Types of Organizational Structure and Role of ECommerce

Types of Organizational Structure and role of ECommerce

Keeping in view the structure of an organization, the design of Management Information will be influenced. How we have to map the requirements, performing several tasks, maintaining storage requirements and many more.

Identify several types of organizational structure; explain how MIS design and development is likely to be effective by each?

A Management Information System is an integrated user-machine system, for providing information, to support the operations, management, analysis & decision-making functions in an organization. The System utilizes computer hardware & software, manual procedures, models for analysis, planning, control & decision making and a database. MIS provides information to the users in the form of reports and output from simulations by mathematical models.

                                                                                     

1.      Management Oriented/directed

2.      Business Driven

3.      Integrated

4.      Common Data Flows

5.      Heavy Planning Element

6.      Subsystem Concept

7.      Flexibility & Ease of Use

8.      Database

9.      Distributed Systems

10.  Information as a Resource

 

STRUCTURE OF MIS

Physical Components
1.Information System Processing Functions
2. Decision Support
3. Levels of Management Activities
4. Organizational Functions

Based on Physical Components
Hardware
Software
Database
Procedures
Operating Personnel
Input & Output

1. Data Capturing

MIS captures data from various internal and external sources of an organization. Data capturing may be manual or through computer terminals. End users, typically record data about transactions on some physical medium such as paper form or enter it directly into a computer system.

2. Processing of data

The captured data is processed to convert it into the required management information. Processing of data is done by such activities as calculating, comparing, sorting, classifying and summarizing.

3. Storage of information

MIS stores processed or unprocessed data for future use. If any information is not immediately required, it is saved as an organizational record. In this activity, data and information are retained in an organized manner for later use. Stored data is commonly organized into fields, records, files and databases.

4. Retrieval of information

MIS retrieves information from its stores as and when required by various users. As per the requirements of the management users, the retrieved information is either disseminated as such or it is processed again to meet the exact demands.

5. Dissemination of Management Information

Management information, which is a finished product of MIS, is disseminated to the users in the organization. It could be periodic, through reports or on-line through computer terminals.

The Role of I.T. Personals

Computer personnel are the people responsible for the day to day operation of transaction processing system, management reporting system and all other shared multiuser computers. Some of the job titles for the people in this category are the following.

1.      Computer Operations Manager

The computer operations manager is the person in charge of the entire operations activity. Generally the computer operations manager will be responsible for hiring and assigning the other operations personnel’s, establishing operations center policies, planning the installation and removal of equipment, generally doing all the tasks to ensure that data get processed as efficiently as possible.

 2.      Computer Operators

Computer operators are the people in charge of running the equipment at the computer center. It is their job to load tapes and disks, monitor system performance, initiate solutions to equipment malfunctions and similar functions.

3.      Data entry Personal

Data entry personals are the people who enter data into the main computer system. Although most large organizations still employ a sizable number of people for data entry. The trend today is to move away from centralized data entry, whenever possible and to have users capture data in machine readable form at its source.

4.      System Librarians

System librarians are responsible for managing data stored off line on such media as tapes and disks. Included among the resources catalogued by systems librarians are backup copies of important programs and data and records kept for archival purposes.

System Analyst

A computer systems analyst is an occupation in the field of information technology. A computer systems analyst works to solve problems related to computer technology. Many analysts set up new computer systems, both the hardware and software, add new software applications to increase computer productivity. Others act as system developers or system architects, but most analysts specialize in a specific type of system such as business systems, accounting systems, financial systems, or scientific systems.

Programmers

Computer programmer is the key person responsible for the development of software required for computer based record keeping systems. This person is the key person in any organization for developing customized applications as required by the organization.

The role of ECommerce

Electronic commerce or e-commerce refers to a wide range of online business activities for products and services. It also pertains to “any form of business transaction in which the parties interact electronically rather than by physical exchanges or direct physical contact.”

E-commerce is usually associated with buying and selling over the Internet, or conducting any transaction involving the transfer of ownership or rights to use goods or services through a computer-mediated network. Though popular, this definition is not comprehensive enough to capture recent developments in this new and revolutionary business phenomenon. A more complete definition is: E-commerce is the use of electronic communications and digital information processing technology in business transactions to create, transform, and redefine relationships for value creation between or among organizations, and between organizations and individuals.

While some use e-commerce and e-business interchangeably, they are distinct concepts. In e-commerce, information and communications technology (ICT) is used in inter-business or inter-organizational transactions (transactions between and among firms/organizations) and in business-to-consumer transactions (transactions between firms/organizations and individuals).

In e-business, on the other hand, ICT is used to enhance one’s business. It includes any process that a business organization (either a for-profit, governmental or non-profit entity) conducts over a computer-mediated network. A more comprehensive definition of e-business is:

Three primary processes are enhanced in e-business:

1. Production processes, which include procurement, ordering and replenishment of stocks; processing of payments; electronic links with suppliers; and production control processes, among others;

2. Customer-focused processes, which include promotional and marketing efforts, selling over the Internet, processing of customers’ purchase orders and payments, and customer support, among others; and

3. Internal management processes, which include employee services, training, internal information-sharing, video-conferencing, and recruiting. Electronic applications enhance information flow between production and sales forces to improve sales force productivity. Workgroup communications and electronic publishing of internal business information are likewise made more efficient. ^[6]

What are the different types of e-commerce?

The major different types of e-commerce are: business-to-business (B2B); business-to-consumer (B2C); business-to-government (B2G); consumer-to-consumer (C2C); and mobile commerce (m-commerce).

 

B2B e-commerce

B2B e-commerce is simply defined as e-commerce between companies. This is the type of e-commerce that deals with relationships between and among businesses. About 80% of e-commerce is of this type, and most experts predict that B2B e-commerce will continue to grow faster than the B2C segment. The B2B market has two primary components: e-infrastructure and e-markets. E-infrastructure is the architecture of B2B. E-markets are simply defined as Web sites where buyers and sellers interact with each other and conduct transactions.

 

B2C e-commerce

Business-to-consumer e-commerce, or commerce between companies and consumers, involves customers gathering information; purchasing physical goods (i.e., tangibles such as books or consumer products) or information goods (or goods of electronic material or digitized content, such as software, or e-books); and, for information goods, receiving products over an electronic network.

It is the second largest and the earliest form of e-commerce. Its origins can be traced to online retailing (or e-tailing). The more common applications of this type of e-commerce are in the areas of purchasing products and information, and personal finance management, which pertains to the management of personal investments and finances with the use of online banking tools

B2C e-commerce reduces transactions costs (particularly search costs) by increasing consumer access to information and allowing consumers to find the most competitive price for a product or service. B2C e-commerce also reduces market entry barriers since the cost of putting up and maintaining a Web site is much cheaper than installing a “brick-and-mortar” structure for a firm. In the case of information goods, B2C e-commerce is even more attractive because it saves firms from factoring in the additional cost of a physical distribution network. Moreover, for countries with a growing and robust Internet population, delivering information goods becomes increasingly feasible.

B2G e-commerce

Business-to-government e-commerce or B2G is generally defined as commerce between companies and the public sector. It refers to the use of the Internet for public procurement, licensing procedures, and other government-related operations. This kind of e-commerce has two features: first, the public sector assumes a pilot/leading role in establishing e-commerce; and second, it is assumed that the public sector has the greatest need for making its procurement system more effective.

Web-based purchasing policies increase the transparency of the procurement process (and reduces the risk of irregularities). To date, however, the size of the B2G e-commerce market as a component of total e-commerce is insignificant, as government e-procurement systems remain undeveloped.

C2C e-commerce

Consumer-to-consumer e-commerce or C2C is simply commerce between private individuals or consumers.

This type of e-commerce is characterized by the growth of electronic marketplaces and online auctions, particularly in vertical industries where firms/businesses can bid for what they want from among multiple suppliers. It perhaps has the greatest potential for developing new markets.