management information system introduction

1. MANAGEMENT INFORMATION
SYSTEM
INFORMATION SYSTEMS FOR DECISION MAKING
BBA 6th M3-M4
Saud
Institute of Business, Management &
Administrative Sciences

2. Recap!

3. Recap!

4. TPS Recap!

5. Transaction Processing Systems
Transaction processing systems (TPS) are the most
widely used information systems. The predominant
function of TPS is to record data collected at the
boundaries of organizations, in other words, at the
point where the organization transacts business with
other parties. They also record many of the
transactions that take place inside an organization.
For example, they record the movement of parts from
one phase of manufacturing to another, from raw
materials to finished products.

6. Transaction Processing Systems
TPSs include:
Point Of Sale machines (POS), which record
sales.
Example:
 Items sold
 Batch sold
 Transactions record
 Customer membership record
 Daily Sales Record

7. Transaction Processing Systems – POS Model
UPC – Universal
Product Code
(Barcode)

8. Transaction Processing Systems
Automatic teller machines (ATM)
Example:
 Record cash withdrawals
 Deposits
 transfers

9. Recap - Batch vs On-Line Transactions Processing -
Model
Batch Transaction
Processing can be based on
Daily sales reports or Monthly
Expenses Report etc.
On-Line Transaction
Processing the data is directly
process as soon as it is entered
to the system, ATM etc.

10. Data Processing activities in TPS

11. Transaction Processing Systems
Purchase order systems, which record
purchases.

12. Transaction Processing Systems
A typical Example would be the purchase of Petrol
at a Petrol station, using a credit card. The
purchase is recorded by the Petrol station company
and later at the credit card-processing bank.
After these data elements are collected, the
Information System can automatically process the
data immediately and store it for later access on
demand.
Transaction processing systems provide most of
the data in organizations for further processing by
other Information Systems.

13. TRANSACTION PROCESSING SYSTEM (TPS)
 Role of TPS
 Produce information for other systems
 Cross boundaries (internal and external)
 Used by operational personnel + supervisory
levels
 Efficiency oriented

14. TRANSACTION PROCESSING SYSTEM (TPS)
 Examples of TPS
 Payroll processing
 Sales and order processing
 Inventory management
 Accounts payable and receivable

15. TRANSACTION PROCESSING SYSTEM (TPS)

16. TPS in IBMAS (Admin Office) – Class Activity
TPS
(IBMAS)
?
?
?
?
?
?
?
?

17. Relationship of Systems to one another:
Integration

18. MANAGEMENT INFORMATION SYSTEM

19. MANAGEMENT INFORMATION SYSTEMS
These systems make use of the already processed of the
already processed transaction data which is output from
TPS and generate information reports after processing
data.
The output of an MIS takes the form of summary reports
and exception reports.

20. MANAGEMENT INFORMATION SYSTEMS
A summary report accumulates data from several
transactions and presents the results in condensed form.
For example a bank manager may get a summary report
listing the total amount of deposits and withdrawals made
the previous day.

21. MANAGEMENT INFORMATION SYSTEMS
An exception report outlines any deviations from expected
output. Its main purpose is to draw the attention of middle
managers to any significant differences between actual
performance and expected performance.
For example a sales manager may study an exception report
that lists all sales personnel who sold less then RS. 10000 or
more then RS 50000 in the preceding month.

22. MANAGEMENT INFORMATION SYSTEM
Refers to the data, equipment and computer
programs that are used to develop information
for managerial use.
Converts raw data from transaction processing
system into meaningful form.
Focus on the information requirements of low to
middle level managers

23. MANAGEMENT INFORMATION SYSTEMS
 Role of MIS
Based on internal information flows
Support relatively structured decisions
Used by lower and middle managerial levels
Deals with the past and present rather than the
future
Efficiency oriented

24. MANAGEMENT INFORMATION SYSTEMS
 Some examples of MIS
Sales management systems
Inventory control systems
Budgeting systems
Management Reporting Systems (MRS)
Personnel (HRM) systems

27. SAMPLE MIS REPORT – Sales Data
This report showing summarized annual sales data was produced by