Information systems and it's types

UNIT I
Information Systems & It’s Types
By Dr. Dhobale J V
Associate Professor
RNB Global University, Bikaner
RNB Global University, Bikaner. 1Course Code - 11009400

Objectives
 Introduction to IS.
 Definition IS.
 Purpose of IS.
 Objectives and Role of MIS at Managerial
Level.
 MIS in the Organization.
 TPs, DSs, EIs, Expert Systems .
2RNB Global University, Bikaner.Course Code - 11009400

Introduction
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Address

Cont…
 Information can be defined as meaningfully
interpreted data.
 So, from a system analyst's point of view,
information is a sequence of symbols that can
be construed to a useful message.

Cont…
 An Information System is a system that
gathers data and disseminates information
with the sole purpose of providing information
to its users.
 An information system is a set of interrelated
components that collect, manipulate, store
data and disseminate information and provide
a feedback mechanism to monitor
performance.

Cont…
 Information System is an organized
combination of people, hardware, software,
communications networks, and data resources
that collects data, transforms it, and
disseminates information.
 The main object of an information system is to
provide information to its users. Information
systems vary according to the type of users
who use the system.

Cont…
 A Management Information System (MIS) is
an information system that evaluates,
analyzes, and processes an organization's
data to produce meaningful and useful
information based on which the management
can take right decisions to ensure future
growth of the organization.

Data Vs Information
 Data: Raw unorganized facts.
Ex. ?, a, 2, y, =, /.
Information:
A collection of facts organized in such a
way that they have additional value
beyond the value of the facts themselves.
Ex. a+y/2 = ?

Information
 Information can be recorded as signs, or
transmitted as signals. Information is any kind
of event that affects the state of a dynamic
system that can interpret the information.
 The value of Information is directly linked to
how it helps decision makers achieve their
organization’s goals.

Information
 Conceptually, information is the message
(utterance or expression) being conveyed.
Therefore, in a general sense, information is
"Knowledge communicated or received,
concerning a particular fact or circumstance".
 According to Davis and Olson: "Information is
a data that has been processed into a form
that is meaningful to recipient and is of real or
perceived value in the current or the
prospective action or decision of recipient."

Information
DATA Processing Information

Information, Knowledge and
Business Intelligence
 Professor Ray R. Larson of the School of
Information at the University of California,
Berkeley, provides an Information Hierarchy,
which is:
 Data - The raw material of information.
 Information - Data organized and presented by
someone.
 Knowledge - Information read, heard, or seen,
and understood.
 Wisdom - Distilled and integrated knowledge
and understanding..

Information, Knowledge and
Business Intelligence
 Scott Andrews' explains Information
Continuum as follows:
 Data - A Fact or a piece of information, or a
series thereof.
 Information - Knowledge discerned from data.
 Business Intelligence - Information
Management pertaining to an organization's
policy or decision-making, particularly when
tied to strategic or operational objectives.

Management Information System
 Simply MIS stand For Management
Information System. For Simply
Understanding Management Information
System (MIS) we can divide in to three Word
and Understand Part by part.
1. Management
2. Information
3. System

1. Management : Management is function to do
the work at the Right time, by the right
Person, For the Right Job.
2. Information : Information is the Collection of
Organized data which plays a Vital Role for
decision making.
3. System: System Consist for a set of elements
which Provides a Framework to convert
Unorganized (Data) into Organized
Information.

 Management information system refers to
such system which provides accurate
information to the entire level of management
for decision making process. For right job at
the right time, by the right person.

Role of MIS
1. Satisfied diverse need of organization
2. Helps in Decision Making.
3. Helps in Coordination.
4. Helps in finding out problems.
5. Helps in Business performance Improvement.

Impact of MIS
 Handling of Management functions
becomes more efficient.
 Tracking and Monitoring becomes
easier.
 Early alerts about problems.
 Exceptional situations can be brought
into the notice of concerned authorities.

Impact of MIS
 Gets a structured and knowledge
infrastructure in the organization.
 Decision making becomes faster and
easier.
 Brings clarity in the communication.
 It pulls entire organizations towards
goal attainments.

Importance of MIS
 Reliable.
 Timely availability of information.
 Supports globalization.
 Supports Analysis and Decision
Making.
 Supports Organizational structure and
effective and efficient management of
organizations functions.

Classification of Information

Classification of Information by
Characteristics
 Based on Anthony's classification of
Management, information used in business for
decision-making is generally categorized into
three types:
 Strategic Information: Strategic information is
concerned with long term policy decisions .
Ex. acquiring a new plant, a new product,
diversification of business etc., comes under
strategic information.

Characteristics
 Tactical Information: Tactical information is
concerned with the information needed for
exercising control over business resources.
Ex budgeting, quality control, service level,
inventory level, productivity level etc.

Characteristics
 Operational Information: Operational
information is concerned with plant/business
level information and is used to ensure proper
conduction of specific operational tasks as
planned/intended.
 Various operator specific, machine specific
and shift specific jobs for quality control
checks comes under this category.

Application
 Planning Information: These are the
information needed for establishing standard
norms and specifications in an organization.
 This information is used in strategic, tactical,
and operation planning of any activity.
Examples of such information are time
standards, design standards.

Application
 Control Information: This information is
needed for establishing control over all
business activities through feedback
mechanism.
 This information is used for controlling
attainment, nature and utilization of important
processes in a system.
 When such information reflects a deviation
from the established standards, the system
should induce a decision or an action leading
to control.

Application
 Knowledge Information: Knowledge is defined
as "information about information".
 Knowledge information is acquired through
experience and learning, and collected from
archival data and research studies.

Application
 Organizational Information: Organizational
information deals with an organization's
environment, culture in the light of its
objectives.
 Karl Weick's Organizational Information
Theory emphasizes that an organization
reduces its equivocality or uncertainty by
collecting, managing and using these
information prudently.
 This information is used by everybody in the
organization; examples of such information are
employee and payroll information. 28RNB Global University, Bikaner.Course Code - 11009400

Application
 Functional/Operational Information: This is
operation specific information.
 Ex daily schedules in a manufacturing plant
that refers to the detailed assignment of jobs
to machines or machines to operators.
 This information is mostly internal to the
organization.

Application
 Database Information: Database information
construes large quantities of information that
has multiple usage and application.
 Such information is stored, retrieved and
managed to create databases.
Ex. material specification or supplier
information is stored for multiple users.

Impact of Business on IS
 Following are factors which impacts
functioning of IS:
 Size of Organization.
 Size of User population.
 Scale of operations.
 Nature of Business.
 User interaction.
 Level of Automation.
 Organizational culture.

Organizational Information Systems

Transaction Processing Systems
 Transaction is an exchange involving goods or
services.
 Computerized system that performs and
records the daily routine transactions
necessary to conduct the business; these
systems serve the operational level of the
organization.
 Information system used to support and record
transactions.

 Primary goal of transaction system is To
provide all the information needed by law
and/or by organizational policies to keep the
business running properly and efficiently.

Transaction Processing System

 Objectives of TPs:
 To allow for efficient & effective operation of the
organization.
 To provide timely documents and reports.
 To increase the competitive advantage of the
corporation.
 To provide the necessary data for tactical &
strategic systems, such as Web-based
applications.
 To ensure accuracy & integrity of data &
information.
 To safeguard assets & security of information.

 The purpose of TPs:
 To keep records about the state of the organization.
 To process transactions that affect the records.
 To produce output that report on transactions that
have occurred.
 Ex. Payroll System.

 TP System performs following activities:
 Capturing the data as close to the source as
possible.
 Entering them into the system in a manner as
effectively and efficiently as possible.
 Storing them in the database.
 Retrieving them from the database for further
processing.
 Transforming them from the raw form to information
useful to the intended user.

 Characteristics of TPs:
 Large amounts of input/output.
 Large number of users.
 Huge storage requirements.
 Low computational complexity.
 Fast input/output as well as processing capabilities.
 A high degree of concern for potential security
related problems.
 A high degree of concern for reliability and fault
tolerance.

Management Information Systems
 Objectives of MIS:
 Capturing Data.
 Processing Data.
 Information Storage.
 Information Retrieval.
 Information Propagation.

 Characteristics of MIS:
 It should be able to process data accurately and
with high speed, using various techniques like
operations research, simulation, heuristics, etc.
 It should be able to collect, organize, manipulate,
and update large amount of raw data of both
related and unrelated nature, coming from various
internal and external sources at different periods of
time.
 It should provide real time information on ongoing
events without any delay.

 Characteristics of MIS:
 It should support various output formats and
follow latest rules and regulations in
practice.
 It should provide organized and relevant
information for all levels of management:
strategic, operational, and tactical.
 It should aim at extreme flexibility in data
storage and retrieval.

 Nature and Scope of MIS:

Decision Support Systems
 Decision support systems (DSS) are
interactive software-based systems
intended to help managers in decision-
making.
 A decision support system helps in
decision-making but does not
necessarily give a decision itself.

 There are two types of decisions:
1. Programmed decision: Programmed
decisions are basically automated
processes, general routine work.
Ex- Selecting a reorder level for
inventories.
2. Non-programmed decisions: Non-
programmed decisions occur in unusual
& non-addressed situations.

 Attributes of a DSS:
 Adaptability and flexibility.
 High level of Interactivity.
 Ease of use.
 Efficiency and effectiveness.
 Complete control by decision-makers.

 Attributes of a DSS:
 Ease of development.
 Extendibility.
 Support for modeling and analysis.
 Support for data access.
 Standalone, integrated, and Web-based.

 Characteristics of a DSS:
 Supports decision-makers in semi-
structured and unstructured problems.
 Support for managers at various managerial
levels, ranging from top executive to line
managers.
 Support for individuals and groups.
 Support for interdependent or sequential
decisions.

 Characteristics of a DSS:
 Support for intelligence, design, choice, and
implementation.
 Support for variety of decision processes
and styles.
 DSSs are adaptive over time.

 Benefits of DSS:
 Improves efficiency and speed of decision-
making activities.
 Increases the control, competitiveness and
capability of futuristic decision-making of the
organization.
 Facilitates interpersonal communication.
 Encourages learning or training.
 Helps automate managerial processes.

 Components of DSS:
 Database management Systems(DBMS).
 Model Management System.
 Support Tools.

 Classification of DSS:
 Text Oriented DSS.
 Database Oriented DSS.
 Spreadsheet Oriented DSS.
 Solver Oriented DSS.
 Rules Oriented DSS.
 Compound DSS.

 Types of DSS:
 Status Inquiry System: Daily schedule of
Jobs to machine.
 Data Analysis System: Inventory Analysis.
 Information Analysis System: Sales
Analysis.
 Accounting System: Accounts receivables.
 Model Based System: Optimization,
Transportation.

IS Levels in a Firm

Business Value driven by IT

Executive Information System
 Executive Information Systems
(Executive Support Systems) are
intended to be used by the senior
managers directly to provide support to
non-programmed decisions in strategic
management.
 These information are external,
unstructured and even uncertain.

 Following are some examples of
intelligent information, which is often the
source of an EIS/ESS.
 External Databases.
 Technology reports like patent records etc.
 Technical reports from consultants.

 Market reports.
 Confidential information about competitors.
 Speculative information like market
conditions .
 Government policies.
 Financial reports and information.

 Features of EIS/ESS:


 Advantages of EIS/ESS:
 Easy for upper level executive to use.
 Ability to analyze trends.
 Augmentation of managers' leadership
capabilities.
 Enhance personal thinking and decision-
making.
 Contribution to strategic control flexibility.

 Enhance organizational competitiveness in
the market place.
 Instruments of change.
 Increased executive time horizons.
 Better reporting system.
 Improved mental model of business
executive .
 Help improve consensus building and
communication.

 Improve office automation .
 Reduce time for finding information.
 Early identification of company
performance.
 Detail examination of critical success factor.
 Better understanding.
 Time management .
 Increased communication capacity and
quality .

 Disadvantages of EIS/ESS:
 Functions are limited.
 Hard to quantify benefits.
 Executive may encounter information
overload.
 System may become slow.
 Difficult to keep current data, May lead to
less reliable and insecure data.
 Excessive cost for small company.

Expert System
 Support professionals faced with
complex situations requiring expert
knowledge in a well-defined area.
 They represent human expertise also
called knowledge-based systems.
 A knowledge management system is just
extends the already existing systems by
assimilating more information.

Expert System
 What is Knowledge?:
 Personalized information .
 State of knowing and understanding.
 An object to be stored and manipulated.
 A process of applying expertise.
 A condition of access to information.
 Potential to influence action.

Expert System
 Sources of Knowledge of an
Organization:
 Intranet .
 Data warehouses and knowledge
repositories.
 Decision support tools.
 Groupware for supporting collaboration.
 Networks of knowledge workers .
 Internal expertise.

Expert System
 Knowledge Management: A knowledge
management system comprises a range
of practices used in an organization to
identify, create, represent, distribute, and
enable adoption to insight and
experience.
 Such insights and experience comprise
knowledge, either embodied in individual
or embedded in organizational
processes and practices.

Expert System
 Levels of Knowledge Management:

Expert System
 Activities in Knowledge Management:
 Start with the business problem and the
business value to be delivered first.
 Identify what kind of strategy to pursue to
deliver this value and address the KM
problem.
 Think about the system required from a
people and process point of view.

Expert System
 Activities in Knowledge Management:
 Finally, think about what kind of technical
infrastructure are required to support the
people and processes.
 Implement system and processes with
appropriate change management and
iterative staged release.

Review
 Introduction to IS.
 Definition IS.
 Purpose of IS.
 Objectives and Role of MIS at Managerial
Level.
 MIS in the Organization.
 TPs, DSs, EIs, Expert Systems .

Thank You!
RNB Global University, Bikaner. 73Course Code - 11009400

Information systems and it's types

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