GMS 200 Lecture Notes - Electronic Data Interchange, Customer Relationship Management, Decision Support System
DepartmentGlobal Management Studies
Course CodeGMS 200
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Information and Decision Making – Chapter 7
Information technology: the use of electronic devices that aid in the creation, management, and use of
INFORMATION TECHNOLOGY AND THE CHANGING WORKPLACE
Knowledge and knowledge workers provide a decisive and irreplaceable competitive factor in today’s economy.
Drucker called the productivity of knowledge and knowledge workers depends on two must have competencies
(1) computer competency (2) information competency
Knowledge worker: add value to organizations through intellect
Intellectual Capital: is collective brainpower or shared knowledge of a workforce.
→ How it is changing business
Electronic commerce is the process of buying and selling goods and services through use of internet.
• B2C – businesses like chapters-indigo sell directly to consumer over internet
•B2B- businesses use internet to make transactions with another business
Stages of Development in E-commerce
( 1 ) Secure an online identity
( 2 ) Establish a web presence
( 3 ) Enable e-commerce
( 4 ) Provide e-commerce and customer relationship management
( 5 ) Utilize a service application model
→How it is changing organizations
-Facilitation of communication and information sharing
-Operating with fewer middle managers
-Flattening of organizational structures
-Faster decision making
-Increased control and coordination
(with external environment)
-helps with customer relationship management
-helps organizations with supply chain management
-helps in monitoring outsourcing and other business contracts
→ How it is changing the office
Progressive organizations actively use IT to help achieve high performance in uncertain environments. It has
changed the nature of the “office” with desk space, access to internet, print presentations, phone calls, working
from office or home etc.
Instant Messaging: instantaneous communication between people online at the same time
Peer-to-peer file sharing (P2P): connects PCs directly to one another over the internet.
-VoIP is used to allow telecommuters to make calls from anywhere
INFORMATION AND THE MANAGEMENT PROCESS
Managers are increasingly expected to excel in their information processing roles
→What is useful information?
Data are raw facts and observations. Information is data made useful and meaningful for decision making.
Information drives management functions. Information is truly useful if it meets the test of these 5 criterias
(1)Timely (2) High Quality (3) Complete (4) Relevant (5) Understandable
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→ Information needs of organizations
-Information exchanges with the external environment
•Intelligence information is used to deal with competitors and key
•Provide Public Information to stake holders and to the external
-Information exchanges within the organization
• Facilitate decision making
• Facilitate problem solving
..uses the latest IT to collect, organize, and distribute data for use in decision making.
Management information system(MIS) is specifically designed to meet the information needs of managers in
daily decision making.
•Decision Support and Expert Systems
DSS is an interactive information system that allows users to organize and analyze data for solving complex and
sometimes unstructured problems.
Group Decision Support System (GDSS) facilitate group efforts to solve complex and unstructured problems.
GDSS software, called groupware, software that facilitates group collaboration and problem solving.
Artificial Intelligence (AI), a field of science that is interested in building computer system with the capacity to
reason the way people do. Expert systems use AI to mimic the thinking of human experts for applied problem
• Web portals and networks
Organizations use intranets and corporate portals allow employees, by passwords access, to share databases and
communicate electronically. It uses the web for communication and data sharing with an organization.
Extranets and enterprise portals allow communication and data sharing between the organization and special
element in its external environment. It uses the web for communication and data sharing between the
organization and its environment.
An important and rapidly expanding development in his area is called electronic data interchange (EDI), uses
controlled access to enterprise portals and supporting software to enable electronic transactions between
→ Managers as Information Processors
The manager as an information-processing nerve centre.
To do all aspects of the management process- success in management is increasingly tied to the opportunities of
( 1 ) Planning advantages: better and more timely access to useful
information. Involving more people in planning process.
( 2 ) Organizing advantages: more ongoing and informed communication
among all parts of the organization. Improved coordination and integration
( 3 ) Leading advantages: improved communication with staff and
stakeholders. Keeping objectives clear.
( 4 ) Controlling Advantages: more immediate measures of performance
results. Allows real-time solutions to performance problems.
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