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Management Information system

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  • EIS emphasizes graphical displays and easy-to-use user interfaces. They offer strong reporting and drill-down capabilities. In general, EIS are enterprise-wide DSS that help top-level executives analyze, compare, and highlight trends in important variables so that they can monitor performance and identify opportunities and problems. EIS and data warehousing technologies are converging in the marketplace. In recent years, the term EIS has lost popularity in favor of business intelligence (with the sub areas of reporting, analytics, and digital dashboards).
  • Module 1

    1. 1. Information SystemsByAnilkumar R
    2. 2. Objectives System Data vs. Information Strategic role of information in management Organization as an information system TPS MIS DSS ESS OAS Networking concepts Telecommunications networks
    3. 3. SystemWhat Is a System?  System: A set of components that work together to achieve a common goal  Subsystem: One part of a system where the products of more than one system are combined to reach an ultimate goal  Closed system: Stand-alone system that has no contact with other systems  Open system: System that interfaces with other systems
    4. 4. InformationProcessed date is called information
    5. 5. Information System An information system (IS)- is any combination of information technology and peoples activities that support operations, management and decision making. In a very broad sense, the term information system is frequently used to refer to the interaction between people, processes, data and technology. In this sense, the term is used to refer not only to the information and communication technology (ICT) that an organization uses, but also to the way in which people interact with this technology in support of business processes.
    6. 6. Components of Information System:
    7. 7. Example – Health Care Information System:
    8. 8. InformationWhy Do People Need Information? Individuals - Entertainment and enlightenment Businesses - Decision making, problem solving and control
    9. 9. Data vs. InformationData Information raw facts  data with context no context  processed data just numbers and text  value-added to data  summarized  organized  analyzed
    10. 10. Data vs. Information Data: 51007 Information:  5/10/07 The date of your final exam.  $51,007 The average starting salary of an accounting major.  51007 Zip code of Bronson Iowa.
    11. 11. Data Manipulation  Example: customer survey  Reading through data collected from a customer survey with questions in various categories would be time- consuming and not very helpful.  When manipulated, the surveys may provide useful information.
    12. 12. Data vs. InformationData Information 6.34 SIRIUS SATELLITE RADIO INC. 6.45 6.39 $7.20 6.62 $7.00 6.57 $6.80 6.64 Stock Price $6.60 6.71 $6.40 6.82 $6.20 7.12 7.06 $6.00 $5.80 1 2 3 4 5 6 7 8 9 10 Last 10 Days
    13. 13. Data  Information  Knowledge Data Summarizing the data Averaging the data Selecting part of the data Graphing the data Adding context Adding value Information
    14. 14. Data  Information  Knowledge Information How is the info tied to outcomes? Are there any patterns in the info? What info is relevant to the problem? How does this info effect the system? What is the best way to use the info? How can we add more value to the info? Knowledge
    15. 15. Information SystemsGeneric Goal: Transform Data into Information  At the Core of an Information System is a Database (raw data).
    16. 16. Information Systems (TSP and PCS)  Data doesn’t just appear, Capturing Data is really the first step  These systems help capture data but they also have other purposes (goals): 1. Transaction Processing Systems (TPS) 2. Process Control Systems (PCS)
    17. 17. Capturing Data What are some examples of real TPS’s? What kind of data is being capture? How is this data transformed into Information?
    18. 18. Data Processing Recall that a basic system is composed of 5 components  Input, Output, Processing, Feedback, Control Typically processing helps transform data into information. Input Output Processing Raw Data Information
    19. 19. Processing Summarizing Computing Averages Graphing Creating Charts Visualizing Data
    20. 20. Processing: Great Example Navigation System  Specialized Geographic Information System Input: Maps, Addresses, Points of Interest, “Yellow Pages” Processing:  Computing Shortest Paths;  Finding the Nearest Chinese Restaurant Output:  Directions (each turn + a map with arrows)  List of nearby Chinese Restaurants (sorted by dist.)
    21. 21. Analysis – Navigation System  Recall that Information Systems have five more specific components:  People, Data, Communication Network, Hardware, Software.  In a Navigation System…  what is the Communication Network?  what is the Hardware?  who are the People?
    22. 22. Data, Information,and SystemsFigure 1.3 Several subsystems make up this corporate accounting system.
    23. 23. Types of Information System:
    24. 24. Executives 24 ESS Senior DSS Managers MIS KWS Transaction Processing System WorkersFig 2.1: Types of Information Systems
    25. 25. Transaction Processing System A TPS support the monitoring, collection, storage, processing and dissemination of the organization’s basic business transitions. It also provides the input data for many applications involving support systems such as DSS. Some times several TPSs exit in one company The TPS are considered critical to the success of any organization since they support core operations such as purchasing of materials, billing customers, preparing a payroll and shipping goods to customers
    26. 26. Routine BusinessTransactions in aManufacturing CompanyPayroll SalesEmployee time cards Sales recordsEmployee pay and deductions Invoices and billingsPayroll checks Accounts receivable Sales returns ShippingPurchasing ProductionPurchase orders Production reports Quality-Deliveries control reportsPayments (accounts payable)Finance and accounting Inventory managementFinancial statements Material usageTax records Inventory levelsExpense accounts
    27. 27. Management Information SystemIt is also popularly known as the Information system, the Information and Decisionsystem, the computer based Information systemDefinitions of MIS:The MIS is defined as a system which provides information support for decision-making in the organizationThe MIS is defined as an integrated system of man and machine for providingthe information to support the operations, the management and the decision-making function in the organization.The MIS is defined as Computer based Information system
    28. 28. MIS MIS is an information system, which processes data and converts it into information. A management information system uses TPS for its data inputs. The information generated by the information system may be used for control of operations, strategic and long-range planning. Short-range planning, management control, and other managerial problem solving. It encompasses processing in support of a wide range of organizational functions & management processes. MIS is capable of providing analysis, planning & decision making support. The functional areas of a business may be marketing, production, human resource, finance and accounting.
    29. 29. Characteristics of MIS They are flexible, allowing for many different ways of analyzing data and evaluating information; They are capable of supporting a range of skills and knowledge; They help managers get things done through interpersonal communication with other members of the organization; Because managers are busy people who switch rapidly between different tasks, they should not require extensive periods of concentration; They should make it easy to interrupt the work and return to it at a later time; They should protect a manager, as far as possible, from information overload.
    30. 30. Case study:Case study: Buying a new carIf you want to purchase a new car from a Ford dealer, chances are that the make and model youwant, in the right colour with the right accessories, is not in stock. It’s just too expensive to havecars with every possible combination of options sitting in the parking lot waiting for a customer. Inthe past, it’s been almost impossible for dealers to track down exactly the model that a customerwants.With the new information system, the dealer can type the details of the required car into a terminalconnected to the main Ford plant at Dagenham. The information will then come back to tell thedealer whether there are any cars available of that specification, and exactly where they are. Theymay be on the Ford parking lot, or there may be only two available, one at a dealers in Perth andthe other in Bournemouth. There may be none available – in which case Ford will make one foryou, though this may take some time.Plant production managers are also connected to the system, and so they know exactly what carshavebeen ordered and can adjust production to reflect demand every day. Discussion: This is an example of a management information system. How does it help– the dealer?– the customer?– the manufacturer?
    31. 31. Discussion:Discussion: A car company gathers information about itscustomer base through many sources, including marketresearch surveys. One company has discovered that it hasrelatively fewcustomers in the 18-30 age range. How can thisinformation be used by the company to improveits sales?
    32. 32. Decision Support System Gorry and Scott-Morton coined the phrase ‘DSS’ in 1971: “A DSS is an interactive computer based system that helps decision makers utilize data and models to solve unstructured problems.” A decision support system (DSS) is a computer-based information system that supports business or organizational decision-makingactivities. DSSs serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in advance. Decision support systems can be either fully computerized, human or a combination of both. A decision support system may present information graphically and may include an expert system or artificial intelligence (AI). It may be aimed at business executives or some other group of knowledge workers.
    33. 33. Typical information gathered byDSS are: Comparative sales figures between one week and the next Projected revenue figures based on new product sales assumptions The consequences of different decision alternatives, given past experience in a context that is described
    34. 34. Benefits of DSS Improves personal efficiency Speed up the process of decision making Increases organizational control Encourages exploration and discovery on the part of the decision maker Speeds up problem solving in an organization Facilitates interpersonal communication Promotes learning or training Generates new evidence in support of a decision Creates a competitive advantage over competition Reveals new approaches to thinking about the problem space Helps automate managerial processes Create Innovative ideas to speed up the performance
    35. 35.  In 1987, Texas Instruments completed development of the Gate Assignment Display System (GADS) for United Airlines. This decision support system is credited with significantly reducing travel delays by aiding the management of ground operations at various airports, beginning with OHare International Airport in Chicago and Stapleton Airport in Denver Colorado
    36. 36. DSS EXAMPLES: MSN Autos - Big Charts -- Databeacon Demos -- Documentum eRoom - elaws Family and Medical Leave Act Advisor - Fidelity Calculators - Inspire - Pinnacor - Principal Financial - WATERSHEDSS - Categorization and Evaluation Exercise
    37. 37. Group Decision SupportSystemsA GDSS is an interactive computer based system thatfacilitates the solution of semi structured and unstructuredproblems when made by a group of decision makers. Theobjective of a GDSS is to support the process of arriving at adecision.Case study: See Page 555 [Virtual meeting at the worldEconomic Forum] by Wiley Edition authored by Turban,Mclean and Wetherbe
    38. 38. GDSS Example:EX 1:Internal Revenue Service, which used a one-room GDSS toimplement its quality-improvement programs based on theparticipation of a number of its quality teams.The GDSS was helpful in identifying problems, generating andevaluating ideas and developing and implementing solutions.EX 2:European automobile industry which used a one-room GDSSto examine the competitive automotive business environmentand make ten-year forecasts, needed for strategic planning.
    39. 39. Executive Information System / ExecutiveSupport SystemEISAn executive information system (EIS) is a typeof management information system that facilitates andsupports senior executive information and decision-makingneeds. It provides easy access to internal and externalinformation relevant to organizational goals. It is commonlyconsidered a specialized form of decision support system(DSS)ESSAn ESS is a comprehensive support system that goes beyondEIS to include analysis support, communications, officeautomation and intelligence support.
    40. 40. Executives’ information needs Prompt, easy-to-use information (quick response time, simple user interface) Presentation should fit his style High degree of summarisation Details on demand Critical success factors Exceptions External and internal sources
    41. 41. Features of an EIS Access to internal and external data What-if analysis Ad hoc queries Drill down Project tracking Colour business graphics Network connections, e-mail access High security
    42. 42. Advantages of EIS Easy for upper-level executives to use, extensive computer experience is not required in operations Provides timely delivery of company summary information Information that is provided is better understood EIS provides timely delivery of information. Management can make decisions made promptly. Improves tracking information Offers efficiency to decision makers
    43. 43. Disadvantages of EIS System dependent Limited functionality, by design Information overload for some managers Benefits hard to quantify High implementation costs System may become slow, large, and hard to manage Need good internal processes for data management May lead to less reliable and less secure data
    44. 44. Types of EIS software Prewritten EIS, e.g.  Command Center – Pilot Software, Inc.  Commander - Comshare  Executive Edge – Execucom Custom EIS, e.g.  MIDS at Lockheed-Georgia
    47. 47. 47Fig 2-2: The six major types of information systems.
    48. 48. INTEGRATED BUSINESSSOFTWAREIntegrates all business functions and processes:Accounting and ControllingFinance and InvestmentInventory ControlMateriel ManagementHuman Resource ManagementProductionSales and DistributionProject ManagementPlant Maintenanceetc.
    49. 49. Major integrated enterprisesolution providers worldwide: SAP (R/3 system) PeopleSoft Oracle JDEdwards (OneWorld) BAAN etc. Megatrend (Infosys) Hungarian company
    50. 50. EXPERT SYSTEMSAI – Artificial Intelligence Use of computers to perform tasks that normallyrequire high-level human intelligence - Humans acquire & input data to their brains throughtheir five senses (vision, hearing, smell, taste & touch) - Computers must have a way of mimicking one ormore of these sensing capabilities (computer vision or“hearing”)
    51. 51. AI areas Robotics (primary areas of research & applications); Computer vision (image processing – recognize & interpret high level patterns & make them meaningful – e.g. defective product, smart weapons); Speech recognition (recognizing spoken words – e.g. dictation); Natural language processing (derive the meaning of a sentence); Neural networks (like brains – learning); Expert systems (attempt to reach the same conclusions about a problem as the best human expert would)  wide variety of potential applications in business.
    52. 52. Expert System (ES) Other examples of Experts Systems Diagnosis of bacteriological diseases in patients Diagnosis of malfunctions in diesel electronic locomotives Configuration of a computer system based on a customer’s anticipated application workload Quality control of products
    53. 53. Advantages of ES Can replace expensive or non-available experts; Can merge knowledge of many experts (preserving, replicating & distributing expert knowledge); Decision making is consistent; Decision making is faster; ES can work under difficult or dangerous situation (wars) Reasoning is explained and documented (insight into the decision making process – explain the rationale by which they reached the decision); ES can be integrated to other type of information systems like DSS or EIS.
    54. 54. Disadvantages of ES  Narrow focus (very narrow domains of applications)  Expensive to develop and maintain  Difficult to test (impossible to present all the possible cases)  Expert’s knowledge is difficult to obtain and put to the computer’s knowledge base  Communication capabilities are poorer (no vague questions!!!)
    55. 55. Thank You All