IT and Business - Research Paper Example

Management December 01, Hep 2 2. Identify four different departments in a typical business and explain how Information systems technology helps them to work together. Ans) The four important departments in a typical bank business are the operations, the term deposit, the credit-liquidity and the marketing department. The information system technology (IT) is the technology, which binds all the departments together. Using the IT system in the operation department, new and old accounts can be confirmed and processed even faster, easier and free of discrepancies. With the use of IT in a firm, the sharing of information between the various departments, when customer applies for loan or credit is faster, rapid and is more accurate. Networking especially using the web and the internet cannot be sidelined in the banking sector. A computerized control system controls the activities of the bank. The term deposit department can check with the operations department, when the deposits of the customers goes up in order to guide them to put their money into term deposits to generate more interest on their money. The marketing and the operations department can be connected through the IT system as the marketing department can search for new customers and can ask the operations department to settle them accordingly. The credit department, through the IT technology, keeps in touch with the operations system before extending credit facilities to any customer. Thus information technology systems help all the four departments to work together. “Firms with high IT capability tend to outperform a control sample of firms on a variety of profit and cost-based performance measures” (Bharadwaj 169). 3. List the four primary reasons for the growth of decision-making information Systems Ans) The growth of decision making systems is high in banks. The four primary reasons for the growth of decision making information systems are as follows: To gather business intelligence – One of the primary reasons for the growth of decision making information systems is that decision making system has the power to gather business intelligence as it will provide each level of managers in the organization with the timely and appropriate data, which can be used to increase the business in the bank. The decision making systems are very helpful in generating intelligence data, which is required for the managers in order to overcome competition in the industry. Generates decision model – The use of decision making information systems enhances the appropriate decision making in banks. The use of decision making systems guides the management in making intelligent decisions for the bank. Problem solver– The use of decision making information system acts as a great problem solver in the banks. The decision making information system is helpful in generating solutions for the problems faced by the management. A strong database – The decision making information systems acts as a strong database in which information can be viewed at a very short notice. The decision making systems helps banks in providing better services to customers and increases their market among customers. 4. Regardless of the scale and scope of your e-business Web site, what are the basic steps in the website development process? Ans) A website is a part of the bank’s system. A website development process involves a number of steps. Before starting the website development process, a careful analysis of the organization’s requirements is need to be done. The main criterion in the website development process is how the establishment of the website will generate business for the firm. It should be analyzed what is the firm’s requirement. For example does the firm use the website to market its products or does it use it to maintain its resources or does it maintain the website in order to display its human resources online. Then the second step is building according to the specifications, such as the general layout, the site navigation etc. The third step is building and developing the appropriate design for the website. For the design, written and graphic contents are selected and a prototype is prepared. The next step is coding and the programmers add code without making any changes in design. In the next step intensive testing of the website needs to be done, because the applications are related to the multi users system. The second last step is the promotion of the website. The final step is the maintenance and updating of the website, which should be done as and when needed. The above mentioned steps are on the basis of the “cost and time involved and the necessity” (Alexander). 6. You have to collaborate with an organization outside the kingdom. Please illustrate the following in term of Management and Technology: . Transaction Process . MIS and DSS . ESS Ans) Transaction process, management information systems (MIS), decision support system (DSS) and executive support systems (ESS) are business related information systems which are used in banks to improve their business. Transaction process in an organization which is related to the management and technology in a firm. Information technology controls are involved in a transaction process. In order to make the transaction process, there should be automatic information technology systems. MIS and DSS – MIS is an integrated system, which collects and maintains information system in the appropriate manner at an appropriate time. DSS is a decision support system so that plans for the future can be predicted. MIS is an information system infrastructure while DSS is a problem solving tool. MSI generates standard and exceptional reports while DSS is used to address the unexpected problems in the banks. MIS is developed by the information systems department while DSS is an end user tool. ESS- Executive support system is a type of software which is located on a central computer and this enables the senior management to access the information in the organization easily and far more reliably. “MIS, DSS and ESS are business related support systems and are differentiated in terms of components, dynamics, analytical methods and general properties” (Management Information Systems 2). 7. How could we improve the decision making of an Organization of your choosing that uses SAP or Oracle, and what are the advantages and disadvantages? Ans) The decision making of an organization buying SAP or ORACLE can be improved in a variety of ways. SAP system is an efficient technology which can be incorporated in banks and this is because SAP creates the visibility of data and also a single data flows across all domains. SAP system helps better control of inventory and helps in maintaining the MIS for better control of the inventory system. The use of ORACLE and SAP helps in better planning and automated working of various domains like the purchase and sales departments etc. The advantages are that SAP and ORACLE improves the efficiency in organization by better control of the accounts. The disadvantages associated with the systems like SAP and ORACLE are that it causes an increased cost to the firm. Efficient and user specific system is replaced by technologies so that there is less of human brain involved. SAP can be customized to a high degree by the retailer. The disadvantage is that this system would be costly and would be less flexible in organizations. ORACLE is advantageous because of it superior networking facilities, which can be used in real time applications. ORACLE is also advantageous because of its cost effectiveness. The disadvantage of ORACLE is the lack of compatible systems and the resource requirement is in terms of hardware resource requirement. “When a company’s performance goes down; each person puts the blame on SAP for not working properly” (Jai para. 2). 8. Prepare a Long-Time plan for your Organization on IS Business Infrastructure Ans) A long time plan for an organization on IS business structure- An organization’s IS business structure should be for long term because the cost related to information systems can only be realized, if it has been practiced for a long time. A long time plan for your organization on IS business infrastructure: 1) First, the information system requirement in a business structure should be analyzed. 2) Then the information system should be planned and organized accordingly. 3) After which the pros and cons of an information system should be identified. After identifying the pros and cons of an information system the information system is put on a trial for around 1 year and then the changes brought about are tracked. The system’s trial performance is checked for one year in order to check the efficiency of the system in the organization. After going for a trial run of the information system the efficiency of the system can be checked. It should be checked whether the incorporation of such a business information system is profitable for the firm. After identifying whether it is profitable or unprofitable then the information system can be purchased. “A well-designed information system rests on a coherent foundation that supports modifications as new business or administrative initiatives arise” (Information System). Work Cited Alexander, Benny. Development Life Cycle: Web Site Development Process – The Life-Cycle Steps. Macronimous.com. 2001. Web. 01 December, 2011. Bharadwaj, Anandhi S. A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation. Mis Quarterly. 2000. Vol. 24. Web. 01 December, 2011. Information System. Encyclopedia Britannica eb.com. 2011. Web. 01 December, 2011. < http://www.britannica.com/EBchecked/topic/287895/information-system/218066/Managing-information-systems> Jai. What is the Benefits of SAP Implementation. SAP. n.d. Web. 01 December, 2011. < http://www.sap-basis-abap.com/sapgeneral/what-is-benefits-of-sap-implementation.htm > Management Information Systems. Oxbridge Researchers Ltd. n.d. Web. 01 December, 2011. < http://writerighteam.com/Sample/Sample1259227015_120.pdf> Read More