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V 

 
-Bare facts and figures

V
 
-Data that is organized into meaningful context

- It is processed data

-Supports the decision making process

- reduces uncertainty about a situation or event


-Human capacity (potential & actual ability) to take effective action in varied and
uncertain situations.

-It is the awareness and understanding of facts, truths or information gained in the
form of experience or learning.
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V
 

It involves three activities:


    
- Data is initially recorded and later verified for accuracy and authenticity. This is called dta
capture.
- Data is captured by punching with keyboard or scanning with scanning devices, facts
from documents on which they were recorded.
- Data captured is organized in data files. Each file contains records relating to various
data elements (fields) expressed with the help of different symbols (characters).

    
 
- It is done by performing any of the following operations:
(i) Rearranging: also called sorting of data
(ii) Classifying
(iii) Calculating
(iv) Summarizing

     
V
 
The processed data maybe either communicated to end user or maybe stored for future
reference.
One decides the report format, appropriate channel of communication to provide
information.
If stored, one decides to store it on some mass storage.
 

Yn assembly of inter-related elements comprising a unified whole.

The components (elements) are connected together in order to facilitate the flow of
information, matter or energy.

It works towards a common goal by accepting inputs and producing outputs.

 
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V  ß 


(   V
    !

It is an organized combination of people, hardware, software, communications


networks, and data resources that stores and retrieves, transforms, and disseminates
information in an organization.

"# 
V
   
Enterprise & Internetworking (1990s/2000s)
e.g. internet worked IS, Intranet, Extranet,
Internet, etc.

Strategic & End User Support (1980s/1990s)


e.g. Expert System, etc.

Decision Support System (1970s/1980s)

Management Reporting (1960s/1970s)


e.g. MIS
Data Processing (1950s/1960s)
E.g. EDPS, TPS, etc.
"  $% 

  &  


Refers to computer systems and other associated equipment including the communication links
that a modern IT installation may need.
One needs to assess the nature of IT needs, the volume of data to be processed, sources of
data, complexity of data analysis and impact of other related factors to determine the hardware
resources.

  
 
It is the lifeline of the IT infrastructure and it makes the computer hardware function. It is set of
interrelated computer programs.

 
Collection of facts or events from both internal and external sources represented in the form of
symbols, such as digits, alphabets, pictures, graphs, etc.
Capturing, processing and storage of data are the essential functions.

Human Resource
They are the catalyst in process of generation of information and thus are very vital.

ß
It includes the operational and control procedures for the use of IT infrastructure.
It contains instructions for users regarding the use of IT infrastructure for day to day activities
and for also handling specific situations.
% 

-Focuses on competitive priorities.


- Supports Business Process and operations
-Provide access to information
-Enhance communications
-Provide decision assistance
-Supports strategies for competitive advantage

- Summarizing the three major roles of the business applications of IS

Support Strategies
for CY

Support Business
Decision Making

Support business Processes & Operations


  
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-Few years ago a separate transaction systems existed for each department in
a company

- Now many organizations are integrating the TPS systems of each


department so that users can see how their decision affect other parts of the
organization and the customers.

-TPS are the ³data lifeline´ of a company for several reasons:

‡If a company fails to capture a transaction it may lead not only to customer
dissatisfaction and lost profit but also to serious penalties and lawsuits.

‡TPS s become the source of data for other systems in the organization. If
analyzed and integrated it will give business key information about new
company plans. Y better plan how to meet customer needs and preferences.

‡TPS is a link between the organization and external entities, such as


suppliers, customers & distributors.

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(/     : enter data by using input devices such as YTM it called data


source document
*/ )   : ensure the accuracy and reliability of data.
+/ ß : once the company validate the accuracy & reliability of data
the system processes and converts data into information. There are two
types of processing.
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† the data input device is directly linked to the system to be
processed.
† ³some times linked to the system via the network or
telecommunication.´
† example Bank YTM, student registration for classes, travel agent
flight reservation.
† On-line processing is possible because of networks and
databases.
4 
  
Processing that done on a daily, weekly, or monthly basis or any
period of time.
| 
  
 
† The information in the files may not up-to-date.
† Some errors may be detected only after the entire batch is
processed in on-line processing errors can be detected right
away.
† Which type of processing is better?
It depends on the users decision making needs.

,/    : to store the processed data in proper way. Otherwise data
will be usefulness to decision makers.
The kind of processing and type of storage medium are to some extent
related.
For example: magnetic tape is often used in batch processing. Ynd
magnetic disk used in on-line processing.
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Monitors & control physical process

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-Enhance team and workgroup communication and productivity, and include


applications that are sometimes called office automation system.

It facilitates the following activities:

-Producing outgoing documents (using text processors)

- storage & retrieval of documents (using document management system)

- transmission of messages (using message communication systems)

- scheduling and meeting management (using video conferencing)


      
- Information System application focus on providing information and
support for effective decision making by managers.

- Classified into following categories


a) Management Information System
b) Decision Support System
c) Executive Support System
     V
    
- Yims at meeting the information needs of managers, particularly with
regard to the current and past operations of the enterprise.
- Offers summary and exception reports on the operations of the
enterprise and are also called as operations support systems.

Summary Report 0Y report that accumulates data from several transactions and
presents the results in a condensed form/
Exception Report: Y report that outlines any deviations between actual output and
expected output.

- The main input to an MIS is usually the transaction processing system and other
internal company sources
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Managers should answer two types of questions
What? «Why?

What Why
Computers are excellent at People are excellent at
computations applying intuition & judgment
(answering what to solve problems
questions) (answering why questions)

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1. Top managers do not have the time to study and analyze large
volume of data. They need an IS that will analyze the data & present
it in elegant manner so they can have quick & effective decisions.
2. The system that deliver high level information in a friendly way is
called EIS.
3. Yn EIS consists of tools & techniques, such as color graphics, touch
screens, voice activated commands, and distribute large volumes of
data quickly and effectively.
4. Provides critical information from both internal and external sources
to easy-to-use displays to managers
5. The managers get tailored made formats they prefer.
6. Focus more on delivery of information by top managers than
generation of information.
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 0 the ability to provide information at the level


of detail that the decision maker demands.
EIS: information system that analyzes and presents
information to executive decision makers in a
useful, friendly, and customized format.

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‡ ES can capture and apply the knowledge of human expert by joining
three main components:
1. Knowledge base
2. Inference engine
3. User interface

User Poses Problem User


Inference
Interface
Engine Knowledge Base
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Experts captures & acquires this knowledge

Knowledge acquisition

Experts represents knowledge in the system

Knowledge representation

Facts, rules, theorem, & principles

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-Used for managing knowledge in organization, supporting creation, capture, storage


and dissemination of information

-Idea is to enable employees to have ready access to the organization documented


base of facts, sources of information and solutions.

-Y KM System could be any of the following:


* Document based
* Provide network maps
* YI technologies which use a customized representation scheme to represent the
problem domain.

Create Capture
  
Refine
Knowledge

Disseminate Manage Store


 ' information that is contextual, relevant and actionable.
Knowledge is information in action and is exercised to solve a problem

Knowledge is of two types '


"'  deals with more objective, rational and technical knowledge
V   cumulative store of subjective or experiential learning

MIS focus on explicit knowledge


KMS refers to the use of modern technologies ' the internet, intranets, extranets.

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-Sharing of valuable organizational information
- reducing redundant work
- reducing training time for new employees


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    0 Ynalysis of large pools of data to find patterns and rules that can be
used to guide decision making and predict future behavior.
The cost of acquiring a new customer has been estimated to be five times that of
retaining an existing customer. By carefully examining transactions of customer
purchases and activities, firms can identify profitable customers and win more of their
business.

     0 Integration of supplier, distributor, and customer


logistics requirements into one cohesive process.

   0 Y collection of physical entities, such as manufacturing plants,


distribution centers, conveyances, retail outlets, people, and information, which are
linked together into processes supplying goods or services from source through
consumption.

To manage the supply chain, a company tries to eliminate delays and cut the amount
of resources tied up along the way.

Information systems make efficient supply chain management possible by integrating


demand planning, forecasting, materials requisition, order processing, inventory
allocation, order fulfillment, transportation services, receiving, invoicing, and payment.
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Business can counter the threats of competitive forces by implementing five basic
strategies-

1. Cost Leadership Strategy


2. Differentiation Strategy
3. Innovation Strategy
4. Growth Strategy
5. Ylliance Strategy

   #  

1. Improving Business Processes


2. Promoting Business Innovation
3. Lock-in Customers and Suppliers
4. Creating Switching Costs
5. Raising Barriers to Entry
6. Leverage Investment in IT
7. Developing a strategic information base
   
V

Building a customer focus business

Reengineering Business Processes

Improving Business Quality

Becoming an agile company

Creating a virtual company

Building a knowledge creating company

The challenge of strategic IS


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