Introduction to MIS1 Copyright © 1998 by Jerry Post INFSY540 Information Resources in Management...
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Transcript of Introduction to MIS1 Copyright © 1998 by Jerry Post INFSY540 Information Resources in Management...
Introduction to MIS 1
Copyright © 1998 by Jerry Post
INFSY540Information Resources in Management
Lesson 3
Chapter 4
Operations and Transactions
Introduction to MIS 2
Classes of Information Systems
Transaction processing systems Management information systems Decision support systems Expert systems Office automation systems
Introduction to MIS 3
Transaction Processing
Transaction processing systems are information system applications that capture and process data about business transactions.
Includes data maintenance, which provides for custodial updates to stored data.
Business process redesign (BPR) is the study, analysis, and redesign of fundamental business (transaction) processes to reduce costs and/or improve value added to the business.
Introduction to MIS 4
Management Information Systems
A management information system (MIS) is an information system application that provides for management-oriented reporting. These reports are usually generated on a predetermined schedule and appear in a prearranged format.
Introduction to MIS 5
Decision Support SystemsA decision support system (DSS) is an information system application that provides its users with decision-oriented information whenever a decision-making situation arises. When applied to executive managers, these systems are sometimes called executive information systems (EIS).
A data warehouse is a read-only, informational database that is populated with detailed, summary, and exception data and information generated by other transaction and management information systems. The data warehouse can then be accessed by end-users and managers with DSS tools that generate a virtually limitless variety of information in support of unstructured decisions.
Introduction to MIS 6
Expert Systems
An expert system is a programmed decision-making information system that captures and reproduces the knowledge and expertise of an expert problem solver or decision maker and then simulates the “thinking” or “actions” of that expert.
Expert systems are implemented with artificial intelligence technology that captures, stores, and provides access to the reasoning of the experts.
Introduction to MIS 7
Office Automation Systems
Office automation (OA) systems support the wide range of business office activities that provide for improved work flow and communications between workers, regardless of whether or not those workers are located in the same office.
Personal information systems are those designed to meet the needs of a single user. They are designed to boost an individual’s productivity.
Work group information systems are those designed to meet the needs of a work group. They are designed to boost the group’s productivity.
Introduction to MIS 8
Introduction to MIS 9
Decision Levels Operations Tactical Management Strategic Management
Data Capture Point of Sale Process Control Electronic Data Interchange (EDI)
Data Quality The Role of Accounting Human Resource Transactions
Business Operations
TacticalManagement
Strategic
Mgt.
EIS
ESD
SSTr
ansa
ctio
n
Proc
essi
ng
Proc
ess
Con
trol
Introduction to MIS 10
Traditional Transaction Processing
Batch On-line
Real-time Online transaction processing (OLTP)
On-line entry with delayed processing
Introduction to MIS 11
Transaction Processing System Objectives
Process data generated for and about transactions. Maintain a high degree of accuracy and integrity. Produce timely documents & reports Increase labor efficiency Help provide improved service Help build and maintain customer loyalty Achieve competitive advantage
Introduction to MIS 12
Control & Management Issues Business resumption planning Disaster recovery
Backups Hot sites Cold sites
Backups
Introduction to MIS 13
Transaction Processing Audit Does the system meet its business requirements? Are there procedures and controls? Are the procedures & controls properly used?
Introduction to MIS 14
Information in DecisionsDecisions are based on uncertainty and statisticsInformation reduces uncertainty
Type I error: Reject when trueType II error: Accept when falseChanging critical value decreases one error but increases the other.Added information
Tighter distributionReduce both errors
It costs money to get more information
Click image to start/stop video.
Introduction to MIS 15
Decision Levels
Competitive advantageMarket leader
Long term
Improve operationswithout restructuring
Day-to-day actionskeep company running
New productsthat changethe industry
External events,rivals, sales, costs
quality, trends.Strategies
Tactics
Operations
New tools tocut costs or imp-rove efficiency
Schedulingemployees,
placing orders.
Expenses,schedules, salesmodels, forecast
Transactions,accounting,
HRM, inventory
Decision Level Description Example Type of Information
Introduction to MIS 16
Data Capture Point of Sale Process Control Electronic Data Interchange
Central Computer
Sales ReportsPOSCashRegisters
Customers
EDI
Supplier
Bank
Process Control
AdditionalStores Strategy
Tactics
Operations
Warehouse InventoryManagement
CEO Information
Introduction to MIS 17
Electronic Data Interchange: Proprietary
Supplier 1
Customer 1
Queries &Orders
Invoices &confirmationProduction
Database& Accounts
OrderDatabase
& Accounts
Convert data
Convert data
Convert
data
Differ
ent f
ormat
Customer 2
Supplier 2Convert dataDifferent format
Everyone mustsupport multiple
data formats!
Introduction to MIS 18
Electronic Data Interchange : Standards
Supplier
Customer 1
ProductionDatabase
& Accounts
OrderDatabase
& Accounts
Customer 2
Bank/EDI consolidator
Convert t
o
Standard
RouteMessages
Messagesto/fromany customer
Convert t
o
Standard
Convert t
o
Standard
Introduction to MIS 19
EDI Standards
Message
SegmentComposite Data Element
Data Element
Code Lists
UN Edifact http://www.edi-tie.com/edifact/index.htm
US ANSI X12 http://net.gap.net/content.htm
Segments for each area Detail data formats
Introduction to MIS 20
ANSI X12 Segments
Partial List of segments
Detailed specifications for each segment Data needed Format
104 - Air Shipment Information 110 - Air Freight Details and Invoice 125 - Multilevel Railcar Load Details 126 - Vehicle Application Advice 127 - Vehicle Buying Order 128 - Dealer Information 129 - Vehicle Carrier Rate Update 130 - Student Educational Record (Transcript) 131 - Student Educational Record (Transcript) Acknowledgment 135 - Student Loan Application 139 - Student Loan Guarantee Result 140 - Product Registration 141 - Product Service Claim Response 142 - Product Service Claim 143 - Product Service Notification 144 - Student Loan Transfer and Status Verification 146 - Request for Student Educational Record (Transcript) 147 - Response to Request for Student Ed. Record (Transcript) 148 - Report of Injury or Illness
Introduction to MIS 21
EDI On The Internet
The Internet
Advantages Low cost. Anyone can connect. Worldwide reach. Many tools and standards. Designed to be robust,
minimizes impact of network failures.
Drawbacks No service guarantee.
Delays might be unacceptable.
Questionable reliability. Security is challenging.
Introduction to MIS 22
Date & TimeValue
Item
Buyer
Seller
Item_IdDescriptionLocation. . .
Transactions Items
Buyer_IdAddressPhone
Seller_IdAddressPhone
Buyers
Sellers
Transaction Objects Example Attributes
Date & time Price Quantity Item Number Buyer Seller
Example Methods Store Print Verify
Introduction to MIS 23
Data Quality Integrity
Errors in data entry. Missing data. Failure to make updates.
Multitasking/Concurrency Changes by two people at
same time gives bad data. Volume
Cost Errors harder to spot. Transmission costs. Difficulty of searching. System overload.
Summaries Too much detail. Hard to get detail.
Time Report and decision
deadlines. Departments get data at
different times. Sequencing problems.
Introduction to MIS 24
Concurrency and Data Integrity
Customer Accounts
Sanchez 500
Transaction A Transaction B
1) receive 300 payment2) read balance (500)
5) subtract payment6) store new result (200)
Sanchez 200
3) new purchase (350)4) read balance (500)
7) add purchase8) store new result (850)
Sanchez 850
Multitasking and Concurrency Data Integrity Multitasking & concurrency Data volume Data summaries Time
Introduction to MIS 25
Traditional Transaction Processing Applications
Introduction to MIS 26
Accounting Financial data and reports What do things really cost? The accounting cycle Inventory Checks and balances
Double-entry Separation of duties Audit trails
Introduction to MIS 27
Accounting Software General Ledger
Sample chart of accounts Automatic posting Automatic entry of vendors Fiscal years Keep past data books open Post to prior years Allocate department expenses
Accounts Receivable Automatic early discounts Interest on late payments Multiple shipping addresses Sales tax Automatic reminder notices Automatic monthly fees Keep monthly details
Accounts payable Check reconciliation Automatic recurring entries Monitor payment discounts Select bills from screen Pay by item, not just total bill
General Features Printer support Use of preprinted forms Custom reports Custom queries Security controls Technical support costs
Introduction to MIS 28
Accounting
Suppliers
Customers
Management
Shareholders
Banksand
Creditors
Departments& Employees
Sales &Accounts
Receivable
ProduceManagementAccounting
Reports
ProduceShareholder
Reports
Sales & Receivables
Inventory ChangesPurchases &Payables
Loans & Notes
Expenses Equity
ShareholderReports
ManagementReports
ProductInventory
Orders &Accounts Payable
InventoryManagement,& Fixed Asset& Cost Acct.
Payroll &EmployeeBenefits
CashManagement,Investments,
ForeignExchange
Supply &In-processInventory
Governments
TaxFiling &
Planning
Strategic& TacticalPlanning
Inventory Changes
Payables
Capital Acct
Sales Tax
Tax Filings
Tax data
ReceivablesInventory &Assets
Payroll
Planning Reports
PlanningData
Introduction to MIS 29
HRMManagement
Managers
Employees
Customers
Government
ProcessPayrollBenefitsVacation
CompileMerit
Evaluations& SalaryChanges
JobApplicants
ProduceManagement
EmployeeReports
ScreenJobs &
Applications
ProduceGovernment
Reports
Employee Data Files
EmployeeData
Evaluations
Salary
Merit &Salary
Sales Data &Commission
EmployeeData
Merit
Applicant Data
EmployeeSummaries
Job &ApplicantData
EEO Data
GovernmentReports
Management Reports
Introduction to MIS 30
Questions?