Mod 1

1. Mod 1 Organization and information systems

2. Books to Read & Refer • Management Information Systems by WamanJawadekar, Tata McGraw Hill Publication • Management Information Systems: Managing a Digital firm by Laudon & Laudon • Management Information Systems by O’Brien & Marakas

3. Changing environment and its impact on business • Change is inevitable in all fields of our lives. • Globalization is a prominent affair and everyone can feel the changes due to it. • International dimensions have become vital part of managing a business enterprise in the internet worked global economies and markets of today.

4. Attitude and change “Every time the world discourages you, tell the world, I’ll prove you wrong” “Every time the world encourages you, tell the world, I’ll prove you right”

5. If You Don’t Change, You Can Become Extinct

6. “CHANGE IS UNIVERSAL…CHANGE IS PERMANENT….BE EVER WILLING TO CHANGE…..FOR, CHANGE ALONE LEADS YOU TO SUCCESS AND HAPPINESS!!!

7. Success X Start A stepped approach to change A journey of a thousand miles occurs one step at a time.

8. Need for change • External factors • Market place • Govt laws and regulations • Technology • Fluctuations in labour market • Economic changes • Internal factors • Org workforce • Introduction to new equipment • Redesign of new job or interaction patterns within their work group • Emp attitudes

9. Forces for change • People • Technology • Information processing • Communication • Competition • Social trends

10. Key components involved in business change are:

11. IT and its influence • Lower costs • Differentiate • Innovate • Promote growth • Develop alliances • Improve quality and efficiency

12. The organization: structure, managers and activities • A number of researchers have identified 3 layers of activity that can benefit the org. • They are : • Top management • Middle management • Operational or lower level management

13. Organisation & Information: DM Perspective External Low Source of Information Structured Information Internal High

14. Organisation Vs Data to Information to Knowledge to Business Intelligence Possessed by expert judgmental, not transferable TOP Top Less judgmental, contextual, and can be transferred through learning Middle Coded, contextual, easily transferable and can be shared Middle Processed data with context and purpose. Transferable and sharable Lower Lower Facts and Figures with no context Fig. 7.4 Knowledge Hierarchy

15. Data Versus Information • Data are raw facts about physical phenomena or business transactions • Information is data that has been converted into meaningful and useful context for end users • Examples: • Sales data is names, quantities, and dollar amounts • Sales information is amount of sales by product type, sales territory, or salesperson 1-15

17. DATA A set of Information & knowledge entities, backed by systems, tools & technology, organized to provide insight in the scenario. No Character & No Value INFORMATION Has a character & Value KNOWLEDGE • A information set built using principles, laws, experience etc. It is an asset of high value. • Know how: Ability to apply knowledge in practice • Wisdom: Judicious Use of know how & knowledge BUSINESS INTELLIGENCE

18. Facts without context is ‘Data’ • Data processed in context is‘Information’ • Information processed in context is ‘Knowledge’ • Knowledge in context of application is ‘Know-How’ • Know-how in context of right use is a ‘Wisdom’ • Data/Information/ Knowledge/ Knowledge Assets & supporting infrastructure of systems, and Tools to use it is a ‘Business Intelligence’

19. More on Data / Information / Knowledge • Data: Data comes about through research, creation, gathering, and discovery and through transaction processing. Census data, market research, Purchase sales transactions. • Information: Data, when processed with context, is an Information. Data is turned into information by organizing it so that we can easily draw conclusions. Data is also turned into information by "presenting" it, such as making it visual or auditory. Census data on education processed with gender attribute gives information on education divide. • Knowledge: Knowledge is built from scratch by the learner through experience of application of information or by its analysis. knowledge is dynamic as it lives within us and changes with experience. On analysis of this information, we come to know the reasons of education divide between genders.

20. Methods & Sources of Data and Information Collection • Observation • Experiment • Survey • Estimation • Processing of Data/Transactions/ Events • Purchase • Source from Publications: Govt & Private bodies

21. Attributes of Information • Accuracy in representation • Complete in content • Form of presentation to grasp quickly • Frequency of generation & reporting • Scope of coverage/contents • Sources of input data • Time: Past, Current & Future • Relevance & utility for DM • Availability when needed • Accessibility to the user

22. The level of people and information needs • Information has become a strategic tool for org. • Info is now a days considered as a resource, more or less like capital. • Hence it is imperative to analyze and assess the information requirements/ needs of business org on the basis of: • Functions • Activity • Level • Org as whole

23. Types of management

24. Organisation Pyramid & Information

25. What is Information Management? Information Management begins with identification of information needs of the organization & its users, and plans systems for its generation, maintenance, & dissemination ensuring quality & security of the information.

26. Information systems resources • IS activities can be generally grouped into: • Input • Processing • Output • Storage • control

27. Components of an IS 1-27

28. Input of data • Data about business transactions is captured and prepared for processing by the input. • Input can be computer key boards or optical scanning devices.

29. Processing of data • Processing activities: -Calculating, sorting, comparing, classifying and summarizing. • The activities help in organizing, analyzing, manipulate, data converting then finally into information for end users.

30. Output of information products • End users get the information in various forms in the o/p activity. These include: • Messages • Forms • Reports • Graphic images • These are provided by video displays, audio responses, paper documents and multimedia.

31. Storage of data resources • Data are organized into fields, records, files and databases. • Field: is a group of character, each character is a byte. 1 Byte=8bits. E.g. RAMA • Records: is a collection of interrelated fields. E.g. Rama’s pay roll record consist of name, ID, Dept, shift, designation, salary. • File: is a collection of interrelated records. E.g. Pay roll file records of all emp in a firm. • Databases: it is an integrated collection of interrelated records . E.g. personnel database might contain pay roll, performance review, career development files.

32. Control of system performance • An IS has to obtain a feedback about its input, processing, output and storage activities. • The feedback is later monitored and evaluated to determine whether the sys is meeting its desired performance standards. • Appropriate sys updation and control should be done timely.

33. Mission & Goal Sense Customer Needs Build Flexible Structure Information Driven Participative Management External Signals From Environment Operational Signals Information Driven Strategy WhyInformation Management is important now? • Business is an Open System • Strategy: Sense & Respond proactively • Information of customer needs & the competition is necessary for growth Information Management System Evaluate Strategy Evaluate Achievements

34. Importance of Information Management We need Information for: • Business Operations • Operations Control • Decision Making • Business Management: Strategy & Implementation • Performance Measure: Targets, Budgets, KPIs • Performance Control • Achieving Goals & Targets

35. Importance of Information Management • Business & Industry is information driven • Needs to know JIT status on chosen aspect, • Needs to know instantaneous event occurrence. • Needs to know Exceptions any where • Needs prompts in terms of Alert, Attention, Action. • Needs information support to DSSs, embedded or otherwise Need a Information Management System to process data, events, transactions producing the information to achieve business goals & performance targets.

36. IMS Model Input Data, Standards, Specifications Information, Knowledge, Rules, Policies, Practices, Strategy Output Data Information, Knowledge, Decisions, Results, Exceptions Information Management System (IMS) Output Display

37. Fundamental Roles of IS in Business 1-37

38. Trends in Information Systems 1-38

39. Information systems categories on the basis of nature and characteristics

41. Other classification of information systems • Expert systems • Knowledge management systems • Strategic information systems • Business information systems • Integrated information systems

42. Expert system • It is a computer based information system uses its knowledge about a specific complex application area to use it as an expert consultant to users. • The systems consists of a knowledge base and software modules that perform inferences on the knowledge and communicate answers to a users question.

43. Knowledge management systems • Is a computer based information system for organizing and sharing the diverse forms of business information created within an org. • It includes managing project and enterprise document libraries, discussion database, hypermedia web site address, and other type of knowledge bases.

44. Strategic information systems • Is a computer based information system that provide a firm in the competitive products and services that give it a strategic advantage over its competitors in the market place. • It promotes business innovation, improved operational efficiency, and build strategic information resources for a firm.

45. Business information systems • Is a computer based information system within a business org that support one of the traditional functions of business such as marketing, finance or production. • This can be either operations or MIS.

46. Integrated information systems • Is integrated combinations of several types of information systems mentioned above. • Conceptual classifications of ISs are designed to emphasize the many different roles of information systems. • These roles are integrated into composite of cross functional information systems that provide a variety of functions.