It Concepts and Management: ISD 458: E-Logistics & Supply Chain Management Unit Two

ISD 458: E-logistics & Supply Chain Management
UNIT TWO
• IT CONCEPTS AND MANAGEMENT

Unit Objectives
After reading this unit students will be able to:
Understand Information Technology and Information Systems

Classify Information System by Support Function
Information Technology (IT)
Information technology (IT) is the branch of
engineering that deals with the use of computers to
store, retrieve and transmit information.
IT is the area of managing technology and spans a wide
variety of areas that include computer software,
information systems, computer hardware,
programming languages but are not limited to things
such as processes, and data constructs.
2.2 INFORMATION SYSTEM
An information system (IS) - is any
combination of information technology and
people's activities that support operations,
management and decision making.
Information systems help to control the

performance of business processes.
Information System- Classification by Support
Function
2.3 Transaction Processing System (TPS)
TPS automates routine and repetitive tasks

that are critical to the operation of the
organization, such as preparing a payroll,
billing customers, Point-of-Sale and
Warehouse operations.
2.3 Transaction Processing System (TPS) cont’d
Data collected from this operation

supports the MIS and DSS employed by
Middle Management. TPS computerizes
the primary and most of the secondary
activities on the Value Chain. The primary
purpose of TPS is to perform transactions
and collect data.
2.4 Management Information Systems (MIS)
These systems access, organize, summarize, and

display information for supporting routine decision
making in the functional areas.
. Geared toward middle managers, MIS are

characterized mainly by their ability to produce
periodic reports such as a daily list of employees
and the hours they work, or a monthly report of
expenses as compared to a budget.
• Typical uses would be in Replenishment, Pricing
Analysis (Markdowns) and Sales Management,
• Decisions supported in MIS are more structured.
• Primary purpose of MIS is to process data into
information
Intelligent Support Systems (ISS)
Essentially, artificial intelligence (AI), these systems
perform intelligent problem solving. One application of
AI is expert systems.
• Expert systems (ESs) provide the stored

knowledge of experts to non-experts, so the
latter can solve difficult or time-consuming
problems.
Intelligent Support Systems (ISS) cont’d
• With DSS, users make their decisions

according to the information generated
from the systems.
• With ES, the system makes
recommended decisions for the users
based on the built-in expertise and
knowledge.
2.5 Decision Support Systems (DSS)
The primary purpose of DSS is to process data

into information.
DSS systems are typically employed by tactical
level management whose decisions and what-if
analysis are less structured.
Some DSS methodologies include:
– Mathematical Modeling
– Simulation
– Queries
– What-If (OLAP-Cubes, Online Analytic Processing
(OLAP))
– Data mining
Executive Support Systems (ESS)
ESS systems or Enterprise Information Systems (EIS)
originally were implemented to support senior
management. These systems have been expanded to
support other managers within the enterprise.
At the senior management level they support Strategic activities

which deal with situations that significantly may change the
manner in which business is done.
Overview of entire support function
References:
• Satyanarayana R. G., Rallabandi S, Srikanth R., Sreenivasa R.,

(2009), Management Information System To Help Managers
For Providing Decision Making In An Organization,
International Journal of Reviews in Computing, India.
• O’Keefe, R. M., and T.McEachern 1998, “Web-Based
Customer Decision Support System,” Communications of the
ACM.
• Huff, S. L., et al., Cases in Electronic Commerce New York:
McGraw-Hill, 2001.Huff, S., et al., “Critical Success Factors
for Electronic Commerce,“ Cases in Electronic Commerce .
Irwin/McGraw-Hill, 1999.Isenberg, D.,

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ISD 458: E-logistics & Supply Chain Management

• IT CONCEPTS AND MANAGEMENT

Understand Information Technology and Information Systems

Information systems help to control the

TPS automates routine and repetitive tasks

Data collected from this operation

These systems access, organize, summarize, and

. Geared toward middle managers, MIS are

• Expert systems (ESs) provide the stored

• With DSS, users make their decisions

The primary purpose of DSS is to process data

At the senior management level they support Strategic activities

• Satyanarayana R. G., Rallabandi S, Srikanth R., Sreenivasa R.,

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