INFORMATION

TECHNOLOGY FOR
MANAGEMENT
BY: Asst.Prof. DIPTI PUROHIT
UNIT 1
I. Information technology
II. What is management
III. Definition of information
and data
IV. System and subsystem
V. Information system
VI. Types of information
VII. Trends in information
system
Information Technology

Information Technology is a broad term which

covers all aspects of the use of computer
technology. It includes not only hardware and
software, but also communication technology
applied to linking computer systems, software
engineering, and the administration and use
of computer systems.
What is
management?
Henri Fayol defines Management
as
“The concept, the techniques and
process that enables goals to be
achieved efficiently and
effectively”
Definition of data
and information
Data is a collection of facts, figures and statistics
related to an object. Data can be processed to create
useful information. Data is a valuable asset for an
organization. The manipulated and processed form of
data is called Information. It is more meaningful than
data. It is used for making decisions.
What is system?

 A System is a set of interacting components

that operate together to accomplish a
purpose. System that plays a role in our
every day lives includes our bodies'
circulatory & digestive system as well as
society's transportation & communication
system.
What is Subsystem?

 It is a component of system, even though it

can also be considered a system in its own
right. The systems with which we are
concerned are always subsystem of larger
systems and typically contain subsystem that
perform different part of the work.
 To understand system and
subsystem we take an
example of a manufacturing
firm
supplier
P
u
r
c
h
a

r
lie Finished goods
s

pp
e

u
d

s
p

to
delivery
a

r
de
rt

r
s

sales
actu
cast
fore
ord
er

al
Product producti F
Product
on
i service
design design
i
n

order h
s
e
d
ue st

information
e req

Product
v ic
Ser

customer
INTRODUCTION:
INFORMATION SYSTEM
In a general sense , the term Information System (IS)
refers to a system of people, Combination of
hardware,software,communications networks, and data
resources that stores and retieves,trasforms and
disseminates information in an organization and it includes
the organization's manual and automated processes.

In a narrow sense, the term information system (or

computer-based information system) refers to the
specific application software that is used to store data
records in a computer system and automates some of the
information-processing activities of the organization.
Definition of BIS
 “A business information system is a group
of interrelated components that work
collectively to carry out input, processing,
output, storage and control actions in
order to convert data into information
products that can be used to support
forecasting, planning, control,
coordination, decision making and
operational activities in an organisation ”
Computer Based Information
System
A computer-based information system (CBIS) is an
information system in which the computer plays
a major role.
Such a system consists of the following elements:

• Hardware: The term hardware refers to machinery.

This category includes the computer itself, which is often referred to as
the central processing unit (CPU), and all of its support equipments.
Among the support equipments are input and output devices,
storage devices and communications devices.
Cont….
Software: The term software refers to computer programs and
the manuals (if any) that support them. Computer programs are
machine-readable instructions that direct the circuitry within the
hardware parts of the CBIS to function in ways that produce useful
information from data. Programs are generally stored on some
input / output medium-often a disk or tape.

Data: Data are facts that are used by program to produce useful
information. Like programs, data are generally stored in machine-
readable from on disk or tape until the computer needs them.
Cont…
• Procedures: procedures are the policies that govern the
operation of a computer system. "Procedures are to people what
software is to hardware" is a common analogy that is used to
illustrate the role of procedures in a CBIS.

• People: Every CBIS needs people if it is to be useful. Often

the most over-looked element of the CBIS is the people: probably
the components that most influence the success or failure of
information system.
Types of Information
Systems
Levels of Management

Upper or Top or Strategic Management

Strategic

Middle or Tactical Management

Tactical

Operational
Lower level Management

Three levels of management

Lower or Operational level
Management
 They make structured decisions (Operational decisions).
 Structured decision It’s a predictable decision that can be made
following a well defined set of routine procedures.
 Most decisions at this level require easily defined information that relates to
the current status and activities within the basic business functions.
 Information is gained from detailed reports which contain information about
routine activities.
 Detailed tasks defined by middle management are carried out by people at
operational level.
Middle or Tactical
Management
 Acquire and arrange the resources (Computers, people etc) to meet the
goals of an organization.
 Define the detailed tasks to be carried out at the operational level.
 Information needed involves review, summarization and analysis of data
to help plan and control operations and implement policy that has been
formulated by upper management.
 Information is usually given to middle managers as summarized reports.
 Deals with semi structured decisions. (Tactical decisions)
 Semi structured decisions that must be made without a base of clearly
defined informational procedures. In most cases a semi structured decision
is complex, requiring detailed analysis and extensive computations.
Upper or Top or Strategic
Management
 Decides on the broad objectives of an
organization.
 Make unstructured decisions. (Strategic
decision).
 Unstructured decisions are the most complex
type of decisions and are rarely based on
predetermined routine procedures. They involve
subjective judgments of the decision maker.
Types of Information Systems

•Transaction processing systems (TPS)

•Management Information Systems (MIS)
•Decision support Systems (DSS)
•Executive Information Systems (EIS)
•Expert Systems (ES)
Transaction Processing
Systems (TPS)
•These systems capture and process data about business
transactions.
•Some times called as data processing systems
•Mostly used at operational level
•Usually creates detailed reports of daily transactions or
future transactions
•Reports generated are useful only to lower level managers
•One functional area of a business consists of an TPS
Management Information
Systems (MIS)
•Provides middle level management with reports that
summarize and categorize information derived from
company databases. (In pre determined format)
•Supplements Transaction processing Systems
•Able to produce detailed information, summary
information, exception information
•Information produced is based on accepted management
or mathematical/statistical models
 Decision Support Systems
(DSS)
•Provides its users with decision oriented information
whenever a decision-making situation arises
•Analyses information already captured by TPS and MIS in
order to support unstructured decision making at top
management level
•Facts
•DSS does not make decisions, it helps some one to
make a decision by providing information
•TPS or MIS does not analyze information they produce
 Executive Information System
(EIS)
Is a DSS which is especially meant for top level management
and specifically support unstructured decision making
Also called Executive Support Systems (ESS)

Information in an EIS are presented in charts and tables that

show trends, ratios and other managerial statistics and is
stored in data warehouses.
Draws data not only from the organization, able to draw
information from outside sources such as news services and
marketing –research databases.
Expert Systems
(ES)
•ES is an information system that captures and stores
the knowledge of human experts and then imitates
human reasoning and decision making processes for
those who have less expertise.
•Captures knowledge expertise of a problem solver or
decision maker and then simulates thinking of that
expertise for those who have less expertise.
•Includes logic and reasoning within there respective
fields
•Emerged from the filed of artificial intelligence (Creating
computer systems that simulate human reasoning and
sensation)
TRENDS IN IT EVOLUTION

Until the 1960s, the role of most information systems was simple. They
were mainly used for electronic data processing (EDP),purposes
such as transactions processing, record-keeping and accounting.
EDP is often defined as the use of computers in recording,
classifying, manipulating, and summarizing data. It is also called
transaction processing systems (TPS), automatic data processing,
or information processing.
Cont….
In the 1960s, another role was added to the use of
computers: the processing of data into useful
informative reports. The concept of management
information systems (MIS) was born. This new
role focused on developing business
applications that provided managerial end users
with predefined management reports that would
give managers the information they needed for
decision-making purposes.
Cont….
By the 1970s, these pre-defined management
reports were not sufficient to meet many of the
decision-making needs of management. In order
to satisfy such needs, the concept of decision
support systems (DSS) was born. The new role
for information systems was to provide
managerial end users with ad hoc and
interactive of their decision-making processes.
Cont…
In the 1980s, the introduction of microcomputers into the workplace ushered in
a new era, which led to a profound effect on organizations. The rapid
development of microcomputer processing power (e.g. Intel’s Pentium
microprocessor), application packages (e.g. Microsoft Office), and
telecommunication networks gave birth to the phenomenon of end user
computing. End users could now use their own computing resources to
support their job requirements instead of waiting for the indirect support of a
centralized corporate information services department. It became evident
that most top executives did not directly use either the MIS reports or the
analytical modeling capabilities of DSS, so the concept of executive
information systems (EIS) was developed. Executive information systems –
provide critical information from
Cont…..
Moreover, breakthroughs occurred in the development and application of
artificial intelligence (AI) techniques to business information systems. With
less need for human intervention, knowledge workers could be freed up to
handle more complex tasks. Expert systems (ES) and other knowledge
management systems (KMS) also forged a new role for information
systems. ES can serve as consultants to users by providing expert advice in
limited subject areas.
The mid- to late 1990s saw the revolutionary emergence of enterprise resource
planning (ERP) systems. This organization-specific form of a strategic
information system integrates all facets of a firm, including its planning,
manufacturing, sales, resource management, customer relations, inventory
control, order tracking, financial management, human resources and
marketing – virtually every business function.
The primary advantage of these ERP systems lies in their common interface for
all computer-based organizational functions and their tight integration and
data sharing needed for flexible strategic decision making.