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Indian Institute of Management Bodh Gaya

INFORMATION 9/12/2022

TECHNOLOGY
MANAGEMENT
TOPIC: BASIC
CONCEPTS
BY: DR. PRAGATI PRIYADARSHINEE
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HOW THIS COURSE IS ORGANIZED

❑Business Organization and Role of Information Technology

❑Technology Infrastructure
❑Information Technology for Decision Making
❑Inter and Intra-organizational Systems
❑Building Intelligent Systems for Businesses
❑Planning, Implementing and Managing Information Systems
 Indian Institute of Management Bodh Gaya 9/12/2022

3 INTRODUCTION TO INFORMATION
TECHNOLOGY
❑Refers to the development, maintenance, and use of computer hardware,
software, databases and networks for the benefit of business.

❑The computers are just one component of information technology.

❑Any technological device that helps the organization in managing its

processes more effectively and efficiently qualifies to be part of the IT.
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GLOBAL MARKETS

❑In order to remain competitive in the global marketplace, organizations started integration of technological
solutions into the business processes.

❑Outsourcing
❑ Business Process Outsourcing (BPO): Contracting of non-primary business activities and functions (such as payroll)
to a third-party service provider. BPO is implemented as a cost saving measure for those processes that an
organization requires but does not depend upon to maintain their competitive position in the marketplace.
❑ Knowledge Process Outsourcing (KPO): Outsourcing of core, information related business activities (knowledge
driven work like intellectual property, equity and finance, analytics, market research and data management) that
offer competitive advantage. The cost savings, operational efficiencies, access to a highly talented work-force and
improved quality are all underlying expectations in off shoring high-end processes.
❑ KPO is not an extension of BPO as, it is driven by the depth of knowledge, experience and judgement; whereas BPO
is more about size, volume and efficiency.
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DIGITAL ECONOMY

❑Over the last two decades, industries have shifted from Industrial Based Economy to Knowledge
Based Economy. In order to remain competitive, organizations need to keep innovating in their
products and services for which they need to integrate information technology into their
businesses.
❑Organizations are moving from a centralized decision-making process to de-centralized
decision-making process.
❑In the era of Knowledge Economy, knowledge is acquired by the organization and its employees.
The emergence of Digital Economy has developed ability to overcome the barriers of time and
distance which resulted in rise of productivity and innovation.
❑Digital Economy is defined as economy based on information technologies including computers,
internet, intrant and extranet.
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WHAT IS A SYSTEM?

❑A set of interrelated components

❑With a clearly defined boundary

❑Working together

❑To achieve a common set of objectives

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INFORMATION SYSTEM
❑An integrated set of procedures for collecting, storing, and processing data for providing information and digital products to decision makers.

❑A system can be:

❑ Closed System: Does not interact with other systems and environment.
❑ Open System: Interacts with other system and/or environment.
❑ Stable System: Static System.
❑ Dynamic System: Changes with the change in needs.

❑Components of Information System:

❑ Input
❑ Process
❑ Output
❑ System Boundary
❑ Environment
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COMPONENTS OF INFORMATION SYSTEM
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DATA, INFORMATION AND KNOWLEDGE
❑Data is a collection of raw facts and figures, or just description of things about physical phenomena or business
transactions.

❑Information is a processed data which is arrange in a more meaningful manner to support decision making for end
users.

❑Sales data is names, quantities, and dollar amounts. Sales information is the number of sales by product type, sales
territory, or salesperson.

❑Knowledge is facts, information and skills acquired by a person through experience or education. It can be defined as
level of understanding in interpreting the information available for effective decision-making purpose.

❑System can be defined as group of entities that work together to achieve a common pre-defined goal/objective.
IT VS IS
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CHARACTERISTICS OF INFORMATION SYSTEM

❑Intrinsic
❑Accessibility
❑Contextual
❑Representation
❑Economical
❑Flexible
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USE OF INFORMATION

❑Identification
❑Collection
❑Controlling
❑Measurement
❑Decision-making
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ORGANIZATION AND MANAGEMENT

❑Organization is collection of entities (people, hardware, software,

processes, procedures and other resources) that work together to
achieve a common pre-defined goal.
❑Hierarchical Structure: Employees are organized at various levels or layers
within the organization, each level being one above the other, like a
pyramid structure.
❑Flat Structure: Less number of layers compared to hierarchical structure.
❑Matrix Structure: Organizational structure in which employees report to
more than one leader or manager from different functions or projects.
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FUNDAMENTAL ROLES OF IS IN BUSINESS

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TRENDS IN INFORMATION SYSTEMS (EARLY YEARS)
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TYPES OF INFORMATION SYSTEMS

❑Operations Support Systems

❑Efficiently process business transactions
❑Control industrial processes
❑Support communication and collaboration
❑Update corporate databases
❑Management Support Systems
❑Provide information as reports and displays
❑Give direct computer support to managers during decision-making
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PURPOSES OF INFORMATION SYSTEMS
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TYPES OF INFORMATION SYSTEMS AND MANAGERS

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EXPERT SYSTEMS (ES)

❑AI-based systems meant to solve problems which generally required a knowledgeable human to solve.

❑Useful in diagnosing, monitoring, selecting, designing, predicting and training.

❑It will recommend a decision, but the final decision lies with the user.

❑Examples and Applications:

❑ MYCIN: This was one of the earliest expert systems that was based on backward chaining. It has the ability to identify various bacteria
that cause severe infections. It is also capable of recommending drugs based on a person’s weight.
❑ DENDRAL: This was an AI based expert system used essentially for chemical analysis. It uses a substance’s spectrographic data in order
to predict its molecular structure.
❑ R1/XCON: This ES had the ability to select specific software to generate a computer system as per user preference.
❑ PXDES: This system could easily determine the type and the degree of lung cancer in patients based on limited data.
❑ CaDet: This is a clinical support system that identifies cancer in early stages.
❑ DXplain: This is also a clinical support system that is capable of suggesting a variety of diseases based on just the findings of the doctor.
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EXPERT SYSTEMS (ES) - APPLICATIONS
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KNOWLEDGE WORK SYSTEMS (KWS)
❑Meant for knowledge workers.
❑KWS is a specialized system built to promote the creation of knowledge and to make sure that
knowledge and technical skills are proper integrated into the business.
❑It helps the knowledge workers in creating and propagating new information and knowledge by
providing them the graphics, analytical, communications, and document management tools.
❑KWS must give easy access to external databases as well as have a user-friendly interface to
help users to get the required information quickly and easily.
❑Examples: computer-aided design (CAD)systems, virtual reality systems, and financial
workstations.
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22 TECHNOLOGY AND TRENDS (GARTNER HYPE

CYCLE 2021 FOR EMERGING TECHNOLOGIES)
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TRENDS
❑Predictive Analytics or Machine Learning
❑Internet of Things (IoT)
❑Internet of Autonomous Things (IoAT)
❑Big Data Analytics
❑Blockchain
❑Virtual Realty (VR) and Augmented Realty (AR)
❑Smart Spaces (Smart Cities)
❑Anything-as-a-Service (ML-as-a-Service or MLaaS, Cloud as a Service or CaaS, Artificial Intelligence as a
Service or AIaaS etc.)
❑Prescriptive Analytics
 THANK YOU !
Questions
?
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