Information Systems 2011

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    INFORMATION

    SYSTEMS

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    Outline

    Information System Definition

    Management Information System (MIS)

    MIS Concept MIS Significance

    MIS Structure

    Types of Information System Functional Information System

    Support Information System

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    Information System - Definition

    Information System is a combination of

    people, hardware, software, communicationdevices, network and data resources thatprocesses (can be storing, retrieving,transforming information) data and

    information for a specific purpose.

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    Information System

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    Management Information System

    Management:Planning

    OrganizingControllingLeadingCommunicating

    Information:

    Meaningful / Processed DataSystem:

    Set of elements arranged in an orderly manner toaccomplish an objective.

    Management Information System:An integrated user-machine system for providinginformation to support the operations, managementanalysis, and decision making functions in anorganization.

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    MIS as an evolving concept Process large amount of data and present it in the form

    of reports at regular intervals.

    System must be individual oriented

    Information must be presented in such a form andformat that it creates an impact on its user.

    Reporting and analysis must follow some norms

    Should be adaptive to the changing environment.

    Should work on a database

    System must be decentralised

    User of MIS must be independent of computer

    professionals

    MIS must be a decision making system

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    Present Concept of MIS

    A system which handles the databases,provides computing facilities to the end userand gives a variety of decision making tools tothe user of the system

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    MIS StructureConceptual View

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    MIS StructurePhysical View

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    Academic Disciplines in MISTechnical

    Approaches

    BehavioralApproaches

    ManagementScience

    OperationsResearch

    Sociology

    Economics

    ComputerScience

    Psychology

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    Role of MIS in an organisation

    Collection of Data

    Processing of Data

    Dissemination of Information

    Fulfill the information needs of anindividual, a group of individuals,managers and top management

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    Role of MIS

    Systems used for role fulfillment

    Query Systems

    Analysis Systems Modeling Systems

    Decision Support System

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    Role of MIS

    MIS helps in

    Strategic Planning

    Management Control

    Operational Control

    Transaction Processing

    Top

    Middle

    Lower

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    Impact of MIS on organisation

    Management of different departmentsbecomes more efficient

    Better understanding of the businessitself

    Systemisation of business operations

    Pull the entire organisation towards thecorporate goals and objectives

    Managerial Efficiency Drudgery of clerical work transferred to

    the computer system

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    Types of Information Systems

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    Major Types of Systems inOrganisation

    Executive Support Systems (ESS)

    Decision Support Systems (DSS)

    Management Information Systems (MIS)

    Transaction Processing Systems (TPS)

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    Transaction ProcessingSystems (TPS):

    Management level

    Inputs: Daily Transactions (raw data)

    Processing: Simple Programs

    Outputs: Database / Summary Reports

    Users: Lower Level Managers

    Example: Payroll

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    Transaction Processing Systems(TPS):

    Basic business systems that servethe operational level

    A computerized system that

    performs and records the dailyroutine transactions necessary tothe conduct of the business

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    Management InformationSystem (MIS):

    Management level

    Inputs: High volume data

    Processing: Simple models

    Outputs: Summary reports

    Users: Middle managers

    Example: Annual budgeting

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    Management InformationSystem

    Structured and semi-structureddecisions

    Report control oriented

    Past and present data

    Internal orientation

    Lengthy design process

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    Decision Support System (DSS):

    Management level

    Inputs: Low volume data

    Processing: Interactive

    Outputs: Decision analysis

    Users: Professionals, staff

    Example: Contract cost analysis

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    Executive Support System (ESS):

    Strategic level

    Inputs: Aggregate data

    Processing: Interactive

    Outputs: Projections

    Users: Senior managers

    Example: 5-year operating plan

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    Executive Support System

    Top level management

    Designed to the individual

    Ties CEO to all levels

    Very expensive to keep up

    Extensive support staff

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    Subsystems of MIS

    MIS is a federation of subsystems.

    Subsystems of MIS can be definedaccording to the organisationalfunctions which they support andaccording to managerial activities forwhich they are used.

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    Organisational Function Subsystems

    Marketing

    Manufacturing

    Logistics

    Personnel

    Finance and Accounting

    Information Processing

    Top Management

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    Functional Subsystems

    Database

    Database Management System

    Mar

    keting

    Prod

    uction

    Log

    istics

    Personnel

    Financean

    dAccounting

    Informatio

    nProcessing

    TopMa

    nagement

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    Activities Subsystems

    Transaction Processing

    Ex: Processing of orders, shipments and receipts

    Operational Control

    Ex: Scheduling of activities and performance reports

    Management Control

    Ex: Formulation of budgets and resource allocation Strategic Planning

    Ex: Formulation of objectives and strategic plans

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    Relation of activities to functional subsystems

    Database

    Database Management System

    Strategic Planning

    Management Control

    Operational Control

    Transaction Processing

    Marketing

    Production

    Logistics

    Pers

    onnel

    Fina

    nceand

    Accounting

    Information

    Proc

    essing

    TopMan

    agement