Information technology (IT) refers to entire industry. In actuality, information technology is the use of computers and software to manage information. In some companies, this is referred to as Management Information Services (or MIS) or simply as Information Services (or IS). The information technology department of a large company would be responsible for storing information, protecting information, processing the information, transmitting the information as necessary, and later retrieving information as necessary.
Information system is set of data that are co-related. The information system have three basic steps -
- Input of the raw data, that is collected by the low level management.
- Processing of the filtered raw data i s done by the managers by applying methods.
- Output of the data is obtain from the top executives which again consider the feedback to get more effective output.
The process by which the experience of day today life, marked by the dispersal of commodities and ideas, is becoming standardized around the world. Factors that have contributed to globalization include complex communications and transportation technologies and services, mass movement people, a level of economic activity that has surmounted national markets through industrial combinations and commercial groupings that cross national boundaries, and international agreements that reduce the cost of doing international business. Globalization offers huge potential profits to firms and nations but has been complicated by widely differing expectations, standards of living, cultures and values, and legal systems as well as unexpected global cause-and-effect linkages
Enterprise resource planning:
- An ERP (enterprise resource planning) system is one that enables management of all the firm's resources on an organizationwide basis. It is an extension of the term manufacturing resources planning that originated in the manufacturing area. Popularity of the ERP term can be credited to a large degree to the vendors of application software for enterprise information system.
- Enterprise resource planning (ERP) systems were the next logical step. All information about processes within the boundaries of the firm are consolidated. This requires a large commitment of computer hardware resources, sophisticated software, database management systems, and well trained users. It also requires a commitment from those managers who use the ERP system.
Organization use ERP vendors or consulting companies to implement their customized ERP system. There are three types of professional services that are provided when implementing an ERP system. They are:
Consulting services -they help an organisation go live with their new system, with product training, workflow, improve ERP's use in specific organisation, etc.
Customization Services - ERP systems are made for many core routines, there are still some needs that need to be built or customize d for an organisation.
Support Services - This include both support and maintenance of ERP systems. For instance, trouble shooting and assistance with ERP issues.Advantages of ERP systems
- A totally integrated system
- The ability to easily share information between various departments in an organisation.
- Lower costs
- Better tracking and forecasting
- Customization is limited in many situations
- The need to reprocess business processes
- ERP systems can be expensive to install and run
- Technical support can be unimpressive
Leading vendors of ERP systems;
The middle managers are responsible for implementing the top management's policies and plans and typically have two management levels below them. Usually among the first to be slashed in resizing of a firms, middle management constitutes the thickest layer of managers in traditional organisation.
Management information system (MIS)
A management information system is a subset of the overall internal controls of a business covering the application of people, documents, technologies, and procedures by management accountants to solving business problems such as costing a product, service or a business-wide strategy.
The organisation derives benefits from the systems in the following form:
- Speedy access to information,
- Interpretation of data,
- Quick decisions,
- Reduced transaction cost.
The four types of information system are:
- Transaction processing systems: A large volume of routine, and recurrence of transaction are processed by TPS routine. Example: a bank's system for recording deposits and payments
- Operations information systems: The comprehensive data is gathered, organised and summarized that is useful for managers is done by OIS. Example: an inventory management system.
- Decision support systems: These systems help mangers with the necessary information to make intelligent decisions having three fundamental components: database of applicable information, decision making models and a user friendly interface.
- Expert systems: Helps in making decisions in a specific field.
Decision Support Systems (DSS):
Decision Support Systems (DSS) are computerized information systems that support 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 business models to identify and solve problems and make decisions.
The three objectives that a DSS achieve:
- Assists managers in making decisions to solve semi structured problems.
- Support the manager's judgement rather than try to replace it.
- Improve the manager's decision-making effectiveness rather than its efficiency.
Decision support systems due to its wide reach of data, interactive facilities, ad hoc reporting capabilities, quick development times, and simple Web-based deployment.Operational manager :
The maintenance, control, and improvement of organizational activities that are required to produce goods or services for consumers is called operational manager.
Transaction processing system:
Transaction processing systems are computerised systems that perform and regularly record essential routine transactions to carry on the business. It consists of TP monitor, databases, and transactions. It is an information system designed to process routine business transactions.
- Data collection: capturing data necessary for the transaction.
- Data editing: Check validity and completeness.
- Data correction: Correct the wrong data
- Data manipulation: Calculate, summarize
- Data storage: Update transactions
- Document production and reports: results and decision making.
DHL implies estimating the time requires for collecting the goods from door step of the sender and then estimating the time for the goods to reach the final customer.
DHL's whole business is dependent on the vital point of timely delivery. Based on the distance to the final receiver, the accessibility, the documentations and procedures that need to be handled etc. They have fine tuned the process of delivery. They can accurately gauge how much time it will take for the goods to reach its end destination.Operational flows
The second aspect of information requirements is concerned with directing operations to receive, process, and ship inventory as required, supporting customer and purchasing orders.
Operational requirements deal with
- Order management
- Order processing
- Distribution operations
- Inventory management
- Transportation and shipping
- DHL owns its success for the efficiency with which the operations are carried out.
- Here not only the company but the sender and sometimes the receiver can track the goods through their information center. They are given a certain password which they can use to trace via online or their customer service helpline.
- DHL WEB SHIPPING is the on-line express shipping tool that helps customers prepare documents, book pick-ups, store contact details and track their deliveries. Ideal for busy office managers, business travelers or receptionists, DHL WEB SHIPPING needs no special software or training.
DHL WEB SHIPPING's new, simplified navigation guides customers, quickly and easily, through the entire process. So they can respond to any shipping request within minutes.
With a click of a mouse customers can:
- Select the right shipping and value-added services for each shipment
- Prepare air waybills and customs documentation on-line
- Get the latest service bulletins and customs information
- Book collections and track shipments on-line
- Save up to 300 customer addresses
- Access shipment records for 99 days
- Alert recipients and other interested parties
DHL WEB SHIPPING is also perfect for telecommuters. Customer can order a pick-up, check service availability or track your shipments from any location, in real time, direct from your wireless laptop.CHALLENGE
Legacy applications lacked the ability to scale to support business growth, and adding new features was time consuming and expensive.SOLUTION
The Progress OpenEdge-based Warehouse Management System (WMS) from Progress partner WICS.SOFTWARE 'PROGRESS' -
DHL selected Progress because it wanted an open systems environment that would be economical to manage while providing the ability to both easily build its own applications and select best-of-breed applications from Progress Partners.BENEFIT
In the first few months of deployment, DHL improved its receiving operations by nearly 25%, improved stock picking accuracy, and now has an estimated accuracy of 99.7%.
"We selected a solution from Progress because we wanted an open systems environment that would be economical to manage while providing the ability to both easily build our own applications and select best-of-breed applications from Progress Partners."Security :
Protecting information and information systems from unauthorized access, use, disclosure, disruption, modification, or destruction i.e. security. The goals of information security include protecting the confidentiality, unity and availability of information.
DHL Company received "A" certification from the Technology Asset Protection Association (TAPA.) Security of shipments is not only a core competence of our business but also a competitive advantage. Over the years, we have been able to continuously raise the bar by pioneering tailored security solutions for our customers to meet their specific business needs. (http://www.dhl.ie/publish/ie/en/press/release/2003/031203.high.html )Cloud Computing
The growing bandwidth power of the internet has pushed the client/server one step further, towards what is called the "cloud computing" model. Cloud computing refer to a model of computing where firms and individuals obtain computing power and software application over the internet, rather than purchasing their own hardware and software.
Hardware firms IBM, HP and DELL are building huge scalable cloud computing centers which provide computer power, data storage and high speed internet connection to firm who relay on the internet for business software application. Software firm such as google, Microsoft, SAP, oracle, and sell software applications are sales.com delivered over the internet.
Since organisation using cloud computing generally do not own the infrastructure, they do not have to much large investment in their own hardware and software. Instead , they purchase their computing services from remote pr and pay only for the amount to computing power they actually use terms on demand and utility computing used to describe their services.