New Trends In Computing And Their Effect On Management

Decisions Making
A group assignment by
Group 4
D N K Wijesinghe

(2013/MBA/WE/FIN/35)

C U Hettiarachchi

(2013/MBA/WE/FIN/15)

B D I Perera

(2013/MBA/WE/FIN/25)

M M B Dinesh

(2013/MBA/WE/FIN/04)

M E Airhunmwunde

(2013/MBA/WE/FIN/37)

Course: MBA 540 Management Information Systems

Lecturer:
Dr. Ajantha Athukorale

Semester II Second Half

February 2015

Postgraduate and Mid-Career Development Unit

Faculty of Management & Finance
University of Colombo

Table of Contents

1. Introduction
2. New trends in computing
2.1. Communications
2.2. Internet and networking
2.3. Information systems
2.4. High security
2.5. Mobile devices
2.6. Wearable computing
2.7. Network of things
3. Use of new trends in computing in management decision making
4. Summery
5. References

1.0 Introduction
It is seen that recent upheaval in modern computer science technologies have made
a deep impact of our lives. In 80s as kids we played on play grounds, ride bikes, had fun
times physically with friends. But now technology has crept into out lives of kids. They play
games on XBOX, call over I-phones and never physically visit friends but chat on Facebook
and updates Twitter. It seems like technology has make the world smaller.
So in this topic we are going to discuss how the new trends in information systems
development has influenced management decision making. First we look at the trends of
modern computing and then we look at how these trends influences modern management
decision making.

2.0 New trends in computing

2.1 Communications
Communication is an integral part of life. In early days people use to
send letters, agents and messengers for information sharing between each other. But
when the development of technology has been taken place gradually came the era of
telephone and when the internet era arrives communication methods like email, VOIP, video calling, call conferencing.
2.2 Internet and networking
Networking makes resource sharing faster and more efficient. By
networking two or more computers can share each others resources like printers

memory as well as they can be organized to provide hierarchy of services like

client server applications, distributed applications. Now a networks all around the
world have connected and created a network of network which today called The
Internet. Based on internet infrastructure many web applications built using HTTP
protocol.
2.3 Information systems
Information systems provide variety of compiled information to the
users. In early days payroll system and banking systems has been running in huge
mainframes. But now management information systems, enterprise resource
planning systems etc. many electronic automation systems has been on place and
has been working 24/7/365 providing service for the business.
2.4 High security
When we talk of information in business context it is inevitable to
think of the security of information. When communicating information over
network which is public like internet where an intruder can get hold of cooperate
secret information it is a must to encrypt the information we communicate.
Highly secured encryption codes has been developed recently with large number
of bytes used as keys which enhance the security of information.
2.5 Mobile devices
The mobile era has dawn and there are number of mobile devices
communicating equal to the number of people on earth in 2014 [Ref 1]. Mobility
has created new ease of use for the users since it uses wireless technology to
communicate over wirelessly. Today mobile phones have become so sophisticated
that an average phone can carry more computing power than a normal desktop a

decade a go. So new mobile devices instead of only providing call facilities only
have also others host of applications and uses which eases the lives of the people.
2.6 Wearable computing
Now according to moors law increasing computing power and
shrinking component sizes of transistors with the upheaval of modern technology has
enabled squeeze small computers into things we wear like glasses, headsets etc.
which will give an extra sense of information available around us which is called
augmented reality. This will give new rise to real time monitoring of our health, and
host of other applications.
2.7 Network of things
Initially it was only computers that were connected through networks
but now as the technology improved the normal devices get processors embedded in
them and they get smarter and would be able to communicate each other over concede
network. Like Internet enabled TV, refrigerator etc. Also with the development of
sensor technology security cameras etc. gets more sophisticated and able to track
down robbers accidents and even alarm relevant officers as well.

3.0 Use of new trends in computing in management decision making

Figure 1 : Porters value chain [Ref 2]

Business organizations create value for their stakeholders. A rational manager
would take management decisions to increase the value for stakeholders. To create
value it has to be involved in primary activities and support activities. Now lets see
what are the major problems faced by managers in decision making in optimizing their
value chain and how modern technological trends are helpful in making faster accurate
real-time decisions.
When considering primary activities in inbound logistics involve getting raw
material from suppliers, getting it in right time in right amounts lowering inventory
cost. This is where Just-In-Time inventory comes into play. It involves ordering the
raw materials as the orders are placed. For this you need an end to end connected
system which will dispatch the sales request as they are placed to operational units.
This is where modern ERPs comes to play. When an order is placed to the system the

ERP will automatically check inventories if the materials are not adequate it will place
orders from the pre-approved suppliers and will help to determine the cheapest logistic
options by comparing available models.
When comes to operations, its all about converting the raw materials received
to the required products and services. Here managers bother about using their
resources in an optimum way. Sheduling and planning are key problem areas. To
produce efficient and correct schedules MIS systems and ERP systems helps a lot
which otherwise done manually would be a very tedious and an error prone task. Also
improvements in CAD CAM technologies has enabled us to prototype the most
complex designs and visualize them in 3D and even print them the prototype in 3D for
better understanding. And using automated robots have increased the product accuracy
and consistency with reducing failures and returns reducing increasing long-term
profits. High end sensor technology can detect defects which will produce high quality
goods to the customers which will increase the brand loyalty.
Outbound logistics involve distributing the products produced through
distribution channels. Technology comes handy here as well. For easily locating stores
that need the products systems are developed to inform directly from customer to the
supplier that the product is finished in particular store using modern social networking
app which is installed in mobiles called twitter. when the customer tweet the message
the supplier specifying the product is finished at particular store supplier immediately
come and refill the product there.(could not remember the name of the product
its indian producer)
When it comes to marketing and sales technology has the most influence.
Ecommerce has broken the geographical boundaries. With increased networking

speeds and increasing bandwidths and with increasing security with enhanced
encryption money transactions of sales begin to foster online reducing risk of money
transfers manually from place to place. Online banking provides convince of banking
at the fingertip form ones office without visiting the bank. New models of marketing
have popped up like search engine optimization, web advertising email marketing etc.
which will popularize products among web surfers. And online auction sites like eBay
has enable to sell anything you have all over the world. Popular ecommerce sites like
Amazon, Barns & Noble etc. sell thousands of products over internet and ship all over
the world. Even Amazon is trying new quad copter delivery to the door step what you
order over the web. Now it has become a norm that any company should have a
website of its own for its online presence. Since most people surf web rather than
reading newspapers these days having a web presence is most important and effective
to communicate the companies vison mission gals and activities and even many
companies list their annual reports to freely download over internet in their site to give
financial status of their company to interested stakeholders.
Services activities involve providing aftersales service and training etc. to the
customers for their products. For this purpose customer relationship management
systems (CRM) comes handy. it records all your customer details and provide a way to
analyse buying patterns and identify what are the best suited products and may forecast
what items one may buy most probably if he buy one thing and what could be the
offers that be given to him to add more value to the product. Also it will help to
analyse what are the most defective models and their weaknesses etc. and how to avoid
costly warranty repairs in future as well.
When it comes to supporting activities of the organization firm infrastructure
means general management accounting finance etc. general management can be

supported by decision support system and finance accounting can be automated and
integrated with DSS and ERPs available to provide real-time status of the company to
the senior management. They can have mobile application dashboards showing real
time financial KPIs variations in graphs which can be dig into the details if something
unusual is happening. On line data analysis has enables analysing large quantities of
data in fractions of seconds. Cloud computing has enabled us not to keep computing
resources restricted for maximum usage but to increase computing resources on
demand which will be a cost effective solution to the costly computing resources. Data
warehousing has enabled to create business intelligence and identify recurring patterns
and use them in demand forecasting etc. Keep meetings and communications has
become a breeze with teleconferencing email and technologies like Skype , Viber has
brought us closer together through our mobile devices like I-pads, iPhones and
Android smart phones connected with 3G , 4G connectivity with super fast speeds,
even we are dispersed geographically. Working form convenience of home is possible
through VPN Access to the work place server.
New business models based on ecommerce have appeared like B2C, B2B
which will create new value chains to the companies. Procurement has never be the
same again. Where the raw material purchases can be done internationally through
websites like Alibaba etc. where wholesale producers advertise their products and
business will procure from the producers.
Adding Human resource to the organization has never been so important
supporting activity where knowledge has become the power. Human resource
management systems today will go through tedious task of filtering CV for particular
position using AI and helping to choose best applicants among the thousands of
applications receive for the organization for their vacancies. They also help to evaluate

employee performances attendance etc. and help to decide promotions and hikes etc.
and helps to decide the training needs of the employees as well. Network of cameras
placed in the premises will allow to track employee movements and detect suspicious
activities which will enhance the security of the organization which is an
implementation of network of things. Improved biometric identification methods
provide ease of access restrictions to secure places of the organization. It will also help
to track employee movemnt s and time and attendance automation.
Technology development includes research and development business
automation which is very critical for the future of the business. for new researches
cutting edge simulations CAD ,CAM facilities ,Virtual reality augmented reality like
Google Glass and Oculus Rift would help to create new understanding of complex
phenomena that are researched today. Visualisations from holographic nature will be
the future of presentation technology with motion detection which will detect and
display information according to and body motion.

4.0 Summery
Name:

Registration No:

D N K Wijesinghe

(2013/MBA/WE/FIN/35)

C U Hettiarachchi

(2013/MBA/WE/FIN/15)

B D I Perera

(2013/MBA/WE/FIN/25)

M M B Dinesh

(2013/MBA/WE/FIN/04)

M E Airhunmwunde

(2013/MBA/WE/FIN/37)

Contribution

Networking and
internet

Signature

5.0 References
[Ref 1] - http://www.digitaltrends.com/mobile/mobile-phone-world-population-2014/ ;
Number of mobile phones to exceed world population by 2014; Joshua Pramis February
28, 2013 ; Accessed on 16th Feb 2015 : 15.12.
[Ref 2] - http://www.valuebasedmanagement.net/methods_porter_value_chain.html ;
Summery of VC Model by Porter; Accessed on 20th Feb 2015: 10:50.