INTRODUCTION TO IT AS A MANAGEMENT TOOL

COURSE STRUCTURE

20 sessions (each of 1 and half hours) 3 quizzes of 10 marks each Project :20 marks End Term Exam: 50 marks

LEARNING OBJECTIVES

Why organizations should invest in IT based solution

Should organizations invest in networking and processing capacity ahead of applications needs, or be driven by the current business;

What are the major changes that needs to be addressed in terms of organization and management;

The different level of activities being performed by various level of managers and their information solutions needs.

The latest trends in Information Technology.

WHY ORGANIZATION SHOULD INVEST IN IT BASED SOLUTION?

Because the business is changing; competition is changing; and technology is changing.

Because of emergence of Globalisation, Liberalisation and Privatisation

Business Process Outsourcing Knowledge Process Outsourcing Digital Economy & Knowledge Economy Organization Level Transformation

WHY ORGANIZATION SHOULD INVEST IN IT BASED SOLUTION?

Information technology can help all kinds of businesses improve the efficiency and effectiveness of their business processes, managerial decision making, and workgroup collaboration, thus strengthening their competitive positions in a rapidly changing marketplace.

Internet-based systems have become a necessary ingredient for business success in today’s dynamic global environment.

Information technologies are playing an expanding role in business.

DIGITAL ECONOMY

Digital Economy is defined as economy based on Information Technologies including computers, internet, intranets, and extranets.

Allows management of Digitally-enabled relationships with Customers, Suppliers and Employees.

WHAT IS INFORMATION TECHNOLOGY

Collection ofComputer hardwareSoftwareDatabasesNetworkingand Telecommunication devices

To manage business processes more effectively and efficiently.

DATA, INFORMATION AND KNOWLEDGE

Data is a collection of raw facts. Information is collection of data arranged in a

meaningful manner that helps in decision making.

Knowledge is the experience and expertise gathered by an individual to interpret information.

USES OF INFORMATION

Identification Collection Controlling Measuring Decision making

INFORMATION SYSTEM

System A group of entities that work together to perform a predefined goal.

Information SystemA set of procedures that collect, process, store and disseminate information to

support decision making.

FEATURES OF INFORMATION SYSTEM

Intrinsic Accurate Meet the objectives of the system

Accessibility Should be accessible Users should be authenticated

Contextual Representation

Interoperable Ease of usage

Economical Flexible and Adaptable

ORGANIZATIONAL STRUCTURE

Organizations are structured in a many ways, which is dependant on their objectives and culture.

The structure of an organization will determine the manner in which it operates and it’s performance.

Structure allows the responsibilities for different functions and processes to be clearly allocated to different departments and employees.

Organizational structures are created in such a way that it aims at maximizing the efficiency and success of the Organization.

Common organization structures that exist are: Hierarchical, Flat and Matrix.

FUNCTIONS OF A MANAGER

Planning Setting goals and objectives Determining how to achieve them

Organizing Division, coordination and control of tasks and

flow of information Directing

Influencing staff through motivation, communication, group dynamics, leadership and discipline.

Controlling Evaluating the firms performance against its

objectives

DECISIONS AT DIFFERENT MANAGERIAL LEVELS

Decisional Roles

StrategicManagement(Top Level)

TacticalManagement(Middle Level)

OperationalManagement(Lower Level)

Decision Characteristics

Unstructured

Semi-structured

Structured

ORGANIZATIONAL FUNCTIONS

Factors of Production Accounting and Finance Human Resource Sales and Marketing Administration R&D

TYPES OF IS

Transaction Processing System Office Automation System Management Information System Decision Support System Expert System

TRANSACTION PROCESSING SYSTEMS

It collects, stores, processes and retrieves transaction data in an organization.Types of processing Batch Processing Real Time Processing

FEATURES OF TPS

Serves mostly at the operational level Performs daily transactions Tasks are predefined Major producers of information Feeder of information to other systems

APPLICATIONS OF TPS

Manufacturing and Production System Accounting and Finance System Human Resource System Sales and Marketing

MANAGEMENT INFORMATION SYSTEM

Supports the information needs of the middle level or tactical level managers.

Gets the information from TPSExamples: Sales report, inventory system etc

FEATURES OF MIS

Provide reports to managers on organization performance

Serves at the control level Address structured questions Relies on existing data

DECISION SUPPORT SYSTEM

Designed for top/strategic level managers for taking decisions

Features For semi and unstructured decision making Modeling and knowledge based Known for effectiveness but not efficiency

EXAMPLES OF DSS

For fraud detection Analysis of customer profiles by banks Used for scheduling, forecasting etc

THANK YOU