The document discusses various aspects of management and information systems. It defines management as comprising processes like planning, organizing, controlling and decision making. It then outlines the key components of an information system, including mission, objectives, goals, strategies, policies, programs, procedures and how they relate to management functions. Finally, it describes different types of information systems like transaction processing systems, office automation systems, decision support systems, management information systems and executive support systems.

1. 1
MANAGEMENT
• Management comprises of processes and activities like
planning, organizing, controlling, directing and initiating.
 Decision making is a fundamental prerequisite for
management processes
 There are two tools for the decision making framework:
Highlighting the characteristics of Mission ,Objectives, Goals,
Strategies
The other one underlying the policies, programmes and
procedures.

2. 2
MISSION
 Reflects the scope of its business interests
 The organization’s reason for existence
 Is dependent on the viewpoint of customer
 Is extrapolated with the external environment
 The idea is based on setting procedures to identify and implement the
perceived and value added benefits to the customers
 Is static not static in nature
 In nutshell, it is concrete justification and rationale on which the
business activities of the organization are based.

3. 3
OBJECTIVES
 Action orientation of its mission
 Segmented into workable objectives and assigned at all levels of
management hierarchy
 Objectives are manifold and priority levels are to be set for allocation of
resources, to meet the objectives within specific timeframe

4. 4
GOALS
 Are time bound targets
 a desired future state that the organization attempts to realize
 Are necessary to move in the direction of achievements of organization
objectives
 Fulfillment of objectives is dependent on the goals such as allocation of
resources that are specific to objectives
STRATEGY
 These are the specific methodologies chosen by the organization

5. 5
POLICIES
 Are the guidelines framed to gear up the internal structure and
operational activities of the business enterprise
 They provide the backup support to meet the objectives of an
organization
 Org. efficiency depends directly upon framing up the right guidelines
within the purview of the goals of an org.
 They are dynamic in nature

6. 6
PROGRAMMES
 They are concerned with the scheduling and organizing of the
repetitive activities
 The constitution of the pragramme is based on the policies
PROCEDURES
 These are the specifications of the sequence of steps to be
undertaken in the activities to be performed.
 Are laid down to assist in a proper implementation of the
programme by ensuring that the task activities are completed as
per the prescribed schedule

7. 7
FUNCTIONS OF A MANAGER
 To be skilled in functional specialty, such as engineering, marketing,
sales, IT, legal or HR
 Traditional functions of planning, organizing, controlling, and initiating
 To be able to participate in design and utilization of computerized IS

8. FUNCTIONING OF MANAGEMENT
8
 Planning: includes the strategy to select the course of action
The following processes are needed in the course of planning
Forecast
Set objectives
Develop strategies
Decide programme
Set budget
Set procedures
Develop policies
 Organizing: Work is arranged efficiently
 Staffing : selection of qualified persons
 Directing : steps associated with getting things done through people
 Controlling : measures taken to carry out plan effectively and efficiently in pursuit
of satisfactorily implementation of action towards the predetermined goals of an
organization.

9. 9
INFORMATION
 Data that has been organized into a meaningful context.
 The processes such as collection, summarizing, analysis,
interpretation, presentation of data leads to value addition to
data.
 Cluster of facts that are meaningful and useful in various
processes like decision making
 It is data that has been processed to add or create meaning and
knowledge for the person who receives it.
USE OF INFORMATION
 Organize Data into information
 Analysis of Information to give knowledge

10. 10
Information
Difference Between Data & Information
1) Information is useful for decision making but data has got no value.
2) Information brings clarity and creates an intelligent human response
in the mind.
3) Information is like a finished product whereas data is like raw
material.

11. 11
Types of information
Information could be classified on the basis of the purpose for which it is
utilized:
 Strategic information: required by the managers at the strategic level of
management for the formulation of the organizational strategies. these
relate to long term planning policies of the organization eg information
pertaining to new technologies, new products, competitors etc.
 Tactical information: is used at management control level and is a short
term planning. eg sales analysis and forecasts, production resource
requirement etc
 Operational information: applies to short periods which may vary from
an hour to few days. It is generally used by decision makers at the
operational level. (often required to take immediate actions) eg stock-in-hand,
work-in-progress levels, outstanding orders from the customers etc

12. 12
INFORMATION QUALITY
 Timeliness
 Accuracy
 Relevance
 Adequacy
 Completeness
 Explicitness
 Exception based

13. 13
SYSTEM
 Is assembly of interrelated elements/components comprising a unified
whole
 The term “system” means to combine, to set up ,to place together
 A system typically consists of components that are connected together
in order to facilitate the flow of information , matter or energy
 A system is set of interrelated components working together to achieve
a common purpose eg Education system, computer system, respiratory
system.
 System works towards a common goal by accepting inputs and
producing outputs

14. 14
control
feedback
process output
System
input

15. 15
SYSTEMS CONCEPTS IN BUSINESS
 The systems approach is a way of analyzing business problems
 This approach views the business organization as a system of
interrelated parts designed to accomplish goals
 Each subsystem is a self-contained unit, but is also a part of the
whole system
 Managers need to understand the goals of the business and
design the functions of the subsystems to achieve these goals

16. 16
What is an Information System?
 An information system is the set of interrelated components that
collect, process, store and distribute information used by/support one
or more business process.
 Input: The collection of raw data.
 Processing: The manipulation of data into information.
 Output: Distributing valuable information.
 Also Includes both technology and people

17. 17
Market research subsystem
Input
Manufacturing subsystem
Input
Marketing subsystem
Input
Input
Process Output
Service subsystem
Process
Process
Process
Output
Output
Output
Customer
needs
Finished
goods
Product
in use
THE FIRM’S SUBSYSTEMS

18. 18
E n v i r o n m e n t
O r g a n i z a t i o n
I n f o r m a t i o n S y s t e m
P r o c e s s i n g
C l a s s i f y
A r r a n g e
C a l c u l a t e
I N P U T O U T P U T
F e e d b a c k

19. 19
Basic Components of Information Systems
 Hardware is a device such as a processor, monitor, keyboard or
printer
 Software is a program or collection of programs that enable
hardware to process data.
 Database is a collection of related files or tables containing data.
 Network is a connecting system (wireline or wireless) that permits
different computers to share resources.
 Procedures are the set of instructions about how to combine the
above components in order to process information and generate the
desired output.
 People are those individuals who use the hardware and software,
interface with it, or uses its output.

20. AN INFORMATION SYSTEM AS A
SYSTEM
 The major purpose of an information system is to convert data
into information
 The information system is a subsystem of the business system of
an organization
 Information systems that provide information on day to day
activities of a business are known as operational systems
 Information systems that provide information to allow the
management to allocate resources effectively are known as
tactical systems
 Information systems that support the strategic plans of a
business are known as strategic planning systems
20

21. INFORMATION SYSTEM – PRIMARY PURPOSE
Collects data, processes it into information then converts
information into knowledge for a specific purpose.
• Data:
Elementary description of things, events, activities, and
transactions that are recorded, classified, and stored, but not
organized to convey any specific meeting
• Information
Data that has been organized so that they have meaning
and value to the recipient
• Knowledge
Information that has been organized and processed to
convey understanding, experience and expertise as they
apply to a current problem or activity
21

22. 22
Roles of IS
 Support daily tasks of line workers
 within a business function
 across business functions
 knowledge work and production work
 support effectiveness and efficiency
 Support decision making
 across management levels and functions
 individual and group
 strategic, control (e.g., scheduling, resource allocations)
 Provide feedback
 Effectiveness (e.g., conformance), Efficiency (e.g., cost, cycle time),
Adaptability (e.g., response time)
 Between levels, between functions
 Facilitate communication
 Policy and Goals
 Coordination and direction
 Interact with environment (e.g., Customers, Suppliers).

23. 23
IS at the Organisational Level
 Operational-level
 Elementary activities and routine transactions
 Data current and accurate
 Knowledge-level
 Support knowledge and data workers
 Integrate new knowledge into the business
 Office automation
 Management-level
 Periodic monitoring, control, decision-making and administration
 Is the business working well?
 Strategic-level
 Long-term (e.g. 5 year) planning and strategy
 Internal and external information

24. 24
Examples
 What examples can you think of at the
different organisational levels?

25. MANAGEMENT INFORMATION SYSTEM
25
 Its acronym of three words
Management
Information
System
 It is a set of organized procedures which when executed
provides information to support decision making
 It’s a combination of human and computer based resources
which result in collection , storage, retrieval, communication, and
use of data for the purpose of efficient management of operation
and for business planning
 A system to convert data from internal and external sources into
information to communicate the information in an appropriate
form to managers at all levels , in all functions, directing and
controlling the activities for which they are responsible.
 A set of computer based systems and procedures implemented
to help managers in their crucial job of decision making

26. 26
CHARACTERISTICS
 System approach
 Management oriented
 Management directed
 Need based
 Exception based
 Future oriented
 Integrated
 Common data flows
 Long term planning
 Sub system concept
 Control database
 Flexible
 Reliable
 Simple

27. 27
MIS FUNCTIONS
 Data capturing
 Processing of data
 Storage of information
 Retrieval of information
 Dissemination of management information
 Confirmation of validity of data and transactions
 Reactive and proactive response
 Communication of information

28. KINDS OF INFORMATION SYSTEMS
KIND OF SYSTEM GROUPS SERVED
STRATEGIC LEVEL SENIOR MANAGERS
MANAGEMENT LEVEL MIDDLE MANAGERS
KNOWLEDGE LEVEL KNOWLEDGE DATA WORKERS
OPERA T I O N A L O P E R A T IONAL
SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN
28
M A N A G E RS
MARKETING & ENGINEERING RESOURCES

29. 29
TYPES OF IS
 Executive Support Systems (ESS)
 Management Information Systems (MIS)
 Decision Support Systems (DSS)
 Knowledge Work Systems (KWS)
 Office Automation Systems (OAS)
 Transaction Processing Systems (TPS)

30. Transaction PPrroocceessssiinngg SSyysstteemmss ((TTPPSS))
Computerized system that performs and records the daily routine
transactions necessary to conduct the business; These systems serve
the operational level of the organization
Type: Operational-level
Inputs: Transactions, Events
Processing: Updating
Outputs: Detailed Reports
Users: Operations Personnel, Supervisors
Decision-making: Highly Structured
Example Payroll, accounts payable
30

31. E m p l o y e e d a t a ( v a r i o u s d e p a r t m e n t s ) T o g e n e r a l l e d g e r : w a g e s a n d s a l a r i e s
31
A Symbolic Representation for a payroll TPS
P a y r o l l S y s t e m M a n a g e m e n t
R e p o r t s
O n - l i n e
q u e r i e s
P a y r o l l
m a s t e r
f i l e
G o v e r n m e n t d o c u m e n t s
E m p l o y e e c h e c k s

32. 32
Operational-level Systems
Sales and
marketing
Manufacturing Finance Accounting Human
Resources
Order
tracking
Machine control Securities
trading
Payroll Compensation
Order
processing
Plant scheduling Cash
management
Accounts
payable
Training and
development
Material movement
and control
Accounts
receivable
Employee
records

33. Office Automation Systems (OAS)
Computer system, such as word processing, electronic mail system,
and scheduling system, that is designed to increase the productivity of
data workers in the office.
Type: Knowledge-level
Inputs: Documents, Schedules
Processing: Document Management, Scheduling,
Communication
Outputs: Documents; Schedules
Users: Clerical Workers
Example: Document Imaging System
33
Knowledge-level Systems
Word processing Document imaging E-mail / electronic calendars

34. Decision Support Systems (DSS)
Information system at the management level of an organization that combines
data and sophisticated analytical models or data analysis tools to support semi-structured
34
and unstructured decision making.
Type: Management-level
Inputs: Low Volume Data
Processing: Simulations, Analysis
Outputs: Decision Analysis
Users: Professionals, Staff Managers
Decision-making: Semi-structured
Example:: Sales Region Analysis
Management-level Systems
Sales and Marketing Manufacturing Finance Accounting Human
Resources
Sales region analysis Production scheduling Cost
analysis
Pricing /
profitability
analysis
Contract
cost
analysis

35. 35
Types of Decisions
1. Unstructured Decisions
• Novel, non-routine decisions requiring judgment and insights
• Examples: Approve capital budget; decide corporate
objectives
2. Structured Decisions
• Routine decisions with definite procedures
• Examples: Restock inventory; determine special offers to
customers
3. Semistructured Decisions
• Only part of decision has clear-cut answers provided by accepted
procedures
• Examples: Allocate resources to managers; develop a
marketing plan

36. Characteristics of Decision-Support Systems
1. DSS offer users flexibility, adaptability, and a quick response.
2. DSS operate with little or no assistance from professional
36
programmers.
3. DSS provide support for decisions and problems whose solutions
cannot be specified in advance.
4. DSS use sophisticated data analysis and modelling tools.

37. Management Information Systems
37
(MIS)
Information system at the management level of an organization that
serves the functions of planning, controlling, and decision making by
providing routine summary and exception reports.
Type: Management-level
Inputs: High volume data
Processing: Simple models
outputs: Summary reports
Users: Middle managers
Decision-making: Structured to semi-structured
Example: Annual budgeting, Capital investment

38. Characteristics of Management Information Systems
1. Support structured decisions at the operational and management control
levels. However, they are also useful for planning purposes of senior
management staff.
2. Its reporting and control oriented and help provide day-to-day control of
38
operations.
3. It rely an existing corporate data-and data flows.
4. It have little analytical capability.
5. It generally aid in decision making using past and present data.
6. It are relatively inflexible.
7. It have an internal rather than an external orientation.

39. Executive Support Systems (ESS))
Information system at the strategic level of an organization that address unstructured
decision making through advanced graphics and communications.
Type: Strategic Level
Inputs: Aggregate Data; Internal And External
Processing: Interactive
Outputs: Projections
Users: Senior Managers
Decision-making: Highly Unstructured
Example: 5 year operating plan
39
Strategic-level Systems
Sales and
Marketing
Manufacturing Finance Accounting Human Resources
5-year sales
trend forecasting
5-year operating
plan
5-year budget
forecasting
Profit
planning
Personnel planning

40. 40
Major Types of Information Systems
S t r a t e g i c L e v e l S y s t e m s
5 - y e a r
s a l e s t r e n d
f o r e c a s t i n g
5 - y e a r
o p e r a t i n g
p l a n
5 - y e a r
b u d g e t
f o r e c a s t i n g
P r o f i t
p l a n n i n g
M a n p o w e r
p l a n n i n g
M a n a g e m e n t - L e v e l S y s t e m s
S a l e s
m a n a g e m e n t
S a l e s r e g i o n
a n a l y s i s
I n v e n t o r y
C o n t r o l
P r o d u c t i o n
S c h e d u l i n g
A n n u a l
b u d g e t i n g
C o s t
a n a l y s i s
C a p i t a l
I n v e s t m e n t a n a l y s i s
P r i c i n g / p r o f i t a b i l i t y
a n a l y s i s
R e l o c a t i o n
a n a l y s i s
C o n t r a c t c o s t
a n a l y s i s
K n o w l e d g e - L e v e l S y s t e m s
E n g i n e e r i n g
w o r k s t a t i o n s
W o r d
p r o c e s s i n g
G r a p h i c s
w o r k s t a t i o n s
D o c u m e n t
I m a g i n g
M a n a g e r i a l
w o r k s t a t i o n s
E l e c t r o n i c
C a l e n d a r s
O p e r a t i o n a l L e v e l S y s t e m s
O r d e r T r a c k i n g
O r d e r p r o c e s s i n g
M a c h i n e c o n t r o l
P l a n t s c h e d u l i n g
M a t e r i a l m o v e m e n t
c o n t r o l
S e c u r i t i e s
t r a d i n g
C a s h
m a n a g e m e n t
P a y r o l l
A c c o u n t s p a y a b l e
A c c o u n t s r e c e i v a b l e
C o m p e n s a t i o n
T r a i n i n g & d e v e l o p m e n t
E m p l o y e e r e c o r d k e e p i n g
T Y P E S O F S Y S T E M S
E S S
M I S
D S S
K W S
O A S
T P S
S a l e s a n d
m a r k e t i n g
M a n u f a c t u r i n g F i n a n c e A c c o u n t i n g H u m a n
R e s o u r c e s

41. 41
Expert System
 An expert system is a computer program that represents and
reasons with knowledge of some specialist subject with a
view to solving problems or giving advice.
 Possess knowledge
 Specific domain
 Solving problem or giving advice

42. 42
Expert Systems Features
 Expertise
 Capable of making expert level decisions
 Deep knowledge
 Knowledge base contains complex knowledge
 Self-knowledge
 Able to examine own reasoning
 Explain why conclusion reached

43. 43
Major Components of Expert Systems
 Three major components
1. Knowledge base
 Facts
 Special heuristics to direct use of knowledge
 the software that represents the knowledge
2. Inference engine
 Brain
 Control structure
 Rule interpreter
 The reasoning mechanism that draws conclusions (the
interpreter or control structure)
3. User interface
Language processor
 The hardware and software that provide the dialog between user and
the computer

44. 44
LIMITATIONS
 Knowledge not always readily available
 Difficult to extract expertise from humans
 Approaches vary
 Natural cognitive limitations
 Vocabulary limited
 Wrong recommendations
 Lack of end-user trust
 Knowledge subject to biases
 Systems may not be able to arrive at conclusions

45. 45
Benefits of Expert Systems
 Increased outputs
 Increased productivity
 Decreased decision-making time
 Increased process and product quality
 Reduced downtime
 Capture of scarce expertise
 Flexibility
 Ease of complex equipment operation
 Elimination of expensive monitoring equipment
 Operation in hazardous environments
 Access to knowledge and help desks

46.  Ability to work with incomplete, imprecise, uncertain data
 Provides training
 Enhanced problem solving and decision-making
 Rapid feedback
 Facilitate communications
 Reliable decision quality
 Ability to solve complex problems
 Ease of knowledge transfer to remote locations
 Provides intelligent capabilities to other information systems
46

47. 47
E.S in Business Applications
 Finance
 Insurance evaluation, credit analysis, tax planning,
financial planning and reporting, performance evaluation
 Data processing
 Systems planning, equipment maintenance, vendor
evaluation, network management
 Marketing
 Customer-relationship management, market analysis,
product planning
 Human resources
 HR planning, performance evaluation, scheduling,
pension management, legal advising
 Manufacturing
 Production planning, quality management, product design,
equipment maintenance and repair

48. 48
Functional Examples
 Examples of IS by function:
 Sales and marketing
 Manufacturing and production
 Finance and accounting
 Human resources

49. 49
Classification of IS
by Functional Area
 The accounting information system
 The finance information system
 The manufacturing (operations, production) information system
 The marketing information system
 The human resources information system

50. 50
Sales & Marketing Systems
 Systems that help the firm identify customers for the firm’s products
or services, develop products and services to meet customer’s
needs, promote products and services, sell the products and
services, and provide ongoing customer support.
EXAMPLES
System Description Organizational Level
Order processing Enter, process, and track orders Operational
Market analysis Identify customers and markets using Knowledge
data on demographics, markets,
consumer behavior, and trends
Pricing analysis Determine prices for products Management
and services

51. 51
Manufacturing and Production Systems
 Systems that deal with the planning, development, and production
of products and services and with controlling the flow of production.
Examples
System Description Organizational Level
Machine control Control the actions of machines Operational
and equipment
Computer-aided design (CAD) Design new products using Knowledge
the computer
Production planning Decide when and how many Management
products should be produced
Facilities location Decide where to locate new Strategic
production facilities

52. 52
Finance and Accounting Systems
 Systems that keep track of the firm’s financial assets and fund flows.
Examples
System Description Organizational Level
Accounts receivable Track money owed the firm Operational
Portfolio analysis Design the firm's portfolio of investments Knowledge
Budgeting Prepare short-term budgets Management
Profit planning Plan long-term profits Strategic

53. 53
Human Resources Systems
 Systems that maintain employee records; Track employee skills, job
performance, and training; And support planning for employee
compensation and career development.
Examples
System Description Organizational Level
Training and development Track employae training, skills, Operational
and performance appraisals
Career pathing Design career paths for employees Knowledge
Compensation analysis Monitor the range and distribution Management
ofemployee wages, salaries, and bene6cs
Human resources planning Plan the long-term labor force needs Strategic
of the organization