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Module I
12 hours Information systems - functions of management - levels of management - framework for information systems - systems approach - systems concepts systems and their environment - effects of system approach in information systems design - using systems approach in problem solving - strategic uses of information technology
Management
The process of directing tasks and organising resources to achieve oraganisational goals
Management
Planning
Planning is deciding what to do Evaluate organisations s resources & environment Establish a set of organisational goals
Organising
Organising is the art of deciding how to achieve goals Developing the best organisational structure Acquiring and training personnel Establishing communication network
Leading
Directing and motivating employees to achieve the organisations goal Develop incentive programme to motivate employees Organise team building efforts to maintain good morale
Controlling
Enables the manager to determine if the organisations performance is on target Develop and use performance standards to assess employee performance Use information systems to provide feedback on how effectively financial and physical resources are being used to achieve business goals
Levels of management
Levels of management
Top managers Responsible for the performance of all departments and have crossdepartmental responsibility. Establish organizational goals and monitor middle managers. Decide how different departments should interact. Ultimately responsible for the success or failure of an organization Middle managers Supervise first-line managers. Responsible for finding the best way to organize human and other resources to achieve organizational goals First line managers Responsible for daily supervision of the non-managerial employees who perform many of the specific activities necessary to produce goods
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Relative Amount of Time That Managers Spend on the Four Managerial Functions
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Strategic planning
Special requests
Tactical
Info needs
Demand reports
Operational Transactions
Payroll Billing AR Scheduling SO entry AP Engg
Scheduled reports
Inventory
Operational Systems
At the operational system level, the primary concern is to collect, validate and record transactional data describing the acquisition or disbursement of corporate resources
Financial data:
Accounts Receivable, Accounts Payable, Payroll, Cash receipts
Sales data
Items ordered, inventory level adjustment, packing list, invoices
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Tactical systems
Provide managers with the information they need to monitor and control operations and to allocate their resources effectively Transactions data are summarised, aggregated and analysed Generates variety of reports Summary reports Exception reports Ad hoc reports
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Designed to provide top managers with information that assists them in making longrange planning decisions for the organisation. The distinction between tactical and strategic information systems is not always clear as both use some of the same data.
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Systems
A system 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 to outputs and system interfaces. Systems are composed of interrelated and interdependent subsystems.
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System boundaries
Every system has a boundary that defines its scope of activities. The boundary delineates an area of responsibility. When defining a system, the boundary must be established
Examples: A teacher is responsible for the activities of the class - lectures, discussion, testing, grading, preparation of assigned course work etc A sales manager is responsible for managing, motivating and evaluating the performance of a sales organisation
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Interface
An interface is a connection at system or subsystem boundaries. An interface serves as a medium to convey the output from one system to the input of another system Examples: Inventory control and purchasing interface each other
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A companys subsystems
Market Research Subsystem
Input
Manufacturing Subsystem
Process
Output
Customer needs
Input
Marketing Subsystem
Process
Output
Finished goods
Input
Service Subsystem
Process
Output
Product in use
Input
Process
Output
The interaction among various functional subsystems is shown in the above figure
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Hardware
Software
Data
Information
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Subsystems
XYZ Co 1.0
Purchasing 1.3
Billing 1.1.3
Operational systems which are designed to provide information about day-to-day activities, are composed of subsystems that accomplish specialised tasks. If one of these subsystems breaks down, the overall business will feel the effect.
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An information system, like any other system, receives inputs of data and instructions, process the data according to these instructions and produces output
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Hierarchy of subsystems
The subsystems within an information system can be organised into a hierarchy to represent their functions within the overall system. Each subsystem performs a specialised function
System feedback
An information system provides system feedback to a manager about dayto-day activities and deviations from planned activity. The manager can use this information to supervise daily operations
Subsystem interfaces
As with other systems, interfaces exists between the subsystems of an information system. Again the output of one system becomes input into the next.
Internal controls
Good information systems also have internal standards to make sure that data are processed accurately. Data validation before processing, password security procedure to protect against unauthorised access are some of the internal controls
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Marketing
Service
Admin
Supplies
Parts management
Purchasing
Accounting
The entire enterprise has been organised into subsystems. A manager uses informal feedback, computer generated reports ,or both to organise people, procedure and activities to accomplish objectives.
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1. Define the problem 2. Gather data describing the problem 3. Identify alternate solutions 4. Evaluate these alternatives 5. Select and implement the best alternative 6. Follow up to determine whether the solution is working
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Primary activities
Primary activities 36
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Value activity Inbound logistics Operations Outbound logistics Marketing and sales After-sales service
Use of information technology Just-in-time inventory Process control systems On-line link to the order-entry systems of suppliers Laptops for direct sales Electronic dispatch of technical support
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Support activities
Organisation - Office automation Human resources Personnel database Technology Computer aided design and manufacturing Purchasing On-line link to suppliers Inbound logistics Automated warehousing system Operations Outbound logistics Online order entry system Marketing and sales Market analysis Product profitability
Primary activities 41