The Changing Role of Information System in Organisations

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Management Information System

Prof. Avijit Mondal,ASBM University

The changing role of Information System In organisations

Information systems are only one of an almost infinite variety of systems which may
operate within an organization. An important prerequisite to understanding the
specific role and operation of information system in an organization is therefore an
appreciation of the significance of the term system and of the major components of
any system, irrespective of whether the system relates to information or some other
resource in the organization. (Information system in business, By- Bob Ritchie, David
Marshall and Alan Eardlye).

An information system collects, processes, store, analyses and disseminates


information for a specific purpose. Like any other system, an information system
includes inputs. It processes the inputs and produces outputs that are sent to the
user or the other system. A feedback mechanism that controls the operation may be
included. Like any other system, an information system operates within an
environment.

ROLE OF INFORMATION SYSTEM IN AN ORGANISATION:-

Information system and organizations influence one another. Information systems


are built by managers to serve the interest of the business firm. At the same time the
company must be aware of and open to the influences of information systems to
benefit from new technologies. The interaction between information technology and
organization is complex and is influenced by many mediating factors, including the
organizations structure, business process, politics, culture, surrounding environment,
and management decisions.

Organization

Information

Technology

Mediating Factor

Environment

Culture

Structure

Business Process
Management Information System
Prof. Avijit Mondal,ASBM University

Politics

Management Decision

Information system have become integral, online, interactive tools deeply involved in
the minute-to-minute operations and decision making of large organizations. Over
the last decade, information system have fundamentally altered the economics of
organizations and greatly increased the possibilities for organizing work.

LEVEL IN AN ORGANISATION:-

Senior management makes long-range strategic decisions about product and


services as well as ensures financial performance of the firm.

Middle management carries out the programs and plans of senior management and
operational management is responsible for monitoring the daily activities of the
business.

Knowledge workers, such as engineers, scientists or architects, design products or


services and create new knowledge for the firm. Where as data workers such as
secretaries or clerks, assist with paperwork at all levels of the firm.

Production and service workers actually produce the product and deliver the service.

Middle Management

Scientists and knowledge

Worker

Senior management

Operational Management

Production and service workers,

Data Workers
Management Information System
Prof. Avijit Mondal,ASBM University

SYSTEM TYPES AND CHARACTERISTICS:-

Organizational information systems can be conveniently be placed into the following


categories:-

Transaction Processing System (TPS) or Data Processing System

Management Information System (MIS)

Executive Information System (EIS)

Decision Support System (DSS)

Transaction Processing System (TPS) :-


In the beginning, computers were all rather limited, highly specialized machines
which required a dedicated environment and specialist personnel to make them
function correctly. Such machines were called ‘mainframes’ and the organization
needed a computer department to provide the necessary data processing service to
produce reports. The system which these computer installations supported was
called data processing (DP) or transaction processing system (TPS). Some example of
TPS systems in typical organizations are:-

A payroll system

A stock control system

An order entry system

Management Information System (MIS) :-


If the first phase of business computing was to automate the manual and clerical
processes of business with the aim of increasing efficiency, the second phase was to
emphasize the role of information.

Early management information systems sought to use the output from existing data
processing system (and the data processing department) in some form which made it
more suitable for middle management to understand.
Management Information System
Prof. Avijit Mondal,ASBM University

Executive Information System (EIS):-


In spite of the success of MISs at the tactical level of management, it became
apparent that IT had not produced any significant benefits for top-level executives.
The strategic decision-making processes (e.g. new product development, changes in
market position, growth by acquisition) were often noticeably ill informed. Many
chief executives in the late 1980s had not used any form pf computer system at all.
Because of this, it was apparent that new developments such as windowsâ„¢ and
recent developments in human computer interaction (HCI) such as buttons and
touch sensitive screen would form the basis of EISs.

Decision Support System (DSS):-


Decision support systems were developing to overcome the rigidity of MIS-type
reporting structures and the limitations of spreadsheets. In addition there were
advances in corporate database technology and EIS-type interfaces on which to
draw. DSS support nonroutine decision making for middle management. They focus
on problems that are unique and rapidly changing, for which the procedure for
arriving at a solution may not be fully predefined in advanced.

Bright Aspects of Information System:-


MIS facilitates planning: – MIS improves the quality of plants by providing relevant
information for sound decision-making. Due to increase in the size and complexity of
organization, managers have lost personal contact with the sense of operation.

It minimizes information overload: – MIS change the larger amount of data into
summarized form and there by avoids the confusion which may arise when managers
are flooded with detailed facts.

It encourages decentralization: – Decentralization of authority is possibly when there


is a system for monitoring operation at lower levels. MIS is successfully used for
measuring performance and making necessary change in the organizational plans
and procedures.

It brings co-ordination:- MIS facilities integration of specialized activities by keeping


each department aware of the problem and requirements of other department. It
connects all decision centers in the organization.
Management Information System
Prof. Avijit Mondal,ASBM University

Dark Aspects of Information System:-


Hacker activities have broadened beyond mere system intrusion to include theft of
goods and information, as well as system damage and cyber vandalism, the
intentional disruption, defacement, or even destruction of a web-site or corporate
information system.

No one knows the magnitude of the computer crime problem- how many systems
are invaded, how many people engage in the practice, or the total economic
damage. According to the 2007 CSI, Computer Crime and Security Survey of nearly
500 companies, participant’s average annual loss from computer crime and security
attacks was $350,420 (Richardson, 2007)..

System malfunction if computer hardware breaks down, is not configured properly,


or is damaged by improper use or criminal acts. Error in programming, improper
installation, or unauthorized changes cause computer software to fail. Power failure,
floods, fires, or other natural disaster can also disrupt computer system.

Vulnerability has also increased from wide spread use of e-mail, instant messaging
(IM), and peer-to-peer file sharing programs. E-mail may contain attachments that
serve as springboards for malicious software or unauthorized access to internal
corporate systems.

TATA CONSULTANCY SERVICE (TCS) SECURITY SYSTEM:


In TCS a strong security system already exist and secures its systems from hacking.
The world is filled with security threats, and boosting customer confidence must be
the top priorities. TCS Data Privacy tools, such as Masketeer, a static data-masking
tool, ensure that the customer’s data privacy needs are met optimally. Masks data
use excellent and sophisticated masking techniques that ensure high data utility
hand-in-hand with data security. In additional to this all, they are using the multiback
up servers to protect their data. There are also several internal security levels for
management and for the employees.

TCS is an industry leader in cyber security and information sharing software products.
TCS products and services offer easy way that helps government and commercial
organizations to securely share information. While protecting important information
assets. The company’s SecureOffice(R) products are installed and in operational use
around the world today protecting our nation’s most sensitive digital information.

TCS and Associates take care to secure personal information given to them by their
customers and applicants. It protects the personal information through various
Management Information System
Prof. Avijit Mondal,ASBM University

security practices and measures in order to prevent loss, misuse, alteration,


unauthorized access or destruction. It also secures personal information. The
information may be stored in manual or electronic systems with less access in order
to protect information from loss, misuse or destruction. TCS works very hard to
protect privacy while delivering innovative career development and staffing services.
Its privacy principles ensure commitment that personal information is safe and
secure.

TCS Trusted Linux will be main software components of a “trusted computing base”-
a rigorously vetted system of software, hardware and firmware that together
correctly enforces a unified security policy. TCS is among few information security
companies in the world with the proven in-house engineering expertise to develop a
Trusted Linux useful both for government and commercial markets.

LATEST TECHNOLOGY USED BY TATA CONSULTANCY


SERVICE (TCS)
TCS is using web-based solution of modern tax and revenue enterprises, and also tax
payers. This makes simple and easy for the tax payer to pay their tax. It has totally
integrated processes to support an endless number of tax types and business
processes. With provisions for tax payer internal based registration, filling, paying
and status inquires. TCS Tax Mantra helps in giving enhanced services to taxpayers
and also raises their satisfaction levels while decreasing internal processing times.

TCS is also using authentication solution for web-based transactions which is digitally
signed and authenticated providing data accuracy, security, and privacy.

Then there is another tool called eVOLv multimedia tool. This tool is simple to use,
versatile that creates content modules easily and quickly. It also support graphics,
audio, and video media formats, users may also make learning a rich and engaging
experience for the audience. The tool doesn’t need any specialized programming skill
or knowledge to operate. TCS evolv can be easily used on most learning
management systems.

CLOUD COMPUTING:-
Clouding computing refers to a model of computing where firms and individuals
obtain computing power and software applications over the internet, rather than
purchasing their own hardware and software. Currently, cloud computing is the
fastest growing form of computing, with an estimated market size in 2009 of $8
Management Information System
Prof. Avijit Mondal,ASBM University

billion, and a projected size of $160 billion in 2012 (Gartner, 2008; Merrill Lynch,
2008).

Hardware firms IBM, HP, and Dell are building huge, scalable cloud computing
centers which provide computing power, data storage, and high speed internet
connections to firms who rely on the internet for business software applications.
Software firms such as Google, Microsoft, SAP, Oracle, and Salesforce.com sell
software applications as services delivered over the internet. For instance, over
500,000 firms in 2009 will use Google Apps, a suite of internet-based desktop
software applications such as word processing, spreadsheets, and calendars. (Hamm,
2008; King, 2008). In 2009, more than 43,000 firms world wide will be using
Salesforce.com’s customer relationship management software, some on their
iphones.

Since organizations using cloud computing generally do not own the infrastructure,
they do not have to make large investments in their own hardware and software.
Instead, they purchase their computing services from remote providers and pay only
for the amount of computing power they actually use (or are billed on a subscription
basis). You will hear the terms on-demand computing or utility computing used to
describe these services. The interactive session on Salesforce.com and the chapter
ending case on Amazon.com describe example of cloud computing hardware and
software service providers.

One of the best examples that how Tata Consultancy


Service (TCS) offerings in Cloud Computing:
TCS is an IT services, business solution and outsourcing organization that deliver real
results to global business, ensuring a level of certainty no other firm can match. TCS
offers a consulting-led, integrated portfolio of IT and IT-enabled services delivered
through its unique global network delivery Modelâ„¢, recognized as benchmark of
excellence in software development.

A part of the Tata group, India’s largest industrial conglomerates, TCS has over
143,000 of the world best trained IT consultants in 42 countries. The company
generated consolidated revenues of US $6 billion for fiscal year ended 31 March
2009 and is listed on the National Stock Exchange and Bombay Stock Exchange in
India.
Management Information System
Prof. Avijit Mondal,ASBM University

TCS’s Service offerings in cloud computing:


Despite the challenges that exist today around Cloud Computing, TCS believes that
Cloud Computing will become an increasingly viable option for enterprise IT.

TCS proposes a range of services to customers, beginning with an advisory role in


helping customers identify opportunities for leveraging Cloud Computing to
enabling new business models. As a part of the services, TCS will address key
questions which its enterprise customers have been asking, and will provide unique
solutions through its

TCS COINTM-based Cloud initiative.

Each service offering needs special competencies. Helping customers define a to-be
strategy, devise a timeline, and a business case to move to the Cloud requires not
just domain expertise but experience in end-to- end business transformation.
Migrating Applications to the Cloud requires proven migration methodologies and
toolsets which can rapidly cloud-enable applications. Fresh development of
applications “for” the Cloud and “in” the Cloud requires a deep understanding of all
the 3 Cloud delivery models – SaaS/PaaS/IaaS – as well as tools for rapid application
development and deployment in the Cloud. Cloud management services presuppose
an Application Driven Infrastructure Management approach, among other things.

TCS has been providing a mature IT-as-a-Service component as a part of its Small
and Medium Business (SMB) offering, which has built a completely new business
model and which leverages the mindset and technologies of the Cloud.

The potential of the new paradigm:


TCS believes that cloud computing will be very attractive to the enterprise to IT
service providers, primarily due to the infinite opportunities around innovative
business models. While the technology foundations of cloud computing can be
considered as a gradual evolution, TCS firmly believes that the business models will
prove to be potentially disruptive.

The TCS taxonomy for cloud computing is based on abstraction layers: – the
infrastructure, the platform, the software and the cloud specific service layer. TCS
believes that delivering a credible set of cloud computing offering to enterprises will
require collaborative innovation across multiple player such as public cloud
providers, software and service providers, product vendors and application vendors.
Management Information System
Prof. Avijit Mondal,ASBM University

CONCLUSION:
It is clear that cloud computing is fast moving beyond the “hype” to being taken
seriously in organization. Cloud computing is bringing us close to the dream of an
efficient, centralized computing power and there are many niche player positioning
their product in this space.

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