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System Concepts
It is an integrated set of components or entities that interact to achieve a particular function or goal. Systems have characteristics such as boundaries, outputs and inputs, methods of converting inputs into outputs, and system interfaces They are composed of interrelated and interdependent subsystems Every system has a boundary that defines its scope of activities Systems may consist of numerous subsystems with elements, interactions and objectives
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Closed System It is relatively self-contained and does not exchange information with its environment Closed systems do not get the feedback they need from the external environment and so tends to deteriorate
Contd.
System feedback A system needs feedback that is an indicator of current performance rates when compared to a set of standards, to do its job With effective feedback, continuing adjustments in the activities of a system can be made to assure that the system achieves its goals Measuring performance against a standard is an effective control mechanism
Information Systems
Is an organized set of components for collecting, transmitting and processing data in order to deliver information for action In business firms, this information is necessary for both operations and management Todays organizations cannot be operated or managed effectively without information systems that are built using a range of information technologies
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Information Systems (IS) Collect, process, store, analyze, and disseminate information for a specific purpose.
Information systems are comprised of Inputs (data, instructions) Outputs (reports, calculations) Feedback mechanisms that controls the operation An environment that it works within
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TECHNICAL APPROACHES
OPERATIONS RESEARCH
MIS
SOCIOLOGY POLITICAL SCIENCE
PSYCHOLOGY
BEHAVIORAL APPROACHES
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INPUT
PROCESS
OUTPUT
FEEDBACK
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A computer-based information system (CBIS) is an information system that uses computer technology to perform some or all of its intended tasks.
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Changing Scenario of IS
Electronic commerce Electronic business Digital market
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Electronic Commerce
Internet links buyers, sellers Lower transaction costs
Goods and services advertised, bought, exchanged worldwide Business-to-business transactions increasing
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Electronic Business
Electronic business Executing all the firms business processes with internet technology Intranet Business builds private, secure network based on internet technology Extranet: Extension of intranet to authorized external users
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1960s
Mid- 1980s
External Information
Data Warehouse
EIS
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Contd.
Strategic level: - It supports a firms strategy: Low-cost leadership Product differentiation Market specialization
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Periodic nature Unexpected findings Comparative nature Summary form Both internal and external sources
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Major application systems: Payroll, employee records, benefit systems, career path systems, personnel training systems
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Enterprise Applications
Enterprise systems Supply Chain Management Systems Customer Relationship Management Systems Knowledge Management Systems
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Contd.
Helps in procurement of materials, transformation of raw materials into intermediate and finished products Helps in distribution of the finished products to customers Includes reverse logistics - returned items flow in the reverse direction from the buyer back to the seller
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Role of IS in SCM
Decide when, what to produce, store, move Rapidly communicate orders Communicate orders, track order status Check inventory availability, monitor levels Track shipments Plan production based on actual demand Rapidly communicate product design change Provide product specifications Share information about defect rates, returns
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