ASSIGNMENT – 1

MANAGEMENT INFORMATION

SYSTEMS

INFORMATION SYSTEMS AND DIGITAL FIRMS

BY:

KARTIK SINGH

M/BFT/11/10

NIFT MUMBAI

INTRODUCTION

The Digital Firm is a general term for organizations that have enabled core business relationships with employees, customers, suppliers, and other external partners through digital networks.

Digital firms place an emphasis on the digitization of business processes and services through sophisticated technology and information systems. These information systems create opportunities for digital firms to decentralize operations, accelerate market readiness and responsiveness, enhance customer interactions, as well as increase efficiencies across a variety of business functions.

Through digital networks and information systems, the digital firm is able to operate core business services and functions continuously and more efficiently. This digital enablement of business processes creates highly dynamic information systems allowing for more efficient and productive management of an organization.

Technology and information systems serve many critical roles in a digital firm by providing technology-driven capabilities that increase operational performance. For example, digital networks and information systems allow organizations to connect and integrate supply chains in ways that are real-time, uninterrupted and highly responsive to market conditions.

Thus information systems can increase an organization's capabilities to effectively manage performance and productivity.

INFORMATION SYSTEMS

An information system (IS) is the study of complementary networks of hardware and software that people and organizations use to collect, filter, process, create, and distribute data. The study bridges business and computer science using the theoretical foundations of information and computation to study various business models and related algorithmic processes within a computer science.

There are various types of information systems, for example: transaction processing systems, office systems, decision support systems, knowledge management systems, database management systems, and office information systems. Critical to most information systems are information technologies, which are typically designed to enable humans to perform tasks for which the human brain is not well suited, such as: handling large amounts of information, performing complex calculations, and controlling many simultaneous processes.

Information technologies are a very important and malleable resource available to executives. Many companies have created a position of Chief Information Officer (CIO) that sits on the executive board with the Chief Executive Officer (CEO), Chief Financial Officer(CFO), Chief Operating Officer (COO) and Chief Technical Officer (CTO). The CTO may also serve as CIO, and vice versa. The Chief Information Security Officer (CISO) focuses on information security management.

Now let us see some of the information systems:

Executive information system: An executive information system (EIS) is a type of management information system intended to facilitate and support the information and decision-making needs of senior executives by providing easy access to both internal and external information relevant to meeting the strategic goals of the organization. It is commonly considered as a specialized form of decision support system (DSS).

The emphasis of EIS is on graphical displays and easy-to-use user interfaces. They offer strong reporting and drill-down capabilities. In general, EIS are enterprise-wide DSS that help top-level executives analyze, compare, and highlight trends in important variables so that they can monitor performance and identify opportunities and problems. EIS and data warehousing technologies are converging in the marketplace.

Decision support system: A decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities.

DSSs serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in advance. Decision support systems can be either fully computerized, human or a combination of both.

Knowledge work system: Knowledge work systems, such as scientific or engineering design workstations, promote the creation of new knowledge and ensure that new knowledge and technical expertise are properly integrated into the business. One example of a KWS is the computer-design system used by Odense Shipyards described in the Window on Management.

Management information system: A management information system (MIS) provides information that is needed to manage organizations efficiently and effectively. Management information systems are not only computer systems - these systems encompass three primary components: technology, people (individuals, groups, or organizations), and data/information for decision making. Management information systems are distinct from other information systems in that they are designed to be used to analyze and facilitate strategic and operational activities in the organization. Academically, the term is commonly used to refer to the study of how individuals, groups, and organizations evaluate, design, implement, manage, and utilize systems to generate information to improve efficiency and effectiveness of decision making, including systems termed decision support systems, expert systems, and executive information systems.

Transaction processing system: A transaction processing system is a type of information system. TPSs collect, store, modify, and retrieve the transactions of an organization. A transaction is an event that generates or modifies data that is eventually stored in an information system. It is recommended that a transaction processing system should pass the ACID test. The essence of a transaction program is that it manages data that must be left in a consistent state, e.g. if an electronic payment is made, the amount must be both withdrawn from one account and added to the other; it cannot complete only one of those steps. Either both must occur, or neither. In case of a failure preventing transaction completion, the partially executed transaction must be 'rolled back' by the TPS. While this type of integrity must be provided also for batch transaction processing, it is particularly important for online processing: if e.g. an airline seat reservation system is accessed by multiple operators, after an empty seat inquiry, the seat reservation data must be locked until the reservation is made, otherwise another user may get the impression a seat is still free while it is actually being booked

at the time. Without proper transaction monitoring, double bookings may occur. Other transaction monitor functions include deadlock detection and resolution (deadlocks may be inevitable in certain cases of cross-dependence on data), and transaction logging (in 'journals') for 'forward recovery' in case of massive failures.

Office automation systems: Office automation system refers to the varied computer machinery and software used to digitally create, collect, store, manipulate, and relay office information needed for accomplishing basic tasks. Raw data storage, electronic transfer, and the management of electronic business information comprise the basic activities of an office automation system. Office automation helps in optimizing or automating existing office procedures.

DIGITAL FIRMS

A digital firm is one in which nearly all of the organization's significant business relationships with customers, suppliers, and employees are digitally enabled and mediate. Core business processes are accomplished through digital networks spanning the entire organization or linking multiple organizations. Business processes refer to the set of logically related tasks and behaviors that organizations develop over time to produce specific business results and the unique manner in which these activities are organized and coordinated. Digital firms involve both time shifting and space shifting. Time shifting refers to business being conducted continuously, 24x7, rather than in narrow "work day" time bands of 9 a.m. To 5 p.m. Space shifting means that work takes place in a global workshop, as well as within national boundaries. Some basic digital firms are:

Electronic commerce: Electronic commerce, commonly known as e-commerce is the buying and selling of products or services over electronic systems such as the Internet and other computer networks. Electronic commerce draws on such technologies as electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices and telephones as well.

Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions. E-commerce can be divided into:

E-tailing or "virtual storefronts" on Web sites with online catalogs, sometimes gathered into a "virtual mall"

The gathering and use of demographic data through Web contacts

Electronic Data Interchange (EDI), the business-to-business exchange of data

E-mail and fax and their use as media for reaching prospects and established customers (for example, with newsletters)

Business-to-business buying and selling

The security of business transactions

Some common applications related to electronic commerce are the following:

Document automation in supply chain and logistics

Domestic and international payment systems

Enterprise content management

Group buying

Automated online assistants

Instant messaging

Newsgroups

Online shopping and order tracking

Online banking

Online office suites

Shopping cart software

Teleconferencing

Electronic tickets

Electronic communication: The definition of an "electronic communication". It includes any transfer of signs, signals, writing, images, sounds, data, or intelligence of any nature transmitted in whole or in part by a wire, radio, electromagnetic, photo electronic or photo optical system. The definition of an "electronic communication" specifically excludes: a "wire" or "oral" communication, it includes, communications from tone-only paging devices; communications from tracking devices; and electronic funds transfer information stored by a financial institution in a communications system used for the electronic storage and transfer of funds.

Some common uses related to electronic commerce are the following:

1.) Electronic communications lets you combine numerous media - text, graphics sound, video, etc. - into a single message. That can result in far more meaningful communications tailored to the nature of your particular audience.

2.) Electronic communications is interactive. It engages audiences in active, two-way communications. That requires a new way of thinking about advertising copy and the handling of public relations.

3.) Two-way communication is nothing new. But electronic communications creates a new form of many-to-many communications that lets geographically distributed groups communicate interactively and simultaneously through text, sound and video.

With the Internet you have the ability to transmit and receive large amounts of information quickly to and from individuals and workgroups around the world.

Real-time enterprise: Real-time enterprise (commonly abbreviated to RTE) is a concept in business systems design focused on ensuring organizational responsiveness that was popularized in the first decade of the 21st century. It is also referred to as on-demand enterprise. Such an enterprise must be able to fulfill orders as soon as they are needed.

Though not particularly well defined, generally accepted goals of an RTE include:

Reduced response times for partners and customers

Increased transparency, for example sharing or reporting information across an enterprise instead of keeping it within individual departments

Increased automation, including communications, accounting, supply chains and reporting

Increased competitiveness

Reduced costs

RELATIONSHIP BETWEEN INFORMATION SYSTEMS AND DIGITAL FIRMS

E commerce and information systems:

Decision support system: Three levels of DSS in e-commerce shopping websites are: access focused, transaction focused, and relationship focused. The first level websites only offer simple user-pulled information access, such as basic search and browsing capabilities; the second level websites interactively offer more support for buyer’s mental processes, e.g. provide default settings and templates, guided choices, and well-structured steps; the third level websites focus on maintaining long term relationship with the customers and are similar to Customer Relationship Management (CRM) systems.

Office automation systems: They are used to maintain data digitally and to provide fast access of information among employees

Transaction processing system: They are integral part in e commerce since transactions are the most important part in e commerce

E communication and information systems:

Management information system: They are sometimes used in e communication

Office automation systems: These systems greatly help in improving communication among

Real time enterprises and information systems:

Management information system:

Transaction processing system:

Executive information system:

REFERENCES

BOOKS:

Management Information Systems by W. S. Jawadekar

Management Information Systems by Laudon and Laudon

Websites:

http://wiki.answers.com

http://en.wikipedia.org/wiki/Real-time_enterprise

http://www.justice.gov/usao/eousa/foia_reading_room/usam/title9/crm01045.htm

http://www.enotes.com/automation-reference/automation-178284

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