TERM PAPER

MIS TERM PAPER

SUBMITTED TO DR. SHELLAKA
AABIR (01-MBA-19)

AABIR FAYAZ. ROLL NO. : 01

TOPIC

Explain in detail about the various types of information systems that are being used
in the organizations.discuss at length about their roles in the organizations.Support
your explaination with the help of examples.

Ans.

INFORMATION SYSTEM:

According to O’Brien, & Marakas,

“Information System (IS) can be any organized combination of people,

hardware, software, communications networks, data resources, and policies
and procedures that stores, retrieves, transforms, and disseminates
information in an organization.”

Components of the information system are as follows:

I. Computer Hardware:
Physical equipment used for input, output and processing. What
hardware to use it depends upon the type and size of the organisation. It
consists of input, an output device, operating system, processor, and
media devices. This also includes computer peripheral devices

II. . Computer Software:

The programs/ application program used to control and coordinate the
hardware components. It is used for analysing and processing of the
data. These programs include a set of instruction used for processing
information.

Software is further classified into 3 types:

1. System Software
2. Application Software
3. Procedures
III. Databases:
Data are the raw facts and figures that are unorganised that are and
later processed to generate information. Softwares are used for
organising and serving data to the user, managing physical storage of
media and virtual resources. As the hardware can’t work without
software the same as software needs data for processing. Data are
managed using Database management system.
Database software is used for efficient access for required data, and to
manage knowledge bases.

IV. Network:
 Networks resources refer to the telecommunication networks like the
intranet, extranet and the internet.
 These resources facilitate the flow of information in the organisation.
 Networks consists of both the physicals devises such as networks cards,
routers, hubs and cables and software such as operating systems, web
servers, data servers and application servers.
 Telecommunications networks consist of computers, communications
processors, and other devices interconnected by communications media
and controlled by software.
 Networks include communication media, and Network Support.

V. HumanResources:
It is associated with the manpower required to run and manage the
system. People are the end user of the information system, end-user use
information produced for their own purpose, the main purpose of the
information system is to benefit the end user. The end user can be
accountants, engineers, salespersons, customers, clerks, or managers
etc. People are also responsible to develop and operate information
systems. They include systems analysts, computer operators,
programmers, and other clerical IS personnel, and managerial
techniques.

Types of Information Systems in an Organization AND THEIR ROLES

A typical organization has six of information systems with each supporting a

specific organizational level
These systems include :

1. Transaction Processing Systems (TPS) at the operational level.

2. Office Automation Systems (OAS) and Knowledge Work

Systems (KWS) at the knowledge level.

3. Management Information Systems (MIS) and Decision Support

Systems at the management level.

4. Executive Support Systems (ESS)at the strategic level.

 Transaction Processing Systems (TPS)

Transaction processing systems (TPS) are the basic business systems that
serve the operational level of the organization. A transaction processing
system is a computerized system that performs and records the daily routine
transactions necessary to the conduct of the business. At the lowest level of
the organizational hierarchy we find the transaction processing systems that
support the day-today activities of the business.

An example of TPS system could be an online air ticket booking system.

In such a system, travelers select their flight schedule and favorite seats (the
input), and the system updates the seats available list, removing those
selected by the traveler (the processing). The system then generates a bill
and a copy of the ticket (the output). TPS information systems can be based
on real-time or batch processing, and can help business owners meet
demand without acquiring additional personnel.

 Office Automation Systems (OAS)

Office automation systems are one of the most widely used types of
information systems that will help managers control the flow of information
in organizations. Office Automation Systems are enhance team and workgroup
communications and productivity .Office automation systems are other types
of information systems are not specific to any one level in the organization but
provide important support for a broad range of users . Office information
systems are designed to support office tasks with information technology.
Voice mail, multimedia system, electronic mail, video conferencing, file
transfer, and even group decisions can be achieved by office information
systems . Types of functions integrated by office automation systems include
(1) electronic publishing; (2) electronic communication; (3) electronic
collaboration; (4) image processing; and (5) office management.

 Knowledge Work Systems (KWS)

Knowledge management systems are knowledge-based information
systems that support the creation, organization, and dissemination of
business knowledge to employees and managers throughout a company
.Knowledge management is the deployment of a comprehensive system
that enhances the growth of an organization's knowledge

Knowledge workers perform three key roles that are critical to the
organization and to the managers who work within the organization:

 Keeping the organization current in knowledge

 Serving as internal consultants regarding the areas of their knowledge

 Acting as change agents

Examples of knowledge work systems include:

 CAD/CAM systems: Computer-aided design (CAD) and Computer-aided

manufacturing (CAM) systems automate the creation and revision of
designs, using computers and sophisticated graphics software. They
provide engineers, designers, and factory managers with precise
manufacturing control over industrial design and manufacturing

 Virtual reality systems: These use interactive graphics software to aid

drug designers, architects, engineers, and medical workers by
presenting precise, three-dimensional simulations of objects.
  Investment workstations: These are high-end PCs used in the financial
sector to analyze trading situations instantaneously and facilitate
portfolio management.

 Management Information Systems (MIS)

Management information systems are a kind of computer information
systems that could collect and process information from different sources in
institute decision- making in level of management. Management information
systems Provide information in the form of pre specified reports and displays
to support business decision making. Management information systems (MIS)
use the data collected by the TPS to provide supervisors with the necessary
control reports . According to Hasan,Y. [10] management information system
is type of information systems that take internal data from the system and
summarized it to meaningful and useful forms as management reports to use
it to support management activities and decision making.

i. The MIS satisfies the diverse needs through variety of systems such as
query system, analysis system, modeling system and decision support system.

ii. The MIS helps in strategic planning, management control, operational

control and transaction processing. The MIS helps in the clerical personal in
the transaction processing and answers the queries on the data pertaining to
the transaction, the status of a particular record and reference on a variety of
documents.

iii. The MIS helps the junior management personnel by providing the
operational data for planning, scheduling and control , and helps them further
in decision-making at the operation level to correct an out of control situation.

iv. The MIS helps the middle management in short term planning, target
setting and controlling the business functions. It is supported by the use of the
management tools of planning and control.

v. The MIS helps the top level management in goal setting, strategic planning
and evolving the business plans and their implementation.

 Decision Support Systems

A Decision Support System is a computer based system intended for use by a
particular manager or usually a group of managers at any organizational level
in making a decision in the process of solving a semi structured decision .
According to Heidarkhani, et al. “Decision Support Systems are a Kind of
organizational information computerize systems that help manager in
decision making that needs modeling, formulation, calculating, comparing,
selecting the best option or predict the scenarios” According to Khanore, et
al.” Decision-support systems are specifically designed to help management
make decisions in situations where there is uncertainty about the possible
outcomes of those decisions”. According to Shim “a decision support system is
a computer-based information system that assists managers in making many
complex decisions, such as decisions needed to solve poorly defined or
semistructured problems .
The role of DSS is explained as follows:-
1. What if analysis
2. Goal oriented
3. Risk analysis
4. Model building
5. Graphical analysis

Decision support system examples include manual systems, hybrid systems,

all types of analytics as well as sophisticated decision support software.

Common Day-to-Day Decision Support System Examples

1. Decision support systems operate at many levels, and there are many
examples in common day-to-day use. For example, GPS route planning
determines the fastest and best route between two points by analyzing
and comparing multiple possible options. Many GPS systems also
include traffic avoidance capabilities that monitor traffic conditions in
real time, allowing motorists to avoid congestion

 Manual and Hybrid Decision Support System Examples

Numerous manual techniques exist that support decision-making. These include activities
such as the SWOT analysis where teams determine their organization's strengths and
weaknesses as well as identifying threats facing the organization and potential
opportunities for further growth. The outcomes of a SWOT analysis are actionable
decisions for moving the organization forward. Other manual tools include decision
matrixes, Pareto analyses and cost benefit analyses.

Hybrid DSS solutions include the use of spreadsheet analyses that tap into the capability of
Excel to compute, analyze, compare options and evaluate what-if scenarios.

 Executive Support Systems (ESS)

Executive Information Systems have been developed, which provide rapid
access to both internal and external information, often presented in graphical
format, but with the ability to present more detailed underlying data if it is
required . Executive information systems provide critical information from a
wide variety of internal and external sources (from MIS, DSS, and other
sources tailored to the information needs of executives) in easy-touse displays
to executives and managers . According to Patterson “ An EIS provides senior
managers with a system to assist in taking strategic and tactical decisions”.
According to Shim “ an executive information system is designed to generate
information that is abstract enough to present the whole company operation
in a simplified version to satisfy senior management”.

Following are some examples of intelligent information, which is often the

source of an ESS −

 External databases
 Technology reports like patent records etc.
 Technical reports from consultants
 Market reports
 Confidential information about competitors
 Speculative information like market conditions
 Government policies
 Financial reports and information

Advantages of ESS

 Easy for upper level executive to use

 Ability to analyze trends
 Augmentation of managers' leadership capabilities
 Enhance personal thinking and decision-making
 Contribution to strategic control flexibility
 Enhance organizational competitiveness in the market place
 Instruments of change
 Increased executive time horizons.
 Better reporting system