Introduction to IT as a management tool

1. Introduction to IT as a management tool

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

3. 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.

4. 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

5. 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.

6. 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.

7. What is Information Technology • Collection of Computer hardware Software Databases Networking and Telecommunication devices To manage business processes more effectively and efficiently.

8. 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.

9. Uses of Information • Identification • Collection • Controlling • Measuring • Decision making

10. Information System • System A group of entities that work together to perform a predefined goal. • Information System A set of procedures that collect, process, store and disseminate information to support decision making.

11. 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

12. 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.

13. 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

14. Decisions At Different Managerial Levels

15. Organizational Functions • Factors of Production • Accounting and Finance • Human Resource • Sales and Marketing • Administration • R&D

16. Types of IS • Transaction Processing System • Office Automation System • Management Information System • Decision Support System • Expert System

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

18. 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

19. Applications of TPS • Manufacturing and Production System • Accounting and Finance System • Human Resource System • Sales and Marketing

20. Management Information System • Supports the information needs of the middle level or tactical level managers. • Gets the information from TPS Examples: Sales report, inventory system etc

21. Features of MIS • Provide reports to managers on organization performance • Serves at the control level • Address structured questions • Relies on existing data

22. 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

23. Examples of DSS • For fraud detection • Analysis of customer profiles by banks • Used for scheduling, forecasting etc

24. Thank You