Levels of IT management

Introduction

The terminformation systemrefers to information technology that is used by people to achieve a specific organizational or individual objective. The technology may be used in the gathering, processing, storing, and/ordisseminationof information, and the users are trained in the use of that technology, as well as in the procedures to be followed in doing so. The specific technologies that collectively comprise information technology arecomputer technologyanddata communications technology. Computers provide most of the storage and processing capabilities, while data communications—specifically networks—provide the means for dissemination and remote access of information

In a very broad sense, the terminformation systemis frequently used to refer to the interaction between people, processes, data and technology. In this sense, the term is used to refer not only to theinformation and communication technology(ICT) an organization uses, but also to the way in which people interact with this technology in support of business processes.

DEFINITION

An information system can be defined technically as a set of interrelated components that collect, process, store and distribute data and information and provide feedback mechanism to meet an objective.

Information system is an aggregate of various it elements including the software, hardware, database, networks etc. Information systems are an integral part in satisfying the queries and informational needs of the public which ensures transparency and efficiency.

IT in Different Levels of Management

Levels of managementrefer to the place of managers working in an organization in terms of their location along the chain of boss-subordinate links that exist in their organization.

Managers are linked to other managers in their organization in boss-subordinate relationships.A large organization, with many managers, will have several tiers of such links. That is, a manager linked to a manager at higher incapacity of a subordinate, may be linkedto managers at nextlowerlower as their boss. This way, in a large organization,there can be several levels of management in an organization.

There are mainly three levels of management in most of the organization. There are

  1. Top level management
  2. Middle level management
  3. Lower level management

Top level management

Top Management generally refers to the senior executives and the Board of Directors. Employees at this level are often in such roles as part of an ownership stake in the corporation, or by virtue of having had a role in founding the corporation, or other merits of seniority.

Top level managers fix the goals that attained by the organization. They prepare policies and procedures in order to takes important decisions to accomplish the goals of the organization. They provide orders and instructions to lower level management. All business organization runs by the managers in that organization, who are taking opinion in the all step of organizational activities. In a big organization the computer department responsible for giving information or data also called management information department. In an organizational information system is used to communicate and analyze the in every levels of the organization

ENTERPRISE RESOURSE PLANNING

Organisations have invested heavily in IT to enhance service, operational efficiency and reduce costs. However, despite huge IT spends, companies must also re-examine their processes and systems holistically before they can maximise technology investment returns.

Implementing Enterprise Resource Planning (ERP) solutions provides a means by which multiple, heterogeneous systems can be integrated for maximum performance and efficiency. They enable companies to reduce system redundancy and increase process efficiency by providing standardised applications for a range of business areas and maximum re-use of enterprise information. ERP systems can enhance operational effectiveness and productivity through a combination of IT and business process analysis, design, implementation and management.

Most important vendors of ERP systems-

  • PeopleSoft
  • Ross Systems
  • QAD
  • Oracle
  • SAP America

Advantages of ERP

  • Design engineering (how to best make the product)
  • Order tracking from acceptance through fulfillment
  • The revenue cycle from invoice through cash receipt
  • Managing interdependencies of complex Bill of Materials
  • Tracking the 3-way match between Purchase orders (what was ordered), Inventory receipts (what arrived), and costing(what the vendor invoiced)
  • The Accounting for all of these tasks, tracking the Revenue, Cost and Profit on a granular level.

Disadvantages of ERP

Many problems organizations have with ERP systems are due to inadequate investment in ongoing training for involved personnel, including those implementing and testing changes, as well as a lack of corporate policy protecting the integrity of the data in the ERP systems and how it is used.

Limitations of ERP include:

Success depends on the skill and experience of the workforce, including training about how to make the system work correctly. Many companies cut costs by cutting training budgets. Privately owned small enterprises are often undercapitalized, meaning their ERP system is often operated by personnel with inadequate education in ERP in general, such as APICS foundations, and in the particular ERP vendor package being used.

Middle level management

Middle Management is found in a large enterprise where there is sufficient need for management roles below the "Director" or "Executive" level. The complexity of the business of a departmental organization can be delegated to smaller organizations. Middle level managers are responsible to top management.

Functions of middle level managers

  • Middle level managers are concerned with organization and direction function of management.
  • Interpretation of the programs and policies communicate by the top level management.
  • Organizing and manning their departments as per the main plan, plan the departmental operations.
  • Guide direct and motivate their workers to attain the objective, co-operate and co-ordinate with other departments.
  • Evaluate the performance of his subordinates.
  • Collect reports and statics from the lower and send in to top level management.

Management Information Systems (MIS)

Management Information Systems (MIS) is the term given to the discipline focused on the integration of computer systems with the aims and objectives on an organization.

These systems present mid-level and senior managers through periodic, often summarized, information that help them determine performance and create right decision based on that information. Provide middle level management with reports that summarize and categorise information derived from company database. The development and management of information technology tools assists executives and the general workforce in performing any tasks related to the processing of information. MIS and business systems are especially useful in the collation of business data and the production of reports to be used as tools for decision making.

Benefits of MIS

The field of MIS can deliver a great many benefits to enterprises in every industry. Expert organizations such as the Institute of MIS along with peer reviewed journals such as MIS Quarterly continue to find and report new ways to use MIS to achieve business objectives.

Decision Support Systems (DSS)

Decision Support Systems (DSS) are a specific class of computerized information system that supports business and organizational decision-making activities. A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from raw data, documents, personal knowledge, and/or business models to identify and solve problems and make decisions.It helps the middle level manager by the following way-

  • Accessing all of your current information assets, including legacy and relational data sources, cubes, data warehouses, and data marts
  • Comparative sales figures between one week and the next
  • Projected revenue figures based on new product sales assumptions
  • The consequences of different decision alternatives, given past experience in a context that is described

Components of a DSS:

  • The Database
  • The Model base
  • The Dialogue Manager

LOWER LEVEL MANAGEMENT

Lower level management is also known as supervisory management. Under this level include supervisors, foremen, gang boss, accounts officer, sales officer etc. They are mainly related with controlling and direction of management.

Following are the important functions of lower level managers-

  • Planning day-to day activities.
  • Arranging machinery and tools for the day's work.
  • Assigning jobs and duties to workers.
  • Assisting and advising workers by explaining work procedures.

Transaction processing systems (TPS):-

The success of commercial enterprises depends on the reliable processing of transactions to ensure that customer orders are met on time, and that partners and suppliers are paid and can make payment. The field of transaction processing, therefore, has become a vital part of effective business management, led by such organizations as theAssociation for Work Process Improvementand the Transaction Processing Performance Council.

Transaction processing systems offer enterprises the means to rapidly process transactions to ensure the smooth flow of data and the progression of processes throughout the enterprise. Typically, a TPS will exhibit the following characteristics:

  • Rapid Processing
  • Reliability
  • Standardization
  • Controlled Access
  • Durability
  • Batch Processing
  • Batch Processing

Case study

Federal Bank's Information system

In an age where information plays a vital role, competency in information technology is an absolute essentiality. Hence Federal Bank adopted information technology as a strategic tool for achieving competitive edge in today's market. The bank has successfully implemented its 3-year Strategic Plan by December 2003. The business of the Bank is fully automated, thanks to its strong in-house IT infrastructure. No wonder the Bank gained the coveted position of being the first and only traditional bank to interconnect all its branches, deliveringall the new IT-driven services across geographical barriers.

Fed Soft- Fed bank's own branch automation software

The Fed Soft software developed in-house for branch automation is based on state-of-the-art technology and is based on workflow automation concepts. This unique software runs onSybase RDBMS and has a graphical user interface (GUI), making it elegant and user-friendly. Apart from aiding day to day functions of the Bank like usual transaction processing and back office functions. The packageis capable of offering innovative products and delivery systems such as internet banking, anywhere banking, telebanking, electronic bill payments, and customer site terminal and so on, thereby enhancing the quality of service to its customers.

Forerunner in Extending Technology to Rural Branches

The Bank had thedistinction of introducing Any Where Banking in all its branches, including rural locations. Federal bank was the first among the traditional banks to launch Internet banking an e-Commerce.

Being in the fore front to introduce innovative products and channels of delivery such as interconnected ATMs, international debit cards, mobile banking and real time mobile alerts, the Bank makes sure that greater convenience and access is offered to all its customers. In Kerala, Bank spearheaded the ATM culture in the state, with largest number of interconnected ATM sites covering many small towns and rural areas. With ATM sharing agreement with ICICI Bank, the customers can now access more than 2000 ATMs across India at a reduced switch fee rate. Using the Visa International Debit Cards, our customers can access more than one million ATMs and 30 Million merchant establishments across the globe.

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