 12:
z Managers often use the term Return on Investment
(ROI) calculation to describe any capital investment
Data Files and Databases
evaluation technique.
z The value of early position in a new market is so great
that many companies are willing to invest very large
amounts
of money with no near-term prospects of profit.
Data Files & Databases Data Files

z Before databases were introduced, all data z Manual office systems used files to structure the
was stored in files. information and computer systems to group
common data together in files.
z Files are still used today, but are much less z The way in which data files for computerized
common. systems are structured follows a set pattern.
z A file stores only 1 type of record. z The file is divided into records.
z Each record is divided into fields.
z Databases can store different types of
z The field is a particular data item which relates to a
records. record.
z Each record in a file would have the same set of fields.

Storing Data in Files File Organization
z Traditional Method z Data files must be organized logically into
z Keep paper documents in 2-ring binder or file. files
z Each file contains information about a particular and be accessible and updated as needed.
subject z There are three major methods of file
z E.g. students data, there could be many
organization
registration forms. Each form may include name,
student number, address, etc... z SequentialOrganization
z Earlier application system each had their own z Direct Organization
file z Indexed-sequential Organization

Sequential File Organization Direct File Organization

z This is the simplest form of file organization. z In a direct file, the data management systems is able to
z Records are stored in sequential order by a particular determine the exact location on the disk (address)
record key. where the data record is stored.
z For example, if the file contains employee data, then the z This method of access is called direct access and the
data field chosen to be the record is the Employee Number. file is called Direct Access Method (DAM) file which is
z Sequential Files can be stored on both magnetic tape only found in disks.
and z The data management system determine the address on
magnetic disks. the disk to store and retrieve a particular data record by
z Data which is stored sequentially can only be accessed using a
sequentially is called Sequential Access Method (SAM) program specially created for this purpose.
file. z The input will be the record key field, and the output
from this program is the address.
Indexed-Sequential File Organization Redundancy in Data Files
z Data records are stored z In the traditional data files, the same data may be
sequentially by record key. stored in several functional files.
z A few data records are stored
on any one track. z This situation duplicates data unnecessarily,
z An index is created by the data creating what is referred to as Redundancy.
management system.
z When a particular record is to
be accessed, the index is looked
up to find the track where the
record can be found.
z Then the records in this track
are read sequentially until the
particular record desired is
found.
z It is found only on disks.
Databases DBMS
zA Database is a data store for accepting, z The Database Management System (DBMS) is the
storing and providing on demand data for software that manage (builds and maintains) the
multiple independent users. database.
z It is essentially a means of organizing data in z This includes Adding, Deleting and Changing
related file structure to allow quick, user records in the database.
specified access and manipulation of the data. z The DBMS will also control access to the data.
z They are controlled by systems software z A financier user, for example, may not be able to view
personnel data, even though both finance and personnel
called Database Management Systems data are kept in the same database.
(DBMS).
DBMS Functions of a DBMS
z The DBMS makes it easier for programmers to z What are the functions performed by a
develop application systems. DBMS?
z Record Creation and Updates
z Record Selection by Search Criteria
z Minimize Data Redundancy
z Security

Record Creation and Updates Record Selection by Search Criteria

z The database is maintained by the user z Involve the extraction of information from the selected
records according to specified search criteria.
creating, deleting or amending records.
z A database has searching facilities ranging from limited
z The Database Management System will also searches on keywords to full text searching.
allow the user to process selected groups of z This facility provides the means of extracting from a large
records, the whole file or individual records. volume of data useful facts which could not possibly be
found by physical search methods in sufficient time to
z This is accomplished by selecting the make a decision.
required option from a menu displayed on z A query language is used to specify the search criteria.
the video screen or by keying in the relevant z This language facilitates enquiries using English-style word
command from the keyboard. to define commands, so greatly assisting users to find the
information they are seeking.
Minimize Data Redundancy Security
z If a data element or record (e.g. an z TheDatabase Management System is also
employee address) appears twice in an responsible for providing security for the
organization's records, this is called Data database, ensuring against unauthorized
Redundancy, since logically, it should not access and data corruption.
be necessary to hold the data twice, hence z Forexample, if many end-users are given
one copy is redundant. access to common data, there must be a way
z In a database, data redundancy should be of controlling that access to ensure that no
two users are able to change the data
eliminated, or at least, minimized and this simultaneously.
is the task of the DBMS.
Data Dictionary Example

z A data dictionary contains details of the data in a
database.
z Just like an English-language dictionary, each data item
is recorded together with its definition and explanation.
z The dictionary assists in the design of a database since
the meaning of various types of data are easily located.
z It can be used to reduce the level of redundancy to a
necessary minimum.
z It is easier to identify synonyms (data groups having
more than one name).

Advantages of Databases Disadvantages of Database
z Reduces data duplication which occurs z Data structures in a database are complex
using conventional file structure. and therefore takes a longer time to design
z Avoids duplicating input data to update and implement.
multiple functionality independent files z Costs more than conventional file systems.
holding the same date. z Requires high caliber, experienced and
z Offers useful query and report generation specialized personnel.
languages.
z Provides fast and flexible access to
information.
Creating a Database Environment Physical and Logical Records

z Departments have all along maintained their own data z The form in which data which is actually
and have been jealous of it.
stored is not the same as the form
z Inter-departmental rivalry leads to reluctance to divulge
data, let alone make it available in a central database. presented to the application program.
z There must be a change of attitude in terms of who z The data structure that is actually on the
actually owns data. computer media (e.g. disk, tape ) is called a
z Appointing a Chief Information Officer is one way to Physical Structure.
give direction and focus, as the CIO will be responsible
for the overall use of data and information in the z The structure that the application program
company. uses is a Logical Structure.
z A data administration function must be established and
the CIO must plan the current
ITM Lecture 6
and future data needs. ITM Lecture 6
Data Files and Databases Multilist
z Database Management Systems (DBMS) do not zA list links common items in a database.
replace the traditional method of storing data in data
files. z A list is like a chain and each link in that
z The data is still stored in sequential, direct or indexed chain is a record with the desired attribute.
sequential file structure even though a database z By starting at the first record, the DBMS
management system is used to provide greater
flexibility in accessing data. can retrieve, one by one, the records in the
z There are a variety of methods that could be used by chain which share the desired attribute.
a DBMS to logically structure the data.
z Two methods that will be discussed are
z Multi-lists
z Inverted Files
Multilist Inverted Files

zA list links common items in a database. z In an inverted file, the
addresses of each
z A list is like a chain and each link in that record with a desired
chain is a record with the desired attribute. attribute are stored in
an index.
z By starting at the first record, the DBMS
z In a fully inverted file,
can retrieve, one by one, the records in the there will be one index
chain which share the desired attribute. for each type of data
item.
z In a partially inverted
file, only some of the
attributes are indexed.
Information Technology Management Computer Configurations
zA computer processing center will be set up in a
company to control and manage the computer
servers.
Unit 13:
z In a company with multiple sites, there are
Computer Configurations different possible hardware setups, depending
on the number of computer servers and their
location.
z The computer systems could be Centralized or
Decentralized.

Centralized Environment Benefits for Centralized Environment

z Facilities,systems & z Provides Access to Large Systems
resources installed in a z Sharing of Resources
central location z Easier to Manage
z Other business units gain z Monitor
access through z Lower Cost
telecommunications
z Faster Delivery of Output
networks
z Elimination of Redundancy
z User interface through
z Increased Security
dumb terminals or PCs with
terminal simulation software z Greater Responsiveness
Decentralized Processing Distributed Processing
z With the availability of cheaper computers (e.g. z Distributed processing involves having computers systems
minicomputers), it becomes possible for each at each site, but these systems work together to achieve the
department or branch of a company to have its same business objectives.
own computer system. z There could be sharing of corporate databases as well as
local processing.
z Each site can then carry out their processing
z Distributed processing has increased in popularity.
independently.
z It is seen as a viable alternative to centralized processing
and decentralized processing.
z Both local and shared data processing are possible.
z Each site may need to process data unique to its own
location.
z At the same time, transactions can span across sites.
Reasons for Implementing Developing a Telecommunications System

Distributed Systems
z Improved Response Time z In any large organization, communications and
information sharing depends on a good
z Reduced Costs telecommunications system and facilities.
z Improve Accuracy z The computer network depends on the
z Reduced Mainframe Costs telecommunications infrastructure for the transmission
of data.
z Smoother Growth
z In developing a telecommunications plan for your
z Increased Reliability company, it is important to start with the requirements
z Resource Sharing of your company rather than just looking at the
desirable features.
z Increased User Satisfaction
z A telecommunications system must advance the
business objectives of the organization.
Developing a Telecommunications System Effectively Work as Telecommuters
z Reduced travel time which can be more z Video conferencing
productively used for work. z Teleconferencing
z Flexible work schedule which can motivate z E-mail
staff. z Net meetings/Online chat facilities
z Conducive work environment which
z Groupware
reduces stress.
z Blackberry for instant access anytime,
z Reduced overheads.
anywhere
z Greater workplace efficiency.

Factor to Consider in Developing a Globalization

Telecommunications System
z Thereare several factors that should be z Globalization refers to the worldwide phenomenon
consider when developing a of technological, economic, political and cultural
telecommunications plan and in choosing exchanges, brought about by modern
communication, transportation and legal
telecommunications equipment. infrastructure as well as the political choice to
z Distance - If the communications are mainly consciously open cross-border links in international
local and internal to the organization, then there trade and finance.
is little need to consider long-distance
z The term Global Culture is used to describe how
telecommunications features.
human beings are becoming more intertwined with
z Type of Service - The type of service to be each other around the world economically,
supported must also be considered. politically, and culturally.
Global Systems Infrastructure Information Technology Management
z The basic requirements for data communications and a
global information system is in place. Unit 14:
z There are several factors that must be considered to
ensure a successful global data communications Information Systems –
capability.
z These include factors like establishing standards and Types and Presentations
human resource policies.
z Imagine the scenario of each site having its own
computers, software and procedures for developing
systems and processing data.
z There would be tremendous problems trying to make
these sites communicateITMeffectively.
Lecture 6 ITM Lecture 6
What is a Computer-based Classification of Information Systems

Information System?
z This is one that uses technology to z There are various ways of classifying information
systems.
perform some or all of its intended tasks
z One common approach is to classify according to its
which include the handling of inputs such main functions.
as business problems, processing the z Transaction Processing Systems (TPS)
problems and producing as output, reports z Information Reporting Systems (IRS)
and recommendations. z Decision Support Systems (DSS)
z The typical components of such a system z Expert Systems (ES)
are hardware, software, a database, z Executive Information Systems (EIS)
network, procedures and people. z Office Automation (OA)
Types of Information Systems Transaction Processing Systems (TPS)
z Automated clerical and operational functions
z Track data at the most elementary level

Information Reporting System (IRS) Decision Support System (DSS)

z Provide routine summary and exception reports, z Supports management decisions that are semi-
often drawing on transaction level data. structured or cannot be specified in advance
z Interactive and user-friendly

Expert System (ES) Executive Information System (EIS)
z Captures human expert knowledge to solve problems z Utilizes heavy graphics displays, draws together
z Gives the computer the ability to make suggestions data from numerous internal and external sources
and act like an expert z Determine how certain data was produced
z Captures the use of the wisdom of experts and z For senior managers
specialists z Drill down capabilities
z Years of experience and specific skills are not
completely lost when a human expert dies, retires or
leaves the company
z To solve complex problems and support difficult
decisions

Office Automation (OA) Management Information Systems

z Office Automation (OA) refers to a wide variety z Another common term used loosely is
of computer-based technologies that make office Management Information Systems (MIS).
workers more productive at their jobs.
z We will consider it to be any information system
z This improvement in productivity can be achieved
through increases in effectiveness or efficiency. that supports the timely use, management and
processing of data or information pertaining to
an organization's operations by authorized
people in the organization's environment.
z In this definition, the relevant parts of any TPS,
IRS, DSS, ES, EIS and OA can be considered
components of an organization's MIS.
Transaction Processing Systems (TPS) Example of TPS
z Itis a system that supports the processing z There are several examples of TPS.
of a firm's business transactions. z Order Entry
z Inventory
z These systems are designed to keep an
z Distribution
organization running smoothing by
z Sales Invoicing
automating the processing of the huge
z Accounts Receivable
amounts of paperwork that must be z Purchasing
handled daily. z Receiving
z Accounts Payable
z Payroll
Example of TPS - Order Entry Example of TPS - Inventory

z This is the TPS which processes customer z An inventory system monitors the quantity
orders. of each product available for sale and helps
z Orders may arrive by a variety of means : ensure that the proper amount of stock is
mail, phone, fax etc. maintained.
z In cases of repeat orders, a trigger within z All movement of goods in and out of the
the system will be the source. store or warehouse will be recorded.

Example of TPS - Distribution Example of TPS - Sales Invoicing
z This involves ensuring the best mode of z The main role of the sales invoicing system
transport is selected to deliver goods to the is to receive delivery information from the
customer on time. Distribution System and to prepare
z Customs clearance, insurance and freight invoices to be sent to the customer.
forwarding are the areas of concern here. z Discounts are applied where appropriate.
In some systems, monthly statement of
accounts are also prepared.

Example of TPS - Accounts Receivable Example of TPS - Purchasing

z As the name implies, this TPS records the z Many companies have central department
amount owed by customers and the payments to handle procurement of its goods and
made. services.
z The data comes from the sales invoicing system.
z The advantages are to gain maximum
z In companies with cash sales, there is little or no
volume discounts, obtain the lowest price
receivables.
or best deal from various vendors and to
z A large amount of money may be tied in A/R
achieve standardization where necessary.
and the results of this system often receive close
attention.

Example of TPS - Receiving Example of TPS - Accounts Payable
z The role of the receiving system is to z This system records the invoices received
record the receipt, inspection, acceptance from vendors, determines the optimum
or rejection of goods. time to pay and prepares and prints
z The inspection serves to identify damaged cheques.
or incomplete goods which must be z Cash forecasting is another important task
rejected. of the A/P system.

Example of TPS - Payroll Information Reporting Systems

z This system calculates the salary to be paid z An Information Reporting Systems (IRS) is an
information system that provides predefined types of
to employees, taking into account any information to management for relatively structured types
relevant deductions (e.g. pension fund ) or of decisions.
additions (e.g. allowances). z Many of the traditional hard copy reports are now also
available in screen form.
z The payroll system must produce income z Printouts like invoices or remittance advice are not
tax reports and should also keep track of traditionally considered "reports" and are more closely
pension fund or union fees which have to associated with the Transaction Processing System (TPS)
that produced them.
be credited to another organization. z Information Reporting Systems are used for both
management planning and management control functions.
Methods of Information Presentation Visual Presentation
z Common methods of presentation used in information systems z About 70% of all the information that we
are via the PC screen or printed page.
z Information can also be presented vocally, either by face to
absorb is acquired visually rather than
face communication, telephone or pre-recorded message, through the other senses.
z The aim of an information system, beyond presenting the z This already the primary method used in
required information at the required time, must be to present it
in such as way that it may be readily absorbed.
information systems as both screen and
z A number of factors contribute to this: paper printouts show information visually.
z Visual Presentation
z Use of Graphics
z Format and layout

Use of Graphics Format and Layout

z Although text forms the bulk of the z Use of different fonts and different font sizes,
contents of information being provided, underlining and so on help to highlight
alternatives should be sought. Graphics is a important points and make the presented
information easier to absorb.
useful supplement.
z Even the way sentences and paragraphs are
z Examples are pie charts, line charts, etc. positioned is important in making the page or
screen look more appealing.
z Imagine how boring a textbook looks if all you
see are lot of words arranged close together on
each page.
Questions & Discussion
ITM Lecture 6
Advanced Diploma (Thames College) 101

ITM Lecture 6

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ITM Lecture 6

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INFORMATICS Information Technology Management

Information Technology Management Unit 11:

14th July 2006

ITM Lecture 6 ITM Lecture 6

Electronic Payment System Electronic Payment Systems -Payment Method

ITM Lecture 6 ITM Lecture 6

Characteristics of Electronic Cash An Effective Web Presence

Important of Web Presence Web Presence for Not-for-profit

ITM Lecture 6 ITM Lecture 6

Purchasing Activities Purchasing Activities Strategies

Logistics Activities Strategies Support Activities

ITM Lecture 6 ITM Lecture 6

Developing Technology Support Activities - Training Strategies

Cost and Benefit Evaluation Benefit Objectives

Comparing Benefits to Costs Cost-Benefit Evaluation of E-

ITM Lecture 6 ITM Lecture 6

Data Files & Databases Data Files

ITM Lecture 6 ITM Lecture 6

file z Indexed-sequential Organization

ITM Lecture 6 ITM Lecture 6

Sequential File Organization Direct File Organization

ITM Lecture 6 ITM Lecture 6

Record Creation and Updates Record Selection by Search Criteria

Data Dictionary Example

ITM Lecture 6 ITM Lecture 6

Creating a Database Environment Physical and Logical Records

Multilist Inverted Files

ITM Lecture 6 ITM Lecture 6

Centralized Environment Benefits for Centralized Environment

Reasons for Implementing Developing a Telecommunications System

ITM Lecture 6 ITM Lecture 6

Factor to Consider in Developing a Globalization

What is a Computer-based Classification of Information Systems

ITM Lecture 6 ITM Lecture 6

Information Reporting System (IRS) Decision Support System (DSS)

ITM Lecture 6 ITM Lecture 6

ITM Lecture 6 ITM Lecture 6

Office Automation (OA) Management Information Systems

Example of TPS - Order Entry Example of TPS - Inventory

ITM Lecture 6 ITM Lecture 6

ITM Lecture 6 ITM Lecture 6

Example of TPS - Accounts Receivable Example of TPS - Purchasing

ITM Lecture 6 ITM Lecture 6

ITM Lecture 6 ITM Lecture 6

Example of TPS - Payroll Information Reporting Systems

z Format and layout

ITM Lecture 6 ITM Lecture 6

Use of Graphics Format and Layout

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