mba- managment information system mod-2Presentation Transcript
MODULE - 2
Major Types of Systems in Organization
Strategic Level Systems (ESS)
Management Level Systems (MIS & DSS)
Operational Level Systems (TPS & OAS)
Transaction Processing Systems;
TPS is an organized collection of people, procedures,
S/W & DB, devices used to record completed business
E.g transactions like sales to customers, payments
to suppliers, A/C receivables etc
computerized systems that performs & records the
daily routine transactions necessary to the conduct of the
business, they serve the org’s operational levels.
Input ------------- events
Process -------------- listing, merging, updating
Output -------------- detailed reports
Users --------------- operations personnel
Characteristics of TPS
Supports routine operations associated with customer
order, billing etc
Support for decision makers through MIS & DSS
TPS work with a large amount of I/P & O/P data & use
this data to update the official records of the company
TPS perform activities related to customer contacts,
these information play a vital role in providing value to
Types of TPS;
1. Batch processing
2. On-Line Processing
Office Automation Systems
Computer systems, such as word processing, e-mail
systems, & scheduling systems that are designed to
increase the productivity of data workers in the office.
OA may be defined as a separate sub-system included
Within information processing. It includes a wide-range of
Support facilities for knowledge work & clerical activities.
Data & voice communications
Overview of OAS
Office publishing systems
Image processing systems
Electronic document mgt
Electronic communication systems
Management Information System
“ Integrated collection of people, procedures, DB,
& devices that provides managers & decision makers
with information to help & achieve orgal goals”.
IS at the mgt level of an org that serve the functions of
planning, controlling, & decision making by providing
routine summary & exception reports.
MIS help M’gers in both like semi-structure &
Semi-structured ----- reduces the risk & complexity
MIS use simple analytical models which are often
used in most of the business problems.
MIS use detailed reports from TPS as I/P.
MIS consumes high volume of tractions data.
MIS in Perspective;
Primary purpose of an MIS is to help an org to archive its goals by
providing M’gers with insight into the regular operations of the org
MIS help to control, organize & plan the org program more effectively
MIS role is to provide the right information to the right person in
the right format at right time
Characteristics of MIS;
MIS support structured & semi structured decisions at the
operational & management control levels
MIS rely on existing corporate data & data flows
MIS are relatively inflexible
Information requirements are known & stable
MIS are generally reporting & control oriented
MIS designed to report on existing operations
It aid in decision making, using the past & present data
Types of MIS Reports;
Periodic Schedule reports
Demand or Response report
Order Processing system Materials Mgt system General Ledger system Sales data Product Cost data Production data Customer file Production file A/C file Expenses data MIS Reports Mangers TPS MIS
Decision Support System [ DSS] Supporting system at the mgt level of an org that combine data & sophisticated analytical models to support semi-structured decision making. It offer greater computing as well as graphical Capabilities. It consume relatively less data but can use the data from different fields of the business. DSS provide managerial end users with information in an interactive session
General Structure of DSS process cost competitors product DB Analytical model DB Comprises of 1.Behaviour Model 2.Mgt science Model 3.OR Model Model Base DSS S/W computer Graphics & Reports
Characteristics of DSS;
DSS offer users flexibility, adaptability & a
DSS allow users to initiate & control the I/P & O/P.
DSS operate with little (or) no assistance from
DSS provide support for decision & problems
whose solutions can’t be specified in advance.
DSS use sophisticated analysis & modeling tools.
Disadvantages of DSS
Unable to replicate some innate human knowledge mgt skills
May be too specific
Can’t overcome a faulty decision making
Over dependence dangers
May not match DM mode of expression or perception
Differences b/w MIS & DSS Inform. Produced by analytical modeling of business data Inform. Produced by extraction & manipulation of business data Inform. Processing methodology Flexible & adaptable format Pre specified & fixed format Inform. format Interactive inquiries & responses Periodic, exception, demand & push report & responses Inform. form & frequency Provide inform. & support techniques to analyze specific problems or opportunities Provide inform. About the performance of the org Decision support provided DSS MIS
Executive Support Systems [ESS]
“ Is at the strategic level of an org designed to address
unstructured decision making through advanced
graphics & communication”.
ESS help M’gers with unstructured problems, focusing on the
inform. Needs of senior mgt data from internal & external
ESS help senior executives for monitor org.al performance,
track activities of computer, spot problems, identify
opportunities, & forecast trends.
ESS 1. Competitors Strategy 2.Money Market Data 3.Published News 4. BSE index 1.TPS data 2. MIS data 3. Office systems 4. Analytical Models 1.Graphics 2.Communications External DB/ Data Internal DB/ Data Menu
Roles of ESS in Organization
The systems developed specifically for executives
in the early 1980s.
1. Briefing Books
Benefits or Advantages of ESS
ESS is found in their flexibility
ESS is capable of analyzing, comparing, & highlighting
Executives are free to shape the problems as they needs
ESS can & do changes in the working of organization
It improves management performance & increase the
upper mgt span of control
ESS helps executives for monitor performance more
successfully in their own areas of responsibility
Better monitoring of activities through – identifying
Expert Systems Definition; A computer based IS that uses its knowledge about a specific complex application area to act as an expert consultant to users. Components of Expert Systems; Explanation facility Inference engine Knowledge Base Acquisition facility User interface Knowledge Base Experts User
Knowledge acquisition facility; Knowledge base Knowledge Acquisition Facility interface Human Experts
ES have been used to monitor;
Perform medical diagnoses
Design & configuration IS components
Develop marketing plans for new product
Locate possible repair problems
Development of ES; Like other computer systems, ES require a systematic development approach for best result. Determine requirements Identifying one or more experts Maintaining & reviewing system Implementing results Constructing ES components ES Domain Expert Knowledge Engineer Knowledge User
Values of Expert Systems
ES capture the expertise of an expert or group of experts in a CBIS
ES can perform as a single expert in many situations
ES is facts & more consistent, can have the knowledge of several experts
It does not get tired or disturbed by overwork or stress
ES also help to preserve & reproduce the knowledge of experts
Group Decision Support System [GDSS] GDSS is an interactive, computer based system that helps a team of decision-makers solve problems and make choices. GDSS are targeted to supporting groups in analyzing problems situations and in performing group decision making tasks. GDSS is a hybrid system that uses an elaborate comm. In fracture, & quantitative model to support decision making. GDSS is a groupware. It facilitates interaction among a group of decision makers. GDSS were developed in response to a growing concern over the quality & effectiveness of meetings. GDSS coverts simple electronic boardroom to elaborate collaboration laboratories & with GDSS individuals work on their own PCs, there I/p is integrated on a fileserver.
Characteristics of GDSS;
Each participant has a computer workstation
A leader 9facilitator0 co-ordinate the meeting
The room has a display screen that all participants can view
Computers are networked & client/server architecture is used
GDSS used specialized S/W like groupware & tools
Tools for voting or setting priorities [ GDSS S/W tools]
Advantages of GDSS;
Broad perspective for problem definition & analysis
Improved pre-planning to make meeting more effective & efficient
More knowledge, fact, & alternatives can be evaluated
Documentation of meetings
Preservation of organizational memory
Criticism free idea generation
HRM IS Systems maintain E’yees records, track E’yee skills, job performance, training, E’yee compensation & carrier development information by support planning. HR Systems Mgt Report Online queries E’yees Master file E’yees data (from various Dept ) To pay roll
Financial IS Computer based financial IS supports business m’gers & Professionals in decisions. 1. The financing of a business 2. The allocation & control of financial resources Cash Mgt Investment Mgt Capital budgeting Financial planning Financial IS Reports
Enterprise Applications Systems that can co-ordinate activities, Decisions, & knowledge across many diff. functions, levels & business units in a firm. It includes enterprise systems or ERP, SCM, CRM, & KMS.
Suppliers SCM Sourcing & Procurement ERP Internal business processes CRM Marketing, sales & service E M P L O Y E E s P A R T N E R s Customers Knowle dge Mgt Collaboration & Decision support Partners Relationship Mgt Enterprise Application Architecture
Enterprise Systems; Enterprise systems provide a technology platform where org can integrate & co-ordinate their major internal business processes. They address the problem of organizational inefficiencies created by isolated island of information business processes & technology. Enterprise systems other wise knows as ERP, it solve the problem by providing a single IS for organization wide co-ordination of key business Processes.
Knowledge based IS An IS that adds a knowledge base to the DB & other components found in other types of computer based IS. Knowledge based systems that support the creation & dissemination of business knowledge within the enterprise. For many companies information portal are the entry to corporate intranet, that serve as their knowledge mgt systems. So such portals are called enterprise knowledge portal by their vendors.
Web User Enterprise Knowledge Portal Structured data source Unstructured data source Enterprise knowledge ERP DB CRM DB Other DB E-mail Group ware File system Web Net work Enterprise Knowledge base Portal server with KM engine/server
Supply Chain Mgt
Integrating mgt & IT to optimize information & product flows among
the processes & business partners within a supply chain.
The network of business processes & inter-relationships among
business that are needed to build, sell, & deliver a product to its final
A successful SCM strategy is base on accurate order processing,
just-in-time Inventory mgt, & timely order fulfillment.
Goal of SCM;
To create a fast, efficient, & low-cost network of business relationships,
to get a company’s products from concept of market. Supply chain processes
should add value to the products (or) services a company produces, a
supply chain called a value chain .
Objective of SCM;
To reduce costs
Increase efficiency & improve supply chain cycle times
Channel networks among business partners
SCM life cycle; commit schedule make deliver Main Goal of SCM; Business Value Goals Rapid demand fulfillment Collaborative supply chain Planning & execution Customer Value Goals Give customer what they want When & how they want it At the lowest cost Inter-enterprise Co-ordination of Mgt & business processes Responsiveness & Accountability To customers Effective Distribution & Channel partnership
Customer Relationship Mgt [CRM]
Across-functional e-business application that integrates & automates
many customer serving processes in sales, direct-marketing,
accounting & order mgt & customer service & support, retain
Goal of CRM;
To understand & anticipate the needs of current & potential customers
to increase retention & loyalty while optimizing the way that products
& services are sold.
Benefits to Organization;
Improve customer satisfaction
Increase customer retention
Reduced operating costs
Ability to meet customer demand
Automate & integrate the function of marketing
Data about customer contact of a company CRM system
Customer life cycle; Acquire Enhance Retain Application of CRM; Prospects Or customers Fax E-mai l Web Telephone Marketing & Fulfillment Customer service & support Retention & Loyalty programs Contact & A/C mgt Sales