Management Information System
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This document provides an overview of information systems and their components and roles. It discusses different types of information systems like transaction processing systems, management support systems, and enterprise collaboration systems. It also covers information system frameworks, concepts, and trends. Key points discussed include the components of an IS, types of management support systems, roles of IS in supporting business processes and decision making, and how IS can provide competitive advantage.
Management Information System
- 1. Dr. Kamal Gulati - Management Information System -
- 2. Information System • Concerned with Processing the raw facts into information and transferring this information to the users. It also takes feedback from the users so that input can be given. • An IS can be manual or computer based.
- 3. • Manual IS: Uses Pen, Pencil, or Papers etc. • Computer IS: Focus is on CBIS – Computer Based information System that uses Information Technology to perform its various activities. • Information Technology refers to the following components: – Software – Hardware – Telecommunication
- 5. Information Systems Concepts • Foundation Concepts – Fundamental concepts about the components and roles of information systems. • Information Technologies – Major concepts, developments, and management issues in information technology.
- 6. Information Systems 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.
- 7. What is a system? • 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: – Input – Processing (transformation process) – Output
- 8. Add Feedback and Control Loops.. • And the system, now called a cybernetic system, becomes even more useful. – Self-monitoring – Self-regulating
- 9. Other System Characteristics • A system exists and functions in an environment containing other systems. • Subsystem – a component of a larger system. • Systems that share the same environment may be connected to one another through a shared boundary, or interface. • Open versus closed system. • Adaptive system
- 10. Components of an INFORMATION System
- 11. Components of an Information System (Continued) • People Resources – End Users – IS Specialists • Hardware Resources – Computer systems – Peripherals • Software Resources – System software – Application software – Procedures
- 12. Components of an Information System (Continued) • Data Resources – Data versus Information • Network Resources – Communication media – Network support
- 13. Data Versus Information Monthly Sales Report for West Region Sales Rep: Charles Mann Emp No. 79154 Item Qty Sold Price TM Shoes 1200 $100
- 14. Attributes of Information Quality
- 16. Information Products • Focus is on the end-user. • They are the result of IS activities… – Input – Processing – Output – Storage – Control
- 17. Major Roles of IS Support Competitive Advantage Support Business Decision Making Support of Business Processes and Operations
- 18. Major Roles of IS (continued) • Support Business Processes • Support Decision Making • Support Competitive Advantage
- 19. The Present and the Future • E-Business – The use of Internet technologies to internet work and empower… • Business processes • Electronic commerce, and • Enterprise communication & collaboration – Within a company & with its customers, suppliers, & other business stakeholders.
- 20. IS in the E-Business Enterprise • Every business competes globally (whether they realize it or not) • IS supports business operations through the use of: – Intranets – Extranets – Internet – Other information technologies
- 21. IS in the E-Business Enterprise (continued) • Enterprise Collaboration Systems – Support communication, coordination, & collaboration. • Virtual teams • Electronic Commerce – Buying & selling, and marketing & servicing of products, services, & information.
- 22. Trends in Information Systems
- 23. TYPES OF INFORMATION SYSTEMS I - Operations Support Systems 1. Transaction Processing Systems: An information system designed to process routine business transactions • Batch – transaction data accumulate over time, processed periodically. • Real-Time – data processed immediately after a transaction occurs. 2. Process Control Systems – monitor & control physical processes. 3. Enterprise Collaboration Systems - Cross-functional
- 24. Types of Information Systems (continued) II - Management Support Systems 1. Management Information Systems – pre-specified reports & displays to support decision-making. 2. Decision Support Systems – provide interactive ad hoc support. 3. Executive Information / Support Systems – critical information tailored to the information needs of executives.
- 25. Types of Information Systems (continued) III - Other Classifications 1. Expert systems – expert advice 2. Knowledge management systems – support the creation, organization, & dissemination of business knowledge 3. Functional business systems – Support the basic business functions 4. Strategic Information systems – Strategic Advantage
- 26. Transaction Processing System (TPS) • An information system designed to process routine business transactions. • Seeks time- and cost-efficiency by automating repetitive operations in large volumes • interfaces with an organization’s other information systems, such as DSS, EIS • centers around accounting and finance transactions • e.g,, airline reservation systems, order entry/processing systems, bank’s account processing systems
- 27. The Major Characteristics of TPS • Large amounts of data are processed. • The sources of data are mostly internal, and the output is intended mainly for an internal audience. • The TPS processes information on a regular basis: daily, weekly, monthly, etc. • Large storage (database) capacity is required. • High processing speed is needed due to the high volume. • TPS basically monitors and collects past data. • Input and output data are structured (i.e., standardized). • Low computation complexity is usually marked in TPS. • A high level of accuracy, data integrity, and security is needed.
- 28. A Transaction Processing Model Data Input Data Processing Output Generation Data Storage
- 29. POS(Point Of Sale) TPS Barcode Scanner POS TPS UPC Product DB Inventory DB Information Reporting System Customer Receipt Exception Reports UPC Price UPC & Quantity Product, Quantity, Date, Time, Price Purchasing DB Quantity, Date, Time
- 30. Transaction Processing Systems Methods • Batch Processing • On-Line / Real Time Processing and • On-Line with Delayed Processing
- 33. Batch versus On-Line Transaction Processing
- 34. TPS Applications • Order Processing • Purchasing • Accounts Receivables & Accounts Payables • Receiving & Shipping • Inventory on Hand • Payroll • General Ledgers
- 37. Transaction Processing Activities • Data collection – Should be collected at source – Should be recorded accurately, in a timely fashion • Data Editing • Data Correction
- 38. Document Production and Reports
- 39. - End of TPS -
- 40. Process Control Systems • The process of monitoring activities to ensure that they are being accomplished as planned and of correcting any significant deviations • An effective control system ensures that activities are completed in ways that lead to the attainment of the organization’s goals
- 41. • Control – The task of ensuring that planned activities are getting the desired results. – All control systems try to influence behavior. – Controlling involves setting a target (planning), measuring performance (evaluation), and taking corrective action. – Control also applies to monitoring every task— large and small—that is delegated. The Fundamentals Of An Effective Control System
- 42. Management and the Control Process
- 43. Types of Control
- 44. - End of PCS -
- 45. Enterprise Collaboration Systems • Also Cross-functional – crosses different functional business areas (accounting, finance, inventory management, human resources, etc.) • Systems include: – Instant Messaging to Video Conferencing – Lotus Notes (IBM) – Outlook (Microsoft)
- 46. Categories
- 47. Value of ECS • Operational employees can work together more Easily and Effectively – Avoid traveling (telephone or video conferencing) – Enhanced coordination (document merging, calendaring, scheduling, workflow systems) – Enhanced collaboration (project management tools, discussion forums, instant messaging, etc.)
- 48. Other Forms of ECS • Blog Spheres such as MySpace are ECS’s for non-business communication • Blackboard is technically an ECS • Content or Document Management Systems – Centralize content and documents for the website.
- 49. -- End of ECS --
- 50. Management Support Systems The support of management tasks by the application of technologies. It Includes: 1. Management Information Systems (MIS)– pre- specified reports & displays to support decision- making. 2. Decision Support Systems (DSS)– provide interactive ad hoc support. 3. Executive Information / Support Systems (EIS / ESS) – critical information tailored to the information needs of executives.
- 51. Management Support Systems Tools • DSS : Decision Support System • Management Science • Business Analytics • Data Mining • Data Warehouse • Business Intelligence • OLAP: on-line analytical processing • CASE tools • GSS : Group Support System • EIS : Executive Information System
- 52. Management Support Systems Tools contd… • EIP : Enterprise Information Portals • ERM : Enterprise Risk Management • ERP : Enterprise Resource Planning • CRM: Customer Relationship Management • SCM: Supply Chain Management • KMS: Knowledge Management System • KMP: Knowledge Management Process • ES: Expert System • ANN: Artificial Neural Network • Intelligent Agents • E-Commerce DSS
- 53. Management Support Systems MSS enables senior management to: - Access common, Shared Sources of Internal and External Information that have been Summarized in Easy-to- Access, Graphical Displays.
- 54. MSS Functions • Function as an integrated approach to sharing information in an easy-to-use, highly visual, and personalized way. • System helps promote a shared view of business activities due to integration of tools and distributed data/information. • Managers can get up-to-date information on industry news, competitor/market trends and internal operations.
- 55. Most successful MSS are developed as 1.One aspect of a distributed, enterprise information system. 2. Enables flexible and integrated information sharing and communication 3.Both inside organizations and with external suppliers, customers and other business partners.
- 56. 1980s to 1990s • 1980s - managers had support tools designed to run on PCs (e.g. spreadsheets, statistical packages, graphics packages, word processing, project management, etc.) - tools consisted of stand-alone (not integrated!!) systems. • 1990s - MSS provide integrated environment for these support tools
- 57. MSS • MSS usually designed so that individual manager can customize the system as needed • MSS architecture - client/server environment • One component of a distributed information infrastructure
- 58. 1. Management Information Systems (MIS) • Pre-specified reports & displays to support decision-making. Goals of an MIS • Provide managers with information • Regular, routine operations • Control, organize and plan better
- 60. • Terminology Confusion –MIS = the study of information technology in business settings. –But, MIS is also term to refer to class of systems used to support operational and tactical decision making.
- 61. Typical Inputs and Outputs • Inputs: Information from the TPS • Outputs: Hard and Softcopy reports –Scheduled reports –On-demand reports –Key-indicator (business fundamentals) –Exception Reports
- 62. Functional Perspectives of MIS • Financial MIS • Manufacturing MIS • Marketing MIS • Transportation and Logistics MIS • Human Resources MIS • Accounting MIS
- 63. Functional Perspectives of MIS • Financial MIS –Will integrate information from multiple sources –Functions • Costing • P&L reporting • Auditing • Funds management
- 64. • Manufacturing MIS –Design and Engineering –Master Production Scheduling –Inventory Control –Materials Planning –Manufacturing and Process Control –Quality Control
- 65. • Marketing MIS –Market research • Web-based market research –Pricing • Transportation and Logistics MIS –Route and schedule optimization
- 66. Developing IS Solutions to Business Challenges
- 67. Ethical Challenges • Just because we can, should we? • Where do we draw the line between customer privacy and collecting business information? • Do we owe it to society to use this technology wisely and responsibly? Why? Isn’t our job to make a profit?
- 68. In Summary, the IS Function… • 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 in developing competitive products & services.
- 69. Discussion Questions • How can information technology support a company’s business processes and decision making, and give it a competitive advantage? • How does the use of the Internet, intranets, and extranets by an e-business enterprise support their e-commerce activities? • Why do big companies still fail in their use of information technology? What should they be doing differently?
- 70. Discussion Questions (continued) • How can a manager demonstrate that he or she is a responsible end user of information systems? • What are some of the toughest management challenges in developing IT solutions to solve business problems and meet new e-business opportunities? • Why are there so many conceptual classifications of information systems? Why are they typically integrated in information systems found in the real world?
- 71. Discussion Questions (continued) • In what major ways have the roles of information systems applications in business expanded during the last 40 years? What is one major change you think will happen in the next 10 years? • Can the business use of Internet technologies help a company gain a competitive advantage?