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Role of Information Systems in Business Today: Globalization Challenges and Opportunities

1. An information system is a combination of hardware, software, infrastructure and trained personnel organized to facilitate planning, control, coordination, and decision making in an organization. 2. A management information system (MIS) serves as the backbone of an organization's operations by providing relevant information to support decision making, coordination among departments, identifying problems, and comparing business performance over time. 3. Key challenges for information systems include ensuring large investments provide meaningful returns, using technology to strategically redesign business processes and structures, developing global systems to support international operations, adapting aging infrastructures to innovation, and addressing ethics and security concerns with increased data collection and use.

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Santosh Razz
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0% found this document useful (0 votes)
536 views14 pages

Role of Information Systems in Business Today: Globalization Challenges and Opportunities

1. An information system is a combination of hardware, software, infrastructure and trained personnel organized to facilitate planning, control, coordination, and decision making in an organization. 2. A management information system (MIS) serves as the backbone of an organization's operations by providing relevant information to support decision making, coordination among departments, identifying problems, and comparing business performance over time. 3. Key challenges for information systems include ensuring large investments provide meaningful returns, using technology to strategically redesign business processes and structures, developing global systems to support international operations, adapting aging infrastructures to innovation, and addressing ethics and security concerns with increased data collection and use.

Uploaded by

Santosh Razz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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MIS automation (software and

hardware) or otherwise Globalization challenges


Definition of Information system
supporting and improving the and opportunities
“An information system is quality and efficiency of
software that helps you organize business operations and  
and analyze data. This makes it The Challenge of
Role of Information systems in Information Systems:
possible to answer questions and
solve problems relevant to the business today
Although information technology
mission of an organization “
Information system is very is advancing at a blinding pace,
essential for running and managing there is nothing easy or
“ Information Systems is an mechanical about building and
a business today. Information
academic study of systems with a using information systems.
technology is helpful in managing
specific reference to information There are five major challenges
important production data and based
and the complementary networks of confronting managers:
on the data it helps the production, 1. The information systems
hardware and software that people management, and owners of the investment challenge:
and organizations use to collect, company to better run It is obvious that one of the
filter, process, create and also their business and earn maximum greatest challenges facing
distribute data. “ profits. managers today is ensuring that
their companies do indeed
Helps in Decision making: obtain meaningful returns on
“ Information system is - Management Information System the money they spend on
combination of hardware, (MIS) plays a significant Role in information systems. It’s one
software, infrastructure and Decision making Process of any thing to use information
trained personnel organized to Organization. Because in Any technology to design, produce,
organization decision is made on the deliver, and maintain new
facilitate planning, control, products. It’s another thing to
basis of relevant Information and
coordination,  and decision make money doing it.
relevant information can only be
making in an organization. “ Retrieving from the MSI. 2.The strategic business
challenge
Helps in Coordination among the
The power of computer
Definition of management Department: - Management
hardware and software has
information system information System is also help in grown much more rapidly than
establishing a sound Relationship the ability of organizations to
among the every persons of apply and use this technology.
department to department through To benefit fully from information
“A management information proper exchanging of Information’s. technology, realize genuine
system (MIS) is a computer Helps in Finding out Problems: productivity, and become
- As we know that MIS provides competitive and effective, many
system consisting of hardware
relevant information about the every organizations actually need to
and software that serves as the aspect of activities. Hence, If any be redesigned. They will have to
backbone of an organization’s mistake is made by the management make fundamental changes in
then Management Information employee and management
operations. “
Systems (MIS) Information helps in behavior, develop new business
Finding out the Solution of that models, retire obsolete work
A management information Problem. rules, and eliminate the
inefficiencies of outmoded
system (MIS) is a broadly used Helps in Comparison of Business
business processes and
and applied term for a three- Performance: - MIS store all Past
organizational structures. New
Data and information in its technology alone will not
resource system required for Database. That why management produce meaningful business
effective organization information system is very useful to benefits.
management. The resources are compare Business organization
people, information and Performance. With the help of 3. The globalization
Management information system challenge: The rapid growth in
technology, from inside and (MIS) Organization can analyze his international trade and the
outside an organization, with top Performance means whatever they emergence of a global economy
priority given to people. The do last year or Previous Years and call for information systems that
whatever business performance in can support both producing and
system is a collection of selling goods in many different
this year and also measures
information management organization Development and countries. In the past, each
methods involving computer Growth. regional office of a multinational
corporation focused on solving
its own unique information Strategic business business model describes how a
problems. Given language,
cultural, and political differences objectives of information company produces, delivers, and
sells a product or service to create
among countries, this focus systems
frequently resulted in chaos and wealth.
the failure of central Although many managers are
management controls.
4. The information
familiar with the reasons why Customer and Supplier
technology infrastructure managing their typical resources Intimacy
challenge: Many companies such as equipment and people are When a business really knows its
are saddled with expensive and important, it is important to examine customers, and serves them well,
unwieldy information technology
the growing interdependence the way they want to be served,
platforms that cannot adapt to
innovation and change. Their between a firm’s ability to use customers generally respond by
information systems are so information technology and its returning and purchasing more. The
complex and brittle that they ability to implement corporate result is increased revenues and
act as constraints on business strategies and achieve corporate profits.
strategy and execution. Meeting
new business and technology
goals. Specifically, business firms
challenges may require invest heavily in information to Improved Decision Making
redesigning the organization achieve six strategic business Information systems and
and building a new information objectives: technologies have made it possible
technology (IT) infrastructure.
for managers to use real-time data
5. Ethics and security: The  Operational from the marketplace when making
responsibility and control excellence decisions. Previously, managers did
challenge: How can  New products, not have access to accurate and
organizations ensure that their services, and business
information systems are used in current data and as such relied on
models
an ethically and socially forecasts, best guesses, and luck.
responsible manner? How can  Customer and
we design information systems supplier intimacy Competitive Advantage
that people can control and  Improved decision
understand? Although making
information systems have
provided enormous benefits and
 Competitive Doing things better than your
efficiencies, they have also advantage competitors, charging less for
created new ethical and social  Survival superior products, and responding
problems and challenges. Businesses continuously seek to to customers and suppliers in real
improve the efficiency of their time all add up to higher sales and
The emerging digital firm operations in order to achieve higher profits that your competitors
higher profitability. Information cannot match.
A digital firm is one in which nearly
all of the organization’s significant systems and technologies are some
business relationships with of the most important tools Survival
customers, suppliers, and employees available to managers for achieving
are digitally enabled and mediated ” higher levels of efficiency and
. Core business processes are Firms also invest in information
productivity in business operations,
accomplished through digital
especially when coupled with systems and technologies because
networks spanning the entire
organization or linking multiple changes in business practices and they are necessities for doing
organizations. management behavior. business. Information systems are
The emerging Internet business not a luxury. In most businesses,
culture is a set of expectations that New Products, Services, and information systems and
we all share. We have all come to Business Models technology are the core to survival.
expect online services for
purchasing goods and services, we
expect our business colleagues to be Information systems and
available by e-mail and cell phone,
and we expect to be able to technologies are a major enabling
communicate with our vendors, tool for firms to create new
customers, and employees any time products and services, as well as
of day or night over the Internet entirely new business models. A
Business Perspective of organizations coordinate and automated tracking of low-level
information system organize work activities, activities and basic transactions.
information, and knowledge to
produce their valuable products A transaction process
An information system is a set of
interrelated components that or services. system (TPS) is an
collect or retrieve, process, Information systems automate information processing
store, and distribute information manual business processes and system for business
to support decision making and make an organization more transactions involving the
control in an organization. efficient. Data and information collection, modification and
Information systems can also be
used to analyze problems,
are available to a wider range of retrieval of all transaction data.
visualize complex subjects, and decision-makers more quickly Characteristics of a TPS include
create new products.  when information systems are performance, reliability and
used to change the flow of consistency. TPS is also known
From a business information. Tasks can be as transaction processing or real-
perspective, an information performed simultaneously rather time processing.
system is an important than sequentially, speeding up Management Information
instrument for creating value the completion of business Systems
for the firm. ... An information processes. Information systems
system represents an
can also drive new business
organizational and
models that perhaps wouldn’t be Management Information
management solution based
possible without the technology. Systems (MIS) is the study of
on information technology to
people, technology,
a challenge or problem posed
Types of information organizations, and the
by the environment.
relationships among them. MIS
Input , Processing and output systems professionals help firms realize
are the three activities in an maximum benefit from
information system that produce investment in personnel,
the information an organization equipment, and business
needs. Input captures or collects processes. MIS is a people-
raw data from within the oriented field with an emphasis
organization or from its external on service through technology.
environment. Processing
converts this raw input into a A management information
meaningful form. Output system (MIS) is a
transfers the processed computerized database of
information to the people who financial information
will use it or to the activities for
organized and programmed
which it will be used.
Information systems also in such a way that it produces
require feedback, which is regular reports on operations
output that is returned to for every level of
appropriate members of the management in a company. It
organization to help them is usually also possible to
evaluate or correct the input obtain special reports from
stage. Transaction Processing System the system easily.
Transaction Processing System
Decision Support System
are operational-level systems at
Unit 2:
the bottom of the pyramid. They
Global E-Business and are usually operated directly by
A decision support
Collaboration system (DSS) is a specific class
shop floor workers or front line
of computerized information
staff, which provide the key data
system that supports business
A business process is a logically required to support the
and organizational decision-
related set of activities that management of operations. This
making activities. Properly
define how specific business data is usually obtained through
designed decision support
tasks are performed. Business the automated or semi-
systems are interactive software-
processes are the ways in which
based systems intended to help Impacts of information
decision-makers compile useful systems on organizations
information from raw data,
documents, personal knowledge,
and business firms
and/or business models to The information systems
identify and solve problems and function in business Information Systems Impact
make business decisions. Organizations and Business
A Decision Support System can Firms CHANGE is the only
be seen as a knowledge based constant in the relationship
system, used by senior
managers, which facilitates the
between information
creation of knowledge and allow systems and organizations.
its integration into the Unit 3: Information As technology evolves and
organization. These systems are changes, its introduction into
often used to analyze existing
Systems Organization
organizations requires
structured information and allow and Strategy
changes in the firm 's
managers to project the potential
infrastructure and the
effects of their decisions into the Organizations and
future. Such systems are usually services it can provide to its
information systems
interactive and are used to solve An information system is the
employees, customers, and
ill structured problems. technology an suppliers. Years ago
organization uses and also information systems
Executive Information the way in which consisted of a huge
Systems theorganizations interact with
mainframe computer with a
Executive Information System / the technology and the way in
Executive Support System which the technology works few terminals connected to
An Executive Information with the organization's it. You had to schedule a
System can be defined as a business processes. specific time to use the
specialized Decision Support computer if your company
System. This type of the system had one at all. All data were
generally includes the various
Organizations and information kept on one machine, and in
hardware, software, data, systems have a mutual
procedures and the people. With some respects the data were
influence on each other. The
the help of all this, the top level information needs of an available to whoever could
executives get a great support in organization affect the design of access them.
taking and performing the information systems and an
organization must be open itself
various types of the decisions.
to the influences of information
The executive information systems in order to more fully
system plays a very important benefit from new technologies.
role in obtaining the data from The organization's environment,
the different sources, then help culture, structure, standard
in the integration and the operating procedures, politics
and management decisions are
aggregation of this data. After mediating factors that influence
performing these steps the the interaction between
resulting information is information technology and
displayed in such a pattern that organizations.
is very easy to understand

Systems for
linking the enterprise
systems for collaboration
and team work
Using information motivation, as well as instantly (such as on
systems to achieve disadvantages, such the Internet).
competitive advantage as less expertise and
little brand 5. Suppliers: The more
recognition. Some different suppliers a
industries have lower firm has, the greater
barriers to entry, ie: control it can exercise
cost less for a new over suppliers in
company to enter the terms of price,
field. quality, and delivery
schedules.
3. Substitute products
Firms with a competitive and services: These Business value
advantage over others are substitutes that
your customers might
chain model
typically have access to
special resources that use if your prices
others do not or are able become too high. For
to use resources more example, Internet
efficiently, resulting in telephone service can
higher revenue growth, substitute for
profitability, or traditional telephone
productivity growth service. The more
(efficiency), all of which substitute products
ultimately in the long run and services in your
translate into higher industry, the less you
stock market valuations can control pricing
than their competitors. and raise your profit
Porter's competitive forces margins.
Value chain. A value chain is
model describes five a set of activities that a firm
competitive forces that 4. Customers: The operating in a
power of customers specific industry performs in
shape the fate of the
order to deliver a valuable
firm. grows if they can
product or service for the
easily switch to a market. ... The concept
1. Traditional competitor's products of value chains as decision
and services, or if support tools, was added onto
competitors: Existin the competitive strategies
g firms that share a they can force a paradigm developed by Porter
firm's market space business and its as early as 1979.
competitors to
2. New market compete on price
entrants: New alone in a transparent
companies have marketplace where
certain advantages, there is little product
such as not being differentiation and all
locked into old prices are known
equipment and high
Unit 4: Information components in any activities of the
Technology discussion of IT computer and act as
Infrastructure infrastructure truly fits the an interface for the
cliché that the whole is user.
greater than the sum of its
IT infrastructure parts. 3. Enterprise and

The term infrastructure in an other software


Infrastructure components
information technology (IT) applications includ
context refers to an e SAP, Oracle, and
enterprise's entire collection of
PeopleSoft,
hardware, software, networks, IT infrastructure is
data centers, facilities and and middleware soft
composed of seven major
related equipment used to ware that are used
develop, test, operate, monitor, components:
to link a firm's
manage and/or support
information technology existing application
1. Computer
services. systems.
hardware
Infrastructure is the platforms include
4. Data management
foundation or framework that client machines and
and storage is
supports a system or server machines, as
organization. In computing, handled by database
well as modern
information technology management
infrastructure is composed of mainframes
software and storage
physical and virtual resources produced by
devices include
that support the flow, storage, IBM. Blade
processing and analysis of traditional storage
servers are ultrathin
data. Infrastructure may be methods, such as
centralized within a data servers, intended for
disk arrays and tape
center, or it may be a single dedicated
libraries, and newer
decentralized and spread application, and are
across several data centers network-based
mounted in space-
that are either controlled by storage technologies
saving racks.
the organization or by a third such as storage area
party, such as a colocation networks (SANs).
facility or cloud provider. 2. Operating system
SANs connect
platforms include
Information technology multiple storage
platforms for client
infrastructure,‖ most devices on dedicated
computers,
people immediately think high-speed
dominated by
of just hardware and networks.
Windows operating
software. However, there is systems, and
more to it than just those 5. Networking and
servers, dominated
two. In fact, the most telecommunicatio
by the various forms
important and often most- ns
of
ignored component is that platforms include
the UNIX operating
of services. Integrating all Windows server
system or
three components forces a operating systems,
Linux. Operating
business to think in terms Novell, Linux, and
systems are software
of the value of the whole UNIX. Nearly all LAN
that manage the
and not just the parts. and many wide area
resources and
Including all three networks (WANs)
use the TCP/IP infrastructure along Grid computing utilizes the
standards for with relevant idle computational resources
networking. changes in business of separate, geographically
processes, training, remote computers to create a
6. Internet and software single virtual supercomputer.
platforms overlap integration. Legacy In this process, a server
with, and must systems are computer breaks data and
relate to, the firm's generally older applications into discrete
general networking transaction chunks that are parceled out
infrastructure and processing systems to the grid's machines. Grid
hardware and created for computing offers increased
software platforms. mainframe cost savings, computational
Internet-related computers that speed and agility.
infrastructure continue to be used
includes the to avoid the high On-demand computing,
hardware, software cost of replacing or or utility computing, refers
and services to redesigning them. to firms off-loading peak
maintain corporate demand for computing power
Web sites, intranets, to remote, large-scale data
and extranets, processing centers. This
including Web allows firms to reduce their
hosting services and investment in IT infrastructure
Web software by investing in only as much
Contemporary hardware
application computing power as needed
platform trends
development tools. on average and paying for
A Web hosting additional power on an as-
service maintains a needed basis. This
large Web server, or arrangement offers firms
series of servers, much greater agility and
and provides fee- While the cost of computing
flexibility in their
paying subscribers has fallen, IT infrastructure
infrastructure.
with space to expenditures have grown due
maintain their Web to the rising cost of
Autonomic computing is an
sites. computing services, software,
industry-wide effort to
and the increase in intensity
develop systems that can
7. Consulting and and sophistication of
configure, optimize, repair,
system integration computing.
and protect themselves
services are relied against intruders and viruses,
on for integrating a Telecommunications and
in an effort to free system
firm's legacy computing platforms have
administrators from routine
systems with new converged: at the client level,
system management, reduce
technology and with the merging of PDAs
costly system crashes.
infrastructure and and cell phones, and at the
Today's virus software with
providing expertise server and network level, with
automatic virus updates is
in implementing new the rise of Internet telephony.
one example of autonomic
given time. How many issues are
computing.
managed will depend on the size of
the organization and the
Edge computing is a multi- turbulence of the industry in which
it operates. Successful issues
tier, load-balancing scheme managers are those who hold in-
for Web-based applications in depth knowledge of their industry,
problem-solving ability,
which parts of the Web site negotiating skill, and the analytical
content and processing are ability to examine the issue from
numerous perspectives.
performed by smaller, less
expensive servers located Unit 5: Foundation of
near the computer. In an Business Intelligence
edge computing platform
client requests are initially
Using databases to improve Since the data warehouse can be
processed by the edge
business performance and cumbersome because of its size
servers, which may deliver and sheer volume of data, a
decision making
static presentation content, company can break the
reusable code, while information into smaller groups
database and business logic called data marts. It‘s easier
Corporations and businesses go and cheaper to sort through
components are delivered by data marts that tend to be
the enterprise servers. to great lengths to collect and
store information about their more focused on a particular
suppliers and customers. What subject. It‘s still useful to have
they haven‘t done a good job of a huge data warehouse,
in the past is fully using the data though, so that information is
to take advantage of new available to everyone who
products or markets. They‘re wants or needs it. You can let
Management issues trying, though, as we see in this the user determine how the
section. data will be manipulated and
Data Warehouses used. Using data warehouses
As organizations want and need and data marts correctly can
more information about their give management a tremendous
Issues management is the process
company, their products, and amount of information that can
through which an organization be used to trim costs, reduce
manages its policy, and identifies their customers, the concept of
data warehousing (Figure inventory, put products in the
potential problems, issues, or
trends that could impact it in the below) has become very right stores at the right time,
future. The issues management popular. Remember those attract new customers, or keep
process is a long-term, problem- islands of information we keep old customers happy.
solving function placed at the
highest level of the organization talking about? Unfortunately,
through which it can adapt too many of them have
organizational policy and engage proliferated over the years and Unit 6: Decision Support
in the public affairs process. Issues now companies are trying to System (DSS)
management allows the top rein them in by using data
professional communicator to
warehousing. Definition of decision support
interact with government and systems :
publics, advising the CEO about No, data warehouses are not
the values of publics and how they great big buildings with shelves
enhance or detract from the A decision support
and shelves of bits and bytes
organization’s reputation with system helps in decision-
stored on them. They are huge
those publics. making but does not
Issues management is normally computer files that store old and
necessarily give
conducted on a continual, ongoing new data about anything and
a decision itself.
basis in which the manager is everything that a company
monitoring, researching, advising, The decision makers
wants to maintain information
and communicating about a compile useful information
on.
number of concurrent issues at any from raw data, documents,
personal knowledge, and/or used to analyze the among the variables
business models to identify complex data, thereby problem assumptions
and solve problems and producing the required and constraints.
make decisions. information. A model 2. What-if analysis This
predicts the output in the is the process of
A decision support system basis of different inputs assessing the impact of
must generate information in or different conditions, or changes to model
such a form that executives finds out the combination variables, the values of
may understand and at a time of conditions and input the variables, or the
when such an information is that is required to interrelationships
needed and place the produce the desired among variables . This
information under the direct output. helps managers to be
control of the executives. 3. DSS User Interface: It is an proactive , rather than
Thus, the DSS enables the interactive graphical reactive , in their
business executives to take interface which makes decision making . This
the efficient, effective and the interaction easier analysis is critical for
economic decisions. between the DSS and its semi-structured and
users. It displays the unstructured problems
Component of DSS results (output) of the because the data
analysis in various forms, necessary to make such
A decision support such as text, table, charts decisions are often
systems consists of three main or graphics. The user can either not available.
components, namely database, select the appropriate 3. Goal seeking : It is the
software system and user option to view the output process of determining
interface. according to his the input values
1. DSS Database: It requirement. required to achieve a
contains data from 4. Support tools : Support tools certain goal . For
various sources, like online help , pull example , house buyers
including internal data down menus , user determine the monthly
from the organization, interface , graphical payment they can
the data generated by analysis , error correction afford and calculate the
different applications, mechanisms , facilitate number of such
and the external data the user interactions with payments required to
mined form the the system . Interfaces are pay the desired house.
Internet, etc. The an important support 4. Risk analysis : It is a
decision tools especially in the function of SS that
support systems case of DSS. Better the allows managers to
database can be a small interface , the greater will assess the risks
database or a be the chances of system associated with various
standalone system or a being accepted by the alternatives. Decisions
huge data warehouse user. can be classified as low
supporting the risk , medium risk , and
information needs of an Function of DSS high risk. A DSS is
organization. To avoid particularly useful in
the interference There are five functions of DSS medium risk and highly
of decision support facilitating managerial risk environment.
system with the decision making. 5. Graphical analysis :
working of operational 1. Model building : This This helps managers to
systems, the DSS allows decision makers quickly digest large
database usually to identify the most volumes of data and
contains a copy of the appropriate model for visualize the impacts of
production database. solving the problem on various courses of
2. DSS Software System: It hand . It takes into action. The
consists of various account input recommended the use
mathematical and variables , of graphs when ,
analytical models that are interrelationships seeking a quick
summary of data, included . Such and Business Information
Detecting trends over problems require System
time, comparing points
and patterns at different
team effort . Total
quality Executive information
variables.
system
management is a
good example of an The development of Executive
Application of DSS organizational Information Systems (EISs),
effort , because for incurs risks. Success depends
The various it to be effective , it highly on how well the
requires a joint implementation process is
applications of DSS managed in terms of technology
can be classified into effort from all and the users. Factors during the
following three departments in the development process and
categories : organization . A especially during the use of he
1. Independent DSS is ideal for system can affect its eventual
interrelated and success. To study these factors
problems : The we need to examine EISs use
independent inter organization separately from the rest of the
problems are problems. development cycle. To do that
standalone
problems whose
4. Management
effectively we need to have a
structured framework to classify
use: Another the various components
solutions are involved and highlight The
application of DSS
independent of the relations between them. This
is forecasting ,
other problems . paper proposes such a
demand
The goal is to find development framework for
management , and Executive Information Systems.
the best possible
supplier An executive information
solution to the
evaluation . A DSS system (EIS) is a type
given problems. of management information
can consolidate
2. Interrelated system that facilitates and
data from different
problems : In supports senior executive
sources to forecast information and decision-
interrelated
demand , determine making needs. It provides easy
problems, solutions
the appropriate access to internal and external
are interrelated ,by information relevant
quantity and mix
each other , to find to organizational goals. It is
the resources
the most effective commonly considered a
necessary to meet specialized form of decision
solution to the
the demand , and support system (DSS). An
group of
balance supply and executive information system
interrelated (EIS) provides key information,
demand for a wide
problems. These gathered from both internal and
variety of
types of problems external sources, to senior
problems,. executives and managers. It
usually required
accom plishes the multiple
team effort.
purposes of supporting decision
3. Organizational making, communicating
problems : In information, and providing
organizational awareness.
problems , all
department within Unit 7: Executive Characteristics of 
Information System(EIS) Executive information
an organization are system
requires applications to perform organization and thus facilitates
all information processing the decision-making process of
1. Informational related to the function. The production managers of an
characteristics  popular functional areas of the organization. The main
i. Flexibility and ease of use. business organization are: decisions to be taken in
ii. Provides the timely (i)      Financial Information manufacturing system are:
information with the short System Human Resources
response time and also with the (ii)     Marketing Information Information System  
quick retrieval. System  
iii. Produces the correct (iii)    Production/Marketing This functional information
information. Information System system supports the functions of
iv. Produces the relevant (iv)     Human Resource human resource management of
information. Information System  an organization. The human
v. Produces the validated Financial Information System: resource management function,
information.   in its narrow sense, it also
2. User interface/orientation Financial information system is known as personnel
characteristics a sub-system of organizational management .The function
i. Consists of the sophisticated management information involves:\
self help. system. This sub-system     Manpower planning.
ii. Contains the user friendly supports the decision-making     Staffing
interfaces consisting of the process of financial functions at     Training and development
graphic user. the level of an organization.     Performance evaluation, and
iii. Can be used from many Marketing Information     Separation activities
places. System
iv. Offers secure reliable,   An accounting information
confidential access along with This sub-system of management system
the access procedure. information system provides
v. Is very much customized. information about various
vi. Suites the management style functions of the marketing An accounting information
of the individual executives. system of an organization. system (AIS) is a structure that a
3. Managerial / executive Marketing is another functional business uses to collect, store,
characteristics  area of the business manage, process, retrieve and
i. Supports the over all vision, organization, which is engaged report its financial data so that it
mission and the strategy. in marketing (selling) of its can be used by accountants,
ii. Provides the support for the products to its customers. consultants, business analysts,
strategic management. Important functions of the managers, chief financial
iii. Sometimes helps to deal with marketing process include the officers (CFOs), auditors and
the situations that have a high following. regulatory and tax agencies. In
degree of risk.   particular, specially trained
iv. Is linked to the value added     The marketing identification accountants work with AIS to
business processes. function ensure the highest level of
v. Supports the need/ access for/     The purchase motivation accuracy in a company's
to the external data/ databases. function. financial transactions and
vi. Is very much result oriented     The product adjustment recordkeeping and to make
in the nature. function financial data easily available to
Functional Information     The physical distribution those who legitimately need
System function access to it, all while keeping
    The communication function data intact and secure. This
Functional Information System     The transaction function article will describe the primary
is based on the various business     The post-transaction function components of an AIS and some
functions such as Production,  Production /manufacturing of its real-life applications.
Marketing, Finance and Information System Accounting information
Personnel etc. These Manufacturing or production systems generally consist of six
departments or functions are information system provides main parts: people, procedures
known as functional areas of information on production and instructions, data, software,
business. Each functional area /operation activities of an information technology
infrastructure and internal data and files can be organization and what
controls. immediately and directly is at stake if
accessed through computer information resources
The collection, storage and terminals or at points in the are compromised. The
processing of financial telecommunications network. outcome of the
and accounting data that is used The architecture of a Web-based business assessment is
by decision makers. An application typically includes a to determine what
accounting information system Web client, a server, and information assets have
is generally a computer-based corporate information systems to be protected.
method for tracking accounting linked to databases. Each of (2) Risk Analysis. This
activity in conjunction with these components presents step of the analysis
information technology security challenges and looks to create a risk
resources. The resulting vulnerabilities. Floods, fires, profile for critical
statistical reports can be used power failures, and other assets by identifying
internally by management or electrical problems can cause likely threats and
externally by other interested disruptions at any point in the estimating potential
parties including investors, network. losses. A cost/benefit
creditors and tax authorities. The Internet poses additional assessment will reveal
problems because it was if the cost to protect the
Unit 8: Securing Information explicitly designed to be easily information outweighs
System vulnerability and accessed by people on different the potential loss which
abuse computer systems. Information is not an efficient
traveling over unsecured media investment of company
Systems can be intercepted and misused. resources. The outcome
When data are stored in digital Fixed IP addresses serve as of the risk analysis is a
form, they are more vulnerable fixed targets for hackers, and prioritized listing of
than when they exist in manual Internet software has become a security functions that
form. means for introducing viruses are required.
Security refers to the policies, and malicious software to (3) Risk Mitigation. This
procedures, and technical otherwise secure networks. step applies the risk
measures used to prevent profiles that have been
unauthorized access, alteration, Technologies and tools for created to standards,
theft, or physical damage to protecting information policies, procedures
information systems. resources and security
architecture required to
Controls consist of all the Computer and information deliver the desired level
methods, policies, and security is a dynamic process of security and the right
organizational procedures that which is constantly at odds with combination of security
ensure the safety of the business goals and consumer safeguards, and a
organization's assets; the demands for speed and description as to how
accuracy and reliability of its functionality . Possible the security measures
vulnerabilities are to the
accounting
operational
records;
adherence
and
to network, the information will be implemented .
management standards. resources, and to the bandwidth
available to the organization . Unit 9: Achieving Operational
Threats to computerized There is no universal approach Excellence and customer
information systems include to data security that will protect intimacy
hardware and software failure; all organizations from all risks,
user errors; physical disasters but any approach is best Enterprise Systems
such as fire or power failure; accomplished by following a
theft of data, services, and three step approach of
equipment; unauthorized use of (1) Business Assessment. Enterprise systems are software
data; and telecommunications Management begins by systems that provide core
disruptions. On-line systems and describing and defining services used across the
telecommunications are the high level security institution and on which other
especially vulnerable because objectives for an applications often are
dependent. For example, student handle the product from stage to interactions more effectively to
information systems (SIS) stage of the supply chain. maintain competitiveness in the
provide the ultimate official There are essentially three goals present economy. As more and
record of a student's academic of SCM: to reduce inventory, to more organizations realize the
achievement. Usually, there is increase the speed of significance of becoming
only one of them that is transactions with real-time data customer-centric in today’s
considered "official," although exchange, and to increase competitive era, they adopted
there are often shadow systems revenue by satisfying customer CRM as a core business strategy
that replicate parts of the demands more efficiently. and invested heavily. CRM, an
information maintained in the Supply chains encompass the integration of information
institutional SIS. companies and the business technology and relationship
Enterprise systems are software activities needed to design, marketing, provides the
packages that support business make, deliver, and use a product infrastructure that facilitates
processes, information flows, or service. Businesses depend on long-term relationship building
reporting and data analytics their supply chains to provide with customers at an enterprise-
across the University. The them with what they need to wide level. Successful CRM
University ensures appropriate survive and thrive. Every implementation is a complex,
data management standards are business fits into one or more expensive and rarely technical
in place for enterprise system supply chains and has a role to projects. This paper presents the
information; and these systems play in each of them. The pace successful implementation of
are considered by the University of change and the uncertainty CRM from process perspective
to be the primary source for the about how markets will evolve in a trans-national organization
data they contain. has made it increasingly with operations in different
Enterprise systems refer to important for companies to be segments. This study will aid in
“enterprise-wide” computer aware of the supply chains they understanding transition,
applications designed to participate in and to understand constraints and the
integrate an organization’s the roles that they play. Those implementation process of CRM
business processes and companies that learn how to in such organizations.
information flows across build and participate in strong
departments.  At Emerson, our supply chains will have a Enterprise application
enterprise system encompasses substantial competitive
all areas of student records, advantage in their markets. Software designed
enrollment, finance, human to integrate all aspects of a
resources and advancement.  At firm's operations and processes s
the core of Emerson's Enterprise Customer Relationship uch as accounting,
System is Banner by Ellucian. Management (or CRM) finance, human
resources, inventory
control, manufacturing, marketi
supply chain management(SCM Customer Relationship ng, sales, and distribution,
) Management (or CRM) is a and resource planning.
phrase that describes how your Advanced
supply chain management(SCM business interacts with your enterprise applications provide li
) is the control of the supply customers. Most people think of nkages with customers, business
chain as a process from supplier CRM as a system to capture partners, and suppliers.
to manufacturer to wholesaler to information about your An enterprise application is a
retailer to consumer. Supply customers. However, that is only business application, obviously.
chain management does not part of the picture. CRM is also As most people use the term, it
involve only the movement of a about what you do with that is a big business application. In
physical product (such as a information to better meet the today's corporate
microchip) through the chain but needs of your existing customers environment, enterprise
also any data that goes along and identify new customers, applications are complex,
with the product (such as order resulting in higher profits for scalable, distributed,
status information, payment you. component-based, and mission-
schedules, and ownership titles) Customer relationship critical.
and the actual entities that management (CRM) can help Enterprise" is one of those
organizations manage customer buzzwords that is hot these days,
but does not have a definition helps organizations to conduct
everyone agrees upon. their daily activities, functions
One definition: an application properly (accurately and timely
designed for corporate use. It manner with the help of
helps the organization make software) , and supports decision
money. Thus, games and making.
consumer-oriented applications Information systems can be
do not qualify. regarded as a strategic resource
Another common definition is in an organization. The
that an enterprise application is opportunities can be classified in
one that interacts with multiple 4 areas:
parts of a business/organization. · To gain competitive advantage.
Enterprise applications make use · To improve productivity and
of databases and other performance.
organizational assets across a · To enable new ways of
heterogeneous network. managing and organizing.
· To develop new businesses.
Unit 10: Strategic Information
Systems

Strategic Information
System (SIS)

A Strategic Information
System (SIS) is a system that
helps companies change or
otherwise alter their
business strategy and/or
structure. It is typically utilized
to streamline and quicken the
reaction time to environmental
changes and aid it in achieving a
competitive advantage.
Strategic Information Systems
Planning (SISP) is an important
activity for helping organization
to identify strategic applications
and to align an organization’s
strategy with effective
information systems to achieve
organization’s objectives. Today,
improved strategic information
systems planning is the most
critical issue facing information
systems. Strategic information
systems planning plays a major
role that makes huge
contributions to businesses and
other organizations. In this
paper, an overview of Strategic
Information Systems Planning
including its importance, stages,
and success are presented.
Information systems have
assumed an increasingly
strategic role in organizations. It

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