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mba- managment information system mod-2


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managment information system

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mba- managment information system mod-2

  1. 1. MODULE - 2 <ul><li>Major Types of Systems in Organization </li></ul><ul><ul><li>Strategic Level Systems (ESS) </li></ul></ul><ul><ul><li>Management Level Systems (MIS & DSS) </li></ul></ul><ul><ul><li>Operational Level Systems (TPS & OAS) </li></ul></ul><ul><li>Transaction Processing Systems; </li></ul><ul><li>TPS is an organized collection of people, procedures, </li></ul><ul><li>S/W & DB, devices used to record completed business </li></ul><ul><li>transactions. </li></ul><ul><li>E.g transactions like sales to customers, payments </li></ul><ul><li>to suppliers, A/C receivables etc </li></ul>
  2. 2. <ul><li>computerized systems that performs & records the </li></ul><ul><li>daily routine transactions necessary to the conduct of the </li></ul><ul><li>business, they serve the org’s operational levels. </li></ul><ul><li>Input ------------- events </li></ul><ul><li>Process -------------- listing, merging, updating </li></ul><ul><li>Output -------------- detailed reports </li></ul><ul><li>Users --------------- operations personnel </li></ul><ul><li>Characteristics of TPS </li></ul><ul><ul><li>Supports routine operations associated with customer </li></ul></ul><ul><li>order, billing etc </li></ul><ul><ul><li>Support for decision makers through MIS & DSS </li></ul></ul><ul><ul><li>TPS work with a large amount of I/P & O/P data & use </li></ul></ul><ul><li>this data to update the official records of the company </li></ul>
  3. 3. <ul><ul><ul><ul><ul><li>TPS perform activities related to customer contacts, </li></ul></ul></ul></ul></ul><ul><li>these information play a vital role in providing value to </li></ul><ul><li>the customers </li></ul><ul><li>Types of TPS; </li></ul><ul><li>1. Batch processing </li></ul><ul><li>2. On-Line Processing </li></ul>
  4. 4. Office Automation Systems <ul><li>Computer systems, such as word processing, e-mail </li></ul><ul><li>systems, & scheduling systems that are designed to </li></ul><ul><li>increase the productivity of data workers in the office. </li></ul><ul><li>OA may be defined as a separate sub-system included </li></ul><ul><li>Within information processing. It includes a wide-range of </li></ul><ul><li>Support facilities for knowledge work & clerical activities. </li></ul><ul><li>Examples are; </li></ul><ul><ul><li>Word processing </li></ul></ul><ul><ul><li>Electronic mail </li></ul></ul><ul><ul><li>Electronic filing </li></ul></ul><ul><ul><li>Data & voice communications </li></ul></ul>
  5. 5. Overview of OAS <ul><li>Office publishing systems </li></ul><ul><ul><ul><li>Word processing </li></ul></ul></ul><ul><ul><ul><li>Desktop publishing </li></ul></ul></ul><ul><li>Image processing systems </li></ul><ul><ul><ul><li>Image processing </li></ul></ul></ul><ul><ul><ul><li>Electronic document mgt </li></ul></ul></ul><ul><li>Electronic communication systems </li></ul><ul><ul><ul><li>Electronic mail </li></ul></ul></ul><ul><ul><ul><li>Voice mail </li></ul></ul></ul><ul><ul><ul><li>Facsimile (FAX) </li></ul></ul></ul>
  6. 6. Management Information System <ul><li>“ Integrated collection of people, procedures, DB, </li></ul><ul><li>& devices that provides managers & decision makers </li></ul><ul><li>with information to help & achieve orgal goals”. </li></ul><ul><li>IS at the mgt level of an org that serve the functions of </li></ul><ul><li>planning, controlling, & decision making by providing </li></ul><ul><li>routine summary & exception reports. </li></ul><ul><li>MIS help M’gers in both like semi-structure & </li></ul><ul><li>structured decisions. </li></ul><ul><li>Semi-structured ----- reduces the risk & complexity </li></ul><ul><ul><li>MIS use simple analytical models which are often </li></ul></ul><ul><ul><li>used in most of the business problems. </li></ul></ul><ul><ul><li>MIS use detailed reports from TPS as I/P. </li></ul></ul><ul><ul><li>MIS consumes high volume of tractions data. </li></ul></ul>
  7. 7. <ul><li>MIS in Perspective; </li></ul><ul><ul><li>Primary purpose of an MIS is to help an org to archive its goals by </li></ul></ul><ul><li>providing M’gers with insight into the regular operations of the org </li></ul><ul><ul><li>MIS help to control, organize & plan the org program more effectively </li></ul></ul><ul><ul><li>MIS role is to provide the right information to the right person in </li></ul></ul><ul><li>the right format at right time </li></ul><ul><li>Characteristics of MIS; </li></ul><ul><ul><li>MIS support structured & semi structured decisions at the </li></ul></ul><ul><li>operational & management control levels </li></ul><ul><ul><li>MIS rely on existing corporate data & data flows </li></ul></ul><ul><ul><li>MIS are relatively inflexible </li></ul></ul><ul><ul><li>Information requirements are known & stable </li></ul></ul><ul><ul><li>MIS are generally reporting & control oriented </li></ul></ul><ul><ul><li>MIS designed to report on existing operations </li></ul></ul><ul><ul><li>It aid in decision making, using the past & present data </li></ul></ul><ul><ul><li>Types of MIS Reports; </li></ul></ul><ul><ul><ul><li>Periodic Schedule reports </li></ul></ul></ul><ul><ul><ul><li>Demand or Response report </li></ul></ul></ul><ul><ul><ul><li>Exception report </li></ul></ul></ul><ul><ul><ul><li>Push report </li></ul></ul></ul>
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. <ul><li>Characteristics of DSS; </li></ul><ul><ul><li>DSS offer users flexibility, adaptability & a </li></ul></ul><ul><li>guide response. </li></ul><ul><ul><li>DSS allow users to initiate & control the I/P & O/P. </li></ul></ul><ul><ul><li>DSS operate with little (or) no assistance from </li></ul></ul><ul><ul><li>professional programmers. </li></ul></ul><ul><ul><li>DSS provide support for decision & problems </li></ul></ul><ul><ul><li>whose solutions can’t be specified in advance. </li></ul></ul><ul><ul><li>DSS use sophisticated analysis & modeling tools. </li></ul></ul>
  12. 12. Disadvantages of DSS <ul><li>Unable to replicate some innate human knowledge mgt skills </li></ul><ul><li>May be too specific </li></ul><ul><li>Can’t overcome a faulty decision making </li></ul><ul><li>Over dependence dangers </li></ul><ul><li>May not match DM mode of expression or perception </li></ul>
  13. 13. 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
  14. 14. Executive Support Systems [ESS] <ul><li>Definition; </li></ul><ul><li>“ Is at the strategic level of an org designed to address </li></ul><ul><li>unstructured decision making through advanced </li></ul><ul><li>graphics & communication”. </li></ul><ul><ul><li>ESS help M’gers with unstructured problems, focusing on the </li></ul></ul><ul><li>inform. Needs of senior mgt data from internal & external </li></ul><ul><li>source. </li></ul><ul><ul><li>ESS help senior executives for monitor performance, </li></ul></ul><ul><li>track activities of computer, spot problems, identify </li></ul><ul><li>opportunities, & forecast trends. </li></ul>
  15. 15. 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
  16. 16. <ul><li>Roles of ESS in Organization </li></ul><ul><li>The systems developed specifically for executives </li></ul><ul><li>in the early 1980s. </li></ul><ul><li>1. Briefing Books </li></ul><ul><li>2. Drill-Down </li></ul><ul><li>Benefits or Advantages of ESS </li></ul><ul><li>ESS is found in their flexibility </li></ul><ul><li>ESS is capable of analyzing, comparing, & highlighting </li></ul><ul><li>the trends </li></ul><ul><li>Executives are free to shape the problems as they needs </li></ul><ul><li>ESS can & do changes in the working of organization </li></ul><ul><li>It improves management performance & increase the </li></ul><ul><li>upper mgt span of control </li></ul><ul><li>ESS helps executives for monitor performance more </li></ul><ul><li>successfully in their own areas of responsibility </li></ul><ul><li>Better monitoring of activities through – identifying </li></ul><ul><li>changing market conditions, formulating responses, </li></ul><ul><li>tracking implementation efforts & learning from </li></ul><ul><li>feedback </li></ul>
  17. 17. 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
  18. 18. Knowledge acquisition facility; Knowledge base Knowledge Acquisition Facility interface Human Experts <ul><li>ES have been used to monitor; </li></ul><ul><ul><li>Perform medical diagnoses </li></ul></ul><ul><ul><li>Design & configuration IS components </li></ul></ul><ul><ul><li>Develop marketing plans for new product </li></ul></ul><ul><ul><li>Locate possible repair problems </li></ul></ul><ul><ul><li>Nuclear reactors </li></ul></ul>
  19. 19. 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
  20. 20. Values of Expert Systems <ul><li>ES capture the expertise of an expert or group of experts in a CBIS </li></ul><ul><li>ES can perform as a single expert in many situations </li></ul><ul><li>ES is facts & more consistent, can have the knowledge of several experts </li></ul><ul><li>It does not get tired or disturbed by overwork or stress </li></ul><ul><li>ES also help to preserve & reproduce the knowledge of experts </li></ul>
  21. 21. 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.
  22. 22. <ul><li>Characteristics of GDSS; </li></ul><ul><ul><li>Each participant has a computer workstation </li></ul></ul><ul><ul><li>A leader 9facilitator0 co-ordinate the meeting </li></ul></ul><ul><ul><li>The room has a display screen that all participants can view </li></ul></ul><ul><ul><li>Computers are networked & client/server architecture is used </li></ul></ul><ul><ul><li>GDSS used specialized S/W like groupware & tools </li></ul></ul><ul><ul><li>Tools for voting or setting priorities [ GDSS S/W tools] </li></ul></ul><ul><li>Advantages of GDSS; </li></ul><ul><ul><li>Broad perspective for problem definition & analysis </li></ul></ul><ul><ul><li>Improved pre-planning to make meeting more effective & efficient </li></ul></ul><ul><ul><li>Increased participation & open, collaborative atmosphere-feel free </li></ul></ul><ul><li>to contribute </li></ul><ul><ul><li>More knowledge, fact, & alternatives can be evaluated </li></ul></ul><ul><ul><li>Documentation of meetings </li></ul></ul><ul><ul><li>Preservation of organizational memory </li></ul></ul><ul><ul><li>Criticism free idea generation </li></ul></ul>
  23. 23. 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
  24. 24. 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
  25. 25. 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.
  26. 26. 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
  27. 27. 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.
  28. 28. 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.
  29. 29. 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
  30. 30. Supply Chain Mgt <ul><li>SCM; </li></ul><ul><li>Integrating mgt & IT to optimize information & product flows among </li></ul><ul><li>the processes & business partners within a supply chain. </li></ul><ul><li>Supply Chain; </li></ul><ul><li>The network of business processes & inter-relationships among </li></ul><ul><li>business that are needed to build, sell, & deliver a product to its final </li></ul><ul><li>customer. </li></ul><ul><li>A successful SCM strategy is base on accurate order processing, </li></ul><ul><li>just-in-time Inventory mgt, & timely order fulfillment. </li></ul><ul><li>Goal of SCM; </li></ul><ul><li>To create a fast, efficient, & low-cost network of business relationships, </li></ul><ul><li>to get a company’s products from concept of market. Supply chain processes </li></ul><ul><li>should add value to the products (or) services a company produces, a </li></ul><ul><li>supply chain called a value chain . </li></ul><ul><li>Objective of SCM; </li></ul><ul><ul><li>To reduce costs </li></ul></ul><ul><ul><li>Increase efficiency & improve supply chain cycle times </li></ul></ul><ul><ul><li>Effective distribution </li></ul></ul><ul><ul><li>Channel networks among business partners </li></ul></ul>
  31. 31. 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
  32. 32. Customer Relationship Mgt [CRM] <ul><li>CRM; </li></ul><ul><li>Across-functional e-business application that integrates & automates </li></ul><ul><li>many customer serving processes in sales, direct-marketing, </li></ul><ul><li>accounting & order mgt & customer service & support, retain </li></ul><ul><li>loyal customers. </li></ul><ul><li>Goal of CRM; </li></ul><ul><li>To understand & anticipate the needs of current & potential customers </li></ul><ul><li>to increase retention & loyalty while optimizing the way that products </li></ul><ul><li>& services are sold. </li></ul><ul><li>Benefits to Organization; </li></ul><ul><ul><ul><li>Improve customer satisfaction </li></ul></ul></ul><ul><ul><ul><li>Increase customer retention </li></ul></ul></ul><ul><ul><ul><li>Reduced operating costs </li></ul></ul></ul><ul><ul><ul><li>Ability to meet customer demand </li></ul></ul></ul><ul><ul><ul><li>Automate & integrate the function of marketing </li></ul></ul></ul><ul><ul><ul><li>Data about customer contact of a company CRM system </li></ul></ul></ul>
  33. 33. 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