InformationInformation System

• System: A group of interrelated System: A group of interrelated components/Elements, organized components/Elements, organized together to achieve a common goaltogether to achieve a common goal

Components/Elements of a Components/Elements of a systemsystem

• InputInput

• ProcessProcess

• OutputOutput

• ControlControl

• FeedbackFeedback

• EnvironmentEnvironment

• Boundaries & Interface Boundaries & Interface

Components/Elements of a Components/Elements of a system-In the Business context system-In the Business context

• Input-Man, Machine, Material & MoneyInput-Man, Machine, Material & Money• Process-Manufacturing, Transaction, ProductionProcess-Manufacturing, Transaction, Production• Output-Finished goods, Goods & servicesOutput-Finished goods, Goods & services• Control-Policies & Regulations-ManagementControl-Policies & Regulations-Management• Feedback-compare out against Performance Feedback-compare out against Performance

standardstandard• Environment-Internal & ExternalEnvironment-Internal & External• Boundaries & Interface-Bank, Customer, Boundaries & Interface-Bank, Customer,

Vendor, Stake holder, Shareholder, Vendor, Stake holder, Shareholder, Govt,Political Govt,Political

Basic element of Information-Basic element of Information-

DATUM-Raw Fact DATUM-Raw Fact

DATA-Set of raw Facts DATA-Set of raw Facts collected or observed collected or observed from the surroundingsfrom the surroundings

e-g-observation done for e-g-observation done for any studyany study

Forms of DataForms of Data

Numeric-1,2,4536,2387465 etcNumeric-1,2,4536,2387465 etc

Alphabetic-A,B,BCD etcAlphabetic-A,B,BCD etc

Alpha-Numeric-KA-30-4235,25JQC2008 Alpha-Numeric-KA-30-4235,25JQC2008 etcetc

Pictures & symbolsPictures & symbols

SoundsSounds

Multimedia & graphicsMultimedia & graphics

InformationInformation

The processed data is called as The processed data is called as InformationInformation

Organized from of dataOrganized from of dataAnalyzed form of dataAnalyzed form of dataClassified form of dataClassified form of dataGrouped from of dataGrouped from of dataMeaningful arrangement of data Meaningful arrangement of data

Information System(IS)Information System(IS)

• A set of “people” , “procedures” & A set of “people” , “procedures” & “Resources” that collects transforms “Resources” that collects transforms and disseminates information in an and disseminates information in an organization organization

Major Resources of Information Major Resources of Information system(IS)system(IS)

Hard ware – Includes all physical devices and materials used in Hard ware – Includes all physical devices and materials used in processing informationprocessing information

e-g:Large mainframe computers, Mini & micro computers, Key e-g:Large mainframe computers, Mini & micro computers, Key board monitor, printer, mouse & magnetic disksboard monitor, printer, mouse & magnetic disks

Software-Includes all sets of information processing instructions Software-Includes all sets of information processing instructions

e-g:System software &Application softwaree-g:System software &Application software

People-People are required fro the operation of all information People-People are required fro the operation of all information systems- End users &IS Specialistssystems- End users &IS Specialists

e-g: (a) Specialists (develops & operates), (b) End-users-uses ISe-g: (a) Specialists (develops & operates), (b) End-users-uses IS Data-Managers realize that data &Information constitute Data-Managers realize that data &Information constitute

valuable organization resources –Data & Knowledge basesvaluable organization resources –Data & Knowledge bases Network Resources-Communications media and Network Network Resources-Communications media and Network

supportsupport

Input-Men,

Machine,Material &Money

Process-Transformation

/Transaction

Output-Finished

Goods&

services

Management(Control)

Compare output against Performance Standard

Information QualityInformation Quality

TimelinessTimelinessAccuracyAccuracyRelevanceRelevanceAdequacyAdequacyCompletenessCompletenessExplicitnessExplicitness

Roles of Information Roles of Information systemssystemsSupport of Business OperationsSupport of Business Operations

Support of Managerial Decision Support of Managerial Decision MakingMaking

Support of Strategic competitive Support of Strategic competitive Advantage Advantage

Support of strategic advantage

Support of managerial Decision making

Support of Business Operations

Information System

Globalization

Technology

Efficient Global

Market

Global Business & Alliances

The Networked Global Corporation

Support of Information Technology –Globalization of business purpose

Information system Information system ActivitiesActivities

a)Input of data Resourcesa)Input of data Resources

b)Processing of data into Informationb)Processing of data into Information

c)Output of Information Productsc)Output of Information Products

d)Storage of data Resources d)Storage of data Resources

e)Control of system Performancee)Control of system Performance

As a business end user we should As a business end user we should be able to recognize the be able to recognize the components IS we encounter in components IS we encounter in the real worldthe real world• The people ,H/w, S/w, Data, N/W they usesThe people ,H/w, S/w, Data, N/W they uses

• Types of information products they Types of information products they produceproduce

• The way they perform input, process, The way they perform input, process, output, storage & control activitiesoutput, storage & control activities

• How they support the business operations How they support the business operations managerial decision making or managerial decision making or competitive advantage of a businesscompetitive advantage of a business

Major subsystems of a Production firm

Types of information systemTypes of information system

EcommerceEcommerce• Refers to the paperless exchange of business information using Refers to the paperless exchange of business information using

network based technologiesnetwork based technologies

• Any form of business transactions in which the parties interact Any form of business transactions in which the parties interact electronically rather than by physical exchange of document or electronically rather than by physical exchange of document or direct meetingsdirect meetings

• Doing business online Doing business online

• Buying & selling products and services through web store frontsBuying & selling products and services through web store fronts

• Buying &selling products information's &services over internetBuying &selling products information's &services over internet

• It encompasses the entire online process of developing, It encompasses the entire online process of developing, marketing ,selling, deliveringmarketing ,selling, delivering

• Servicing &paying for products & services Servicing &paying for products & services

• It uses Internet, intranet & extranet to accomplish online It uses Internet, intranet & extranet to accomplish online transaction with customers and business partnerstransaction with customers and business partners

Reasons for the growth of E commerceReasons for the growth of E commerce

• Age of competitionAge of competition

• Globalization of economyGlobalization of economy

• Commercialization &privatization of internetCommercialization &privatization of internet

• High labour cost and lesser available time High labour cost and lesser available time

• Higher volume of sales at lower profitsHigher volume of sales at lower profits

• Shorter product lifecycles due to changes in technologyShorter product lifecycles due to changes in technology

• Faster communication of information over computer n/w Faster communication of information over computer n/w

• combination of telecommunication & computer science combination of telecommunication & computer science results in emergence of new field –Information technologyresults in emergence of new field –Information technology

Features of Ecommerce• It’s a business strategy to cut down costs while It’s a business strategy to cut down costs while

improving quality and increasing the speed of improving quality and increasing the speed of delivery of goods & services delivery of goods & services

• It has ability to sell and purchase products It has ability to sell and purchase products /services information on computer networks/services information on computer networks

• it is a solution for office automation and quick it is a solution for office automation and quick business transactionbusiness transaction

• It is a tool to improve intra business functioning It is a tool to improve intra business functioning like business re-engineeringlike business re-engineering

• It is a tool to improve inter business It is a tool to improve inter business communication through easy and accurate communication through easy and accurate interaction and information interchange interaction and information interchange

Importance of EcommerceImportance of Ecommerce

• Low set up costLow set up cost::

Any body can easily set up a website, many Any body can easily set up a website, many organizations and training institutes who help organizations and training institutes who help customers in developing and launching webs sites. customers in developing and launching webs sites.

To market a product large retail showrooms To market a product large retail showrooms are not required just a web site showing the are not required just a web site showing the characteristics of the product including cost details characteristics of the product including cost details are sufficient are sufficient

• Global free marketGlobal free market::

Nobody can dominate the global market as it Nobody can dominate the global market as it is present on the internet, anybody who can afford is present on the internet, anybody who can afford a computer and a telephone can fully access the a computer and a telephone can fully access the internet and gain the information required internet and gain the information required

Importance of EcommerceImportance of Ecommerce

• Global access: Global access:

Since more than 200 countries are hooked onto the Since more than 200 countries are hooked onto the internet not only the global giants but even small internet not only the global giants but even small organizations can participate actively at low cost and organizations can participate actively at low cost and compete with stiff competitioncompete with stiff competition

• Availability of technology:Availability of technology:

Same technology like web servers browsers engine Same technology like web servers browsers engine internet etc is used through the world therefore business internet etc is used through the world therefore business can be easily conductedcan be easily conducted

• Multiple opportunitiesMultiple opportunities::

By using E –commerce multiple activities like By using E –commerce multiple activities like selling ,renting & purchasing etc can be performed under selling ,renting & purchasing etc can be performed under one roofone roof

Importance of EcommerceImportance of Ecommerce• Others Others

Ecommerce systems are being established Ecommerce systems are being established for automating and enhansing many aspects of for automating and enhansing many aspects of communication publishing marketing sales and customer communication publishing marketing sales and customer service such as service such as Customer researchPre sale enquiriesInformation publishingSalesAdvertisingPromotionsPublic relationsPurchasingTransactionsFunds TransferProduction DeliveryAfter sales serviceOngoing relation ship managementCustomer support

Pillars of EcommercePillars of Ecommerce

• Electronic InformationElectronic Information

• Electronic relationshipsElectronic relationships

• Electronic TransactionElectronic Transaction

Objective of E commerceObjective of E commerce• Conduct of distant businessConduct of distant business

To acquire latest technologies and To acquire latest technologies and improvement in the fieldimprovement in the field

To help expand horizon of business and serviceTo help expand horizon of business and serviceTo create new services and businessTo create new services and business

• Streamline procurement processStreamline procurement process

To cut down procurement timeTo cut down procurement timeTo cut down procurement costTo cut down procurement costTo simplify procurement processTo simplify procurement process

• Use of competitive processesUse of competitive processesTo decrease the length of production cycleTo decrease the length of production cycleTo create competitive edge in the respective To create competitive edge in the respective

fieldsfieldsTo improve and Maintain production qualityTo improve and Maintain production quality

Types of E -commerceTypes of E -commerce

• Business to consumer(B2C)Business to consumer(B2C)

• Business to Business(B2B)Business to Business(B2B)

Inter organizationalInter organizational

• Internal business ProcessInternal business Process

Intra organizationalIntra organizational

• Consumer to consumer(C2C)Consumer to consumer(C2C)

Business to consumerBusiness to consumer• Its an application says that customer gives their Its an application says that customer gives their

specification and the manufacturers try and supply itspecification and the manufacturers try and supply it

• It makes business come closer to the consumer or It makes business come closer to the consumer or customer to offer product & service with help of an customer to offer product & service with help of an attractive electronic marketattractive electronic market

• Business is done by providing well designed web sites Business is done by providing well designed web sites like normal shops in the market with product & services like normal shops in the market with product & services to be sold displayed with price & descriptionto be sold displayed with price & description

• Browsers, Multimedia Hypertext Hypermedia are used to Browsers, Multimedia Hypertext Hypermedia are used to develop these sitesdevelop these sites

• E-g: Home banking,Vedio on demand,Movies,games E-g: Home banking,Vedio on demand,Movies,games virtual universities market researchvirtual universities market research

Business to Business(Inter Business to Business(Inter Organizational)Organizational)

• E-com for intergenerational relationship E-com for intergenerational relationship

• Enabling of existing relationship between two Enabling of existing relationship between two companiescompanies

• It enables supplier management, Inventory It enables supplier management, Inventory management ,Payment management, channel management ,Payment management, channel management financial management distribution management financial management distribution management sales force managementmanagement sales force management

• E-g: Electronic Data Interchange (E-g: Electronic Data Interchange (EDI), the ), the business-to-business exchange of data business-to-business exchange of data

Customer to customer:Customer to customer:

• E business resolves around two E business resolves around two individual who plays a designated individual who plays a designated role as buyer/seller teacher/student role as buyer/seller teacher/student manager/office, etcmanager/office, etc

• E-g E-mailing, E greetings, E-g E-mailing, E greetings, payments ordering & sending giftspayments ordering & sending gifts

Advantages of E-comAdvantages of E-com• Reduces the distance in carrying out trade Reduces the distance in carrying out trade

thereby helps companies to have cheap and thereby helps companies to have cheap and effective way of communication with effective way of communication with suppliers& customerssuppliers& customers

• An online store works 24 hours a day, 7 days a An online store works 24 hours a day, 7 days a week ,365 day a yearweek ,365 day a year

• The cost of setting up an E-com website is very The cost of setting up an E-com website is very low can be established with very little low can be established with very little overheads or outlay.overheads or outlay.

• More flexible to add and remove a product or More flexible to add and remove a product or products in a catalogues or brouchersproducts in a catalogues or brouchers

Advantages of E-comAdvantages of E-com• Being online it potentially gives exposure Being online it potentially gives exposure

to prevesiouly untapped market segment .to prevesiouly untapped market segment .

• Error reduction takes place highly as order Error reduction takes place highly as order don’t have to be rekeyed into order entry don’t have to be rekeyed into order entry systemsystem

• Buying & selling of items from any place Buying & selling of items from any place using one computer and a internet using one computer and a internet connectionconnection

• Avail services like financial service legal Avail services like financial service legal services medical advise from appropriate services medical advise from appropriate portals.portals.

• Can access large variety of goods easilyCan access large variety of goods easily

Advantages of E-comAdvantages of E-com• wider choice and no wastage of timewider choice and no wastage of time

• Website helps the business to reach worldwide Website helps the business to reach worldwide customer at a very low cost customer at a very low cost

• Fund transfer is made fasterFund transfer is made faster

• Large number of potential business partners can Large number of potential business partners can be quickly found and contacted using appropriate be quickly found and contacted using appropriate search enquires and E-mail correspondencesearch enquires and E-mail correspondence

• Middlemen such as retailer eliminated as a Middlemen such as retailer eliminated as a manufacturer can reach out directly to a customer manufacturer can reach out directly to a customer

Disadvantages of E-com:Disadvantages of E-com:• Inability to touch and feel products as Inability to touch and feel products as

selling is online .This is a Psychological selling is online .This is a Psychological barrier when customer become familiar barrier when customer become familiar with online shopping this barrier is with online shopping this barrier is removedremoved

• Computer system never be Computer system never be safe .Hackers intercept transaction and safe .Hackers intercept transaction and cause problem for both customer and cause problem for both customer and companies that operate on the internet companies that operate on the internet

• The average internet users are usually The average internet users are usually young highly educated man, women young highly educated man, women and elderly persons will not be reachedand elderly persons will not be reached

Disadvantages of E-comDisadvantages of E-com::

• Problem to sell products to a target Problem to sell products to a target group other than young &highly group other than young &highly educated educated

• Internet access is not widely available Internet access is not widely available

• It’s a depersonalize transaction as it It’s a depersonalize transaction as it lacks social contact touch feel the lacks social contact touch feel the productproduct

Disadvantages of E-com:Disadvantages of E-com:• Spies or hackers can steal and misuse Spies or hackers can steal and misuse

credit card and other smart card credit card and other smart card numbersnumbers

• Portal have to be protected from Portal have to be protected from virus affects and other vandalismvirus affects and other vandalism

• Online stores do not exist very longer Online stores do not exist very longer as a result of large group of annoyed as a result of large group of annoyed and dissatisfied customers as there is and dissatisfied customers as there is no one to guide like a shopkeeperno one to guide like a shopkeeper

Short comings of online Shopping:Short comings of online Shopping:• Visual effects onlyVisual effects only

• Time lagTime lag

• Internet connectivityInternet connectivity

• Slow web sitesSlow web sites

• Search methodsSearch methods

• Shipping & handling costsShipping & handling costs