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Abhiruchi Saraf

(Roll no. 01)

What is Information System (IS)? What is a system? Components of IS Trends in IS Types of IS What is MIS? What is DSS? DSS vs MIS

Why Do People Need Information?

o Individuals - Entertainment and enlightenment o Businesses - Decision making, problem solving

and control

Management Challenges

Information Technologies

Information Systems

Business Applications

Development Processes

Foundation Concepts

Business Applications

The major uses of information systems for operations, management, and competitive advantage.

Development Processes

How business professionals and information specialists plan, develop, and implement information systems.

Management Challenges

The challenge of managing ethically and effectively.

Foundation Concepts

Fundamental behavioral, technical, business and managerial concepts about components and roles of IS.

Information Technologies

Major concepts, developments and management issues in IT i.e. hardware, software, network and data management.

An Information System is an organized combination of people, hardware, software, communication networks and the data resources that collects, transforms and disseminates information in a organization.
- James OBrien (1998)

An organized combination of
o People o Hardware o Software

o Communication networks
o Data resources

This system
o Stores, retrieves, transforms, and disseminates information in

an organization

Is a major functional area of business. Is an important contributor to operational efficiency, employee productivity and morale, and customer service & satisfaction. Is a major source of information and support for decision making.

Provides a strategic advantage competitive products & services.



What is Information System (IS)? What is a system? Components of IS Trends in IS Types of IS What is MIS? What is DSS? DSS vs MIS

A group of interrelated or interacting elements forming a unified whole, OR

A group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process (dynamic system).
Three basic interacting components:
o Input o Processing (transformation process) o Output

A system is made up of a number of parts combined in a particular way to do something useful

o Wheels, axles, pedals, gears, chain, seat and

handlebars are combined to form a single whole we call a bicycle.

o A bike is a system when all the parts are

connected correctly because it allows the rider to move from one place to another more easily.


Feedback Signals Control Signals

Feedback Signals

Control by Management

Control Signals

Input of Raw Materials System Boundary

Manufacturing Process

Output of Finished Products

Other Systems

o Capturing and assembling elements that enter the

system to be processed

o Transformation process that converts input into output

o Transferring transformed elements to their ultimate


o Universities Departments Staff Courses Hostels etc. Environment Logical Arrangements o Class Room Whiteboard Chairs, Tables Technologies (projectors) Teachers Students

What is Information System (IS)? What is a system? Components of IS Trends in IS Types of IS What is MIS? What is DSS? DSS vs MIS

Components of an information system

Input of data resources

o Data entry activities

Processing of data into information

o Calculations, comparisons, sorting, and so on

Output of information products

o Messages, reports, forms, graphic images

Storage of data resources

o Data elements and databases

Control of system performance

o Monitoring and evaluating feedback

What is Information System (IS)? What is a system? Components of IS Trends in IS Types of IS What is MIS? What is DSS? DSS vs. MIS

1950-1960 Data Processing

1960-1970 Management Reporting

1970-1980 Decision Support

1980-1990 Strategic & End User Support

1990-2000 Electronic Commerce

Electronic Data Processing - TPS

Management Information Systems

Decision Support Systems - Ad hoc Reports

End User Computing System Executive IS Expert Systems Strategic IS

Electronic Business & Commerce -Internetworked E-Business & E-Commerce

What is Information System (IS)? What is a system? Components of IS Trends in IS Types of IS What is MIS? What is DSS? DSS vs MIS

Information systems

Support of Business Operations

Operations Support Systems Enterprise Collaboration Systems

Team and Workgroup Collaboration

Management Support Systems Management Information Systems

Prespecified Reporting for Managers

Support of Managerial Decision Making

Transaction Processing Systems

Processing Business Transaction

Process Control Systems

Decision Support Systems

Interactive Decision Support

Executive Information Systems

Information Tailored for Excecutives

Control of Industrial Process

What do they do?

o Efficiently process business transactions o Control industrial processes o Support communications and collaboration o Update corporate databases

Transaction Processing Systems

o Record and process business transactions o Example: sales processing, inventory systems, accounting


Process Control Systems

o Monitor and control physical processes o Example: using sensors to monitor chemical processes in a

petroleum refinery

Enterprise Collaboration Systems

o Enhance team and workgroup communication o Example: email, video conferencing

What do they do?

o Provide information and support for effective decision making by


Management information systems Decision support systems Executive information systems

Management Information Systems (MIS)

o Reports and displays o Example: daily sales analysis reports

Decision Support Systems (DSS)

o Interactive and ad hoc support o Example: a what-if analysis to determine where to spend

advertising dollars

Executive Information Systems (EIS)

o Critical information for executives and managers o Example: easy access to actions of competitors

What is Information System (IS)? What is a system? Components of IS Trends in IS Types of IS What is MIS? What is DSS? DSS vs MIS

Management Information Systems

o Systems that provide people with information relating

to organizational operation, to support their DecisionMaking activities o Produces information products that support many of the day-to-day decision-making needs of managers and business professionals o Prespecified reports, displays and responses o Support more structured decisions

Produces many of the products that support day-to-day decision-making These information products typically take the following forms:
o Periodic scheduled reports o Exception reports o Demand reports and responses o Push reports

Periodic Scheduled Reports

Exception Reports

Major Management Information Systems Reports

Demand Reports and Responses

Push Reports

Management reporting alternatives

o Periodic scheduled reports Prespecified format Provided on a scheduled basis o Exception reports Produced only when exceptional conditions occur Reduces information overload

Management reporting alternatives (continued)

o Demand reports and responses Available when demanded. Ad hoc o Push reports Information is sent to a networked PC over the corporate intranet. Not specifically requested by the recipient

Provide managers with information Regular, routine operations

Control, organize and plan better

Inputs: Information from the TPS Outputs: hard and softcopy reports
o Scheduled reports o On-demand reports o Key-indicator (business fundamentals) o Exception reports

Financial MIS
o Will integrate information from multiple sources o Functions

Costing P&L reporting Auditing Funds management

o Design and Engineering o Master Production Scheduling o Inventory Control o Materials Planning o Manufacturing and Process Control o Quality Control

o Market research

Web-based market research

o Pricing

Transportation and Logistics

o Route and schedule optimization

Human Resources

What is Information System (IS)? What is a system? Components of IS Trends in IS Types of IS What is MIS? What is DSS? DSS vs MIS

Computer-based information systems that provide interactive information support during the decision-making process

DSSs use
o o o o

Analytical models Specialized databases The decision makers insights & judgments An interactive, computer-based modeling process to support making semistructured and unstructured business decisions

Designed to be ad hoc, quick-response systems that are initiated and controlled by the decision maker DSS Models and Software
o Rely on model bases as well as databases o Might include models and analytical techniques

used to express complex relationships

DSS models and software (continued)

o Can combine model components to

create integrated models in support of specific types of business decisions

An interactive modeling process

Four types of analytical modeling

o What-if analysis

o Sensitivity analysis
o Goal-seeking analysis o Optimization analysis

What-If Analysis
o End user makes changes to variables,

or relationships among variables, and observes the resulting changes in the values of other variables

Sensitivity Analysis
o A special case of what-if analysis
o The value of only one variable is changed

repeatedly, and the resulting changes on other variables are observed o Typically used when there is uncertainty about the assumptions made in estimating the value of certain key variables

Goal-Seeking Analysis
o Instead of observing how changes in a

variable affect other variables, goalseeking sets a target value (a goal) for a variable, then repeatedly changes other variables until the target value is achieved

Optimization Analysis
o A more complex extension of goal-seeking
o The goal is to find the optimum value for

one or more target variables, given certain constraints

What If-Analysis

Sensitivity Analysis

Important Decision Support Systems Analytical Models

Goal-Seeking Analysis

Optimization Analysis

Components of Web-Enabled Marketing DSS

Legacy Software Web Browser User Interface Functions Hyperlinked Multimedia, 3-D Visualization Model Management Functions Analytical Modeling, Statistical Analysis Data Management Functions Other Software

Data Extraction, Validation, Sanitation, Integration, and Replication

Operational Data Market Data Sales Data

Customer Account Data

Data Marts and Other Databases

Decision support systems in business are changing. The growth of corporate intranets, extranets, and other web technologies have increased the demand for a variety of personalized, proactive, web-enabled analytical techniques to support DSS. Information systems must support a variety of management decision-making levels and decisions. These include the three levels of management activity: strategic, tactical, and operational.

Handles large amounts of data from different sources Provides report and presentation flexibility Offers both textual and graphical orientation

Supports drill down analysis Performs complex, sophisticated analysis and comparisons using advanced software packages Supports optimization, satisficing, and heuristic approaches

Performs different types of analyses

o What-if analysis

Makes hypothetical changes to problem and observes impact on the results Duplicates features of a real system Determines problem data required for a given result

o Simulation

o Goal-seeking analysis

Used for unstructured problems Characteristics

o Data from multiple sources internal and external to organization o Presentation flexibility o Simulation and what-if capability o Support for multiple decision approaches

o Statistical analysis

What is Information System (IS)? What is a system? Components of IS Trends in IS Types of IS Information, Decisions and Management What is MIS? What is DSS? DSS vs MIS

Decision Support Trends

Management Information Systems

Decision support provided Information form and frequency Information format Information processing methodology Provide information about the performance of the organization Periodic, exception, demand, and push reports and responses Prespecified, fixed format

Decision Support Systems

Provide information and techniques to analyze specific problems Interactive inquiries and responses Ad hoc, flexible, and adaptable format

Information produced by Information produced by extraction and manipulation analytical modeling of of business data business data

o Planned reporting o Standard, scheduled, structured, and routine o Constrained by the organizational system

DSS o Decision making

o Unstructured and by request o Immediate and friendly