COMPUTER APPLICATIONS

FOR BUSINESS (CAB)

PGDM I Term 2019-21

Information System (IS)
An information system is combination of
human resources, hardware, software,
communications networks, data resources
and policies and procedures that stores,
transforms, and disseminates information
in an organization.
Fundamental roles of IS in business

1. Support business processes/operations

2. Support decision making

3.Support policies/strategies formulation for competitive

advantage
 Classification of IS
Information Systems

Operations Management
Support System Support System

Transaction Enterprise Process Management Decision Executive

processing Collaboration control information support information
systems systems Systems systems systems systems
Decision Support System
 DSS are computer-based IS that provide interactive
information support to managers during decision
making process.
 DSS use : a) Analytical models.
b) Specialized databases.
c) Interactive, computer –based
process.
Decision Support System
• Types of decision:
Structured decisions
are repetitive, routine and involve a definite procedure for
handling them.

Unstructured decisions
require judgement, insight and evaluation. They are often
important decisions and there is no set procedure for making
them.
Decision Support System
• DSS Models:

1.Behavioural Models- Eg. Forecasting, Statistical Analysis

2. Management Science Models- Eg. Cost Accounting, MRP

3. OR Models: LPP, Transportation

Strategic Information System (SIS)

Strategic information systems collect data and provide information

for the purpose of formulating strategy.

Any information system—EIS, MIS—that helps to change

processes, products or environmental relationships to gain a
competitive advantage is a strategic information system.
Customer Relationship Management as SIS

CRM can be treated as SIS, which provides

information to formulate strategies to
retain existing customers and to attract
new customers.
CRM as SIS: Data Driven Approach
CRM as SIS: Process Driven Approach
 Value Chain and
Strategic Information Systems
Framework
Organizational Value Chain
Value Chain & Strategic Information Systems Framework

• Human Resource Management

(SIS: HRIS/Career development intranet)
• R&D, Technology development
(SIS: CAD, Extranet with partners)
• Inbound/Outbound logistics
(SIS: Automated warehousing)
• Procurement (SIS: e-business)
• Operations (SIS: CAM)
• Customer Service (SIS: CRM)
SIS: Case
 The Port of Singapore: Application of intelligent systems
 Problem - The Port of Singapore, the world’s largest
international port, faced increased global competition.
 PSA, the company that operates the Port of Singapore, uses its
Computer Integrated Terminal Operations System (CITOS) to
automate many of its port services and reduce costs.
 Additionally, the port’s intelligent systems reduce the cycle time of
unloading and loading vessels.
 An intelligent system is used to expedite trucks’ entry into and exit from
the port, As a result the time is down to 30 seconds per truck instead of
3 to 5 minutes in other countries.
 Expert systems plan vessel loading, unloading, and container
configuration, so cycle time reduced to 4 hours (versus 16 to 20
hours in a neighboring port).
(Sources: Field, 2002; corporate sources in Singapore, July 2000; portnet.com.)
https://youtu.be/HrZg96L8yaY
Enterprise Resource Planning (ERP)
 S/W package provides information for planning and for
eff. & eff. Use of resources
 Enterprise Resource Planning (ERP) – integrate all
internal processes/departments through a common
information system
 ERP is modular in nature. Single entry updates the whole
software package.
 Helps for centralized DB.
Source: Prentice Hall, Inc.
E-Business

PGDM I Term 2019-21

 E-Business and E-Commerce
E-commerce covers outward-facing processes that touch
customers, suppliers and external partners.
It is the process through which buying, selling, ordering
and paying for the goods and services are done over the
internet.
Some examples of real world application of e-commerce
are online banking, online shopping, online ticket
booking, etc.
 E-Business and E-Commerce

E-business is the online presence of business.

E-business is not confined to buying and selling
of goods only, but it includes other activities that
also form part of business like providing services
to the customers, communicating with employees,
client or business partners, etc.
E-business includes e-commerce but E-business
strategy is more focused on internal processes.
 Limitations

Online security threats remain a major risk factor for all

e-businesses.
Some customers feel that e-businesses are less personal
and riskier than other types of businesses, which can also
limit the consumer base of an e-business.
Consumers who are not computer savvy or lack access
to the Internet may avoid shopping with e-businesses
altogether.
Managing businesses electronically
The four main areas where companies
conduct business online
1. Direct marketing,
selling, and
services
2. Financial and
information
services
3. Maintenance,
repair, and
operations (MRO)
4. Intermediaries
Direct Marketing, Selling, & Services
using the Internet to contact customers directly

Key to success:
 Marketing – create site visibility and demand

 Sales –adaptive selling processes, integrate with back-

office

 Services – automate customer service features such as

customer feedback, customer inquires, tracking
information, and customized services
Financial and Information Services
 Online banking
 Paying bills
 Making transfers between accounts

 Online billing
 Internet-based bill delivery services saves money
Maintenance, Repair, & Operations (MRO)
 MRO goods include – office suppliers, office equipment,
furniture, computers, and replacement parts
Intermediaries
 Intermediaries – agents, software, or businesses that
bring buyers and sellers together that provide a trading
infrastructure to enhance e-business
 Web Centric Business Architecture
Electronic-business Architectures leverage web
technologies to implement e-business
activities/applications.

These architectures use clients that access services

provided across a strong and reliable network. These
clients can be browsers running on PCs, PDAs, Cell
Phones, etc.
 Web centric-business Architecture
Developing a new brand What is the IT and
or extending a strong Business
brand to the online functionality that
environment Functional needs to be
Architecture provided?

Creating the look and Digital What types of content, how

feel of the e-business is it created, published and
Branding

Content Management
Information distributed
&
Architecture
UI

Data Architecture
What information Where is the
Design
needs to be made Data stored, how is it
available, to accessed and
whom, and how? how is data integrity
maintained?

What are the security

How to manage
Security Architecture and privacy
and administer the
Requirements for the
infrastructure
Operational/Systems Mgt. Architecture infrastructure
and the application
and application
 User Interface
• The key components are:
➢ Site navigation
➢ Experience with screen
interaction
➢ Human interface factors (color,
size, font, etc.)
Information Architecture
✓ The key questions that are addressed by an information
architecture are:
➢ What information are made available to users?
➢ Who are the users who can accesses the information?
Content Management

The key questions that need to be addressed by the

content management architecture are:

✓ Identify types of content

✓ How is the content developed

✓ The process needed to manage the content

 Functional
Architecture
The Functional Architecture is primarily concerned with:

 the structure and modularity of the

software components

 module design based on Business

function
 Data Architecture
The Data Architecture includes a thorough analysis of:

 data location/storage
 maintain data integrity (“Data integrity” refers to
the accuracy and consistency of data stored in a
database/ data warehouse/ data mart)
 the data relationship between data displayed &
stored
Systems Management
Architecture
The Systems Management Aspect should cover:

 extensible to support new technologies

 include support for systems administration, systems
management, and software configuration management
E-B Models:Introduction

 E-business – conducting business on the Internet, not

only buying and selling, but also serving customers and
collaborating with business partners

 E-business model – an approach to conduct electronic

business through which a company can become a profitable
business on the Internet
 E-business model

Although there are many different ways to categorize

e- business models, they can be broadly categorized as:

E- business Model based on the relationship of transaction

parties

E- business Model based on the relationship of transaction

types
E- business Model based on the relationship of
transaction parties
Business-to-Business (B2B) Model
 Sells products or services to other business, or brings
multiple buyers and sellers together in a central market
place, eg. Cisco.
Business-to-Customer (B2C) Model
 Sells products or services directly to customers. Website
following B2C business models sells its products directly to
a customer. A customer can view products on the website
of business organization. The customer can choose a
product and order the same.
Consumer-to-Business (C2B)
 Consumer-to-business (C2B) – applies to any consumer
that sells a product or service to a business over the
Internet
Consumer-to-Consumer (C2C)
 Consumer-to-consumer (C2C) – applies to sites primarily
offering goods and services to assist consumers interacting
with each other over the Internet

 Consumers sell directly to other consumers

E-Business Models