3 mis & business functions

TYPES OF INFORMATION SYSTEM

Two perspective

1. Based on different functions

Marketing, Finance, HRM, Operations etc.

2. Based on constituency

Lower mgmt., Middle mgmt., Top mgmt.

Financial Information System

Every organisation whether business or non-business is required to perform financial activities in order to carry its operations.

Financial decisions have three major dimensions: Determination of total amount of funds to be used by the

organisation Determination of what specific assets the organisation should

acquire, i.e. allocation of funds among various assets in an efficient manner

Determination of how the needed funds would be financed/raised

Basically, raising, distributing and administrating funds.

Model of Financial Information System

Accounting subsystem

Financial Intelligence subsystem

Database Users

Funds Management subsystem

Control subsystem

Data flow

Information flow

Output Subsystem Input Subsystem

Accounting Subsystem

Captures transaction data and processes these to prepare various account books.

To ascertain the cumulative effect of the transactions in the form of financial statements like P&L statement, Balance sheet etc.

Financial Intelligence Subsystem

It gathers relevant information from financial environment comprising specialized financial institutions, commercial banks, stock exchange, monetary policy etc. for raising funds and investing surplus funds for making profits.

Funds Management Subsystem

It tracks the information flow related to acquisition, distribution and administration of funds.

Control System

Another output of financial information systems.

Task of ensuring that activities are producing the desired results.

Helps in exercising control related to financial aspects of organizational operations.

Budgetary Control – Preparing budgets and optimum utilization of resources to achieve the goal.

Marketing Information System

Marketing Information System

It consists of people, equipment and procedures to collect, sort, analyze, evaluate and distribute needed, timely, and accurate information to marketing decision makers.

For this, we may take the following aspects of marketing: Types of products to be offered Price at which products to be offered Place where products to be offered Promoting products to win customers

Model of Marketing Information System

Marketing research subsystem

Marketing Intelligence subsystem

Database Users

Product subsystem

Pricing subsystem

Distribution subsystem

Promotion subsystem

Data flow

Information flow

Output Subsystem Input Subsystem

Marketing Research System

Marketing research subsystem collects data from external sources particularly from distributors, retailers and customers

Various packages are available performing variety of applications like statistical analysis etc.

Marketing Intelligence System

Concerned with appraising total marketing environment for assessing opportunities & threats.

Product Subsystem:

Product subsystem collects information that helps in determining product features, market segmentation, product positioning and branding.

Pricing System:

Traces information related to price fixation and price change.

Distribution subsystem:

Traces information for selecting distribution channel and managing supply chain/ distribution.

Promotion Subsystem:

Traces information to design promotion mix and various promotional efforts that can be undertaken.

HRM Information System

Model of a Human Resource Information System

H R research subsystem

H R Intelligence subsystem

Database Users

H R Acquisition subsystem

H R Development subsystem

Appraisal & Compensation

subsystem

Industrial relations subsystem

Data flow

Information flow

Output Subsystem Input Subsystem

Production Information System

Production Information System

Industrial Engg. subsystem

Production Intelligence subsystem

Database Users

Manufacturing subsystem

Inventory subsystem

Quality subsystem

Cost subsystem

Data flow

Information flow

Output Subsystem Input Subsystem

Based on Constituency

– MIS Classification

This perspective examines systems in terms of the various levels of management and the type of decisions that they support.

Transaction Processing System (TPS)

Management Information System (MIS)

Decision Support System (DSS)

Executive Support System (ESS)

Office Automation Systems (OASs)

Business Expert Systems (BESs)

Transaction Processing System

TPS represents automation of fundamental,

routine processing used to support to business operations.

Does not provide any information to user for decision – making.

DATA

PROCESSING

DATA

Input Output

It is also known as Data Processing System.

It is restricted to the lowest level of management hierarchy.

Transaction may be

External (from customers, suppliers etc.)

Internal ( transferring work in process from one stage to the next, recording depreciation on equipment)

Transaction Processing System

Management Information System

Input Processing Output

TPS

DATA

INFORMATION

Management Information System

MIS uses TPS as its input

Information generated may be used for control of operations

Strategic and long-range planning

Short-range planning

Management control

Other managerial problem solving

Management Information System

The domain of MIS is management level control of management hierarchy.

MIS is more comprehensive as compared to TPS.

MIS is capable of providing analysis, planning and decision-making support.

As MIS is an integrated system, it caters to information needs for managers in all functional areas.

The functional areas of a business may be

Marketing

Production

Human resource

Finance etc.

Management Information System

Decision Support System (DSS)

Decision support system is tailored to specific managerial task or specific problem.

It is designed primarily to serve management control and strategic planning level managers.

Comprises of three components :

Database

Model base

User Interface

Decision Support System (DSS)

DATABASE

MODEL BASE

USER INTERFACE

USER

Database : Contains master files (internal corporate data) and data from external sources.

Model Base : Library of models to manipulate and analyze the data in the desired ways. This model might include econometric models to forecast demand by industry and simulate models of the corporation.

User Interface : The interface through which the user can communicate with the DSS.

Decision Support System (DSS)

DSS can be differentiated from MIS in terms of its processing capabilities.

The MIS processes data to convert it to information whereas DSS processes information to support the decision making process of a manager.

Decision Support System (DSS)

Information from MIS

Decision (most

appropriate)

A1

A2

A3

A4

ALTERNATIVE PROCESSING

Decision Support System (DSS)

ESS is an extension of MIS which is a special kind of DSS.

It is tailored for the use of chief executive of an organization to support his/her decision-making.

It is comprehensive information system which includes various types of decision-support systems.

Executive Support System (ESS)

Hierarchy of Information System

ESS

DSS

MIS

TPS

MIS STRUCTURE-Holistic view

MIS STRUCTURE CONSISTS OF DIFFERENT INFORMATION SYSTEMS WITH EACH SYSTEM PROVIDING INFORMATION RELEVANT TO A SPECIFIC AREA WHICH MAY BE IDENTIFIED ON THE BASIS OF:

MANAGEMENT LEVELS – TOP, MIDDLE, AND LOWER

ORGANISATIONAL FUNCTIONS – PRODUCTION, MARKETING, FINANCE, AND PERSONNEL

FUNCTIONS OF MANGEMENT – OPERATIONAL PLANNING AND CONTROL, MANAGEMENT CONTROL,STRATEGIC PLANNING.

Various information systems and their integration determine the MIS architecture/structure.

MANAGEMENT LEVELS

MANAGEMENT FUNCTIONS

INFORMATION SYSTEMS

Top

Middle

Lower

Strategic Planning

Management Control

Operational Planning and Control

Overall Management

Organizational Functions

Pro

duct

ion

Mark

eting

Fin

ance

Pers

onnel

MIS support facilities

Hardware, Software, database, MIS Professionals

Executive Support System

Decision Support System

Expert System

& OAS Management Information System

Transaction Processing Systems

M I S S T R U C T U R E

MIS PROFESSIONAL

1. Chief Information Officer

2. System Analyst

3. Database Administrator

4. Network Specialist

5. Programmer

6. Operator

CONCLUSION

To understand information system, one must understand

Organization goals/objectives

The problem they are designed to solve

Their architectural and design elements

The organizational process that lead to these solutions.