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OUTSOURCING
IT OUTSOURCING

APPLICATION DEVELOPMENT


IT OUTSOURCING
ROLE OF IT SUPPORT
Topics Index


1
    IT in everyday life
                                           In this session we are going
                                           to:
2
    The role of IT in business             • Understand how
                                             Information Technology
                                             helps businesses to
    Case Study                               perform optimally
3




                                 Topics Index
Learning Objectives



• At the completion of this
  session you will be able to:
   – Describe the role of IT in our
     day to day life
   – Explain how IT helps
     organizations to function
     optimally




                       Learning Objectives
Topics Index


1   IT in everyday life

    The role of IT in business                 In this topics we are going to:
2
                                                • Look at the role of IT in
                                                  our day to day life
    Case Study
3




                                 IT in everyday life
A day in the life of a Corporate Executive…




  6 AM: I am woken up by my smart phone alarm. The phone runs
    many software applications that provide different utilities like
                    calculator, stopwatch etc.

                            IT in everyday life
A day in the life of a Corporate Executive…




 While I am getting ready to go to office, I take a quick look at my
 calendar entries for today in my smart phone, which is synched
   with my Google calendar. I notice that I have an early video
                     conference today at 9:30

                             IT in everyday life
A day in the life of a Corporate Executive…




   I heat up some milk in the microwave for my corn flakes. The
      microwave oven runs software to perform its functions


                           IT in everyday life
A day in the life of a Corporate Executive…




         I remember that I have to pay two bills today.

                         IT in everyday life
A day in the life of a Corporate Executive…




   I log into my computer, connect to the internet, and pay my
    electricity and phone bills by doing an online bill payment.

                           IT in everyday life
A day in the life of a Corporate Executive…




 The sophisticated software transfers the money securely from my
bank account to the provider. My computer generated statement at
      the end of the month will show me the money transfer
                          transactions.

                           IT in everyday life
A day in the life of a Corporate Executive…




 I rush out of the house and get into the elevator to go down to my
  apartment’s parking area. The OTIS elevator runs software which
enables the two lifts in my building to run in tandem, and in optimal
                               fashion.

                             IT in everyday life
A day in the life of a Corporate Executive…




 I get into my Honda City and drive to work. My car has the iVTEC
engine which has software to optimize the fuel consumption. The
   software selects the valve timing depending on the prevailing
                             conditions

                            IT in everyday life
A day in the life of a Corporate Executive…




 On the way I make a call to my credit card customer service, which
   uses Interactive Voice Recording software to route me to the
                           correct person.

                            IT in everyday life
A day in the life of a Corporate Executive…




 He pulls up my card statement instantly on his computer screen
and the software allows him to make the adjustments I requested.



                           IT in everyday life
A day in the life of a Corporate Executive…




After I hang up the phone I get an SMS on my phone confirming
                        the transaction


                           IT in everyday life
A day in the life of a Corporate Executive…




   When I reach the office, I get into the Video conference. The
Polycom VC equipment has software to control its functions. Using
     the menu, I dial my Sydney office, and start the meeting.

                            IT in everyday life
A day in the life of a Corporate Executive…




I just got a call regarding a delivery Issue in Hyderabad. Ask travel
         desk to check availability of flights to Hyderabad.
     Travel desk contact immediately makes the inquiry on his
                               computer.

                             IT in everyday life
A day in the life of a Corporate Executive…




   The software gives him a list of available options, which he
   promptly emails to me. In exactly 10 minutes, I have all the
               available options in front of me.
                     And my day goes on…

                           IT in everyday life
DISCUSSION




  Give examples of how IT touches your
  everyday life
Topics Index


1
    IT in everyday life
                                       In this session we are going
                                       to:
2   The role of IT in business         • Understand how IT helps
                                         businesses to perform
                                         optimally.
    Case Study
3




                            The Role of IT
Behind the customer touch points of a business are large IT Systems




                               BANK’S IT SYSTEMS




                                 The Role of IT
The Role of IT has evolved over the years




               Automate end-        Integrate a      IT solution
Automate a
                   to-end           network of        itself can
 part of a       business           businesses        become a
 business      processes and                         product or
 process         integrate                              service
                 functions
 Localized     Cross Functional       Network        Business Scope
Exploitation     Integration       Reconfiguration    Redefinition

                          The Role of IT
An Automobile manufacturing company


• Operational Processes
  –   Sales Forecast
  –   Production Planning
  –   Procurement
  –   Manufacturing
  –   Sales & Distribution
• Support Processes
  – Research & Development
  – Financial Accounting
  – HR


                         The Role of IT
Sales Forecast



                                  Dealers
     Where does the Sales
     Forecast come from?



                                     Regional
                                      offices




                                  Sales
                                  Team




                            The Role of IT
Sales Forecast



          How is the data gathered and analyzed?




                     The Role of IT
Sales Forecast – Challenges


•   Information gathering
•   Timeliness
•   Business rule enforcement
•   Manage change in requirements




                     The Role of IT
Sales Forecast – How does Information Technology help?


– Dealers, Regional offices, and
  Sales Team can enter their
  forecasts into a web-based
  interface.

– Data entry rules are enforced
  to ensure that data provided
  is complete




                                           A web based interface


                          The Role of IT
Sales Forecast – How does Information Technology help?


The IT system can send alerts to people if they have
not entered the data in time




                        The Role of IT
Sales Forecast – How does Information Technology help?


Past data is automatically analyzed by the IT system and
corrections made
Where forecast has not been received, business rules can be
automatically applied to create a forecast




                         The Role of IT
Sales Forecast – How does Information Technology help?


Final reports are distributed for review, validation and action




                           The Role of IT
Production Planning


• What is the output from Production
  Planning?
   – The day and shift-wise production plan for each
     factory and production unit of the organization
   – The type and quantity of each part required to
     meet the production requirements
• What are the inputs for production
  planning?
   – Sales Forecast: The number of vehicles of each
     type demanded by the market each month
   – Bill of Materials: The part-wise breakdown of
     each model that is to be manufactured
   – Production Capacity: The production capacity of
     in-house and supplier factories
                             The Role of IT
Production Planning – Challenges

• Information gathering – sales forecast, bill of
  materials etc.
• Timeliness
• Accuracy
• Business constraints like “Economic Order
  Quantities”
• Changing requirements




                       The Role of IT
Production Planning: How does Information Technology help?

Data used from various sources
                                               Ensures that data is
                                               correct



                                                      Makes large scale data
                                                      analysis fast



                                                           Distributes production plans
                                                           instantly to a large number
                                                           of people
                                 IT Systems




                                     The Role of IT
Discussion


• Based on the examples just discussed, identify some
  of the attributes of Information Technology that
  helps organizations. For example one of the
  attributes is the ability to do complex calculations
  quickly. Think of one real life example of each type




                      The Role of IT
Benefits of IT – A Summary


                                      Speed


                    Efficiency                      Consistency




           Real Time
          Integration
                                 Benefits of IT               Reliability




                        Reach                       Lower Cost

                                     Real Time
                                    information
                                     availability




                                 The Role of IT
Illustration – How does IT make a business more efficient?



Centralized Railway Reservation System in India




                           The Role of IT
Railway Reservation System – Benefits


                BEFORE                                      AFTER

   • Separate booking window for              • Anyone may book from
   each train at each location                anywhere, for any train
   • Physical “register” for each train       • Can do own booking over
   at each booking location                   Internet
   • Confusion in application of              • Complex business rules applied
   complex business rules                     consistently. Any changes in rules
        • Quotas                              applied throughout seamlessly
        • Pricing
   • Providing status to customers            • Providing status is a breeze,
   was a nightmare                            including on Internet, SMS
   • Huge manual effort to produce            • Outputs produced at the click of
   outputs like reservation charts            a mouse



                                   The Role of IT
Case Study – Group Activity


• You all are either attending a college now, or
  have attended one before
• Think about 3 ways the college can utilize IT to
  improve its functioning. What will be the
  benefits? (15 minutes)
• Each group to present one item from their list
  (Total 15 minutes)



                    The Role of IT
Summing Up


• IT has evolved over the last 50 years to play an
  ever greater role in business
• Today’s businesses use IT in almost every
  function for reasons of efficiency, cost,
  reliability, accuracy and reach
• IT becomes visible to us through the customer
  touchpoints of a business. However that is
  only the tip of the iceberg as far as the role of
  IT in business is concerned.

                    The Role of IT
References


• Role of IT in the growth of business:
  http://ezinearticles.com/?Role-of-Information-
  Technology-in-Growth-of-Business&id=344198
• The Changing role of IT in business:
  http://globaltechforum.eiu.com/index.asp?layout=ric
  h_story&channelid=5&categoryid=17&doc_id=9326
• Does IT Matter?:
  http://www.nicholasgcarr.com/doesitmatter.html




                     The Role of IT
Thank You

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Role of IT _Support

  • 2. Topics Index 1 IT in everyday life In this session we are going to: 2 The role of IT in business • Understand how Information Technology helps businesses to Case Study perform optimally 3 Topics Index
  • 3. Learning Objectives • At the completion of this session you will be able to: – Describe the role of IT in our day to day life – Explain how IT helps organizations to function optimally Learning Objectives
  • 4. Topics Index 1 IT in everyday life The role of IT in business In this topics we are going to: 2 • Look at the role of IT in our day to day life Case Study 3 IT in everyday life
  • 5. A day in the life of a Corporate Executive… 6 AM: I am woken up by my smart phone alarm. The phone runs many software applications that provide different utilities like calculator, stopwatch etc. IT in everyday life
  • 6. A day in the life of a Corporate Executive… While I am getting ready to go to office, I take a quick look at my calendar entries for today in my smart phone, which is synched with my Google calendar. I notice that I have an early video conference today at 9:30 IT in everyday life
  • 7. A day in the life of a Corporate Executive… I heat up some milk in the microwave for my corn flakes. The microwave oven runs software to perform its functions IT in everyday life
  • 8. A day in the life of a Corporate Executive… I remember that I have to pay two bills today. IT in everyday life
  • 9. A day in the life of a Corporate Executive… I log into my computer, connect to the internet, and pay my electricity and phone bills by doing an online bill payment. IT in everyday life
  • 10. A day in the life of a Corporate Executive… The sophisticated software transfers the money securely from my bank account to the provider. My computer generated statement at the end of the month will show me the money transfer transactions. IT in everyday life
  • 11. A day in the life of a Corporate Executive… I rush out of the house and get into the elevator to go down to my apartment’s parking area. The OTIS elevator runs software which enables the two lifts in my building to run in tandem, and in optimal fashion. IT in everyday life
  • 12. A day in the life of a Corporate Executive… I get into my Honda City and drive to work. My car has the iVTEC engine which has software to optimize the fuel consumption. The software selects the valve timing depending on the prevailing conditions IT in everyday life
  • 13. A day in the life of a Corporate Executive… On the way I make a call to my credit card customer service, which uses Interactive Voice Recording software to route me to the correct person. IT in everyday life
  • 14. A day in the life of a Corporate Executive… He pulls up my card statement instantly on his computer screen and the software allows him to make the adjustments I requested. IT in everyday life
  • 15. A day in the life of a Corporate Executive… After I hang up the phone I get an SMS on my phone confirming the transaction IT in everyday life
  • 16. A day in the life of a Corporate Executive… When I reach the office, I get into the Video conference. The Polycom VC equipment has software to control its functions. Using the menu, I dial my Sydney office, and start the meeting. IT in everyday life
  • 17. A day in the life of a Corporate Executive… I just got a call regarding a delivery Issue in Hyderabad. Ask travel desk to check availability of flights to Hyderabad. Travel desk contact immediately makes the inquiry on his computer. IT in everyday life
  • 18. A day in the life of a Corporate Executive… The software gives him a list of available options, which he promptly emails to me. In exactly 10 minutes, I have all the available options in front of me. And my day goes on… IT in everyday life
  • 19. DISCUSSION Give examples of how IT touches your everyday life
  • 20. Topics Index 1 IT in everyday life In this session we are going to: 2 The role of IT in business • Understand how IT helps businesses to perform optimally. Case Study 3 The Role of IT
  • 21. Behind the customer touch points of a business are large IT Systems BANK’S IT SYSTEMS The Role of IT
  • 22. The Role of IT has evolved over the years Automate end- Integrate a IT solution Automate a to-end network of itself can part of a business businesses become a business processes and product or process integrate service functions Localized Cross Functional Network Business Scope Exploitation Integration Reconfiguration Redefinition The Role of IT
  • 23. An Automobile manufacturing company • Operational Processes – Sales Forecast – Production Planning – Procurement – Manufacturing – Sales & Distribution • Support Processes – Research & Development – Financial Accounting – HR The Role of IT
  • 24. Sales Forecast Dealers Where does the Sales Forecast come from? Regional offices Sales Team The Role of IT
  • 25. Sales Forecast How is the data gathered and analyzed? The Role of IT
  • 26. Sales Forecast – Challenges • Information gathering • Timeliness • Business rule enforcement • Manage change in requirements The Role of IT
  • 27. Sales Forecast – How does Information Technology help? – Dealers, Regional offices, and Sales Team can enter their forecasts into a web-based interface. – Data entry rules are enforced to ensure that data provided is complete A web based interface The Role of IT
  • 28. Sales Forecast – How does Information Technology help? The IT system can send alerts to people if they have not entered the data in time The Role of IT
  • 29. Sales Forecast – How does Information Technology help? Past data is automatically analyzed by the IT system and corrections made Where forecast has not been received, business rules can be automatically applied to create a forecast The Role of IT
  • 30. Sales Forecast – How does Information Technology help? Final reports are distributed for review, validation and action The Role of IT
  • 31. Production Planning • What is the output from Production Planning? – The day and shift-wise production plan for each factory and production unit of the organization – The type and quantity of each part required to meet the production requirements • What are the inputs for production planning? – Sales Forecast: The number of vehicles of each type demanded by the market each month – Bill of Materials: The part-wise breakdown of each model that is to be manufactured – Production Capacity: The production capacity of in-house and supplier factories The Role of IT
  • 32. Production Planning – Challenges • Information gathering – sales forecast, bill of materials etc. • Timeliness • Accuracy • Business constraints like “Economic Order Quantities” • Changing requirements The Role of IT
  • 33. Production Planning: How does Information Technology help? Data used from various sources Ensures that data is correct Makes large scale data analysis fast Distributes production plans instantly to a large number of people IT Systems The Role of IT
  • 34. Discussion • Based on the examples just discussed, identify some of the attributes of Information Technology that helps organizations. For example one of the attributes is the ability to do complex calculations quickly. Think of one real life example of each type The Role of IT
  • 35. Benefits of IT – A Summary Speed Efficiency Consistency Real Time Integration Benefits of IT Reliability Reach Lower Cost Real Time information availability The Role of IT
  • 36. Illustration – How does IT make a business more efficient? Centralized Railway Reservation System in India The Role of IT
  • 37. Railway Reservation System – Benefits BEFORE AFTER • Separate booking window for • Anyone may book from each train at each location anywhere, for any train • Physical “register” for each train • Can do own booking over at each booking location Internet • Confusion in application of • Complex business rules applied complex business rules consistently. Any changes in rules • Quotas applied throughout seamlessly • Pricing • Providing status to customers • Providing status is a breeze, was a nightmare including on Internet, SMS • Huge manual effort to produce • Outputs produced at the click of outputs like reservation charts a mouse The Role of IT
  • 38. Case Study – Group Activity • You all are either attending a college now, or have attended one before • Think about 3 ways the college can utilize IT to improve its functioning. What will be the benefits? (15 minutes) • Each group to present one item from their list (Total 15 minutes) The Role of IT
  • 39. Summing Up • IT has evolved over the last 50 years to play an ever greater role in business • Today’s businesses use IT in almost every function for reasons of efficiency, cost, reliability, accuracy and reach • IT becomes visible to us through the customer touchpoints of a business. However that is only the tip of the iceberg as far as the role of IT in business is concerned. The Role of IT
  • 40. References • Role of IT in the growth of business: http://ezinearticles.com/?Role-of-Information- Technology-in-Growth-of-Business&id=344198 • The Changing role of IT in business: http://globaltechforum.eiu.com/index.asp?layout=ric h_story&channelid=5&categoryid=17&doc_id=9326 • Does IT Matter?: http://www.nicholasgcarr.com/doesitmatter.html The Role of IT