7. EXAMPLE OF INFORMATION
NEEDED BY A SHOPKEEPER
Daily sales account
List of low stock items to be re-ordered
List of overstock items
Long overdue payments
Profit and loss account
8. TYPES OF INFORMATION
STRATEGIC: Needed for long range planning and
directions.
OPERATIONAL: Needed for day to day operations of the
organization.
TACTICAL: Needed to take short range decisions to
improve.
9. SYSTEM
System as a group of interrelated components working together
toward a common goal by accepting inputs and producing
outputs in an organized transformation process.
INPUT PROCESSING OUTPUT
system and its three basic interacting components or functions
10. TYPES OF SYSTEM
The systems can be classified in different categories based on the
predictability of its output and the degree of information exchange with the
environment.
DETERMINISTIC: when the inputs, the process and the outputs of a system
are known with certainty. in a deterministic system, you can predict the
output with certainty.
PROBABILISTIC: when the output can only be predicted in probabilistic terms.
the accounting system is deterministic while the demand forecasting system
is a probabilistic one.
CLOSED SYSTEM : If a system is functioning in isolation from the
environment, then the system does not have any exchange with the
environment nor is it influenced by the environmental changes.
OPEN SYSTEM: If the system has exchange with the environment and is
influenced by the environment then it is called an open system.
12. INFORMATION SYSTEMS
• Information system consists of
physical and non-physical
components working together.
• A computer combines with a
software program may constitute
an information system, but only if
the program is designed to produce
information that helps an
organization or person to achieve a
specific goal.
13. NEED OF INFORMATION SYSTEMS
Sales and marketing
Manufacturing
Finance
Accounting
Human resources
15. MIS: MANAGEMENT INFORMATION
SYSTEM
•MIS provides information about the performance of an
organization.
•Think of entire company (the firm) as a system.
•An MIS provides management with feedback.
The Firm
Processing
Input: Raw Materials,
Supplies, Data, etc.
Output: Products,
Services, Information
etc.MIS
Managers,
VPs, CEO
16. FUNCTIONS OF MIS
(1) TO GENERATE REPORTS: For example, financial statements,
inventory status reports, or performance reports needed for
routine or non-routine purposes.
(2) TO ANSWER WHAT-IF QUESTIONS ASKED BY MANAGEMENT: For
example, questions such as "what would happen to deposits if the
bank increases interest rates?" can be answered by MIS.
(3) TO SUPPORT DECISION MAKING: This type of MIS is appropriately
called decision support system (DSS).
17. HOW IS A DSS DIFFERENT?
MIS
•Periodic reports
•Pre-specified, generic
reports
DSS
•Special reports that may only be generated
once
•May not know what kind of report to
generate until the problem surfaces;
specialized reports.
In a DSS, a manager generates the report through an interactive
interface
Flexible & Adaptable reports
DSS Reporting is produced through analytical modeling, not just
computing an average, or plotting a graph.
Business Models are programmed into a DSS
18. MIS VS. DSS
MIS DSS
Support Info about
performance
Info and modeling to
analyze problems
Report Form Periodic reports
or On Demand
Interactive Inquiries
Format Pre-specified
Fixed format
Flexible and Adaptable
Processing Extract and
manipulate data
Analytical modeling
of data
19. TYPICAL MIS REPORTING
Periodic Scheduled Reports
Example: Monthly Financial
Statements
Exception Reports
Example: List of items out of
stock
Demand Reports and Responses
Available whenever a manager needs them, updated in
real-time.
Push Reporting
Information is pushed to a managers computer
Example: Report is pushed every time a supplier is late
with a shipment
These reports contain information but
they might not directly help to
determine the best decision to make.
MORE MIS REPORTS
MIS Reporting is all about giving
managers feedback and doesn’t
necessarily help directly with decision
making
20. MIS: FEEDBACK FOR A FIRM
Q: How are we doing?
A: Look at the report from the MIS
Generic reports: Sales, Orders, Schedules, etc.
Periodic: Daily, Weekly, Quarterly, etc.
Pre-specified reports
Such reports are useful for making good decisions.
21. HOW IS DSS REPORTING
DIFFERENT?
•Modeling helps predict the outcome of a decision.
•This directly helps to make a decision
Possibly an optimal decision
•With a DSS it is possible to explore possible alternatives.