1. Lets remember about Types of Systems and what about Feedback? LECTURE-4 OBJECTIVE OF TODAY’S LECTURE Today we will discuss about several terms of business, if we can understand about business policy, business process, environmen.t we can build a business information system. we know that information is need every where. Maximum information systems is built for business environment.

2. THE MAINE POINTS OF TODAY’S LECTURE BUSINESS FIRM AS A SYSTEM PLANNING PROCESS OBJECTIVE BUSINESS OBJECTIVES BUSINESS SUB-SYSTEMS MODELS OF INFORMATION SYSTEMS MANAGEMENT BY OBJECTIVE DATA AND INFORMATION

3. BUSINESS FIRM AS A SYSTEM The business itself is a system. Like other fabricated systems, the business system serves a purpose, profit ac service. The purpose of an information system should be compatible with the purpose of the business. What is the relationship between the information system, the business system, and end-users? Why is understanding the business system important to the analyst? These questions will be answered in this section. One of the difficult tasks of an analyst is overcoming size and complexity of system under investigation to identify the scope of an information system. System concepts help us deal with size and complexity by showing us the general characteristics that a! systems have in common Business Information Information as corporate resource and its management Business resources and Information System

4. Figure 5.1:-Environment, system and sub system

5. PLANNING PROCESS I t was observed earlier that planning is basically an exercise in determining the ends (i.e. objectives) and means to achieve them. Thus, planning process involves basically two phases, namely (1) Determination of objectives (2) Setting up of plans (Goals) to achieve the predetermined objectives. Objectives are the ends towards which the activities of an enterprise are directed. They provide direction to various activities of the enterprise. In any business organization objectives are key to effective planning. In fact, planning has no meaning unless it is related to certain well defined objectives or goals. Objectives are not only useful in planning but also in other managerial functions like organizing, directing and controlling. They are an important aid in decision-making in any area of business. Clear-cut objectives encourage consistency in decision-making in the long-run. Concepts of Organizational planning Setting of Goal and Objectives Hierarchy of planning

6. 1)Mission:-Broad statement of the purpose of the organization. "To provide a high quality product and convenient customer service:‘ 2) Goals:-General statement of what is to be accomplished. "Reduce time to respond to service request without increasing number of service personnel.“ 3) Strategies:-General approaches to achieving goals. "Improve procedures for handlingservice requests; provide procedures for reducing time required at each site:‘ 4. Objectives:-Statement of measurable results to be achieved. "Reduce average time from request to completion of service call:‘ 5.Plans and budgets:-Schedule of specific activities and actions to achieve objectives. "Revise service call request procedures; revise servicing procedures to improve use of diagnostic tools:‘ (6) Policy:-Limits to acceptable behavior express ethical and moral values, decision limits and standards. "System interfaces shall be designed to enhance and enrich the job performed by users:' Table 5.1:- Hierarchy of planning. objective Goals Strategies Plans and Budgets whathow Mission

7. OBJECTIVES Objectives are goals established to guide the affairs of the company and each of its components:' The key to effective planning lie in objectives. Only a well defined objective or goal highlights the need for planning. Apart from planning, objectives are also useful in managerial functions like organizing, directing and controlling. Being an important aid in decision making in any area of business, clear-cut objectives also encourage consistency in decision making in the long run. Objectives are key to effective planning. In fact, planning has no meaning unless it is related to certain well­ defined objectives or goals. Objectives are not only useful in planning but also in other managerial functions like organizing, directing and controlling. They are an important aid in decision-making in any area of business. Clear-cut objectives encourage consistency in decision making in the long-run. Significance of Objectives Nature of Objectives. Features of Valid Objectives

8. Nature of Objective Objectives are the action commitments through which the mission of a business organization is to be carried out and the standards against which performance is to be measured. Effective objectives have the following characteristics: (1)Objectives are realistic and operational. (2) Objective are multiple in nature (3)Objectives may be long-range or sort range (4)Objectives Follow a Hierarchy.

9. Figure:5.3:- Organizational partial functional organization chart.

10. Feature of Valid Objectives (1)Objective must be concrete, Specific and particular. (2)Objectives should be verifiable. (3)Objectives should be result-centered. (4)Objectives should encourage higher performance yet be realistic. (5)Objectives must be balanced. (6)Objectives must form a network.

11. BUSINESS OBJECTIVES A key objective of a business information system is to identify what managerial information s useful and to generate this information-not data. Often, raw data can be transformed into useful information with the "right" data-processing techniques, but care must be exercised. Processing the wrong data or taking too much time to process the right data results in more useless data-not information. Similarly, too much data processing- e.g., preparing too many reports or reports that are too detailed-may accomplish little. GOALS STRATEGY

12. Business Sub-systems The need for information and the consequent requirement for a means of processing raw data rapidly and accurately applies to a wide range of work areas in business. From Figure 2.3 can be seen in broad outline as the way in which work areas connect together and contribute to the financial and management accounting statements. The arrowed lines in this diagram indicate the general flow of action and the related data in an 'average' manufacturing company. Slight variations from this may occur with other types of organization. PRODUC SUBSYSTEM MARKETING SUBSYSTEM PERSONAL SUBSYSTEM FINANCIAL SUBSYSTEM

13. Figure:5.4:- Simple model of business Subsystems Marketing Production Accounting

14. MODELS OF INFORMATION SYSTEMS The information systems are considered to be evolved through three different levels of systems. These are: (1)Conceptual System Every information processing system is evolved by way of a concept when somebody imagines that the organization should have such and such a system to accomplish such and such an objective. A system so conceived may or may not be attained in reality. A conceptual model is no more than an idea. (2)Logical System When the conceived system model is further worked out to design new ways to accomplish the objective set out in conceptual system, it becomes the logical system design. A logical system design necessarily includes understanding of the flow of information, logic of processing and input-output relation ships. The Data Flow Diagrams, Flow Charts, etc. are the basic components of the logical models. (3)Physical Systems When the logical models are developed to actually deliver the desired results, it i referred to as a physical system model. The physical system model can be tested an implemented. It consists of the programs, data files and documentation.