Mis 3

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Mis 3

  1. 1. MANAGEMENTINFORMATION SYSTEMS By Aruldoss Vithakan 1
  2. 2. DATA VS INFORMATION Information System can be technically defined as a set of inter-related components that collect ( or retrieves) ,process, store and distribute information to support decision making and control in any organization. IS also helps to analyse problems, visualise complex subjects and create new products. While date is raw facts representing events,information refers to data that has been shaped into a form that is meaningful and useful for human beings. 2
  3. 3. DATA VS INFORMATION 3
  4. 4. FUNCTIONS OF INFORMATION SYSTEM 4
  5. 5. DIMESNSIONS OF INFORMATION SYSTEMS 5
  6. 6. LEVELS IN MANAGEMENT 6
  7. 7. INFORMATION SYSTEM REQUIREMENTS SOFTWARE SKILLS: Presentation software BUSINESS SKILLS: Management analysis and information system recommendations BASED ON:- Company’s goals and culture Products and services of the company and what are available to customers in the in market How the company sells? Employees strength and the hierarchy Present information system Use of electronic data base and software 7
  8. 8. Business processes and 8
  9. 9. An Organization’s MIS Financial MIS Businesstransactions Drill down reports AccountingTransaction Databases MIS Exception reportsprocessing of Demand reports systems valid transactions Key-indicator reports Marketing MIS Scheduled reports Businesstransactions Databases Human of Resources Etc. external data MIS Extranet Etc. 9
  10. 10. FinancialFinancial MIS DSS Business transactions Transaction Databases processing of valid Financial systems transactions MIS Financial for each applications TPS databases Business transactions Financial statements Financial Operational Uses and management ES Internet databases of funds or Financial statistics Extranet for control Business Customers, transactions Suppliers 10
  11. 11. ManufacturingMarketing MIS DSS Transaction Databases Business processing of valid Marketingtransactions systems transactions MIS Marketing for each applications TPS databases Sales by customer Sales by salesperson Manufacturing Operational Sales by product ES databases Pricing report Total service calls 11
  12. 12. Databases of Manufacturing Databases ofHR MIS internal data external data DSS Transaction Databases Human Business processing of valid Resource Humantransactions systems transactions resource MIS for each applications TPS databases Benefit reports Salary surveys Manufacturing Operational Scheduling reports ES databases Training test scores Job applicant profiles 12
  13. 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 System Close System 13
  14. 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. 15. Payroll SystemINFORMATIONTECHNOLOGY Inventor yHardware SystemSoftware are used to build INFORMATIONDatabases SYSTEMSNetworks MarketinOther related g Systemcomponents Customer Service System 15
  16. 16. Classification of IS Information Systems Operations Support Management System Support SystemTransactio Office Manageme Decisionn Process automation support control ntprocessing systems information systemssystems systems systems 16
  17. 17. 1. Operations support systems process data generated by business operationsMajor categories are:i) Transaction processing systemsii) Process control systemsiii) Office automation systems2. Management Support Systems provide information and support needed for effective decision making by managersMajor categories areviii) Management Information Systemix) Decision Support Systemsx) Executive Information System 17
  18. 18. 1. Operations Support Systemi) Transaction processing systems• Process business exchanges• Maintain records about the exchanges• Handle routine, yet critical, tasks• Perform simple calculationsii) Process control systems monitor and control industrial processes.iii) Office automation systems automate office procedures and enhance office communications and productivity. 18
  19. 19. . Management support systems provide information and support needed for effective 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 areas 19
  20. 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. 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 advice and act as expert consultants to the users b) End user computing systems support the direct, hands on use of computers 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 advantage 21
  22. 22. Enterprise Resource Planning (ERP)Integrated programs that can manage a company’s entire set of businessoperationsOften coordinate planning, inventory control, production and ordering 22
  23. 23. Information Systems Development 23
  24. 24. 24
  25. 25. Challenges 1. Workforce downsizing 2. Information overload 3. Employee mistrust 4. Difficult to built 5. Security breaches 25
  26. 26. Opportunities 1. Enhanced global competitiveness 2. Capture market opportunities 3. Support corporate strategy 4. Enhance worker productivity 5. Improve quality of goods and services 26
  27. 27. An Overview of Transaction ProcessingSystems/MIS/DSS 27
  28. 28. Traditional Transaction Processing Methods Batch processing – method of computerized processing in which business transactions are accumulated over a period of time and prepared for processing as a single unit On-line transaction processing (OLTP) - method of computerized processing in which each transaction is processed immediately and the affected records are updated 28
  29. 29. Batch versus On-Line Processing 29
  30. 30. Integration of a Firm’s TPSs 30
  31. 31. Transaction Processing Activities Data collection: Capturing data necessary for the transaction Data editing: Check validity and completeness Ex: 400 hours/week instead of 40 hours/week Data correction: Correct the wrong data Data manipulation: Calculate, summarize Data storage: Update transactions Document production and reports: Create end results (paychecks) 31
  32. 32. Data Processing Activities Common in TransactionProcessing Systems 32
  33. 33. Point-of-Sale Transaction System 33
  34. 34. Systems that Support Order ProcessingOrder Processing System PurposeOrder entry Data for orderSales configuration Ensure enough productsShipment planning Which order from which locationShipment execution Right products on timeInventory control Reflect exact quantityInvoicing and billing Generate customer invoiceCustomer management Monitor customer contactRouting and scheduling Best way to move products 34
  35. 35. Order Processing Systems 35
  36. 36. Enterprise Decision Support SystemsDSS to provide enterprise-wide supportExecutivesMany decision makers in different locationsEnterprise Resource Planning (ERP) systems 36
  37. 37. 37
  38. 38. Enterprise Systems: Concepts and DefinitionsExecutive information systems (EIS)Executive support systems (ESS)Enterprise information systems (EIS) 38
  39. 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 down 39
  40. 40. Executive Support System (ESS) Comprehensive support system that goes beyond EIS to includeCommunicationsOffice automationAnalysis supportIntelligence 40
  41. 41. 41
  42. 42. 42
  43. 43. Enterprise Information System Corporate-wide system Provides holistic information From a corporate view Part of enterprise resource planning (ERP) systems For business intelligence Leading up to enterprise information portals and knowledge management systems43
  44. 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. 45
  46. 46. 46
  47. 47. 47
  48. 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. 49
  50. 50. Characteristics of EIS  Drill down  Critical success Factors (CSF)  Status access  Analysis  Exception reporting  Colors and audio  Navigation of information  Communication50
  51. 51. 51
  52. 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. 53
  54. 54. Critical Success Factors54
  55. 55. 55
  56. 56. Characteristics and Benefits of EIS (Table 8.1) Quality of information User interface Technical capability provided Benefits56
  57. 57. 57
  58. 58. 58
  59. 59. 59
  60. 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. 61
  62. 62. 62
  63. 63. 63
  64. 64. 64
  65. 65. 65
  66. 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. 67
  68. 68. Traditional EIS Software  Major Commercial EIS Software Vendors  Comshare Inc. (www.comshare.com)  Pilot Software Inc. (www.pilotsw.com)  Application Development Tools  In-house components  Comshare Commander tools  Pilot Software’s Command Center Plus and Pilot Decision Support Suite68
  69. 69. 69
  70. 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. 71
  72. 72. Organizational DSS (ODSS)  Three Types of Decision Support  Individual  Group  Organizational Hackathorn and Keen (1981)72
  73. 73. 73
  74. 74. Organizational DSS (ODSS)  Three Types of Decision Support  Individual  Group  Organizational Hackathorn and Keen (1981)74
  75. 75. 75
  76. 76. Organizational DSS (ODSS)  Three Types of Decision Support  Individual  Group  Organizational Hackathorn and Keen (1981)76
  77. 77.  Definitions of ODSS A combination of computer and communication technology designed to coordinate and disseminate decision-making across functional areas and hierarchical layers in order that decisions are congruent with organizational goals and managements shared interpretation of the competitive environment (R. T. Watson, 1990) A DSS that is used by individuals or groups at several workstations in more than one organizational unit who make varied (interrelated but autonomous) decisions using a common set of tools (Carter et al., 1992) 77
  78. 78. 78
  79. 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. 80
  81. 81. Common Characteristics of ODSS (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. 82
  83. 83. 83
  84. 84. 84
  85. 85. 85
  86. 86. 86
  87. 87. Decision Maker Views The decision making- intrepretation process T itle S u b title N o te : T h is is th e fo o tn o te Y 50 1 45 T i 40 t l 35 e 30 25 20 Cognitive Style 15 Cognitive Style C o lu m n 1 C o lu m n 2 C o lu m n 3 C o lu m n T i t l e C o lu m n 4 Mental Models R ow 1 Row 2 R ow 3 Row 4 Mental Models R o w T it l eInfromation Sources Outcomes Links: relationships bewteen nodes New link Nodes: data, models, knowledge Hypertext Links 87
  88. 88. 88
  89. 89. Management Decision Making Processess ools ess T Proc Strategy Formulation Planning & Budgeting Dialectical Intelligence Inquiry 90 Consensus 80 Design Generating 70 Choice 60 50 Stakeholder East 40 West Communications 30 North 20 10 0 1st Qtr 2nd 3rd 4th Qtr Qtr Qtr Performance Measure ment & Reporting Technical Infrastructure Building Human Resource Management89
  90. 90. 90
  91. 91. Repository-Based EIS ESS Architecture GSS Structure Data Model Repository Interface GSS Environmentally Base Base Target IS Collected & Scanned Information: Development Tools Interface Internal/External Process Support Problem & Problem Process Opprotunity Identification: Data Base Intelligence Tool Data Base Normative Descriptive Business Design Design ProcessDeSanctis and Gallupe, 1985 RedesignsTurban and Watson, 1989 DecisionTeng, Kettinger, and Guha, 1992 ChoiceChen, 1995This paper Implementation/Outcomes 91
  92. 92. 92
  93. 93. Future of Executive and Enterprise Support 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
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