MANAGEMENT

INFORMATION
SYSTEM
INFORMATION SYSTEM ELEMENTS

▶ PROCEDURES
▶ RESOURCES
▶ PEOPLE
▶ Information System is any organised combination of people, hardware,
software, communication networks and data resources that stores and
retrieves, transform, and disseminate information in an organisation.
COMPONENTS/RESOURCES OF IS

▶ SOFTWARE RESOURCES
▶ HARDWARE RESOURCES
▶ NETWORK RESOURCES
▶ DATA RESOURCES
▶ PEOPLE RESOURCES
SOFTWARE TYPES

▶ SYSTEM SOFTWARE
▶ APPLICATION SOFTWARE
ROLES OF IS IN BUSINESS

▶ OPERATIONAL EXCELLENCE
▶ NEW PRODUCTS, SERVICES AND BUSINESS MODELS
▶ CUSTOMER/SUPPLIER RELATIONSHIP
▶ IMPROVED DECISION MAKING
▶ COMPETITIVE ADVANTAGE
TYPES IF IS

▶ OPERATIONAL CONTROL SYSTEM

▶ MANAGEMENT CONTROL SYSTEM
OPERATIONAL SUPPORT SYSTEM

▶ TPS
▶ PROCESS CONTROL SYSTEM
▶ ENTERPRISE COLLABORATION SYSTEM
MANAGEMENT SUPPORT SYSTEM

▶ MIS
▶ DSS
▶ EIS
DSS

▶ PROVIDES RAPID ACCESS TO INFORMATION

▶ HANDLESLARGE AMOUNT OF DATA
▶ PROVIDES REPORT AND PRESENTATION FLEXIBILITY
▶ BOTH TEXTUAL AND GRAPHICAL ORIENTATION
▶ SUPPORT DRILL DOWN ANALYSIS
▶ PERFORMS COMPLEX FUNCTIONS
COMPONENTS OF DSS

▶ DATA MANGEMENT SUBSYSTEM

▶ MODEL MANAGEMENT SUBSYSTEM
▶ USER INTERFACE SUBSYSTEM
▶ KNOWLWDGE BASED MANAGEMENT SUBSYSTEM
▶ GRAPHICAL ANALYSIS
TYPES OF DSS

▶ FILE DRAWER SYSTEM

▶ DATA ANALYSIS SYSTEM
▶ ANALYSIS INFORMATION SYSTEM
▶ ACCOUNTING MODELS
▶ REPRESENTATION MODELS
▶ OPTIMISATION MODELS
▶ SUGGESTION MODELS
EIS

▶ SUPPORT FOR DEFINING A VISION

▶ SUPPORT FOR STRATEGIC PLANNING
▶ SUPPORT FOR STRATEGIC ORGANISING AND STAFFING
▶ SUPPORT FOR CRISIS MANAGEMENT
COMPONENTS OF EIS

▶ HARDWARE
INPUT DATA ENTRY DEVICES,CPU, DATA STORAGE,OUTPUT DEVICES
▶ SOFTWARE : Text Base, Database, Graphic Base, Model Base
▶ INTERFACE
▶ TELECOMMUNICATION
E-BUSINESS

▶ E-Business includes any process that a business organisation conducts ,

business over a computer mediated network.
▶ E-Business includes E-Marketing, E-Commerce and E-Operations.
E-COMMERCE

▶ E-Commerce is a virtual business environment in which information moves

electronically via Internet related to buying selling, transportation of goods
and services.
Elements of e-commerce framework

▶ Information super highway

▶ Multimedia content and network publishing
▶ Messaging and information distribution
▶ Common business services
ADVANTAGES

CUSTOMER POINT:
▶REDUCED PRICES
▶GLOBAL MARKETPLACE
▶ANYTIME ACCESS
▶MORE CHOICES
▶QUICKER DELIVERY
▶INFORMATION SHARING
ADVANTAGES

COMPANY’S POINT:
INCREASED POTENTIAL MARKET SHARE
LOW COST ADVERTISING
LOW BARRIERS TO ENTRY
STRATEGIC BENEFIT
GLOBAL REACH
DISADVANTAGES

▶ LACK OF SECURITY
▶ LOW BANDWIDTH
▶ DIFFICULTY OF INTEGRATION
▶ NOT ALL CUSTOMERS HAVE ACCESS TO INTERNET
▶ INITIAL COST
▶ SECURITY AND PRIVACY
▶ LACK OF TRUST
▶ LACK OF TOUCH
▶ CRM PROBLEMS
▶ LEGAL ISSUES
APPLICATIONS OF ECOMMERCE

▶ E-BANKING
▶ E-TRADING
▶ LEARNING
▶ E-RECRUITMENT
▶ E-PUBLISHING
▶ E-HEALTHCARE
▶ E-RETAILING
▶ E-AUCTIONS
E-COMMERCE MODELS

▶ B2C
▶ B2B
▶ C2C
▶ C2B
▶ B2G
STRATEGIES FOR E-COMMERCE

▶ REVENUE MODEL IN TRANSITION

▶ REVENUE STRATEGIC ISSUES
▶ CREATING AN EFFECTIVE WEB PRESENCE
E-MARKETING VALUE CHAIN

▶ CUSTOMER ACQUISITION
▶ CUSTOMER SUPPORT(During Purchase)
▶ CUSTOMER FULFILLMENT
▶ POST PURCHASE SUPPORT
SUCCESSFUL COMPANIES
ETHICAL AND SOCIAL ISSUES
WITH E-COMMERCE
▶ IPR
▶ CONTENT DUPLICATION
▶ PIRACY
▶ PRIVACY IN STORAGE ISSUES
E-GOVERNMENT MODEL
Impact of IT in Business

▶ FINANCE
▶ HR
▶ SALES & MARKETING
▶ PRODUCTION
DBMS
DBMS

▶ Database is created and maintained by an integrated set of programs

termed as Database Management System.
Database

▶ A collection of information that is grouped and stored in structured way is

called database.
Characteristics of database

▶ Self describing nature

▶ Isolation between program and data
▶ Supports multiple view of data
▶ Sharing of data and multi user system
▶ Control data redundancy
▶ Enforcing integrity
▶ Restricting unauthorised access
▶ Updation
Organising a database

DATABASE

FILE

RECORD

FIELD

CHARACTE
R
▶ CHARACTER: basic building blocks, bytes
▶ FIELD: Group of characters
▶ RECORD: Collection of related fields
▶ FILE:Collection of related records
▶ DATABASE: Collection of related and integrated files
COMPONENTS OF DBMS

▶ DML PRECOMPILER: Used to convert DML statements into regular

function
▶ DDL INTERPRETER: Converts DDL statements into set of tables.
▶ FILE MANAGER: Used for space allocation for disk storage
▶ DATABASE MANAGER: It is a program module which acts like interface
between low level data and application programs
▶ QUERY PROCESSOR: Interprets users queries and convert them into
application.
▶ DATABASE ADMINISTRATOR: high level function which manages all
data resources in an organisation and maintaining data defnitions.
▶ DATA DICTIONARY: Contains data about data
▶ STORAGE MANAGER:It creates interface between low level data,
application programs and queries
▶ BUFFER MANAGER: Buffer is the area in which block from a file is read.
▶ DATABASE USERS: End users and programmers
DATABASE TYPES

▶ ACTIVE DATABASE: statistical gathering, monitoring, authorising and

alerting
▶ CLOUD DATABASE
▶ CENTRALISED DATABASE SYSTEM
▶ PARALLEL DATABASE SYSTEM: functions are run parallel to increase
speed
▶ CLIENT/SERVER DATABASE SYSTEM
▶ DISTRIBUTED DATABASE SYSTEM: when a database has different parts
and they are stored in different computers
▶ MULTIMEDIA DATABASE
▶ MOBILE DATABASE
DATABASE MODELS

▶ OBJECT BASED LOGICAL MODELS: object oriented and Entity

Relationship(ER-Model)
▶ RECORD BASED DATA MODELS: Relational, Network, Hierarchial
DATA WAREHOUSING

▶ Compiled corporate information which has been obtained from operational

system and external data sources.It is a storage space of information
which can be accessed by various tools.
COMPONENTS

▶ DATABASE
▶ SOURCING, ACQUISTION , CLEANUP AND TRANSFORMATION
TOOLS
▶ METADATA
▶ ACCESS TOOLS
▶ DATA MART
▶ DATA WAREHOUSE ADMINISTRATOR
▶ INFORMATION DELIVERY SYSTEM
ADVANTAGES

▶ COST EFFECTIVE DECISION MAKING

▶ BETTER ENTERPRISE INTELLIGENCE
▶ ENHANCED CUSTOMER SERVICE
▶ BUSINESS RE-ENGINEERING
▶ INFORMATION SYSTEM RE-ENGINEERING BY DATA
STANDARDISATION
DATA MINING

▶ Process of extraction of implicit, previously unknown, potentially useful

data.
▶ Search for relationships and patterns
NEED FOR DATAMING

▶ OPERATIONAL
▶ INFORMATIONAL
▶ DECISIONAL
▶ SPECIFIC APPLICATION
COMPONENTS OF DATA MINING

▶ DATABASE
▶ DATA WAREHOUSE SERVER
▶ KNOWLEDGE BASE
▶ DATA MINING TOOL
▶ PATTERN EVALUATION MODULE
▶ GRAPHICAL INTERFACE
SYSTEM DEVELOPMENT LIFE
CYCLE(SDLC)
▶ Systems are designed and implemented using systematic development
process. A multi step process emerges when system approach is applied
in the development of IS. This is referred to as SDLC.
PHASES IN SDLC

▶ INVESTIGATION
▶ ANALYSIS
▶ DESIGN
▶ IMPLEMENTATION
▶ POST IMPLEMENTATION
▶ MAINTENANCE
DATA FLOW DIAGRAM(DFD)

▶ Graphical representation of data flow through an information system.

▶ It depicts the flow of data through a system
▶ It reflects move of data through the different transformations in a system
LEVELS OF DFD

▶ CONTEXT DIAGRAM
▶ 0-LEVEL DIAGRAM
▶ LEVEL 1 DIAGRAMS
INFORMATION SECURITY AND
CONTROL SYSTEM
PRINCIPLES OF INFORMATION
SECURITY
▶ CONFIDENTIALITY
▶ INTEGRITY
▶ AVAILABILITY
▶ VULNERABILITY
CAUSES OF SYSTEM
VULNERABILITY
▶ HACKERS
▶ RADIATION
▶ INFORMATION ON NETWORK
TYPES OF VULNERABLES

▶ MALWARE
▶ CYBER CRIME
▶ SPOOFING
▶ PHISHING AND IDENTITY
▶ SNIFFING
▶ DENIAL OF SERVICE(DoS)
CONTROLS

▶ Controls or Constraints are restrictions that are imposed on systems or

users so that the systems can be secured and risk of damage to
applications, data , systems can be reduced
TYPES OF CONTROLS

▶ IS CONTROL: Input controls, Processing controls, Output controls,

Storage controls.
▶ PROCEDURAL CONTROLS
▶ FACILTY CONTROL: Network Security, Physical protection controls,
Computer failure controls
SECURITY TOOLS

▶ FIREWALL: It can be a hardware or a software that allows only selected

users to get access to a secured network.
▶ PACKET FILTERING FIREWALL:
▶ APPLICATION LEVEL FIREWALL:
▶ SCREENED HOST FIREWALL:
▶ STATEFUL INSPECCTION FIREWALL:
▶ CIRCUIT LEVEL FIREWALL:
Disadvantages of firewall

▶ Cant protect against attacks that don’t go through it.

▶ Cant work against traitors inside network
▶ Cant protect against tunneling
IDS(Intrusion Detection System)

▶ Act of identifying actions which attempt to compromise the confidentiality,

integrity or availability of a resource within a system :intrusion detection
TYPES:
▶ HOST BASED IDS
▶ NETWORK BASED
ANTIVIRUS

▶ It is a utility software that solves many problems which have occured due
to viruses .
STEPS OF USING ANTIVIRUS SOFTWARE:
▶ Install and run it often
▶ Update often
▶ Scan all removable media
▶ Install only from a secured website/sealed package
▶ Follow the steps of downloading
▶ Take action if virus is found
ENCRYPTION

▶ Process of encryption converts digital data in to scrambled form with the

help of keys or mathematical algorithms. After this the scrambled code is
transmitted.
▶ The receiver decodes the data it has received.
SECERET KEY/SYMMETRIC KEY
ENCRYPTION
▶ PLAIN TEXT
▶ ENCRYPTION ALGORITHM
▶ SECRET KEY
▶ CIPHER TEXT
▶ DECRYPTION ALGORITHM
PUBLIC KEY ENCRYPTION

▶ PLAIN TEXT
▶ ENCRYPTION ALGORITHM
▶ PUBLIC KEY AND PRIVATE KEY
▶ CIPHER TEXT
▶ DECRYPTION ALGORITHM
ENSURING CLOUD SECURITY AND
MOBILE DIGITAL PLATFORM
▶ Data is secured by encryption.
▶ Service level agreement is made between Cloud provider and the user.
▶ In mobile platforms clear specifications are communicated. Trnsfer should
be done through the devices having that specifications alone.
ERP

Enterprise Information Systems

▶SCM

▶CRM

▶ERP
SCM Features

▶ Integrated Behaviour
▶ Mutually sharing channel risks and rewards
▶ Mutually sharing information
▶ Focus on serving customers
▶ Cooperation
▶ Integration of processes
▶ Partners to build and maintain long term relationships
SCOPE OF SCM

▶ SUPPLIER MANAGEMENT
▶ INVENTORY MANAGEMENT
▶ DISTRIBUTION MANAGEMENT
▶ CHANNEL MANAGEMENT
▶ PAYMENT MANAGEMENT
▶ FINANCIAL MANAGEMENT
▶ SALES FORCE MANAGEMENT
SCM MODEL

▶ NETWORK
▶ SUPPLIER
▶ MANUFACTURERS
▶ DISTRIBUTORS
▶ RETAILERS
▶ CONSUMERS
SCM FRAMEWORK

▶ STRATEGIC LEVEL
▶ STRUCTURAL LEVEL
▶ FUNCTIONAL LEVEL
▶ IMPLEMENTATION LEVEL
COMPONENTS OF SCM

▶ PROCUREMENT
▶ PROCESSING
▶ DISTRIBUTION
PROCESSES OF SCM

▶ CUSTOMER RELATIONSHIP MANAGEMENT

▶ CUSTOMER SERVICE MANAGEMENT
▶ DEMAND MANAGEMENT
▶ CUSTOMER ORDER FULFILMENT
▶ MANUFACTURING FLOW MANAGEMENT
▶ PROCUREMENT MANAGEMENT
▶ PRODUCT DEVELOPMENT AND COMMERCIALISATION
▶ RETURNS MANAGEMENT
CRM

▶ It is a comprehensive strategy and process of acquiring, retaining and

partnering with selective customers to create superior value for the
company and the customer.
Objectives
▶ Customer satisfaction
▶ Run an efficient business
▶ Gaining new customer
PROCESSES OF CRM

▶ MARKETING
▶ SELL
▶ ORDER MANAGEMENT
▶ CALL/SERVICE CENTER
PHASES OF CRM

▶ DEFINE CUSTOMERS
▶ CLASSIFY CUSTOMERS
▶ TRANSACTING WITH MOST VALUABLE CUSTOMERS
▶ DEVELOP CUSTOMISED PRODUCT/SERVICE
ADVANTAGES OF CRM

▶ BETTER CUSTOMER SERVICE

▶ INCREASE CUSTOMER REVENUES
▶ DISCOVER NEW CUSTOMER
▶ CROSS SELL AND UPSELL
▶ HELPS TO CLOSETHE DEAL FASTER
▶ MAKE CALL CENTERS MORE EFFICIENT
▶ SIMPLIFY MARKETING AND SALES PROCESS
ERP

NEED FOR ERP

▶BUSINESS INTEGRATION
▶FLEXIBILITY

▶BETTER ANALYSIS AND PLANNING CAPABILITIES

▶USE OF LATEST TECHNOLOGY
Why is ERP important to a company?
▶ ERP affects almost all organizations, irrespective of their size and nature.
▶ Forces the competition to change their strategies and processes.
▶ Influences business partners to become more competitive.
▶ Improves the profits of the consulting organizations.
▶ It is the most important tool for business process reengineering.
▶ Enforces best practice business process in organizations.
▶ Fully utilizes the true potential of client- server computing to deliver an
enterprise product.
HOW ERP CREATES VALUE

▶ Integrate the organizations activities.

▶ Force the use of “best practices”.
▶ Enable organizational standardization.
▶ Eliminate information asymmetries.
▶ Provide online and real time information.
▶ Allow simultaneous access to the same data for planning and control.
▶ Facilitate intra-organization communication.
▶ Enable inter-organization collaboration.
ERP ARCHITECTURE

▶ TWO-TIER: Database and Application duties are handled by the server.

▶ THREE-TIER: Application and database are separated from each other
ERP MODULES

▶ FINANCE MODULE
▶ MANUFACTURING AND PRODUCTION MODULE
▶ SALES AND DISTRIBUTION MODULE
▶ HR MANAGEMENT MODULE
▶ PLANT MAINTENANCE MODULE
▶ MATERIALS MANAGEMENT MODULE
▶ QUALITY MANAGEMENT MODULE
BENEFITS OF ERP

▶ REDUCTION OF LEAD TIME

▶ REDUCTION IN CYCLE TIME
▶ IMPROVED RESOURCE UTILISATION
▶ BETTER CUSTOMER SATISFACTION
▶ IMPROVED SUPPLIER PERFORMANCE
▶ INCREASED FLEXIBILITY
▶ DECISION MAKING CAPABILITY
LIMITATIONS OF ERP

▶ EXPENSE AND TIME

▶ DIFFICULTY IN IMPLEMENTING CHANGE
▶ DIFFICULTY INTEGRATING WITH OTHER SYSTEMS
▶ RISKS IN USIN ONE VENDOR
▶ RISK OF IMPLEMENTATION FAILURE
BIG FIVE

▶ SAP
▶ PEOPLESOFT
▶ ORACLE
▶ BAAN
▶ J.D.EDWARDS
ERP IMPLEMENTATION LIFE CYCLE
▶ PRE EVALUATION SCREENING OF AVAILABLE PACKAGES
▶ EVALUATION OF CHOSEN PACKAGE
▶ PROJECT PLANNING
▶ GAP ANALYSIS
▶ RE-ENGINEERING
▶ CONFIGURATION
▶ TEAM LEARNING
▶ TESTING
▶ GOING LIVE
▶ END USER TRAINING
▶ POST IMPLEMENTATION MAINTENANCE
CHALLENGES IN ERP
IMPLEMENTATION
▶ LACK OF TOP LEVEL COMMITMENT
▶ INADEQUATE REQUIREMENTS DEFINITION
▶ POOR ERP PACKAGE SELECTION
▶ INSUFFICIENT RESOURCES
▶ RESISTANCE TO CHANGE
▶ MISCALCULATION OF TIME AND EFFORT
▶ MISFIT WITH BUSINESS PROCESSES
▶ UNREALISTIC EXPECTATION OF ROI
▶ INADEQUATE TRAINING
▶ POOR PROJECT DESIGN
▶ POOR COMMUNICATION
▶ ILL ADVISED COST CUTTING
FUTURE TRENDS IN ERP

▶ CLOUD ERP
▶ NEW APPLICATION PLATFORMS
▶ MOBILE PLATFORM