Business information systems support business functions through integrated technology, people and processes. They include marketing, manufacturing, human resources, financial and transaction processing systems. Transaction processing systems specifically collect, store, modify and retrieve organizational transactions for processing, updating files/databases, and generating documents and reports. They are essential for supporting day-to-day business operations through functions like order processing, purchasing, and payroll. Well-designed information systems provide important benefits like increased efficiency, effectiveness and quality of decision-making across business activities.

1. MODULE 2
Business Information systems – Marketing
Information Systems – Manufacturing Information
Systems – Human Resource Information Systems
, Financial Information Systems – Transaction
Processing System(TPS).

2. Business Information systems

3. Business Information systems
Business
information
systems (BIS) can
be defined as
systems
integrating
information
technology, people
and business.

4. Business Information systems
 „A business information system is a
group of interrelated components that
work collectively to carry out
input, processing, output, storage and
control actions in order to convert data
into information products that can be
used to support
forecasting, planning, control, coordin
ation, decision making and operational
activities in an organisation.‟

5. Resources that support BIS
 People resources
 Hardware resources
 Software resources
 Communications resources
 Data resources

6. Business information systems as an organizational control
mechanism

7. Marketing Information Systems

8. Marketing Information
Systems
 It is a management information
system designed to support marketing
decision making.
 According to American Marketing
Association”MKIS (MIS) is a set of
procedures and methods for the
regular, planned collection, analysis
and presentation of information for use
in marketing decisions”

9. Definition By Philip Kotler
 'MKIS' is a planned system of
collecting, processing, storing and
disseminating data in the form of
information needed to carry out the
functions of management

10.  Marketing information consists of
people, equipment and procedures to
gather,sort,analyze,evaluate and
distribute needed, timely and accurate
information to marketing decision
makers.

11. Marketing Information system supplies
three types of information.
 Recurrent Information
 Monitoring Information
 Requested Information

12. •Recurrent Information
This is the data that an MIS supplies
periodically about the market share of a
specific product and customer‟s awareness
of company‟s brands. The data may be
supplied on weekly, monthly or yearly
basis.

13. • Monitoring Information
This is the data obtained from the regular
scanning of certain sources. Marketing
managers may need data related to
competition or the industry. It is essential
so that marketing managers can be alert
and identify potential problems

14. • Requested Information
This information is developed in response
to some specific request by the marketing
manager. Secondary data or primary data
through survey research are collected in
response to the specific request. The MIS
supplies the requested information for
decision making.

15. Marketing Information system
External data
Internal data
Requested
information
Marketing
Research
division
Marketing
Information
system
Marketing
Managers
Division

16. Sources of Marketing Information .
The MIS information inputs come from different
sources, viz., both within and outside firms .
Some of the commonly used internal sources of
information are:
 Sales Analysis- The marketing information
system retrieves sales information and put them
in usable and disaggregated form. It detects
various marketing strengths and weaknesses.
Computer assisted sales analysis uncovers
significant details for management needs.

17. Cost Analysis-The cost analysis is possible
with the effective accounting system. The
classification and analysis of the cost of
production, cost of distribution and selling
may provide adequate information for the
management purposes .
Financial Records- The financial records &
publications may provide adequate
opportunities for management of sales &
marketing activities .Many companies
prepare periodical final statement to
observe the balance of each item of
financial records.

18. Importance of MKIS
Why
Information
Is
Needed
Marketing
Environment
Strategic
Planning
Customer
Needs
Competition

19. Importance of marketing information system
 Anticipation Of Customer Demand-
Every marketer needs up-to-date
knowledge about consumer needs and
wants.
 Systematic Approach-Expanding markets
and competitive marketing environment
require adequate market intelligence
system.
 Economic indicator-Marketers must have
latest information on the changing trends
of supply, demand and prices

20.  Significance of Analysing Competition-
Marketer cannot survive without having
information regarding nature , character and size
of competition to be met.
 Development of Technology-Marketers must
have latest information regarding technological
development.
 Understanding the Consumer-Information
system can establish proper two way flow of
information and understanding between
marketers and consumer.
 Marketing Planning-Marketing plans and
programmes are based upon information supplied
by economic forecasts and market research.

21. Functions of MKIS
Marketing
Information
Systems
Interactive
Marketing
Sales Force
Automation
Customer
Relationship
Management
Sales
Management
Market
Research
and
Forecasting
Advertising
and
Promotion
Product
Management

22. The components of a MKIS

23. Characteristics Of MKIS
 Continuous process
 Centralized system
 Modern technology
 Efficient operations
 Feedback provider
 Economical
 Future-oriented

24. Advantages of MKIS
1. Organized data collection.
2. A broad perspective.
3. The storage of important data.
4. An avoidance of crises.
5. Coordinated marketing plans.
6. Speed in obtaining sufficient
information to make decisions.
7. Data amassed and kept over several
time periods.
8. The ability to do a cost-benefit analysis.

25. Disadvantages of MKIS
 high initial time an labor costs
 the initial complexity of setting up an
information system.

26. Manufacturing Information Systems

27. Manufacturing Information
Systems
 A computer-based system that works
in conjunction with other functional
information systems to support the
firm's management in solving
problems that relate to manufacturing
the firm's products.

28. Manufacturing Information
Systems
 The manufacturing function is concerned with
the production of goods that the business
sells.
 Manufacturing information Manufacturing
information provide services to support
the manufacturing function.
 Inventory control is often considered to be a
manufacturing information system because
manufacturing produces the goods for
inventory.
 Purchasing may also be a manufacturing
information system in some businesses.

29. Manufacturing Information System
 A model of a manufacturing information system
Accoun
ting
informa
tion
system
Industr
ial
engine
ering
subsyst
emManufac
turing
intellige
nce
subsyste
m
Input
subsyst
ems
Environ
mental
sources
Interna
l
sources
Data
base
Product
ion
subsyst
em
Output
subsyst
ems
Invento
ry
subsyst
em
Quality
subsyst
em
Cost
subsyst
em
User
Data Information

30. Receiving
inspection
Receiving
area
Raw-materials
storeroom
Shop floor
area
Shipping
area
Finished-goods
storeroom
Manufacturing Information System
 Accounting Information System
Terminal

31. Manufacturing Information System
 Industrial Engineering Subsystem
 IE‟s work involves the setting up of production
standard and are compared to actual performance.
 Manufacturing Intelligence Subsystem
 Labor information
 Supplier information
Supplier input : Financial strength, past quality and
delivery performance, and so on.
Quality control input : Units rejected upon receipt,
units rejected during production, reasons for
rejection, etc.
Customer service input : Units replaced or repaired
because of defective parts, supplier spare parts
availability, and so on.

32. Manufacturing Information System
 Production Subsystem
 Production flows
 Bill of material
 Production schedule
 Inventory Subsystem
 The importance of inventory level
 Maintenance costs/carrying
cost(spoilage, pilferage, obsolescence, taxes
and insurance)
 Purchasing costs
 Economic order quantity (EOQ)
 Economic manufacturing quantity (EMQ)

33. Manufacturing Information System
 Quality Subsystem
 Quality control inspectors
 Total Quality Management
 Company wide
 Systematic
 Scientific
 Cost Subsystem
 Preventive maintenance (PM)
 Breakdown hours

34. Manufacturing Activities Supported by Information
Systems

35. Benefits
 Reduced waste, re-work and scrap
 More accurate capture of cost-
information (e.g.
labor, scrap, downtime, and tooling)
 Increased uptime
 Reduced inventory, through the
eradication of just-in-case inventory

36. Human Resource Information
System

37. Human Resource Information
System
 “HRIS can be briefly defined as
integrated systems used to
gather, store and analyze information
regarding an organization‟s human
resources.”

38. Human Resource Information
System
 It is a software or online solution for
the data entry, data tracking, and data
information needs of the Human
Resources, payroll management, and
accounting functions within a
business.
 HRIS is designed to supply
information required for effective
management of human resources in
an organisation.

39. Human Resource Information System is
an organised method of providing
information about human
resource, their functioning, external
factors relevant to managing human
resource.

40. The basic objective of HR
information system are :
1) To provide accurate information
about human resource and their
functioning and relevant
environmental factors.
2) To provide relevant information .
3) To provide timely information.

41. Characteristics of hris
 Management of all employee information.
 Reporting and analysis of employee
information.
 Company-related documents such
as employee handbooks, emergency
evacuation procedures, and safety
guidelines.
 Benefits administration
including enrollment, status changes, and
personal information updating.
 Complete integration with payroll and other
company financial software and accounting
systems.

42. Functions of HRIS

44. Benefits
 Increased Efficiency –
◦ more transactions with fewer resources
 Increased Effectiveness –
◦ more accurate information and
simplification of processes
 quality in HR decision making
 improve employee and managerial
productivity and effectiveness.

45. The HRIS Department’s
responsibilities include:
 Identification, planning, and implementation of HRIS changes
and updates in order to meet the strategic needs of Human
Resources
 Project implementation to simplify time-consuming
transactions through the automation of administrative tasks
and departmental workflows, and foster a paperless and
more efficient working environment
 Production support activities such as technical data
analysis, upgrade testing, and documentation of Human
Resources processes
 To ensure timely and accurate delivery of all required
interfaces and/or reporting to University internal
departments, State and Federal government agencies
 To act as the liaison between IT/Consultant and functional
end users to bridge the gap between technical and functional
requirements of the Division of Human Resources and the
information management systems in place
 Merge the different parts of human resources, including
payroll, labor productivity, and benefit management into a less
capital-intensive system

46. Financial Information System

47. Financial Information System
 A financial information system (FIS)
accumulates and analyzes financial data
used for optimal financial planning and
forecasting decisions and outcomes.
 A financial information system (FIS) is a
business software system used to input and
track financial and accounting data.
 The system generates reports and alerts that
assist managers in effectively running the
business.

48. Objectives of FIS
a. Decisions concerned with the
financing of a business
b. The allocation and control of financial
resources within a business.

49. FIS includes..
Financial Information
System
Cash
Management
Investment
Management
Capital
Budgeting
Financial
Planning

50. Transaction Processing Systems
(TPS)

51. Transaction Processing System
 A transaction processing system is a type of
information system .
 TPSs collect, store, modify, and retrieve the
transactions of an organization.
 A transaction is an event that generates or modifies
data that is eventually stored in an information
system.
 E.g.:-order entry system, cheque processing
systems, accounts receivable systems, payroll
system and ticket reservation systems .
 These system help any company to conduct
operations and keep track of its activities .

52. Types of TPS:
 Two types of TPS:
◦ Batch processing
 A system whereby business transactions
are accumulated over a period of time and
prepared for processing as a single unit or
batch
◦ On-line/real-time transaction
processing
 A system whereby each transaction is
processed immediately, without the delay of
accumulating transactions into a batch

53. Batch Schematic
Data entry
of accumulated
transactions
Input
(batched)
Output

54. On-line Schematic
Output
Terminal
Terminal
Terminal
Terminal
Terminal
Terminal
Immediate
processing
of each
transaction

55. Objectives of TPS
◦ Process data generated by and about
transactions
◦ Maintain a high degree of accuracy
◦ Ensure data and information integrity and
accuracy
◦ Produce timely documents and reports
◦ Increase labour efficiency
◦ Help provide increased and enhanced service
◦ Help build and maintain customer loyalty
◦ Achieve competitive advantage

56. Simplified Overview of a
Transaction Processing System
Schematic

57. Data entry & input
Processing
Documents
& reports
Database
Internally generated
transactions:
• shipped orders
• purchase orders
• employee time
cards
Externally
generated
transactions:
• customer orders
• vendor invoices
• customer payments
Database
update:
• customer orders
• inventory
• purchase orders
• customers
• suppliers
Documents:
• pick list
• cheques to vendors
• receiving notices
• paycheques
Operational reports:
• finished product
inventory status
• raw materials;
packing materials;
spare parts;
inventory status

58. Transaction Processing cycle:-
 Transaction processing systems capture and process
data describing business transactions. Then they
update organizational files and databases and produce
a variety of information products for internal and
external use.
 Transaction processing systems generally go through a
five-stage cycle of
 1) Data entry activities
 2) Transaction processing activities
 3) File and database processing
 4) Document and report generation
 5) Inquiry processing activities

59. TPS Characteristics:
 They collect, store, modify and retrieve the
transaction of an organisation.
 Directly support business operations
 Must be designed in conjunction with the
organisation‟s procedures.
 Main information processes: collecting and
storage.

60. Data Input Data Processing Output Generation
Data Storage
A Transaction Processing Model

61. TPS Applications
 Order Processing
 Purchasing
 Accounts Receivables & Accounts
Payables
 Receiving & Shipping
 Inventory on Hand
 Payroll
 General Ledgers

62. End of 2nd Module
References:
“Introduction of Information Systems”-
James A. O‟ Brien
“Management Information System”-
George M Marakas..
“Management Information System”-
Post & Anderson