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What is Information?
Data that is accurate and timely, specific and organized for a purpose, presented within a context that gives it meaning and relevance, and can lead to an increase in understanding and decrease in uncertainty.
What is Technology?
The word technology refers to the making, modification, usage, and knowledge of tools, machines, techniques, crafts, systems, and methods of organization, in order to solve a problem, improve a preexisting solution to a problem or achieve a goal.
What is Information Technology?
Information Technology (IT) is a business sector that deals with computing, including hardware, software, telecommunications and generally anything involved in the transmittal of information or the systems that faciliate communication.
Hardware can be defined as IT-related machinery and equipment.
Software can be defined as the set of instructions for the computer
This technology was paid more attention since the 1980s and its first organizational functions were in the automating official and productive jobs and performing routine tasks.
Case study 1
Tracking trucks and trailers on the road and in the distribution centers.
In the past, this baking company had no way to track the numerous trucks and trailers in their inventory other than perform a “hard” count in the yard. With so much activity taking place, it was next to impossible to account for all of the assets.
Management also wanted to provide the ability to determine if the deliveries are being made on time. Lost or late deliveries were a major problem which led to customer dissatisfaction.
Compass Systems Incorporated designed a fully automated system to track these assets using GPS technology and customized software to enable management to track all equipment.
-able to install these devices onto both the tractor and trailer.
-able to go to any computer and utilize Google Earth to locate the trailers and tractors and any given moment.
-ability to determine if the deliveries were going to be made on time.
-improved customer relations.
The Information Technology Sector is central to the nation's security, economy, and public health and safety. Businesses, governments, academia, and private citizens are increasingly dependent upon Information Technology Sector functions.
By the appropriate use of information technology, organizations can achieve sustainable competitive advantages. This technology because of including some characteristics such as being up-to-date, fast and precise and having different geographic localities all the time, has improved organizational efficiency, effectiveness and performance
-Reduces the costs and makes it possible to determine the price at the lowest level possible
-Reduces the need for physical and official places and makes it possible to carry out organizational activities remotely.
-Reduces the supply cost.
-Companies have a wider choice of suppliers and there is more competitive pricing.
-Increases the organization's flexibility in response to the market's new demands and conditions. This technology makes it possible to;
-Offer the organization's product or service as soon as possible
-Design products and services more precisely and appropriately.
IT makes it possible for an organization to have a close relationships with customers inside and outside of organization.
More customer loyalty and possibility for repeated purchasing and also increasing customer’s tendency to pay more money for the products.
Case study 2
In early 1999, Ford Motor Company (Ford), the leading automobile manufacturer in the world, announced its e-business strategy. Almost 90 years after, the company was all set to revolutionalize the auto industry, by using the Internet. Ford believed that using the Internet improved the efficiency of its supply chain.
In mid 1999, the company created AutoXchange, a joint venture with Oracle that allowed online business-to-business (B2B) transactions with its suppliers.
AutoXchange helped Ford and its suppliers swap information and bids on an estimated $300 billion worth of goods and services. Ford was able to reduce suppliers' inventories and eliminate billions of dollars in excess stock.
INFORMATION TECHNOLOGY MANAGER
1. Manage information technology and computer systems
2. Ensure technology is accessible and equipped with current hardware and software
3. Monitor and maintain technology to ensure maximum access
4. Perform other related duties as required during working hours
*management and supervisory skills
*ability to install and administer computer hardware, software and networks
*effective verbal, presentation and listening communications skills
*team building skills
*analytical and problem solving skills
*time management skills
*decision making skills
*effective written communications skills
*computer skills including the ability to operate computerized accounting, spreadsheet, word-processing, graphics and website development programs at a highly proficient level
*stress management skills
*be honest and trustworthy
*possess cultural awareness and sensitivity
Impacts of IT on Business
Information technology is a wide field, and has enabled organizations across the world to work in an efficient manner.
The use of IT in organizations is inevitable, be it any type of company like manufacturing or medicinal sector.
Small scale businesses need to buy software packages that would cater to their specific management, operational, and functional needs.
For this purpose, they need to approach firms and IT manufacturers who deal in such software applications.
Other IT services include Internet marketing and email marketing, web hosting and promotions, and maintaining client networks.
The information technology role in business sector certainly is of a great importance, which enables businesses to effectively and successfully plan, manage, execute strategies which lead to profit.
Moreover, the impact of information technology on business is on the rise, as several advancements are focused on to be implemented in various business processes.
What is the Decision Support System?
Decision Support System
A Decision Support System (DSS) is a computer-based information system that supports business or organizational decision-making activities.
History of the DSS
In 1950-1960, the theoretical organizational decision-making activities at the Carnegie Institute of Technology,
In the 1960s, the interactive studies of technical and business computer systems at the Massachusetts Institute of Technology.
In its simplest sense, decision making is the act of choosing between two or more courses of action.
Problem identified and defined at this stage.
This stage contains to found, to develop and to analyse possible options.
To select the most suitable solution of the model.
Phase of the implementation of the decision
Types of the DSS
Data Driven DSS
Model Driven DSS
Knowledge Driven DSS
Document Driven DSS
Benefits of the DSS
-Better understanding of business,
-To respond quickly to unexpected situations,
-More effective team work,
-To reduce cost,
-To better use of data sources.
DSS Characteristics and Capabilities
-Solve semi-structured & Unstructured problems
-Support To Managers At All Levels
-Support Individual and groups
-Inter dependence and Sequence Decision.
-Support Intelligence, Designee,Choice.
-Adaptable & Flexible
-Interactive and ease of use
-Interactive and efficiency
-Human control the process
-Ease of development by end user
-Modeling and Analysis
-Stand alone Integration & Web Based
-Support Varieties Of Decision Process
The most important impact of Information Technology on business lies on how it has changed the marketplace from geographically-based to global. I.T. permits businesses to take their operations into a worldwide scale thanks to applications that allows them to set up a store online.
TRANSACTION PROCESSING SYSTEM (TPS)
When you purchase a book from an online bookstore, you exchange money (in the form of credit) for a book. If your credit is good, a series of related operations ensures that you get the book and the bookstore gets your money. However, if a single operation in the series fails during the exchange, the entire exchange fails. You do not get the book and the bookstore does not get your money.
The technology responsible for making the exchange balanced and predictable is called transaction processing. Transactions ensure that data-oriented resources are not permanently updated unless all operations within the transactional unit complete successfully. By combining a set of related operations into a unit that either completely succeeds or completely fails, you can simplify error recovery and make your application more reliable.
Batch Transaction Processing
Real Time Transaction Processing
There are two types of transaction processing
This is information that is gathered and stored but not processed immediately i.e. the processing of an invoice or cheques in a banking system.
This is a transaction which is processed immediately and the operator has access to on-line database i.e. withdrawal from a bank account, Library loans.
Characteristics of a TPS include performance, reliability and consistency.
To achieve performance, reliability and consistency,
-data must be readily accessible in a data warehouse,
-backup procedures must be in place
-the recovery process must be in place to deal with system failure, human failure, computer viruses, software applications or natural disasters.
Components of a transaction system
*The user of the information system is the person belonging to the organisation that owns the transaction system.
*Participants are the people who conduct the information processing.
*People from the environment become participants of the system as they directly enter transactions and perform validation.
Management Information System
Management Information System (MIS) provides information that organizations need to manage themselves efficiently and effectively.
In a management information system, modern, computerized systems continuously gather relevant data, both from inside and outside an organization.
This data is then processed, integrated, and stored in a centralized database (or data warehouse) where it is constantly updated and made available to all who have the authority to access it, in a form that suits their purpose.
Management information systems are typically computer systems used for managing five primary components:
*data (information for decision making),
*procedures (design, development and documentation),
*people (individuals, groups, or organizations)
Management information systems are distinct from other information systems, in that they are used to analyze and facilitate strategic and operational activities.
Its objective is to design and implement procedures, processes, and routines that provide suitably detailed reports in an accurate, consistent, and timely manner.
What is ‘Redesigning’?
Redesigning is the basic rethinking and radical redesign of business processes to achieve remarkable improvements in critical modern measures of performance, such as cost, quality, service, and speed.
What is Process Re-engineering?
Process re-engineering is redesigning or reinventing how we perform our daily work, and it is a concept that is applicable to all industries regardless of size, type, and location.
Business process re-engineering (BPR) began as a private sector technique to help organizations fundamentally rethink how they do their work in order to
-dramatically improve customer services,
-cut operational costs and
-become world class competitors.
Bussiness Process Re-engineering
REASONS FOR PROCESS REENGINEERING?
*Speed up the process
*Reduce needed resources
*Cure systemic process and behavioral problems
*Improve productivity and efficiency
*Invent the "rules of the game."
The Role of Information Technology
*Shared databases, making information available at many places
*Expert systems, allowing generalists to perform specialist tasks
*Telecommunication networks, allowing organizations to be centralized and decentralized at the same time
*Decision-support tools, allowing decision-making to be a part of everybody's job
*Wireless data communication and portable computers, allowing field personnel to work office independent
*Interactive videodisk, to get in immediate contact with potential buyers
*Automatic identification and tracking, allowing things to tell where they are, instead of requiring to be found
*High performance computing, allowing on-the-fly planning and revisioning
the need to start the process of performance improvement with a "clean slate," i.e. totally disregard the status quo.
-Reengineering assumes that
the factor that limits an organization's performance is the ineffectiveness of its processes (which may or may not be true) and offers no means of validating that assumption.
Information Systems (IS) refers to the interaction between people, processes, and technology. This interaction can occur within or across organizational boundaries.
The Information System consists of five parts which include: people, procedures, software, hardware, and data.
CREATION of NEW JOBS
Hardware and Software developers
DISADVANTAGES OF INFORMATION SYSTEMS
Because of streamlining the business process, it has also crated job redundancies, downsizing and outsourcing.
People’s once private information becomes public knowledge.
DISTRUBUTION of INFO
Allowing the world's economy to become a single interdependent system.
Bringing down barriers of linguistic and geographic boundaries.
cheaper, quicker, and more efficient communication
providing face to face direct communication from different parts of the world
BRIDGING THE CULTURAL GAP
allowing for the exchange of views and ideas.
increasing awareness and reducing prejudice.
making purchases from different countries easier and more convenient.
LACK OF JOB SECURITY
Becoming overshadowed of languages
**e-Business may be defined as the conduct of industry,trade,and commerce using the computer networks.
**In 1996, The term "e-business" was coined by IBM's marketing and Internet teams.
-"Are you willing to open the boundaries of your enterprise and bring in your extended team in a truly collaborative way?" (John Foley, former CEO of IBM)
**Electronic business, or e-business, also may be defined as the application of information and communication technologies (ICT) in support of all the activities of business. Commerce constitutes the exchange of products and services between businesses, groups and individuals and can be seen as one of the essential activities of any business. Electronic commerce focuses on the use of ICT to enable the external activities and relationships of the business with individuals, groups and other businesses.
In practice, e-business is more than just e-commerce. While e-business refers to more strategic focus with an emphasis on the functions that occur using electronic capabilities, e-commerce is a subset of an overall e-business strategy.
E-commerce seeks to add revenue streams using the World Wide Web or the Internet to build and enhance relationships with clients and partners and to improve efficiency using the Empty Vessel strategy. Often, e-commerce involves the application of knowledge management systems.
e-Business ≠ e-Commerce
Basically, electronic commerce (EC) is the process of buying, transferring, or exchanging products, services, and/or information via computer networks, including the internet.
EC can also be beneficial from many perspectives including business process, service, learning, collaborative, community. EC is often confused with e-business.
How Does e-Business Work?
**E-Business refers to the employment of information and communication technologies in business processes and is more than just the employment of computers in business processes.
business include fax
PDAs (personal digital assistants)
**A business model describes the rationale of how an organization creates, delivers, and captures value (economic, social, cultural, or other forms of value).
**Business models are used to describe and classify businesses (especially in an entrepreneurial setting), but they are also used by managers inside companies to explore possibilities for future development. Also, well known business models operate as recipes for creative managers. Business models are also referred to in some instances within the context of accounting for purposes of public reporting.
**Over the years, business models have become much more sophisticated. The bait and hook business model (also referred to as the "razor and blades business model" or the "tied products business model") was introduced in the early 20th century. This involves offering a basic product at a very low cost, often at a loss (the "bait"), then charging compensatory recurring amounts for refills or associated products or services (the "hook").
-razor (bait) and blades (hook)
-cell phones (bait) and air time (hook)
-computer printers (bait) and ink cartridge refills (hook)
-cameras (bait) and prints (hook).
ADVANTAGES OF INFORMATION SYSTEMS
ENTERPRİSE RESOURCE PLANNING
Enterprise resource planning (ERP) is a software system implemented in an organization, to increase productivity and enable efficient utilization of resources.
It is a bunch of various types of softwares that are connected to the different types of departments in the large companies.
Enhanced Technology 91%
User friendly %55
Access to Data 50%
BENEFITS OF ERP
Integrated Information 66%
Customer Service 50%
What applications does ERP typically include?
supply chain management
Customer Relationship Management (CRM)
Data Warehouse, Reporting,Data Mining
FEATURE AND COMPLEXITY
SCALABILITY AND GLOBAL
DISADVANTAGES OF ERP
CUSTOMER RELATIONSHIP MANAGEMENT
CRM is a business and marketing strategy that integrates technology, process and all business activities around the customer.
Essentially CRM works by collecting leads or consumer information. Analyzing the collected information to understand customer or market requirements. Adjusting marketing campaigns accordingly to increase sales.
CRM also serves for customer service and support--making businesses efficient and improve customer satisfaction.
EXAMPLE OF CRM
ADVANTAGES OF CRM
Organizational-level data sharing
Improved customer support
Increase revenue at low cost
Increase customer satisfaction
DISADVANTAGES OF CRM
Other People Are Reading
*Identifies problems or opportunities.
*Makes decision on what to do about them.
*Prepares long term plans respecting to unexpected situations.
While making decision, an executive:
-A computer-based information system that assists senior executives in decision making process.
-Can be considered as a specialized form of DSS.
-Provides easy access to internal and external information relevant to organizational goals.
-Uses graphical displays, like scorecards and dashboards.
Executive Information System (EIS)
Scorecards can be used to keep track of the execution activities by the staff within their control and to monitor the consequences arising from these actions.
Dashboards give executives a visual summary of business data. They show whether something is wrong or right.
-EIS was developed as a mainframe computer-based system. It was only supporting executive-level decisions, not all company data.
-Today, the application of EIS is also used at personal computers on a local area network. It integrates information stored on mainframes, personal computer systems and minicomputers.
Development of EIS
-This arrangement lets all users to access company data to help decision-making in their individual workplaces, and provides relevant information to upper and lower corporate levels.
-In this way, enterprise information systems have appeared.
- Enterprise information systems provide a technology platform that enables organizations to integrate and coordinate their business processes.
- Input data-entry devices
- The central processing unit
- Data storage files
- Output devices
- Text handling software
- Graphic base
- Model base
Components of EIS
Transmitting data from one place to another is crucial for establishing a reliable network.
Scheduled reports, questions/answers, menu driven, command language, natural language, input/output etc.
Common Features of EIS
An interactive software-based system made to help decision makers compile useful information from a combination of raw data to identify and solve problems and make decisions.
Executive Support System (ESS)
-Improves personal efficiency.
-Speed up the progress of problem solving in an organization.
-Facilitates interpersonal communication.
-Promotes learning or training.
-Increases organizational control.
-Generates new evidence in support of a decision.
Benefits of Executive Support System
*EIS is applied in many areas, but most commonly used in manufacturing, marketing, and financial areas.
-Creates a competitive advantage over competition.
-Encourages exploration and discovery on the part of the decision maker.
-Reveals new approaches to thinking about the problem space.
-Helps automate the managerial processes.
IT Managers now have many responsibilities and work with all the departments with in a company or organization.
What Does an IT Manager Do?
Different parts of the organization will have different expectations of this position, and you’ll have to address them all.
Communication Driven DSS
Larger businesses on the other hand have their own operational and functional employees who develop software applications and work on several IT needs of the businesses.
They usually purchase ERP software to coordinate different processes and functions into a single application, which is actually more convenient.
Types of Information Systems
Transaction Processing System
Management Information System
Decision Dupport Dystem
Enterprise Resource Planning -Customer Relationship Management
Executive Information System
THANKS FOR YOUR LISTENING!
Merve Gül Topçuoğlu
*Its success depends on the support and timely accurate data it gets to be able to provide something meaningful.
*It can provide the information executives need to make decisions quickly and effectively.
*An EIS can provide a competitive edge to business strategy that can pay for itself in a very short space of time.
-In 1990, Michael Hammer published an article in the Harvard Business Review.
Hammer's claim was simple: “Most of the work being done does not add any value for customers, and this work should be removed, not accelerated through automation. Instead, companies should reconsider their processes in order to maximize customer value, while minimizing the consumption of resources required for delivering their product or service.”