MIS - UNIT I.pptx

MANAGEMENT
INFORMATION
SYSTEMS
By Arul Muthupandian
Tuesday, January 3,
2023
1

UNIT – I
INTRODUCTION TO BUSINESS
SYSTEMS IN BUSINESS
Tuesday, January 3,
2023
2

Contents
1. Foundations of Information Systems: A framework for
Business users
2. Roles of Information Systems – System Concepts –
Organization as a System – Need for IS in Business –
fundamentals of IS – Components of IS – IS resources
activities – Overview of IS
3. Operation Support Systems, Management Support Systems,
Other Classification
4. System Approach to Problem Solving
5. Global Business Scenario – Trends in Technology and
Applications Tuesday, January 3, 2023 3

1. Foundations of Information Systems: A framework for Business users
Business Information System: Business information systems are sets of inter-related procedures using IT infrastructure in a
business enterprise to generate and disseminate desired information. Such systems are designed to support decision making by
the people associated with the enterprise in the process of attainment of its objectives. The business information system gets
data and other resources of IT infrastructure as input from the environment and process them to satisfy the information needs
of different entities associated with the business enterprise.
Features of Business Information System: Characteristics & features of business information system are:
1. The business information systems are subject to the dynamics of business environment and need to be flexible enough to
absorb the inevitable changes in the information needs of business. They have to be efficient to satisfy the demanding and
‘hard task masters,’ the business managers. Thus, there is need to balance the conflicting objectives in the process of designing
business information systems.
2. Business information systems need to be proactive. They should anticipate changes in information needs of users and
accordingly adapt themselves to suit their needs. This has become important because of the fact that the managers get involved
in the routine activities to the extent that the decision making becomes a matter of imitating what competitors are doing or
planning to do, rather than making an informed choice.
3. The purpose of business information system is to cater to the information needs for decision making in business.
4. The business information systems have to be designed keeping in view the availability of financial and human resources to
the business enterprise.
5. The cost effectiveness is a matter of prime concern in the development and maintenance of business information systems.
Economic justification for investment in IT infrastructure for business information systems is a pre condition for its existence
and sustenance.
Tuesday, January 3, 2023 4

1. Foundations of Information Systems: A framework for Business users: Cont., - 2
A framework for Business users

2. Roles of Information Systems
• Support business processes and operations
• Support decision making by employees and managers
• Support strategies for competitive advantage
Information System Concepts
What is an Information System? An information system (IS) can be any organized combination of people, hardware, software,
communications networks, and data resources that collect, transforms, and disseminate information in an organization.
Business professionals rely on many types of information systems that use a variety of information technologies.
Types of IS: 1. Manual (paper-and-pencil) information systems – 2. Informal (word-of-mouth) information systems –
3. Formal (written procedures) information systems – 4. Computer-based information systems
SYSTEM CONCEPTS - A FOUNDATION
System concepts underlie the field of information systems. Understanding system concepts will help you understand many
other concepts in the technology, applications, development, and management of information systems. System concepts help
you understand:
Technology: That computer networks are systems of information processing components that uses a variety of hardware,
software, data and telecommunication technologies.
Applications: That electronic business and commerce involves interconnected business information systems.
Development: That developing ways to use information technology n business includes designing the basic components of
information systems.
Management: That managing information technology emphasizes the quality, strategic business value, and security of an
organization’s information systems.

2. Roles of Information Systems: Cont., - 2
A system (sometimes called a dynamic system) has three basic interacting components or functions. These include:
• Input involves capturing and assembling elements that enter the system to be processed.
• Processing involves transformation processes that convert input into output.
• Output involves transferring elements that have been produced by a transformation process to their ultimate destination.
Feedback and Control:
Two additional components of the system concept include feedback and control. A system with feedback and control
components is sometimes called a cybernetic system, that is, a self-monitoring, self-regulating system.
• Feedback is data about the performance of a system.
• Control involves monitoring and evaluating feedback to determine whether a system is moving toward the achievement of
its goals. The control function then makes necessary adjustments to a system's input and processing components to ensure
that it produces proper output.

Organization as a System: It helps to think of organizations as systems. Simply put, a system is an organized collection of
parts that are highly integrated in order to accomplish an overall goal. The system has various inputs which are processed to
produce certain outputs that together, accomplish the overall goal desired by the organization. There is ongoing feedback
among these various parts to ensure they remain aligned to accomplish the overall goal of the organization. There are several
classes of systems, ranging from very simple frameworks all the way to social systems, which are the most complex.
Organizations are, of course, social systems. Systems have inputs, processes, outputs and outcomes. To explain
• Inputs --- to the system include resources such as raw materials, money, technologies and people. These inputs go through a
• Process --- where they're aligned, moved along and carefully coordinated, ultimately to achieve the goals set for the system.
• Outputs --- are tangible results produced by processes in the system, such as products or services for consumers.
• Another kind of result is outcomes, or benefits for consumers, e.g., jobs for workers, enhanced quality of life for customers,
etc. Systems can be the entire organization, or its departments, groups, processes, etc.
Each organization has numerous subsystems, as well. Each subsystem has its own boundaries of sorts, and includes various
inputs, processes, outputs and outcomes geared to accomplish an overall goal for the subsystem. Common examples of
subsystems are departments, programs, projects, teams, processes to produce products or services, etc. Organizations are made
up of people -- who are also systems of systems of systems -- and on it goes. Subsystems are organized in an hierarchy needed
to accomplish the overall goal of the overall system.
The organizational system is defined by, e.g., its legal documents (articles of incorporation, bylaws, roles of officers, eta.),
mission, goals and strategies, policies and procedures, operating manuals, eta. The organization is depicted by its organizational
charts, job descriptions, marketing materials, eta. The organizational system is also maintained or controlled by policies and
procedures, budgets, information management systems, quality management systems, performance review systems, ect.

Need for IS in Business: The importance of information systems in business starts with increased productivity and
efficiency. It helps to ensure better record keeping, data safety, organization and regulatory compliance.
• Reaching a Global Market
• Data Storage
• Improved Decision Making
• Enhance Productivity and Efficiency
• Finance and Accounting Control
Fundamentals of IS: Information is data that has been processed into a form that is meaningful to the user. An information
system (IS) is an organized combination of people, hardware, software, communications network, and data resources that
collects, transforms and disseminates information in an organization. Information systems and technologies have become a
vital component of businesses and organizations. People rely on information systems to communicate with each other using a
variety of physical devices (hardware), information processing instructions and procedures (software), communication channels
(networks), and stored data (data resources). Information can be classified into facts, opinions, concepts, procedures, processes,
principles, primary information, and secondary information. Apart from this, it can also be classified into several types based
on its nature, usage, creation, application, structure, and form.
In order to present the information in a proper manner to the user, the data can be collected through two main methods -
primary and secondary.
• Primary data collection refers to collecting original data or collecting data directly from the source.
• Secondary data collection refers to collecting data from secondary sources such as books, journals, research reports, online
databases, Internet, etc. The user should check whether this data has been updated before analyzing the data and drawing
conclusions. Tuesday, January 3, 2023 9

2. Roles of Information Systems: Fundamentals of IS: Cont., - 5
Information systems are collections of multiple information resources (e.g., software, hardware, computer system connections,
the system housing, system users, and computer system information) to gather, process, store, and disseminate information.
Tools such as laptops, databases, networks, and smartphones are examples of information systems. So yes, as you read this,
you’re employing an information system! Many people rely on various types of information systems to communicate with
friends and family, bank or shop online, or look up information via a search engine.
Companies and organizations employ information systems to communicate and work with their customers and suppliers,
manage the organization, perform essential business operations, and roll out and maintain marketing campaigns.
Six Major Types of Information Systems
Now that we have dealt with the basics, let's look at the six primary types of information systems. Although information
systems are not limited to this list, typical businesses and organizations have the following six, each system supporting a
different organizational level.
For starters, we have the transaction processing systems (TPS) at the operational level. Next are the office automation
systems (OAS) and knowledge work systems (KWS), both working at the knowledge level. Next, the management level has
the management information systems (MIS) and decision support systems (DSS), and we conclude with the executive
support systems (ESS) at the strategic level.

Components of IS
Information System Components include: People, Technology and
Process and involve the input of data that is transformed into
information as the output.
Technology includes: hardware, software,
and networks.
From the front-line user support staff, to systems analysts, to
developers, all the way up to the chief information officer (CIO),
the people involved with information systems are an essential element.
The last component of an information system is processes.
A process is a series of steps undertaken to achieve a desired outcome
or goal.
Data is the ‘power’ to the information system engine. Without it, the
system simply would not be able to produce the information needed to
reach the goal of improving decision making.

IS Resources Activities: An Information System is generally integrated and co-ordinate a network of components, which
combine together to convert data into information. The information system provides access of information when it is
required. The information system is a set of the component which generally helps a system.
Resources of Information System: There are 5 resources of information system which are given below:
1. Hardware 2. Software 3. People 4. Data 5. Network:
The major activities of an information system are;
1. Input of Data Resource
2. Processing of Data into Information
3. Output of Information Products
4. Storage of Data Resource
5. Control of System Performance
Overview of IS
Data, Information, and Knowledge
• Data: Raw facts
• Information: Collection of facts organized in such a way that they have value beyond the facts themselves
• Process: Set of logically related tasks
• Knowledge: Awareness and understanding of a set of information

Overview of IS

3. Operation Support Systems, Management Support Systems, Other Classification

3. Operation Support Systems, Management Support Systems, Other Classification
Classification of Information System: In any given organization information system can be classified based on the usage of
the information. Therefore, an information system in an organization can be divided into operations support system and
management support system.
Operations support system: In an organization, data input is done by the end user which is processed to generate
information products i.e. reports, which are utilized by internal and or external users. Such a system is called operation support
system. The purpose of the operation support system is to facilitate business transaction, control production, support internal
as well as external communication and update organization central database. The operation support system is further divided
into a transaction-processing system, processing control system and enterprise collaboration system.
• Transaction Processing System (TPS): These transactions can be categorized into batch transaction processing, single
transaction processing and real time transaction processing.
• Process Control System: In a manufacturing organization, certain decisions are made by a computer system without any
manual intervention. This kind of systems is referred as process control systems.
• Enterprise Collaboration System: In recent times, there is more stress on team effort or collaboration across different
functional teams. A system which enables collaborative effort by improving communication and sharing of data is referred
to as an enterprise collaboration system.
Management Support System: Managers require precise information in a specific format to undertake an organizational
decision. A system which facilitates an efficient decision making process for managers is called management support system.
Management support systems are essentially categorized as management information system, decision support system,
expert system and accounting information system.
Further Classification: An information system can be categorized based upon activity into strategic planning system,
tactical information system and operational information system. Tuesday, January 3, 2023 15

4. System Approach to Problem Solving
The systems approach to problem solving used a systems orientation to define problems and opportunities and develop
solutions. Studying a problem and formulating a solution involve the following interrelated activities:
1. Recognize and define a problem or opportunity using systems thinking.
2. Develop and evaluate alternative system solutions.
3. Select the system solution that best meets your requirements.
4. Design the selected system solution.
5. Implement and evaluate the success of the designed system.
Systems Thinking: Systems thinking is to try to find systems, subsystems, and components of systems in any situation your
are studying. This viewpoint ensures that important factors and their interrelationships are considered. This is also known as
using a systems context, or having a systemic view of a situation. An example, the business organization or business process in
which a problem or opportunity arises could be viewed as a system of input, processing, output, feedback, and control
components. Then to understand a problem and save it, you would determine if these basic system functions are being
properly performed. Example: The sales function of a business can be viewed as a system. You could then ask: Is poor sales
performance (output) caused by inadequate selling effort (input), out-of-date sales procedures (processing), incorrect sales
information (feedback), or inadequate sales management (control)?
Post Implementation Review: The final step of the systems approach recognizes that an implemented solution can fail to
solve the problem for which it was developed. The real world has a way of confounding even the most well-designed solutions.
Therefore, the results of implementing a solution should be monitored and evaluated. This is called a post-implemention. The
focus of this step is to determine if the implemented solution has indeed helped the firm and selected subsystems meet their
system objectives. If not, the systems approach assumes you will cycle back to a previous step and make another attempt to
find a workable solution. Tuesday, January 3, 2023 16

5. Global Business Scenario – Trends in Technology and Applications
Drawing from these uncertainties, I have proposed and evaluated four scenarios followed by strategies and solutions and
suggestions.
• Scenario One: Business as Usual
• Scenario Two: Financial Disputes
• Scenario Three: New Marketplaces
• Scenario Four: Revolution, Transformation, and Modification
 Shifting geographies: How will the global economy work?
 Blurring industry boundaries: How will companies organize across sectors?
 Evolving digital behavior: How will the consumer react to Internet ubiquity?
Trends in Technology and Applications
1. 5G Technology: A Boon For Businesses
2. Autonomous Driving: An Easy, Safe Driverless Drive
3. Edge computing: Bridging the Gap Between Data Storage and Computation: Edge computing, one of the top technological
trends, brings data storage and computation closer to the businesses, and hence, ameliorates the response times and saves
bandwidth.
4. Democratization: A Democracy in Technology: Like in a democracy, everyone has equal rights and responsibilities, similarly,
the democratization of technology refers to the easy access of technical domain to everyone, irrespective of their profession
and place.
5. Human Augmentation: Enhancing Cognitive Abilities: Human augmentation can be defined as a process by which a person’s
physical and cognitive ability is strengthened. Once implanted in a human being, it will enable the person to execute tasks that
were earlier impossible for him. Tuesday, January 3, 2023 17

5. Global Business Scenario – Trends in Technology and Applications: Cont., - 2
6. Distributed Cloud- Connecting Operations to Cloud Services
7. DARQ- An Asset for Hiring and Training: Distributed ledger technology (such as blockchain), Artificial intelligence (AI),
Extended reality (including virtual and augmented reality), and Quantum computing, abbreviated to DARQ.
8. Personal Profiling- Enhancing Adaptation to Latest Technologies: As consumer analytics becomes a crude priority of every
business, the latest tech trend is profiling consumers by examining how they interact with the technology at hand.
9. AI Products- For the Ease of Life
10. Data-Driven Policing- Countering Data Breaches and Cyber-Attacks
11. Momentary Markets- For the Transformation of Customer Analytics and Advertising
12. Automation- For Advancements in Analytics
13. Reskilling- Upscaling Human's Digital Sophistication
14. Medical Upgrade- The Rise of 3D Printing
15. Digital Debit- Growth in Adoption of Digital Transactions: As cryptocurrency gains stronger credibility and digital
payment systems like Google Pay and Amazon Pay grow in use, traditional banking will lose its ground.

MIS - UNIT I.pptx

Recommended

Recommended

More Related Content

Similar to MIS - UNIT I.pptx

Similar to MIS - UNIT I.pptx (20)

Recently uploaded

Recently uploaded (20)

MIS - UNIT I.pptx