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INFORMATION TECHNOLOGY
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INFORMATION TECHNOLOGY
Definition : A collection of computer, hardware,
software, databases, networking andtelecommunication devices that helps the
organization to manage the business process more
effectively and efficiently.
Thus computers are only a part of informationtechnology.
Any technological device like LAN (help in
connecting the employees of the organization) that
helps the organization in managing its processesmore effectively and efficiently forms a part of IT.
Global work group and global delivery system
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INFORMATION TECHNOLOGY
BPO :
Is contracting a specific business process or task,such as payroll, to a third-party service provider.
Cost saving measure.
Back office : includes internal business function
such as billing and purchasing.Front office : includes customer-related services
such as marketing or technical support.
KPO :
Knowledge process outsourcing is a highly value-added process in which the achievement of goalsis largely dependent on the skills, knowledge andexperience of the people carrying them out. ( datamanagement , intellectual property, equity)
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INFORMATION TECHNOLOGY
Digital economy
Economy based on information technologiesincluding computers, internet, intranets and
extranets.
To achieve this organizations are moving from
hierarchical structures to flat and networked
structures.
Organizational decision making is from
centralized to de-centralized.Concept of virtual working groups introduced.
Possible due to integration with IT.
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INFORMATION TECHNOLOGY
Knowledge economy
Driven by ¶knowledge· acquired by theorganization and its employees.
One can send documents to subordinates or co-
workers on the other side of the global.
Collaboration in real time with colleagues in
distant cities, or share photographs the very
instant they were taken.
Financial transactions can be done any time of the day and from any where.
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INFORMATION TECHNOLOGY
The ability to access and share information
instantly and communications could remove allboundaries of time and distance.
Created new opportunities around the world,
because of the invention of personal computers,
internet, mobile phones etc.
The free flow of information , goods and services
resulted in more productivity and has a greater
impact on economy.
Global supply chains enable businesses to
manufacture products and move them to market
with incredible speed and efficiency.
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INFORMATION SYSTEMS
Data :
Is a collection of raw facts and figures. Is an element of a transaction, any transaction facts
collected which reflect about the lifestyle of creditcard customers, point of sales or demographics andgeographic are examples of data.
Data comes into various forms ² numbers, words,symbols or sound etc.
Ex : when a customer buys a product from a retailer, Time and date of transaction
Transaction value Item name
Quantity
Mode of payment
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INFORMATION SYSTEMS
Information
Is a collection of data ( facts and figures)arranged in more meaningful manner, which
helps in decision making.
Knowledge
Is the experience and expertise acquired by anindividual. It is the level of understanding in
interpreting the information available for effective
decision- making purpose.
Ex : Amount of liquor consumption is more in
hilly regions.
Knowledge is achieved by processing the
information, which is obtained by processing data.
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INFORMATION SYSTEMS
System
Is a group of entities that work together toachieve a common predefined goal.
Ex : Computer, Organization.
A system have inputs, processing and output with
feedback.
System can be open, closed, stable or dynamic.
While creating systems, one prefers to create
dynamic, open systems.
FEEDBACK
PROCESS OUTPUTINPUT
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INFORMATION SYSTEMS
Organization information
system
Input OutputProcess
System Boundary
Environment
Feedback
Components of Information
System
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INFORMATION SYSTEMS
Information system
Information system is a system that collect,process, store and disseminate information tosupport decision-making.
From business point of view : It is theorganizational and management solution, based oninformation technology, to a challenge raised bythe environment.
Information system can be manual or automated.
Like any other system it also includes inputs,process, output and feedback.
It has a predefined boundary and operates in anenvironment which include other systems,customers, suppliers and government departments.
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INFORMATION SYSTEMS
Ex : manufacturing systeminput data about raw materials and associatedprocessing instruction.processing Processing of these data as per theinstructions.output Reports about finished goods.
Feedback
Sending control signals to maintain thequality of output being produced.Boundary Manufacturing process.
Environment Subsystems like Inventorymanagement system, accounting system, sales order
system. To become flexible, dynamic and open information
system, it is required to understand the role of each of the players customers, suppliers , competitor)in itsenvironment.
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INFORMATION SYSTEMS
Information technology versus information system
IT is the means and backbone of informationsystem.
IT provides the means of storing, processing anddisseminating of information effectively andefficiently.
IS provides the best practices to manage businessprocesses.
To manage IT solutions, good understanding of computers, networks and communication systemsis required.
For designing and developing of IS, require betterunderstanding of business processes, itsenvironment and project management skills.
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INFORMATION SYSTEMS
Characteristics of IS
Intrinsic
Accessibility
Contextual
Representation
Must be economical to develop and maintain.Needs to be flexible and adaptable.Uses of information
Identification
CollectionControlling
Measuring
Decision-making
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