Information System

A system that has evolved over a period of time to assist

businesses in doing better business!!
 DATA & INFORMATION
DATA: STREAMS OF RAW FACTS
REPRESENTING EVENTS SUCH AS
BUSINESS TRANSACTIONS

INFORMATION: CLUSTERS OF FACTS

MEANINGFUL & USEFUL TO HUMAN
BEINGS IN PROCESSES SUCH AS
MAKING DECISIONS
 SYSTEM

INPUT PROCESS OUTPUT

FEEDBACK
FUNCTIONS OF AN INFORMATION SYSTEM
ENVIRONMENT
Customers Suppliers

ORGANIZATION
INFORMATION SYSTEM

INPUT PROCESS OUTPUT

FEEDBACK

Regulatory Stockholders Competitors

Agencies
Why are Information Systems
Important to Organizations &
Society
It will reduce the number of middle
managers.
It will change the managers job.
It impacts employees at work.
It provides quality-of-life improvements.
 Types of Information Systems
Operations Support Systems
Efficiently process business transactions

Control industrial processes

Support communication and collaboration

Update corporate databases

Management Support Systems

Provide information as reports and displays

Give direct computer support to managers during

decision-making
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 Types of OSS
Transaction Processing Systems

Process Control Systems

Enterprise Collaboration Systems

Chapter 1 Foundations of Information Systems in Business

7
 Transaction Processing Systems
(TPS)
TPS is an information system that capture and
process data generated during the day-to-day
transactions of an organization.

Example: Deposits, payments, orders or

reservations.
Transactions
A transaction is a logical unit of program
execution
A combination of database updates which have
to be performed together
A Transaction Processing Model

Data Input Data Processing Output Generation

Data Storage
 Typical TPS Applications
Sales & Marketing Systems
Major Functions-
Sales Management, Market Research, Promotion,
Pricing, New Products
Major Applications-
Sales Order info systems, Market research system,
pricing system
 Typical TPS Applications
Manufacturing & Production
Systems
Major Functions-
Scheduling, purchasing, shipping, receiving,
engineering, operations
Major Applications-
Material resource planning systems, Purchase order
control systems, engineering systems, quality control
systems
 Typical TPS Applications
Human Resources Systems

Major Functions-
Personnel records, benefits, compensation, labor
relations, training.
Major Applications-
Payroll, employee records, benefit systems, career
path systems, personnel training systems
 Typical TPS Applications
Other Types (ex-University, etc)

Major Functions-
Admissions,Grade records, Course records, Alumni
Major Applications-
Registration system, student transcript system,
curriculum class control system, alumni benefactor
system.
 Process Control Systems

Monitor and control physical processes

Example: using sensors to monitor chemical

processes in a petroleum refinery

Chapter 1 Foundations of Information Systems in Business

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 Enterprise Collaboration Systems

Enhance team and workgroup communication

Example: email, video conferencing

Chapter 1 Foundations of Information Systems in Business

16
 MSS
When information systems focus on providing
information and support for effective decision-making
by managers, they are called management support
systems.

Providing information and support for decision-making

by all types of managers (from top executives to middle
managers to project supervisors) is a complex task.
Types of Management Support Systems
Management Information Systems (MIS)

Decision Support Systems (DSS)

Executive Information Systems (EIS)

Management Information Systems
(MIS)
MIS is an information system that generates
accurate, timely and organized information so that
managers can make decisions, solve problems,
supervise activities and track progress. However,
employees are wired into the systems and
technology is pushed downwards and becomes
widely accessible.
 MANAGEMENT INFORMATION
SYSTEMS
A Management Information System is used by
managers throughout the organization to help
them in directing, planning, coordinating,
communicating, and decision-making
 MIS-Definition
MIS refers broadly to a computer-based system that
provides managers with the tools for organizing,
evaluating and efficiently running their departments.
In order to provide past, present and prediction
information, an MIS can include software that helps in
decision-making, data resources such as databases, the
hardware resources of a system, decision support
systems, people management and project management
applications, and any computerized processes that
enable the department to run efficiently
 Role Of MIS
MIS plays very vital role in the management,
administration and operation of the
organization.
The system ensures that an appropriate data is
collected from various sources, processed and
sent further to all the needy destinations.
fulfill the information needs of an individual and
top management
 Role Of MIS
Basic roles of MIS can be outlines as below :
Hardware administration

Software development, and support

End user support

Computing standards

DB administration
 Role Of MIS
At every phase of the management process, managers constantly
need information in order to make effective decisions.
It does not include purely functional information or technical
information.
Management information is the information required by managers as
they make their decisions, such as the
number of staff required to be employed by each department,
their training requirements,
career development plans,
job descriptions,
budgets,
overall forecasts,
benchmark surveys, and
progress reports on socio economic conditions.
 The Role of MIS
(i) Timely and Accurate Transaction Processing.
(ii) Streamlining Accounting and Records
Management.
(iii) Providing Managers with ad hoc and
interactive support in decision-making.
(iv) Provision of an easy and systematic way in
digging out critical information tailored
according to specific requirements, and
customized in preferred formats.
(v) Enables an organization to gain competitive
advantage over others.
 The Role of MIS
(vi) Better communication, inter-organizational computing,
and internet-working. Supports business operations and
successful management of business enterprises.
(vii) Better use of executive resources by automating
routine functions.
(viii) Increased ability to make sound, rational and
informed decisions involving complex combinations of
factors, and doing so with more confidence and speed.
(ix) Better use of time by making facilities available every
time they are required.
(x) Improved customer services and improved personnel
relations within the organization
 Impact of MIS
MIS creates, an impact on the organizations
function, performance and productivity.
With MIS support management of all
departments of an organization can become
more effective.
 Impact of MIS
Impact on Management
Targets tracking and monitoring becomes easy.
Top level managers can be informed accordingly.
Probable trends in various aspects of business can
be traced.
Exception conditions can be brought to the
noticed, so that manages can take decision in that
matter.
Information reporting system helps entire
organization.
Impact on Understanding of Business
MIS brings clarity in the communication, due to
common understanding of terms and terminology.
Brings high degree of professionalism in the
business operations.
Impact on Managerial Efficiency
Helps him to use different tools and techniques,
which are impossible to use manually.
Decision-making ability is improved.
 WHAT IS MANAGEMENT
Management : Mary Follett defined management as
the art of getting things done through people.
Manager : Person who achieves the organization goals
by motivating others to perform, not doing himself.
Management (For MIS) : Defined as a process of
planning, organizing, staffing, coordinating and
controlling the efforts of the members of the
organization to achieve command stated goals of the
organization.
 FUNCTIONS OF MANAGER
Planning,
Organizing,
Staffing,
Directing,
Co-ordinating and
Controlling.
 Planning
Planning is nothing but the process of determining the
goals and objectives and strategies for achieving goals
of the organization.
According to Lorange, when doing planning managers
need to :
1) Write or review the organizations mission,
2) Identify and analyze opportunities,
3) Establish goals,
4) Select a course of action to achieve these goals,
5) Determine resources needed.
 Organizing
Deciding what work needs to be done, assigning the
tasks, and arranging them into a decision-making
framework.
Organization involves evolving the structure of the
people working in the organization and their roles.
Organizing is the process by which the structure and
allocation of jobs is determined.
Organizing involves determining activities required to
achieve the established company objectives, grouping
these activities in a logical basis for handling by
persons, managers and, finally assigning persons to the
job designed.
 Staffing

The primary purposes of staffing are to find,

hire, develop, reward and retain the required
amount of good people, helping them meet
their needs while they help the company meet its
goal.
This statement addresses several important
aspects of staffing including recruiting,
training and retaining employees that will
benefit the company.
 Controlling

Controlling is the management function, in which

managers set and communicate performance standards
for people, processes, and devices.
The four steps of the control process are :

1) Establishing performance standards,

2) Measuring performance,
3) Comparing measured performance to established
standards,
4) Taking corrective action..
 Directing
Directing is influencing peoples behavior
through motivation, communication, group
dynamics and leadership.
The purpose of directing is to channel the
behaviors of all personnel to accomplish the
organizations mission and objectives while
simultaneously helping them accomplish their
own career objectives.
 Co-ordinating
This function brings a harmony and smoothness in
the various group activities and individual efforts
directed towards goals.
It needs synchronizing individual efforts and
actions which may differ.
This is normally carried out by the authority of top level
management.
Co-ordinating includes communicating with others,
providing directions and motivating people.
 MIS : A TOOL FOR
MANAGEMENT PROCESS
Management as a process consists of continuous
decision-making, necessitated by variations in goals
and also the fact that lack of complete knowledge
creates risk and uncertainty associated with decision-
making.
Specific decisions are greatly influenced by the
organizational goals, which have to be achieved.
The complete process of management requires lots of
data and information for execution of the plan.
MIS is therefore, is definitely a tool for effective
execution of management process.
 Decision Support System
General definition - a system providing both
problem-solving and communications capabilities
for semi structured problems
Specific definition - a system that supports a single
manager or a relatively small group of managers
working as a problem-solving team in the solution
of a semi structured problem by providing
information or making suggestions concerning
specific decisions.
 Decision Support Systems

Management Level
Inputs-Low volume data
Processing-Interactive

Output-Decision Analysis

Users-Professionals, Staff

Example-Contract Cost Analysis

 Decision Support Systems

Flexible, Adaptable, Quick

User controls Inputs/Outputs
No professional programming
Supports decision process
 Examples of Business Processes

Manufacturing & Production

Assembling product, checking quality, producing
bills of materials
Sales & Marketing
Identifying customers, creating customer awareness,
selling
 Examples of Business Processes

Finance & Accounting

Paying creditors, creating financial statements,
managing cash accounts
Human Resources
Hiring employees, evaluating performance, employee
benefit plans, etc.
Executive Information Systems (EIS)
EIS is designed to support the information needs
of executive managers.
Information in an EIS are presented in charts and
tables that show trends, ratios and other
managerial statistics.
 Executive Information System (EIS)
Executive information system (EIS) a
specialized DSS that supports senior level
executives within the organization
Most EISs offering the following capabilities:
Drill-down enables users to get details, and details
of details, of information
Slice-and-dice looks at information from different
perspective
Executive Information Systems (EIS)

Critical information for executives and managers

Example: easy access to actions of competitors

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