Basic concepts in mis
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The document discusses information technology and its uses in business. It provides overviews of how IT can be used as a sales, management, and customer relationship management tool. It also describes common computer components like the CPU, memory, storage, buses, input/output devices, and networks. Finally, it discusses different types of information systems like transaction processing systems, management information systems, and decision support systems and how they relate to various business functions and organizational levels.
Basic concepts in mis
- 2. Information Technology A science that has evolved over a period of time to assist businesses in doing better business!!
- 3. Why IT? • Management & Control • Stiff competition in world markets • Global Work Groups • Global delivery systems
- 4. IT as a Sales Tool
- 5. IT as a Sales Tool • Email • Websites • Short Messages • Audio-Visual Presentations (ex-Pharma, etc.) • Flash Presentations (ex-Pharma, Manufacturing, Construction, etc) • CD’s,DVD’s • E-Learning sites
- 6. IT as a Management Tool • Specifically tailored IT applications to suit various businesses (ex-Insurance, Banking, etc) • Enterprise wide applications enable transparency across the organization • Streamline processes thus reducing costs and increasing productivity • Effective reporting systems facilitated by IT applications (ex-MIS,DSS,EIS,etc.) • IT applications specifically designed to retain precious tacit knowledge of the organization • Specific CRM tools developed to retain customer data(choices,preferences,habits,etc) • Tools to handle the supply chain (SCM)
- 7. IT as a Management Tool-A brief overview • MIS (management Information System) • ERP(Enterprisewide Resource Planning) • CRM (Customer Relationship Management) • SCM (Supply Chain Management) • KM (Knowledge Management)
- 8. CRM • A tool specifically developed to record and retain customer interactions, habits, preferences, likes/dislikes, etc. • Empowers the management with critical customer data.
- 10. CPU & Primary Storage Input Devices Output Devices Secondary Storage CPU Primary Storage Data Bus Address Bus Control Bus
- 11. CENTRAL PROCESSING UNIT (CPU) RAMRAM PRIMARY (MAIN) MEMORYPRIMARY (MAIN) MEMORY CONTROL UNITCONTROL UNIT ARITHMETIC/LOGICARITHMETIC/LOGIC UNITUNIT ROMROM CLOCKCLOCK
- 12. TYPES OF MEMORY • RAM: Random Access Memory – Dynamic: Changes thru processing – Static: Remains constant (power on) • ROM: Read Only Memory (preprogrammed) – PROM: Program can be changed once – EPROM: Erasable thru ultraviolet light – EEPROM: Electrically erasable *
- 13. • CD-ROM: 500-660 MEGABYTES –LAND: Flat parts of disk surface reflects light –PITS: small scratch on surface scatters light • WRITE ONCE / READ MANY (WORM): –CD-R: Compact Disk - Recordable –CD-RW: CD - Rewritable • DIGITAL VIDEO DISK (DVD): CD size, up to 10 gigabytes of data * OPTICAL STORAGEOPTICAL STORAGE
- 14. 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
- 15. DATABASE MANAGEMENT SYSTEM (DBMS) SOFTWARE TO CREATE & MAINTAIN DATA ENABLES BUSINESS APPLICATIONS TO EXTRACT DATA INDEPENDENT OF SPECIFIC COMPUTER PROGRAMS
- 17. FUNCTIONS OF AN INFORMATION SYSTEMFUNCTIONS OF AN INFORMATION SYSTEM INPUT OUTPUTPROCESS FEEDBACK INFORMATIONINFORMATION SYSTEMSYSTEM ENVIRONMENTENVIRONMENT Customers SuppliersCustomers Suppliers Regulatory Stockholders CompetitorsRegulatory Stockholders Competitors AgenciesAgencies ORGANIZATIONORGANIZATION
- 18. COMPUTER-BASED INFORMATION SYSTEMS (CBIS) • FORMAL SYSTEMS • FIXED DEFINITIONS OF DATA, PROCEDURES • COLLECTING, STORING, PROCESSING, DISSEMINATING, USING DATA
- 19. ORGANIZATIONS • PEOPLE: Managers, knowledge workers, data workers, production or service workers • STRUCTURE: Organization chart, groups of specialists, products, geography
- 20. ORGANIZATIONS • OPERATING PROCEDURES: Standard Operating Procedures (SOP), rules for action • POLITICS: Power to persuade, get things done • CULTURE: Customs of behavior
- 21. MAJOR BUSINESS FUNCTIONS • SALES & MARKETING • MANUFACTURING • FINANCE • ACCOUNTING • HUMAN RESOURCES
- 22. TRANSFORMATION OF ENTERPRISE • FLATTENING • DECENTRALIZATION • FLEXIBILITY • LOCATION INDEPENDENCE • LOW TRANSACTION COSTS • EMPOWERMENT • COLLABORATIVE WORK
- 23. INFORMATION SYSTEMSINFORMATION SYSTEMS ORGANIZATIONSORGANIZATIONS TECHNOLOGYTECHNOLOGY MANAGEMENTMANAGEMENT INFORMATIONINFORMATION SYSTEMSSYSTEMS
- 24. SOCIOLOGYSOCIOLOGY POLITICALPOLITICAL SCIENCESCIENCE PSYCHOLOGYPSYCHOLOGY COMPUTERCOMPUTER SCIENCESCIENCE OPERATIONSOPERATIONS RESEARCHRESEARCH MANAGEMENTMANAGEMENT SCIENCESCIENCE TECHNICAL APPROACHESTECHNICAL APPROACHES APPROACHES TO INFO SYSTEMS MISMIS BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES
- 25. Major Types of Systems • Executive Support Systems (ESS) • Decision Support Systems (DSS) • Management Information Systems (MIS) • Knowledge Work Systems (KWS) • Office Automation Systems (OAS) • Transaction Processing Systems (TPS)
- 26. Management Information System • Management Level- – Inputs-High volume data – Processing-Simple models – Outputs-Summary reports – Users-Middle Managers • Example-Annual Budgeting
- 27. 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
- 28. 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
- 29. Typical TPS Applications Finance & Accounting Systems • Major Functions- – Budgeting, general ledger, billing, cost accounting • Major Applications- – General ledger, Accounts receivable, accounts payable, budgeting, funds management systems
- 30. 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
- 31. 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.
- 32. Knowledge Work Systems • Knowledge Level – Inputs-Design specs – Processing-Modeling – Outputs-Design, Graphics – Users-Technical staff • Example-Engineering work station
- 33. Office Automation System • Towards a “Paperless” office • Redesign a workflow • Integrated Software • Bright, Cheerful workplace
- 34. Management Information System • Structured & semi-structured decisions • Report control oriented • Past & present data • Internal orientation • Lengthy design process
- 35. TPS Data for MIS Applications TPS Order File Production Master File Accounting File Order Processing System MRP System General Ledger System Sales Data Unit Product Cost Product Chang e Data Expens e Data MIS Reports Managers MIS
- 36. Decision Support Systems • Management Level – Inputs-Low volume data – Processing-Interactive – Output-Decision Analysis – Users-Professionals, Staff • Example-Contract Cost Analysis
- 37. Decision Support Systems • Flexible, Adaptable, Quick • User controls Inputs/Outputs • No professional programming • Supports decision process • Sophisticated Modelling tools
- 38. Executive Support Systems • Strategic Level – Inputs-Aggregate data – Processing-Interactive – Outputs-Projections – Users-Senior Managers • Example-5 Yrs operating plan
- 39. Executive Support Systems • Top level Management • Designated to Individual • Ties CEO to all levels • Very expensive to keep up • Extensive support staff
- 40. Interrelationship among systems ESS MIS DSS KWS OAS TPS
- 41. Systems from a Functional Perspective • Sales & Marketing Systems • Manufacturing & Production Systems • Finance & Accounting Systems • Human Resource Systems
- 42. Sales & Marketing Information Systems System Description Organizational Level Order Processing Enter, Process, Track orders Operational Market Analysis Identify customers & Markets Knowledge Pricing Analysis Determine Prices Management Sales Trends Prepare 5-Year Forecasts Strategic
- 43. Manufacturing Information Systems System Description Organizational Level Machine Control Controls action of equipment Operational Computer Aided Design Design new products Knowledge Production Planning Decide number, Schedule of products Management Facilities Location Decide where to locate facilities Strategic
- 44. Finance & Accounting information System System Description Organization Level Accounts receivable Track money owed to firm Operational Portfolio Analysis Design firms investment Knowledge Budgeting Prepare short-term budgets Management Profit Planning Plan long-term profits Strategic
- 45. Human Resources Information System System Description Organizational Level Training & Development Track training, skills, appraisals Operational Career Pathing Design employee career paths Knowledge Compensation Analysis Monitor wages, Salaries, Benefits Management Human Resources Planning Plan long-term manpower needs Strategic
- 46. SYSTEM INTERDEPENDENCE BUSINESSBUSINESS StrategyStrategy RulesRules ProceduresProcedures ORGANIZATIONORGANIZATION INFORMATION SYSTEMINFORMATION SYSTEM HARDWAREHARDWARE SOFTWARESOFTWARE DATABASEDATABASE TELE-TELE- COMMUNICATIONSCOMMUNICATIONS INTERDEPENDENCEINTERDEPENDENCE
- 47. Examples of Business Processes • Manufacturing & Production – Assembling product, checking quality, producing bills of materials • Sales & Marketing – Identifying customers, creating customer awareness, selling
- 48. Examples of Business Processes • Finance & Accounting – Paying creditors, creating financial statements, managing cash accounts • Human Resources – Hiring employees, evaluating performance, employee benefit plans, etc.
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