- 1. MANAGEMENTINFORMATION SYSTEMS By Aruldoss Vithakan1
2. DATA VS INFORMATION Information System can be technically
defined as a setof inter-related components that collect ( or
retrieves),process, store and distribute information to
supportdecision making and control in any organization. IS also
helps to analyse problems, visualise complexsubjects and create new
products. While date is raw facts representing
events,informationrefers to data that has been shaped into a form
that ismeaningful and useful for human beings. 2 3. DATA VS
INFORMATION3 4. FUNCTIONS OF INFORMATION SYSTEM4 5. DIMESNSIONS OF
INFORMATION SYSTEMS 5 6. LEVELS IN MANAGEMENT 6 7. INFORMATION
SYSTEM REQUIREMENTS SOFTWARE SKILLS: Presentation software BUSINESS
SKILLS: Management analysis andinformation system recommendations
BASED ON:- Companys goals and culture Products and services of the
company and what areavailable to customers in the in market How the
company sells? Employees strength and the hierarchy Present
information system Use of electronic data base and software7 8.
Business processes and 8 9. An OrganizationsMISFinancial
MISBusinesstransactionsDrill down reports AccountingTransaction
Databases MISException reportsprocessingof Demand
reportssystemsvalid transactions Key-indicator reports Marketing
MISScheduled reportsBusinesstransactions DatabasesHuman of
Resources Etc.externaldata MIS ExtranetEtc.9 10. FinancialFinancial
MIS DSS Business transactionsTransaction Databasesprocessingof
valid FinancialsystemstransactionsMISFinancial for each
applications TPS databases Business transactions Financial
statementsFinancialOperational Uses and
managementESInternetdatabases of funds orFinancial
statisticsExtranet for control Business Customers,
transactionsSuppliers10 11. ManufacturingMarketing MISDSS
TransactionDatabasesBusiness processing of
validMarketingtransactions systems transactions MISMarketing for
each applications TPS databases Sales by customer Sales by
salespersonManufacturing OperationalSales by product ES databases
Pricing reportTotal service calls 11 12. Databases of
ManufacturingDatabases ofHR MIS internal dataexternal dataDSS
Transaction DatabasesHumanBusiness processingof
validResourceHumantransactions systemstransactionsresource MISfor
eachapplicationsTPSdatabasesBenefit reports Salary
surveysManufacturing OperationalScheduling reports ES databases
Training test scores Job applicant profiles 12 13. Information
SystemsAn information system(IS) is typically considered to be aset
of interrelated elements or components thatcollect(input),
manipulate(processes), and disseminate(output) data and information
and provide a feedbackmechanism to meet an objective.Open
SystemClose System13 14. Computer-based Information SystemAn
Information System is an organized combination ofpeople, hardware,
software, communication networks andthe data resources that
collects, transforms anddisseminates information in a organization.
14 15.
PayrollSystemINFORMATIONTECHNOLOGYInventoryHardwareSystemSoftwareare
used to buildINFORMATIONDatabases SYSTEMSNetworksMarketinOther
related g SystemcomponentsCustomerServiceSystem 15 16.
Classification of ISInformation Systems Operations Support
Management System Support SystemTransactioOffice Manageme Decisionn
Process
automationsupportcontrolntprocessingsystemsinformationsystemssystems
systems systems16 17. 1. Operations support systems process data
generated by businessoperationsMajor categories are:i) Transaction
processing systemsii) Process control systemsiii) Office automation
systems2. Management Support Systems provide information and
support needed foreffective decision making by managersMajor
categories areviii) Management Information Systemix) Decision
Support Systemsx)Executive Information System 17 18. 1. Operations
Support Systemi) Transaction processing systemsProcess business
exchangesMaintain records about the exchangesHandle routine, yet
critical, tasksPerform simple calculationsii) Process control
systems monitor and control industrial processes.iii) Office
automation systems automate office procedures and enhanceoffice
communications and productivity.18 19. . Management support systems
provide information and support needed foreffective decision making
by managersMajor categories are:iv) Management information systems
Routine information for routine decisions Operational efficiency
Use transaction data as main input Databases integrate MIS in
different functional areas19 20. ii) Decision Support System
Interactive support for non-routine decisions or problems End-users
are more involved in creating a DSS than an MISiii) Executive
information systemsprovide critical information tailored to the
information needs of executives 20 21. Other categoriesb) Expert
systemsc) End user computing systemsd) Business information
systemsd) Strategic information systems a) Expert Systems are
knowledge-based systems that provides expert adviceand act as
expert consultants to the users b) End user computing systems
support the direct, hands on use ofcomputers by end users for
operational and managerial applicationsc) Business information
systems support the operational and managerial applications of the
basic business functions of a firmd) Strategic information systems
provide a firm which strategic products, services, and capabilities
for competitive advantage21 22. Enterprise Resource Planning
(ERP)Integrated programs that can manage a companys entire set of
businessoperationsOften coordinate planning, inventory control,
production and ordering 22 23. Information Systems Development23
24. 24 25. Challenges 1. Workforce downsizing 2. Information
overload 3. Employee mistrust 4. Difficult to built 5. Security
breaches 25 26. Opportunities 1. Enhanced global competitiveness 2.
Capture market opportunities 3. Support corporate strategy 4.
Enhance worker productivity 5. Improve quality of goods and
services26 27. An Overview of Transaction
ProcessingSystems/MIS/DSS27 28. Traditional Transaction Processing
MethodsBatch processing method of computerized processing in
whichbusiness transactions are accumulated over a period of time
and preparedfor processing as a single unitOn-line transaction
processing (OLTP) - method of computerizedprocessing in which each
transaction is processed immediately and theaffected records are
updated 28 29. Batch versus On-Line Processing29 30. Integration of
a Firms TPSs 30 31. Transaction Processing ActivitiesData
collection: Capturing data necessary for thetransactionData
editing: Check validity and completeness Ex: 400 hours/week instead
of 40 hours/weekData correction: Correct the wrong dataData
manipulation: Calculate, summarizeData storage: Update
transactionsDocument production and reports: Create endresults
(paychecks) 31 32. Data Processing Activities Common in
TransactionProcessing Systems 32 33. Point-of-Sale Transaction
System 33 34. Systems that Support Order ProcessingOrder Processing
System PurposeOrder entry Data for orderSales configuration Ensure
enough productsShipment planning Which order from
whichlocationShipment executionRight products on timeInventory
control Reflect exact quantityInvoicing and billing Generate
customer invoiceCustomer management Monitor customer contactRouting
and schedulingBest way to move products 34 35. Order Processing
Systems 35 36. Enterprise Decision Support SystemsDSS to provide
enterprise-wide supportExecutivesMany decision makers in different
locationsEnterprise Resource Planning (ERP) systems36 37. 37 38.
Enterprise Systems: Concepts and DefinitionsExecutive information
systems (EIS)Executive support systems (ESS)Enterprise information
systems (EIS) 38 39. Executive Information System (EIS)A
computer-based system that serves the information needs of top
executivesProvides rapid access to timely information and direct
access to managementreportsVery user-friendly, supported by
graphicsProvides exceptions reporting and "drill-down"
capabilitiesEasily connected to the InternetDrill down39 40.
Executive Support System (ESS) Comprehensive support system that
goes beyond EIS toincludeCommunicationsOffice automationAnalysis
supportIntelligence40 41. 41 42. 42 43. Enterprise Information
SystemCorporate-wide systemProvides holistic informationFrom a
corporate viewPart of enterprise resource planning (ERP) systemsFor
business intelligenceLeading up to enterprise information portals
and knowledge management systems43 44. Executives Role and Their
Information Needs Decisional Executive Role (2 Phases) 1.
Identification of problems and/or opportunities 2. The decision of
what to do about them Flow chart and information flow (Figure 8.1)
Use phases to determine executives information needs44 45. 45 46.
46 47. 47 48. Methods for Finding Information Needs Wetherbes
Approach 1. Structured Interviews IBMs Business System Planning
(BSP) Critical Success Factors (CSF) Ends/Means (E/M) Analysis 2.
Prototyping Watson and Frolicks Approach Asking (interview
approach) Deriving the needs from an existing information system
Synthesis from characteristics of the systems Discovering
(Prototyping) Ten methods48 Other Methods 49. 49 50.
Characteristics of EIS Drill down Critical success Factors (CSF)
Status access Analysis Exception reporting Colors and audio
Navigation of information Communication50 51. 51 52. Critical
Success Factors (CSF)Monitored by five types of information 1. Key
problem narratives 2. Highlight charts 3. Top-level financials 4.
Key factors (key performance indicators (KPI)) 5. Detailed KPI
responsibility reports52 53. 53 54. Critical Success Factors54 55.
55 56. Characteristics and Benefits of EIS (Table 8.1)Quality of
informationUser interfaceTechnical capability providedBenefits56
57. 57 58. 58 59. 59 60. Comparing and Integrating EIS and DSS
Tables 8.2 and 8.3 compare the two systems Table 8.2 - DSS
definitions related to EIS Table 8.3 - Comparison of EIS and DSS
EIS is part of decision support60 61. 61 62. 62 63. 63 64. 64 65.
65 66. Integrating EIS and Group Support Systems EIS vendors - easy
interfaces with GSS Some EIS built in Lotus Domino / Notes Comshare
Inc. and Pilot Software, Inc. - Lotus Domino/Notes-based
enhancements and Web/Internet/Intranet links66 67. 67 68.
Traditional EIS Software Major Commercial EIS Software Vendors
Comshare Inc. (www.comshare.com) Pilot Software Inc.
(www.pilotsw.com) Application Development Tools In-housecomponents
Comshare Commander tools Pilot Softwares Command Center Plus and
Pilot Decision Support Suite68 69. 69 70. Soft Information Used in
Most EIS Predictions, speculations, forecasts, estimates (78.1%)
Explanations, justifications, assessments, interpretations (65.6%)
News reports, industry trends, external survey data (62.5%)
Schedules, formal plans (50.0%) Opinions, feelings, ideas (15.6%)
Rumors, gossip, hearsay (9.4%)Soft Information Enhances EIS Value70
71. 71 72. Organizational DSS (ODSS) Three Types of Decision
Support Individual Group OrganizationalHackathorn and Keen (1981)72
73. 73 74. Organizational DSS (ODSS) Three Types of Decision
Support Individual Group OrganizationalHackathorn and Keen (1981)74
75. 75 76. Organizational DSS (ODSS) Three Types of Decision
Support Individual Group OrganizationalHackathorn and Keen (1981)76
77. Definitions of ODSS A combination of computer and
communicationtechnology designed to coordinate and
disseminatedecision-making across functional areas andhierarchical
layers in order that decisions are congruentwith organizational
goals and managements sharedinterpretation of the competitive
environment (R. T.Watson, 1990) A DSS that is used by individuals
or groups at severalworkstations in more than one organizational
unit whomake varied (interrelated but autonomous) decisionsusing a
common set of tools (Carter et al., 1992)77 78. 78 79. A
distributed decision support system (DDSS). Not a managers DSS, but
supports the organizations division of labor in decision making
(Swanson and Zmud, 1990) Apply the technologies of computers and
communications to enhance the organizational decision-making
process. Vision of technological support for group processes to the
higher level of organizations (King and Star, 1990)79 80. 80 81.
Common Characteristics ofODSS (George, 1991) Focus is on an
organizational task or activity or a decision that affects several
organizational units or corporate problems Cuts across
organizational functions or hierarchical layers Almost always
involves computer-based technologies, and may involve communication
technologies Can Integrate ODSS with Group DSS and Executive
Information Systems ODSS are an enterprise information system
directly concerned with decision support81 82. 82 83. 83 84. 84 85.
85 86. 86 87. Decision Maker ViewsThe decision
making-intrepretation processT itleS u b titleN o te : T h is is th
e fo o tn o teY 50145T i40 t l35e302520Cognitive Style 15 Cognitive
Style C o lu m n 1C o lu m n 2C o lu m n 3C o lu m n T i t l e C o
lu m n 4Mental ModelsR ow 1Row 2R ow 3Row 4 Mental Models R o w T
it l eInfromation SourcesOutcomes Links: relationshipsbewteen nodes
New link Nodes: data, models, knowledgeHypertext Links 87 88. 88
89. Management Decision Making Processessoolsess T ProcStrategy
Formulation Planning & BudgetingDialectical Intelligence
Inquiry90 Consensus80 Design Generating70 Choice6050 Stakeholder
East40 West Communications 30 North2010 0 1st Qtr 2nd 3rd 4th Qtr
Qtr QtrPerformanceMeasure ment &ReportingTechnical
Infrastructure Building Human Resource Management89 90. 90 91.
Repository-Based EIS ESS Architecture GSS StructureData Model
RepositoryInterface GSSEnvironmentally Base BaseTarget IS Collected
& Scanned Information: Development Tools
InterfaceInternal/External Process SupportProblem &Problem
ProcessOpprotunityIdentification:Data BaseIntelligenceTool Data
BaseNormativeDescriptiveBusinessDesign DesignProcessDeSanctis and
Gallupe, 1985 RedesignsTurban and Watson, 1989DecisionTeng,
Kettinger, and Guha, 1992ChoiceChen, 1995This paper
Implementation/Outcomes91 92. 92 93. Future of Executive and
EnterpriseSupport Systems Toolbox for customized systems Multimedia
support Better access (via PDFs and cell phones) Virtual Reality
and 3-D Image Displays Merging of analytical systems (OLAP /
multidimensional analysis)) with desktop publishing Client/server
architecture Web-enabled EIS Automated support and intelligent
assistance Integration of EIS and Group Support Systems Global EIS
Integration and deployment with ERP products93
