The Basic Concepts

About usFederation of Chamber of Commerce is a Non-Profit-Non-Governmental organization (NGO), Registered with Department of Charity Commissioner. Our mission is to promote commercial interests and promote the development of trade, commerce and industry. Federation is a not for profit bilateral business Chamber which fosters and promotes mutually beneficial relations between various states and overseas through channels of trade and industry. The Federation constantly strives to identify new areas of mutual co-operation and ensure the smooth flow of trade, investment joint ventures and technology. We endeavor to provide a platform for facilitating business and networking opportunities between companies, to promote our members’ interests to key decision makers and to help develop economic and commercial relations between themselves. It provides a dynamic institutional link for the promotion of commercial and economic relations.

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Information Technology

A science that has evolved over a period of time to assist businesses in doing better business!!

Why IT?

• Management & Control• Stiff competition in world markets• Global Work Groups• Global delivery systems

IT as a Sales Tool

IT as a Sales Tool

• Email• Websites• Short Messages• Audio-Visual Presentations (ex-Pharma,

etc.)• Flash Presentations (ex-Pharma,

Manufacturing, Construction, etc)• CD’s,DVD’s• E-Learning sites

IT as a Management Tool

• Specifically tailored IT applications to suit various businesses (ex-Insurance, Banking, etc)

• Enterprise wide applications enable transparency across the organization

• Streamline processes thus reducing costs and increasing productivity

• Effective reporting systems facilitated by IT applications (ex-MIS,DSS,EIS,etc.)

• IT applications specifically designed to retain precious tacit knowledge of the organization

• Specific CRM tools developed to retain customer data(choices,preferences,habits,etc)

• Tools to handle the supply chain (SCM)

IT as a Management Tool-A brief overview

• MIS (management Information System)

• ERP(Enterprisewide Resource Planning)

• CRM (Customer Relationship Management)

• SCM (Supply Chain Management)

• KM (Knowledge Management)

CRM

• A tool specifically developed to record and retain customer interactions, habits, preferences, likes/dislikes, etc.

• Empowers the management with critical customer data.

Computer Components

CPU

Secondary Storage

Input Devices

Output Devices

CommunicationsDevices

PrimaryStorage

Buses

CPU & Primary Storage

InputDevices

OutputDevices

SecondaryStorage

CPU PrimaryStorage

Data Bus

Address Bus

Control Bus

CENTRAL PROCESSING UNIT (CPU)

RAMRAM

PRIMARY (MAIN) MEMORYPRIMARY (MAIN) MEMORY

CONTROL UNITCONTROL UNITARITHMETIC/LOGICARITHMETIC/LOGIC

UNITUNIT

ROMROMCLOCKCLOCK

TYPES OF MEMORY

• RAM: Random Access Memory– Dynamic: Changes thru processing– Static: Remains constant (power on)

• ROM: Read Only Memory (preprogrammed)– PROM: Program can be changed once– EPROM: Erasable thru ultraviolet light– EEPROM: Electrically erasable

*

• CD-ROM: 500-660 MEGABYTES–LAND: Flat parts of disk surface reflects

light

–PITS: small scratch on surface scatters light

• WRITE ONCE / READ MANY (WORM):–CD-R: Compact Disk - Recordable–CD-RW: CD - Rewritable

• DIGITAL VIDEO DISK (DVD): CD size, up to 10 gigabytes of data

*

OPTICAL STORAGEOPTICAL STORAGE

DATA & INFORMATION

• DATA: STREAMS OF RAW FACTS REPRESENTING EVENTS SUCH AS BUSINESS TRANSACTIONS

• INFORMATION: CLUSTERS OF FACTS MEANINGFUL & USEFUL TO HUMAN BEINGS IN PROCESSES SUCH AS MAKING DECISIONS

DATABASE MANAGEMENT SYSTEM (DBMS)

SOFTWARE TO CREATE & MAINTAIN DATA

ENABLES BUSINESS APPLICATIONS TO EXTRACT DATA

INDEPENDENT OF SPECIFIC COMPUTER PROGRAMS

SYSTEMSYSTEM

INPUT OUTPUTPROCESS

FEEDBACK

FUNCTIONS OF AN INFORMATION FUNCTIONS OF AN INFORMATION SYSTEMSYSTEM

INPUT OUTPUTPROCESS

FEEDBACK

INFORMATIONINFORMATION SYSTEMSYSTEM

ENVIRONMENTENVIRONMENT

Customers Suppliers Customers Suppliers

Regulatory Stockholders CompetitorsRegulatory Stockholders CompetitorsAgenciesAgencies

ORGANIZATIONORGANIZATION

COMPUTER-BASED INFORMATION SYSTEMS (CBIS)

• FORMAL SYSTEMS

• FIXED DEFINITIONS OF DATA, PROCEDURES

• COLLECTING, STORING, PROCESSING, DISSEMINATING, USING DATA

ORGANIZATIONS

• PEOPLE: Managers, knowledge workers, data workers, production or service workers

• STRUCTURE: Organization chart, groups of specialists, products, geography

ORGANIZATIONS

• OPERATING PROCEDURES: Standard Operating Procedures (SOP), rules for action

• POLITICS: Power to persuade,get things done

• CULTURE: Customs ofbehavior

MAJOR BUSINESS FUNCTIONS

• SALES & MARKETING

• MANUFACTURING

• FINANCE

• ACCOUNTING

• HUMAN RESOURCES

TRANSFORMATION OF ENTERPRISE

• FLATTENING• DECENTRALIZATION• FLEXIBILITY• LOCATION INDEPENDENCE• LOW TRANSACTION COSTS• EMPOWERMENT• COLLABORATIVE WORK

INFORMATION SYSTEMSINFORMATION SYSTEMS

ORGANIZATIONSORGANIZATIONS TECHNOLOGYTECHNOLOGY

MANAGEMENTMANAGEMENT

INFORMATIOINFORMATIONN

SYSTEMSSYSTEMS

SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

APPROACHES TO INFO SYSTEMS

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

Major Types of Systems

• Executive Support Systems (ESS)

• Decision Support Systems (DSS)

• Management Information Systems (MIS)

• Knowledge Work Systems (KWS)

• Office Automation Systems (OAS)

• Transaction Processing Systems (TPS)

Management Information System

• Management Level-– Inputs-High volume data– Processing-Simple models– Outputs-Summary reports– Users-Middle Managers

• Example-Annual Budgeting

Typical TPS ApplicationsSales & Marketing Systems

• Major Functions-– Sales Management, Market Research,

Promotion, Pricing, New Products

• Major Applications-– Sales Order info systems, Market research

system, pricing system

Typical TPS ApplicationsManufacturing & Production

Systems• Major Functions-

– Scheduling, purchasing, shipping, receiving, engineering, operations

• Major Applications-– Material resource planning systems,

Purchase order control systems, engineering systems, quality control systems

Typical TPS ApplicationsFinance & Accounting Systems

• Major Functions-– Budgeting, general ledger, billing, cost

accounting

• Major Applications-– General ledger, Accounts receivable,

accounts payable, budgeting, funds management systems

Typical TPS ApplicationsHuman Resources Systems

• Major Functions-– Personnel records, benefits, compensation,

labor relations, training.

• Major Applications-– Payroll, employee records, benefit systems,

career path systems, personnel training systems

Typical TPS ApplicationsOther Types (ex-University, etc)

• Major Functions-– Admissions,Grade records, Course records,

Alumni

• Major Applications-– Registration system, student transcript

system, curriculum class control system, alumni benefactor system.

Knowledge Work Systems

• Knowledge Level– Inputs-Design specs– Processing-Modeling– Outputs-Design, Graphics– Users-Technical staff

• Example-Engineering work station

Office Automation System

• Towards a “Paperless” office

• Redesign a workflow

• Integrated Software

• Bright, Cheerful workplace

Management Information System

• Structured & semi-structured decisions

• Report control oriented

• Past & present data

• Internal orientation

• Lengthy design process

TPS Data for MIS Applications

TPS

Order File

Production Master File

Accounting File

Order ProcessingSystem

MRP System

General LedgerSystem

SalesData

UnitProductCost

ProductChange Data

Expense Data

MIS Reports

Managers

MIS

Decision Support Systems

• Management Level– Inputs-Low volume data– Processing-Interactive– Output-Decision Analysis– Users-Professionals, Staff

• Example-Contract Cost Analysis

Decision Support Systems

• Flexible, Adaptable, Quick

• User controls Inputs/Outputs

• No professional programming

• Supports decision process

• Sophisticated Modelling tools

Executive Support Systems

• Strategic Level– Inputs-Aggregate data– Processing-Interactive– Outputs-Projections– Users-Senior Managers

• Example-5 Yrs operating plan

Executive Support Systems

• Top level Management

• Designated to Individual

• Ties CEO to all levels

• Very expensive to keep up

• Extensive support staff

Interrelationship among systems

ESS

MIS DSS

KWS

OASTPS

Systems from a Functional Perspective

• Sales & Marketing Systems

• Manufacturing & Production Systems

• Finance & Accounting Systems

• Human Resource Systems

Sales & Marketing Information Systems

System Description Organizational Level

Order Processing Enter, Process, Track orders

Operational

Market Analysis Identify customers & Markets

Knowledge

Pricing Analysis Determine Prices Management

Sales Trends Prepare 5-Year Forecasts

Strategic

Manufacturing Information Systems

System Description Organizational Level

Machine Control Controls action of equipment

Operational

Computer Aided Design Design new products Knowledge

Production Planning Decide number, Schedule of products

Management

Facilities Location Decide where to locate facilities

Strategic

Finance & Accounting information System

System Description Organization Level

Accounts receivable Track money owed to firm

Operational

Portfolio Analysis Design firms investment Knowledge

Budgeting Prepare short-term budgets

Management

Profit Planning Plan long-term profits Strategic

Human Resources Information System

System Description Organizational Level

Training & Development Track training, skills, appraisals

Operational

Career Pathing Design employee career paths

Knowledge

Compensation Analysis Monitor wages, Salaries, Benefits

Management

Human Resources Planning

Plan long-term manpower needs

Strategic

SYSTEM INTERDEPENDENCE

BUSINESSBUSINESS

StrategyStrategy

RulesRules

ProceduresProcedures

ORGANIZATION ORGANIZATION INFORMATION SYSTEMINFORMATION SYSTEM

HARDWAREHARDWARE

SOFTWARESOFTWARE DATABASEDATABASE

TELE-TELE-COMMUNICATIONSCOMMUNICATIONS

INTERDEPENDENCEINTERDEPENDENCE

Examples of Business Processes

• Manufacturing & Production– Assembling product, checking quality,

producing bills of materials

• Sales & Marketing– Identifying customers, creating customer

awareness, selling

Examples of Business Processes

• Finance & Accounting– Paying creditors, creating financial

statements, managing cash accounts

• Human Resources– Hiring employees, evaluating performance,

employee benefit plans, etc.