New Hiteck Management Information System for All .ppt

Advanced Management
Information System
Soroush Avakh Darestani
Ph.D
Email: soroushavakh@yahoo.com
Islamic Azad University
Oct 2015
1

Contents
1. What is Information Systems (IS)
2. Types of Information Systems (IS)
3. How Businesses Use Information Systems (IS)
4. What is Management Information System (MIS)
5. Human Resource Information System (HRIS)
6. Health Information System (HIS)
2

Chapter 1: What is IS
WHAT IS INFORMATION SYSTEM?
 An information system (IS) is an arrangement of
people, data, processes, and information
technology that interact to collect, process, store,
and provide as output the information needed to
support an organization.
A management information system (MIS) is an
information system that provides for management-
oriented reporting based on transaction processing
and operations of the organization.
ONUR ÇELİK,U. GÖKHAN KUZUCU, MERİÇ OSMANOĞLU, KÜRŞAT KAYA,
VOLKAN KUMPUR
3

Definitions
 Data
Raw facts such as an employee’s name and number of hours
worked in a week, inventory part numbers or sales orders.
 Information
A collection of facts organized in such a way that they have
additional value beyond the value of the facts themselves.
Presented by: Muhammad Ajmal Khan, MPhil 0504
Deptt. of Library and Information Science, University of the Punjab, Lahore
Data Information
$35,000 12 Units
$12,000 J. Jones Western
Region $100,000 100
Units 35 Units
Data
Processing
Salesperson: J. Jones
Sales Territory: Western
Region Current Sales:
147 Units = $147,000
4

Definitions
 Information Systems
An information system(IS) is typically considered to be a set of
interrelated elements or components that collect(input),
manipulate(processes), and disseminate (output) data and
information and provide a feedback mechanism to meet an
objective.
 Open System
 Close System
5

Information Systems
 Why Do People Need Information?
 Individuals - Entertainment and enlightenment
 Businesses - Decision making, problem solving and
control
MIS 715 Eaton Fall 2001 6

Data, Information, and Systems
 Data vs. Information
 Data
 A “given,” or fact; a number, a statement, or a picture
 Represents something in the real world
 The raw materials in the production of information
 Information
 Data that have meaning within a context
 Data in relationships
 Data after manipulation
MIS 715 Eaton Fall 2001 7

 Data Manipulation
 Example: customer survey
 Reading through data collected from a customer survey with
questions in various categories would be time-consuming and
not very helpful.
 When manipulated, the surveys may provide useful
information.
 Generating Information
 Computer-based ISs take data as raw material, process
it, and produce information as output.
MIS 715 Eaton Fall 2001
8

Figure 1: Input-process-output
9

 Information in Context
Figure 2: Characteristics of useful information
10

Figure 3: Several subsystems make up this corporate accounting system.
11

 Information and Managers
 Systems thinking
 Creates a framework for problem solving and decision making.
 Keeps managers focused on overall goals and operations of
business.
12

Figure 4: Qualities of humans and computers that contribute to synergy
13

 The Benefits of Human-Computer Synergy
 Synergy
 When combined resources produce output that exceeds the sum
of the outputs of the same resources employed separately
 Allows human thought to be translated into efficient
processing of large amounts of data
14

Figure 5: Components of an information system
15

 The Four Stages of Data Processing
 Input: Data is collected and entered into computer.
 Data processing: Data is manipulated into information
using mathematical, statistical, and other tools.
 Output: Information is displayed or presented.
 Storage: Data and information are maintained for later
use.
16

Data, Information, Knowledge
 Relationships – simple just in textbooks
Data
(Letters, numbers, graphics…
Representing reality and knowledge)
Information
(Data understood,
meaning)
Knowledge
(Complex cognitive entity;
cause-effect theories,
vocabularies/conceptual maps,
know-how, experience)
Domain of
Technology
Domain of Human Brain
Asper School of Business - MBA Program 6150 Management of Information
Systems & Technology, April-June 2009 , Instructor: Bob Travica
17

Data, Information, Knowledge
 Knowledge is also embedded in computer
software! (e.g., math operations in Excel,
procedures in Accounting IS, decision trees in
Expert Systems)
 In plain English, we often do not differentiate
between data, information and knowledge, simply
calling it all “information”.
18

Data, Information, Knowledge and Occupations
 Where the primary focus of job is.
Professionals
Clerks
Managers
19

Concept of Information Technology (IT)
 What do we mean by "IT"?
Any tool for manipulating data, information
• electronic: computer software and hardware
• our focus
• paper: documents, filing techniques…
• still there,
• gradually transformed into electronic
20

Concept of Information System (IS, system)
Information Technology (IT)
(Computers, Other)
Users
(Organizational members:
Managers, Professionals, Clerks)
• Data (organized,
meaningful)
• Representations of
Knowledge
Use
Procedures
Information
System (IS)
Use
Information,
Knowledge
-----------------
Task, Business
Process
Perform on
Supports
21

Concept of Information System (IS, system)
• In plain English, we often do not differentiate
between data, information
and knowledge, simply calling it all “information”.
• We often use term “technology” to refer to either IT
or IS.
22

Putting on Information System Lenses
• What is the frequent (or important) task or process
you work on?
• What information is part of your work?
• How is this information supported by technology?
• Is something missing in your information/
technology?
These questions help
to focus on MIS6150
perspective, study and
do assignments.
23

Putting on Information System Lenses
Figure 6: First part of Analytical Process addressed
24

Why Study IS?
 Information Systems Careers
 Systems analyst, specialist in enterprise resource planning (ERP),
database administrator, telecommunications specialist, consulting,
etc.
 Knowledge Workers
 Managers and non-managers
 Employers seek computer-literate professionals who know how to
use information technology.
 Computer Literacy Replacing Traditional Literacy
 Key to full participation in western society
25

Ethical and Societal Issues(The Not-So-Bright Side)
 Consumer Privacy
 Organizations collect (and sometimes sell) huge
amounts of data on individuals.
 Employee Privacy
 IT supports remote monitoring of employees, violating
privacy and creating stress.
26

Ethical and Societal Issues (The Not-So-Bright Side)
 Freedom of Speech
 IT increases opportunities for pornography, hate speech, intellectual
property crime, an d other intrusions; prevention may abridge free
speech.
 IT Professionalism
 No mandatory or enforced code of ethics for IT professionals--
unlike other professions.
 Social Inequality
 Less than 20% of the world’s population have ever used a PC; less
than 3% have Internet access.
27

Management Topics, Information Systems,and Cases
• Electronic Commerce (Buying & selling via Internet), Demand
pull; Sales & manufacturing systems innovation and integration,
Supply chain systems innovation
• Knowledge management, communication, hierarchy “demise”;
Communication and Document management systems innovation
• Efficiency & effectiveness driven organizational change, Teamwork,
internal/external process improvement, any time/space-operations;
groupware, distributed systems, computer networks,
enterprise systems, transaction processing/reporting systems
Mapping into
Our Teaching
Cases:
28

Organization-Systems Trajectory of
MeadWestvaco
 Centralized mainframe data processing centre (1960s)
 Decentralization – organizational and technological (mini
computers 1970s, PCs 1980s, networks, Client-Server)
 Recentralization and Enterprise Resource Planning system
 IS evolution: Transactions tracking to office work support to
decision making support to professional work support
 Role of IS Department: Support to operations to Strategic
business partner; interfacing with business and computer vendors;
shared IT governance.
29

Putting MIS6150 Themes Together
IT (Computer Software
& Hardware)
Data
(organized, meaningful)
Procedures of
Handling IT and Data
Adopt, Use
System
Design & Development
Provide System
Requirements
• Define strategic and operational targets, and role of technology
• Manage people, work, time and money in system use, development, and adoption
• Evaluate relationships b/w Users--System and
System--Organizational Performance
IS Dept.
Design &
Build
Vendors
Managers:
Task,
Process
---
Infor-
mation
Productivity?
Strategy
Accomplishment?
30

Typology of Information Systems: Time Focus
 IS store & process data into
useful outputs *
 Outputs and so IS can be:
 Past/present focused
(recording/tracking; e.g.,
reports)
 Future focused (decision
making; e.g., scenarios - key
to decision making)
Figure 7: Information System
(a more detailed view)
Computer hardware & software
System and Application
Software
Data
Use Procedures
User Interface
MIS 2000, Class 5, Process View of Organization and Information Systems, September 2012
31

Typology of Information Systems (IS): User Focus
 Different systems serve different groups of users.
 System types have different level of detail, processing
capabilities, and outputs.
Transaction Processing
system (TPS) - Daily
operations control
Supervisory
Management
Mid-level
Management
Management Information System
(MIS) - Mid-range performance
control & planning
Executive
Management
Decisions Support System (DSS) -
Strategic decision making
Knowledge Work Systems
(professionals)
Communication Systems
(everybody)
Group Support Systems
(teams)
Office Automation Systems
(clerks, others)
32

IS Types –Basic Concepts Transaction Processing System(TPS)*
 TPS is an IS that stores & processes data created in operations
(‘transactions’).
 TPS is a database with stored queries reflecting daily operations.
 Serves supervisory management.
 Examples: Customer Order Processing System, Accounting General
Ledger, HR payroll, inventory…
Queries
Database
Queries
Queries shorter periods
(day, week)
33

Management Information System (MIS)
 MIS is a system that outputs from TPS, additional queries
and reports to reflect the transpired business on longer run
(monthly, quarterly, semi-annually).
 Reports have graphics for quick managers’ understanding.
 Serves mid-level managers.
 Examples same as for TPS but different content and format.
T P S
Special Queries &
Reports
34

Decision Support System (DSS)
 Support higher management levels in decision making
 Uses outputs from TPS and MIS as well as various data from the
organizational environment
 Outputs contain much less detail than in MIS and TPS, and highly
aggregated
 Lots of graphical elements (figures, gages).
Figure 8: Screen of DSS called Executive dashboard
• Gauges show important figures about HR in a company
35

Typology of Information Systems:Organizational Function Focus
 IS based on organizational function (Purchasing, Inventory,
Production,
 Human Resources, Accounting, Finance, Sales, Marketing,
Planning, Research,
 Engineering, etc.).
 Relationship between User-based and Function-based IS
types:
Organizational
Function-based IS
User-based IS Type
Human Resources
IS (HRIS)
TPS MIS DSS
Database of travel
claims with some
queries
More queries and reports on
travel claims in past month,
drawn from TPS database
Module with if-then rules that
processes MIS reports and
identifies deviations from
organization’s rules.
36

Information Systems and Business Processes
IS
Key role in optimizing
process design
(CCCF; next slides)
Vehicle for
management process data
• complementing or replacing paper
trail
Carries
process parts
or whole
• manipulation of IS is how work is
done, whether process is optimized or
not
37

IS and Process Design - Composition
 IS can help to optimize process design.
 IS and Process Composition: IS can influence the selection of
activities, performers (workers), departments, and organizations to be
included in process.
 Example: A new Purchasing TPS implemented at Ford made its
purchasing order process* leaner. It had (a) different work
activities than those used before and brought a (b) 10 fold-
reduction of process performers.
 Example: A part quality process Kia introduced connected Kia
with service shops. Kia became able to determine exactly which
parts did not perform well and then to work on improving their
quality. MIS at Kia and at service shops were linked via
computer network, which in effect extended the process in space
and across organizations.
38

IS and Process Design - Complexity
 IS and Process Complexity: IS can absorb complexity or simplify
process a process looking from the perspective of process
performers. This is possible because IS performs some activities
and decisions instead of people, which is called automation.
 Example: DSS that is usually used by a single person in decision
making process, performs very complex calculations that would
be difficult even for a group of experts to do. Many organizations.
 Example: By transforming transaction data and creating reports
automatically, MIS do much of the reporting process that mid-
level managers had performed manually in the past. This
capability moderates the size of this management level, which in
turn can make an organization “flatter” (less hierarchical). Many
organizations.
39

IS and Process Design - Coordination
 IS and Process Coordination: IS can enhance coordination among the
process activities and process performers.
 Example: The supply process at Walmart uses inventory management
MIS at Walmart stores and its distribution centres, which in turn are
connected via computer networks with sales MIS of Walmart’s suppliers.
Stores, distribution centers and suppliers are well coordinated and
Walmart is able to have its shelves filled continuously with products.
 Group decision making process that includes a GDSS makes it possible
for decision makers to brainstorm in parallel (at the same time). Each
person can type his/her idea at the same time without waiting for turn to
speak (as happens in a manual group decision making process). Big user
of GDSS used to be IBM.
Facilitator drives the
session
Decision makers
40

IS and Process Design - Flexibility
 IS and Process Flexibility: IS can contribute to controlling variation in a
process.
 Think of variation in terms of (A) availability of options, and (B)
deviation from a benchmark. Variation form A may be desirable, while
form B may not be.
 Example A: Various reservation processes (hotel, travel, university
course) could be done with the start activity supported by different IS.
So, a customer of the process could use Website, email, or phone to
submit booking requests.
 Example B: The quality control process in manufacturing rests on
controlling variation between a part under production and desired
benchmarks of size, shape and other characteristics. In modern car
manufacturing, the quality control process is automated via IS that
continuously inspect and report on the state of assembly lines.
41

IS and Process Performance
 Processes with optimized design (previous slides) perform
better in terms of customer value, time, and costs (next
slide).
 Better performing processes improve organizational
performance (profitability, service level, etc.).
IS
Process
Design,
Performance
Organizational
Performance
Figure 9: Relationships between IS, Process and Organization
42

Process Design improvement –Process erformance improvement due to IS
Process Design Aspect
impacted by IS
Time Cost Customer Value
Composition
augmentation
Savings in process time at
Ford
Labor reduced at Ford Quality improved at Kia
Complexity reduction Savings in decision making
process
Savings on mid-level
management
Coordination
improvement
- Savings in Walmart’s
sourcing process
- Savings in group decision
making at IBM
Savings in opportunity
costs at IBM*
- Satisfied customer at
Walmart
- Satisfied group member
at IBM
Flexibility control - Automated quality control
in car manufacturing (mfg.)
faster than manual
- Less fallout due to
better quality control in
car mfg.
- Process options
- Quality of cars raised
43

Functional and Non-functional Requirements for IS
• To be able to carry a process or its parts, IS must meet
(a) functional requirements
(b) non-functional requirements.
• Functional requirements = doing what an IS is designed for.
– Examples: Performing certain, designated activities
within a process (e.g., process order, report on product .
• Non-functional requirements = speed, user’s effort,
reliability.
– Examples: speed matching a benchmark, easy to use,
high reliability (minimal system downtime).
44

IS and Organizational Data
 IS are the main vehicle for managing organizational data:
 business documents (decisions, financial, market
analyses, orders, contracts…)
 professional documentation (problem solving guides,
engineering drawings, manuals, knowledge repositories,
patents…)
 communications (messages and memos managed by
email, chat, electronic bulletin boards and other
communication systems).
 Note: Process can contain more data than those managed by
the IS that carry the process.
45

Quality of Data
 IS is the vehicle for managing process data.
 The quality of IS outputs is evaluated in terms of:
1. Accuracy (reflects factual state of affairs; e.g., accounting standards)
2. Timeliness (available on time as the business demands; sometimes
ASAP*, but not always)
3. Completeness (all the data required are provided; data entry
matters!)
4. Relevance (correspond to user needs; rule applied when IS
designed)
5. Non-redundant (duplication of data reduced; e.g., relational
databases)**
6. consistent (a piece of data is appears in the same format and content
throughout a system; e.g., customer name)
46

Functional and Non-functional Requirements for IS
 To be able to carry a process or its parts, IS must meet
 (a) functional requirements
 (b) non-functional requirements.
 Functional requirements = doing what an IS is designed for.
Examples: Performing certain, designated activities within a
process (e.g., process order, report on product .
 Non-functional requirements = speed, user’s effort,
reliability.
Examples: speed matching a benchmark, easy to use, high
reliability (minimal system downtime).
47

Summary
 IS types can be differentiated on Time, User, and
Organizational Function
 Basic IS types serving managers are TPS, MIS and DSS
 IS can optimize process design (Composition, Complexity,
Coordination, Flexibility)
 Improvements of process design reflect in process
performance (Customer Value, Cost, Time)
 IS manage organizational data, which should meet quality
six quality requirements.
 To carry processes, IS should meet functional and non-
functional requirements.
48

Computer-based Information System
An Information System is an organized combination of people,
hardware, software, communication networks and the data
resources that collects, transforms and disseminates information
in a organization.
49

Information Systems Vs Information Technology
INFORMATION
TECHNOLOGY
Hardware
Software
Databases
Networks
Other related
components
are used to build INFORMATION
SYSTEMS
Payroll
System
Inventory
System
Marketing
System
Customer
Service
System
50

Expanding Roles of IS
1.Data Processing: 1950s-1960s
2.Management Reporting: 1960s-1970s
3.Decision support: 1970s-1980s
4.Strategic and End User Support: 1980s-1990s
5.Global Internetworking: 1990s-2000s
51

IS as Discipline
IS is an interdisciplinary field influenced by
Computer Science, Political Science, Psychology,
Operations Research, Linguistics, Sociology, and
Organizational Theory.
52

Information Systems Development
53

Information systems: Opportunities and Challenges
Challenges:
1.Workforce downsizing
2.Information overload
3.Employee mistrust
4.Difficult to built
5.Security breaches
Opportunities:
1.Enhanced global competitiveness
2.Capture market opportunities
3.Support corporate strategy
4.Enhance worker productivity
5.Improve quality of goods and services
55

List of Major Information Systems
 Lawrence Berkley Laboratory National Energy
Research Scientific Computing Enclave: The Lawrence
Berkley Laboratory National Energy Research
Scientific Computing (NERSC) Enclave system is in
Support of Advanced Scientific High Performance
Computing.
 Management, Budget & Evaluation Procurement and
Assistance Data System (PADS): A Headquarters
procurement-based system associated with planning,
awarding, and administering various unclassified
acquisitions.
VOLKAN KUMPUR
56

List of Major Information Systems
 Environmental Management Headquarters EM 20
RADCALC: This application is used by National
Transportation Program to support the planning
and execution of its transportation responsibilities
for all non-classified shipments of hazardous
materials, including radioactive, mixed wastes,
and other commodities in support of
environmental site clean-up activities.
VOLKAN KUMPUR
57

Conclusion
Information Systems are indispensable to the
business, industry, academia and any organization to
meet the future challenges
58

Types of Information Systems
1. Informal Information System
2. Formal Information System
Chapter 2: Types of Information Systems
59

Classification of IS
Information Systems
Operations
Support System
Management
Support System
Transaction
processing
systems
Process control
systems
Office
automation
systems
Management
information
systems
Decision
support
systems
Executive
information
systems
60

Classifications of IS
1.Operations Support System
i) Transaction processing systems
 Process business exchanges
 Maintain records about the exchanges
 Handle routine, yet critical, tasks
 Perform simple calculations
ii) Process control systems monitor and control industrial processes.
iii) Office automation systems automate office procedures and
enhance office communications and productivity.
61

2. Management support systems
provide information and support needed for effective
decision making by managers
Major categories are:
i) Management information systems
 Routine information for routine decisions
 Operational efficiency
 Use transaction data as main input
 Databases integrate MIS in different functional areas
62

ii) Decision Support System
 Interactive support for non-routine decisions or problems
 End-users are more involved in creating a DSS than an MIS
iii) Executive information systems
provide critical information tailored to the information needs of executives
63

Other categories
a) Expert systems
b) End user computing systems
c) Business information systems
d) Strategic information systems
1.Expert Systems are knowledge-based systems that provides expert advice and
act as expert consultants to the users
2.End user computing systems support the direct, hands on use of computers by
end users for operational and managerial applications
3.Business information systems support the operational and managerial
applications of the basic business functions of a firm
4.Strategic information systems provide a firm which strategic products, services,
and capabilities for competitive advantage
64

Enterprise Resource Planning (ERP)
a) Integrated programs that can manage a company’s
entire set of business operations
b) Often coordinate planning, inventory control,
production and ordering
Chapter 2: Types of Information systems
65

Information Systems:Types
 Information System Categories Related to
Specific Functional Areas of Business.
 Cross-Functional Systems
 Management Support Systems
 Operations Support Systems
ISR (c) 1385 Dr Ghaebi
66

Cross-Functional Systems : An Example
Figure 10: fulfillment cuts across sales, accounting, order and manufacturing and
distributionand distribution
The Order Fulfillment Processorder
67

Different Kinds of Systems
Four main Types of Information Systems serve four
different organizational levels:
1. Operational-level systems
2. Management-level systems
3. Strategic-level systems
68

Operational level systems
 To answer routine questions and track the flow of
transactions through the organization. Therefore,
information generally must be easily available,
current, and accurate.
 Supporting operational managers by keeping
track of the elementary activities and transactions
of the organization, such as sales, receipts, cash
deposits, payroll, credit decisions, and the flow of
materials in a factory
69

Operational level systems
Produces routine answers
Figure 11:
70

Management-level Systems
 To serve the monitoring, controlling, decision-
making, and administrative activities of middle
managers
 Typically providing periodic reports rather than
instant information on operations
 Including control systems for annual budgeting and
inventory, and management systems for sales and
human resources
71

Management-level Systems
Support monitoring,
controlling,
decision-making,
and administration
by middle
management.
Figure 12:
72

Strategic-level systems
 To match changes in the external environment
with existing organizational capability
 Helping senior management deal with and
address strategic issues and long-term trends,
both in the firm and in the external environment
 Including a system to forecast sales trends over a five-
year period or systems for profit planning and
personnel planning
73

Strategic-level systems
Information Systems
that Support Long-
Range Planning of
Senior Management.
Figure 13:
74

Major Types of Information systems
 Executive Support Systems (ESS)
 Decision Support Systems (DSS)
 Management Information Systems (MIS)
 Transaction Processing Systems (TPS)
75

Types of systems at the 4 levels (cont.)
Lowest Level (operational)
Transaction Processing Systems (TPS):
Inputs:Transactions or events
Processing:Sorting;listing; merging; updating
Outputs:Detailed reports;lists; summaries
Users:Operational personnel; supervisors
76

Level two (management level)-
Management Information System (MIS):
Inputs:Summary transaction data
Processing:Simple models; low level analysis
Outputs:Summary reports
Users:Middle managers
Example: Weekly, monthly, and annual resource
allocation. Not five year plans and not daily details, but
something in between.
77

Management Information System (MIS)
 Some characteristics of MIS that make them differ
from DSS (on next slide)
 Structured and semi-structured decisions
 Output is often the kind that you need routinely each
term (quarter, month, year) to evaluate how to proceed
next (quarterly sales data for past 5 years)
78

level two (management level)-
Decision Support System (DSS):
Inputs:databases optimized for statistical analysis
Processing: Interactive. Simulations and statistical analysis
Outputs:Responses to queries; statistical test results.
Users:Professionals, staff
Example: Could answer the following query:
“We need to trim 5% of our menu offerings to limit
complexity in operations. Which items are the worst
performing; are most likely to lead to sales of other
products left on the menu, and have the most ingredients
unique to their recipes?”
79

Top level (strategic level)-
Executive Support System (ESS):
Inputs:Aggregate data. Internal and external
Processing: Interactive and graphical simulations
Outputs:Projections
Users:Senior managers
Example:5-year operating plan. Answer question like
“what are long-term industry cost trends and how are
we doing relative to them?”
 Gets data from all internal IS plus external industry
data bases
80

Figure 14:
81

Types of systems (Interrelationships)
TPS generally feed all other
systems
-MIS generally indicate when
a DSS is needed and provide
input for them
-ESS take all internal data but
usually only summary data
from MIS and DSS level
Output data from one is input
data for others to process
Figure 15:
82

Expert Systems
 Support professionals faced with complex situations
requiring expert knowledge in a well-defined area
 They represent human expertise also called
knowledge-based systems
 Typically use if-then rules
 Used as interactive advisors or as automated tools
83

Office Automation Systems (OAS)
 Help people perform personal record keeping,
writing, and calculations efficiently
 Main types of tools include:They represent human
expertise also called knowledge-based systems
 Spreadsheet programs
 Text & image processing systems
 Personal database systems and note-taking systems
84

Communication Systems
 Sharing information in many different forms
 Teleconferencing
 The use of electronic transmission to permit same-time
different-place meetings
 Audio conferencing
 a single telephone call involving 3 or more people
 Audio-graphic conferencing
 an extension of audio conferencing, permitting the participants
to see graphical material
 Videoconferencing
 interactive meeting involving groups of people that can see
each other using display screens
 E-mail, Voice Mail, and Fax
 Instant Messaging and Chat
85

Communication Systems(Cont.)
 Groupware
 Software and related procedures that help teams work
together by sharing information and by controlling internal
workflows. e.g. Lotus Notes
 Intranets and Extranets
 INTRANETS: Private networks, Use the same interface
as the Web, Accessible only to company employees
 Examples of applications:Corporate news, Employee
manuals, Corporate policies, Telephone directories, etc.
 EXTRANETS:Similar to intranets, but geared towards
customers
 Examples of applications:Detailedproductdescriptions,
FAQs, Maintenance information, etc.
86

Real time processing
 The immediate processing of data with the
database updated as the transaction is being
carried out.
 An example may be the Bank ATM and POS terminal,
both of which have user input which requires
immediate feedback.
87

Characteristics of a transaction processing system
 Records internal and external transactions that take
place in a company
 Is used mostly by lower-level managers to make
operational decisions
 Stores data that are frequently accessed by other
systems
 Is ideal for routine, repetitive tasks
 Records transactions in batch mode or on-line
 Requires six steps to process a transaction—data
entry, validation, data processing, storage, output
generation, and query support
88

Transaction Processing System (TPS)
 Transaction ProcessingSystem(TPS)
A computerized system that performs and records
daily routine transactions necessary to the conduct of
the business
 TPSsare information systems that process data
resulting from the occurrence of business
transactions.
Example: payroll system; production instructions
89

Transaction ProcessingSystem(TPS)
 Serve operational managers
 Principal purpose is to answer routine questions and
to track the flow of transactions through the
organization
 E.g. Inventory questions, granting credit to customer
 Monitor status of internal operations and firm’s
relationship with external environment
 Major producers of information for other systems
 Highly central to business operations and functioning
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Stages Of Transaction Processing
 Five Stages Of Transaction Processing
 Data Entry
 Processing
 Database Maintenance
 Document And Report Generation
 Inquiry Processing
91

Transaction Processing System(TPS)(cont.)
92

TPS payroll system
Figure 16:
93

Management Information Systems(MIS)
 Serve middle management
 Provide reports on firm’s current performance,
based on data from TPS
 Provide answers to routine questions with
predefined procedure for answering them
 Typically have little analytic capability
94

 An MIS provides managers with information and
support for effective decision making, and
provides feedback on daily operations.
 MIS provides information to the users in the form
of reports
 Output, or reports, are usually generated through
accumulation of transaction processing data.
Example: Annual budgeting
95

 provides information for managing an organization
 Extract and summarize data from TPSs
 Allow managers to monitor & direct the organization
 Provide accurate feedback
 Provide pre-specified reports on a scheduled basis
 Top managers make strategic decisions
 Middle managers make tactical decisions
 Line managers make operations decisions
 Knowledge workers create and integrate knowledge
 Clerical workers use and manipulate information
96

 Provide middle managers with reports on firm’s
performance
 To monitor firm and help predict future performance
 Summarize and report on basic operations using data
from TPS
 Provide weekly, monthly, annual results, but may
enable drilling down into daily or hourly data
 Typically not very flexible systems with little analytic
capability
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 Mid-level managers.
 Uses high volume data.
 E.g. Budgeting.
Management Information Systems(cont.)
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Transaction Processing
Systems (TPS)
 Support operation
 Management and
control
 Routine, normal
operations
 Structured decisions
Management Information
Systems (MIS)
 Provide decision-
making support for
routine, structured
decisions
 Closely linked to and
fed by TPS
 Structured and Semi-
structured decisions
99

Structured decisions
 Structured decisions are those which are made
according to specified procedures of rules or
structured decisions are those that are easily made
from a given set of inputs.
 Deciding to send a reminder notice to a customer for
an overdue balance is considered to be structured
decision
100

Semi-structured decisions
 Semi-structured decisions are those for which
information obtained from a computer system or
information system is only a portion of the total
knowledge needed to make decision.
 Advertise a new product or how much to spend on
MIS.
101

Unstructured decisions
 Unstructured decisions are novel, and insignificant.
 There is no cut and dried method for handling the
problem because it hasn't arisen before or because it's
precise nature and structure are mysterious or complex,
or because it so important' that it deserves a custom
tailored treatment.
 These, types of decisions often , involve a high degree
of freedom.
 They may require a lot of creativity and intuitions from
the decision maker to tell what factors will come into
play in an unstructured play.
102

MIS systems obtain data from TPS systems
103

MIS systems obtain data from TPS systems
 For Example (from previous slight):
Transactions Processing System can be considered as
raw material...
Management Informatin System can be considered as
semi-finished product...
The information leaves from MIS Files can be
considered as finished product...
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Sample MIS Report
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MIS report types
 Scheduled reports
 Key-indicator reports
 Exception reports
 Ad hoc (demand) reports
 Drill-down reports
106

Scheduled reports
 Produced periodically, or on a schedule (daily,
weekly, monthly
107

Key-Indicator report
Summarizes the previous day’s critical activities and
typically available at the beginning of each day.
108

Demand and exception reports
 Gives certain
information at a
manager’s request.
 Automatically
produced when a
situation is unusual
or requires
management action
109

Drill Down Reports
 Provide detailed
data about a
situation.
110

Management
 Management is decision making
 The manager is a decision maker
 Organizations are filled with decision makers at different level.
 Management is considered as art: a talent acquired over years by
trial-and-error.
 However decision making today is becoming more complicated:
 Technology / Information/Computers : increasing More alternative
to choose
 Structural Complexity / Competition : increasing larger cost of
error
 International markets / Consumerism : increasing more uncertainty
about future
 Changes, Fluctuations : increasing need for quick decision
111

Management problems
 Most management problems for which decisions are sought can
be represented by three standard elements – objectives, decision
variables, and constraints. These problems can be structured,
semi-structured and unstructured in nature:
 Objective
 Maximize profit
 Provide earliest entry into market
 Minimize employee discomfort/turnover
 Decision variables
 Determine what price to use
 Determine length of time tests should be run on a new product/service
 Determine the responsibilities to assign to each worker
 Constraints
 Can’t charge below cost
 Test enough to meet minimum safety regulations
 Ensure responsibilities are at most shared by two workers
112

Decision support systems(DSS)
 A Decision Support System (DSS) is an interactive
computer-based system or subsystem intended to help
decision makers use communications technologies,
data, documents, knowledge and/or models to identify
and solve problems, complete decision process tasks,
and make decisions.
 Decision Support System is a general term for any
computer application that enhances a person or group’s
ability to make decisions; can be as simple as an excel
spread sheet to a complicated system involving large
databases, statictical modelling techniques and
applying A.I. to dervive information.
113

 Support non-routine decision making for middle
management
 E.g. What would impact on production schedules be if
sales doubled in December?
 Use information from TPS, MIS, and external sources
 Use models to analyze data
 E.g. voyage estimating system of metals company that
calculates financial and technical voyage details
 Focus on extracting, analyzing information from large
amounts of data
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Decision support systems(cont.)
 Used by management level.
 Users are professionals.
 Evaluates low volume data.
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an interactive information system that provides
information, models, and data manipulation tools to
help make decisions in semi-structured and
unstructured situations
 Support analytical work
 Simulation and Optimization
 Simulation model –calculates the simulated outcome
of tentative decisions and assumptions
 Optimization model –determine optimal decisions
based on criteria supplied by the user, mathematical
search techniques, and constraints
116

Decision support system (DSS)(cont.)
 Online analytical processing (OLAP) :the use of
data analysis tools to explore large databases of
transaction data
 Data mining :the use of analysis tools to find
patterns in large transaction databases
117

Decision support system (DSS)(cont.)
 Executive information system (EIS)
 A highly interactive system that provides a
flexible access to information for monitoring
results and general business conditions
 Use both internal and competitive information
 User-friendly interface
118

Information Systems to support decisions
Management
Information Systems
Decision Support
Systems
Decision support
provided
Provide information about the
performance of the organization
Provide information and
techniques to analyze specific
problems
Information form
and frequency
Periodic, exception, demand, and
push reports and responses
Interactive inquiries and
responses
Information
format
Prespecified, fixed format Ad hoc, flexible, and
adaptable format
Information
processing
methodology
Information produced by
extraction and manipulation of
business data
Information produced by
analytical modeling of
business data
119

Executive Support Systems(ESS)
 Serve senior managers
 Address strategic issues and long-term trends
 E.g. What products should we make in 5 years?
 Address non-routine decision-making
 Provide generalized computing capacity that can be
applied to changing array of problems
 Draw summarized information from MIS, DSS and
data from external events
 Typically use portal with Web interface to present
content
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Executive Support Systems(cont.)
 It is used by strategic management level.
 Uses all collected data.
 Evaluates future projections.
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Relationship Between Systems
 TPS: Major source of data for other systems
 ESS: Primarily a recipient of data from lower-level
systems
 Other systems may exchange data as well
 Exchange of data between functional areas
 E.g. Sales order transmitted to manufacturing
system
 In most organizations, systems are loosely
integrated
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Interrelations Between Systems
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Question
 Explain the difference between a structured, semi-
structured and unstructured decision.
(6 marks)
 Describe, using suitable examples the parts played
by both a transaction processing system (T.P.S.)
and an Management information system (M.I.S. in
the generation of information required for strategic
level decision making
(24 marks)
124

How Do We Apply Information Systems to Businesses
 Many companies use their own Business
Information Model (BIM) to define the major
business functions of their companies.
 In order to define a model, they devide their
business functions into 2 main group.
Chapter 3: How Businesses Use IS
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How Do We Apply Information Systems to Businesses(cont.)
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126

How Do We Apply Information Systems to Businesses(cont.)
 Primary functions are needed to develop and
deliver products or services.
 Support functions are needed to perform in order
to support primary functions.
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127

Information Systems Join the Tupperware Party
 Problem: Continuing expansion and transition to multilevel
compensation structure.
 Solutions: Revised ordering processes and monitoring service
levels and sales increase sales.
 Oracle Collaboration Suite and Portal enable order entry via
Web interface, access to integrated corporate systems, and
personal e-commerce sites.
 Demonstrates IT’s role in designing compensation structure
and system integration.
 Illustrates the benefits of revising internal and customer-
related business processes.
2007 by prentice Hall
128

Business Processes and Information Systems
Business processes:
• Manner in which work is organized, coordinated, and
focused to produce a valuable product or service
• Concrete work flows of material, information, and
knowledge—sets of activities
• Unique ways to coordinate work, information, and
knowledge
• Ways in which management chooses to coordinate work
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications
129

Business Processes and Information Systems (Continued)
• Information systems help organizations achieve great
efficiencies by automating parts of processes
• IS also contributes to completely rethinking processes.
• Business processes typically span several different
functional areas.
130

Examples of Business Processes
Manufacturing and production:
• Assembling product, checking quality, producing bills of
materials
Sales and marketing:
• Identifying customers, creating customer awareness,
selling
131

Finance & accounting:
• Paying creditors, creating financial statements, managing
cash accounts
Human resources:
• Hiring employees, evaluating performance, enrolling
employees in benefits plans
Examples of Business Processes (Continued)
132

Business Processes and Information Systems
Cross-Functional Business Processes:
• Transcend boundary between sales, marketing,
manufacturing, and research and development
• Group employees from different functional specialties to a
complete piece of work
Example: Order Fulfillment Process
133

The Order Fulfillment Process
134

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Sales and Marketing Systems
Major functions of systems:
• Sales management, market research, promotion, pricing,
new products
Major application systems:
• Sales order info system, market research system, pricing
system
135

Sales and Marketing Systems
SYSTEM DESCRIPTION ORGANIZATIONAL
LEVEL
Order processing Enter, process, and track orders Operational
Pricing analysis Determine prices for products and services Management
Sales trend
forecasting
Prepare 5-year sales forecasts Strategic
136

Manufacturing and Production Systems
• Scheduling, purchasing, shipping, receiving, engineering,
operations
• Materials resource planning systems, purchase order control
systems, engineering systems, quality control systems
137

SYSTEM DESCRIPTION ORGANIZATIONA
L LEVEL
Machine control Control the actions of machines and
equipment
Operational
Production
planning
Decide when and how many products
should be produced
Management
Facilities
location
Decide where to locate new production
facilities
Strategic
Manufacturing and Production Systems
138

Overview of an Inventory System
139

Financing and Accounting Systems
• Budgeting, general ledger, billing, cost accounting
• General ledger, accounts receivable, accounts payable,
budgeting, funds management systems
140

Financing & Accounting Systems (Continued)
SYSTEM DESCRIPTION ORGANIZATION-
AL LEVEL
Accounts
receivable
Tracks money owed the firm Operational
Budgeting Prepares short-term budgets Management
Profit planning Plans long-term profits Strategic
141

Human Resource Systems
• Personnel records, benefits, compensation, labor relations,
training
• Payroll, employee records, benefit systems, career path
systems, personnel training systems
142

Human Resource Systems (Continued)
SYSTEM DESCRIPTION ORGANIZATIONAL
LEVEL
Training and
development
Tracks employee training, skills, and
performance appraisals
Operational
Compensation
analysis
Monitors the range and distribution of
employee wages, salaries, and benefits
Management
Human resources
planning
Plans the long-term labor force needs of
the organization
Strategic
143

Human Resource Systems (Continued)
An Employee Recordkeeping System
144

Systems for Enterprise-Wide Process Integration
Enterprise applications:
• Designed to support organization-wide process
coordination and integration
Consist of :
• Enterprise systems
• Supply chain management systems
• Customer relationship management systems
• Knowledge management systems
145

Enterprise Systems
• Enterprise systems, also known as enterprise resource
planning (ERP) systems, provide a single information
system for organization-wide coordination and integration
of key business processes.
• Information that was previously fragmented in different
systems can seamlessly flow throughout the firm so that it
can be shared by business processes in manufacturing,
accounting, human resources, and other areas.
146

Enterprise Application Architecture
147

Traditional “Silo” View of Information Systems
Within the business:
• There are functions, each having its uses of information
systems
Outside the organization’s boundaries:
• There are customers and vendors
Functions tend to work in isolation
148

Traditional View of Systems
149

Enterprise Systems
150

Benefits of Enterprise Systems
• Help to unify the firm’s structure and organization: One
organization
• Management: Firm wide knowledge-based management
processes
• Technology: Unified platform
• Business: More efficient operations & customer-driven
business processes
151

Challenges of Enterprise Systems
• Difficult to build: Require fundamental changes in the way
the business operates
• Technology: Require complex pieces of software and large
investments of time, money, and expertise
• Centralized organizational coordination and decision
making: Not the best way for the firms to operate
152

Supply Chain Management (SCM)
• Close linkage and coordination of activities involved in buying,
making, and moving a product
• Integrates supplier, manufacturer, distributor, and customer
logistics time
• Reduces time, redundant effort, and inventory costs
• Network of organizations and business processes
• Helps in procurement of materials, transformation of raw
materials into intermediate and finished products
• Helps in distribution of the finished products to customers
• Includes reverse logistics - returned items flow in the reverse
direction from the buyer back to the seller
153

Information from Supply Chain Management Systems helps firms:
• Decide when and what to produce, store, and move
• Rapidly communicate orders
• Track the status of orders
• Check inventory availability and monitor inventory levels
• Reduce inventory, transportation, and warehousing costs
• Track shipments
• Plan production based on actual customer demand
• Rapidly communicate changes in product design
154

Customer Relationship Management (CRM)
• Manages all ways used by firms to deal with existing and
potential new customers
• Business and technology discipline
• Uses information system to coordinate entire business
processes of a firm
• Provides end- to- end customer care
• Provides a unified view of customer across the company
• Consolidates customer data from multiple sources and
provides analytical tools for answering questions
155

Knowledge Management Systems
• Collects relevant knowledge and make it available wherever
and whenever it is needed
• Support business processes and management decisions
• Also link the firm to external sources of knowledge
• Support processes for acquiring, storing, distributing, and
applying knowledge
156

 Management information system (MIS)
 An MIS provides managers with information and
support for effective decision making, and provides
feedback on daily operations
 Output, or reports, are usually generated through
accumulation of transaction processing data
 Each MIS is an integrated collection of subsystems,
which are typically organized along functional lines
within an organization
Chapter 4: What is MIS
Management information system (MIS)
ITEC 1010, Information and organizations 157

Corporate
databases
Of internal
data
Databases
of
external
data
Databases
of
valid
transactions
Operational
databases
Transaction
processing
systems
Management
information
systems
Decision
support
systems
Executive
support
systems
Expert
systems
Business
transactions
Input and
error list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled
reports
Employees
Corporate
intranet
Application
databases
Sources of Management Information
Schematic

Outputs of a Management Information System
 Scheduled reports
 Produced periodically, or on a schedule (daily, weekly,
monthly)
 Key-indicator report
 Summarizes the previous day’s critical activities
 Typically available at the beginning of each day
 Demand report
 Gives certain information at a manager’s request
 Exception report
 Automatically produced when a situation is unusual or requires
management action

Scheduled Report Example
Daily Sales Detail Report
Prepared: 08/10/xx
Order
#
Customer
ID
Sales Rep
ID
Ship
Date Quantity Item # Amount
P12453 C89321 CAR 08/12/96 144 P1234 $3,214
P12453 C89321 CAR 08/12/96 288 P3214 $5,660
P12453 C03214 GWA 08/13/96 12 P4902 $1,224
P12455 C52313 SAK 08/12/96 24 P4012 $2,448
P12456 C34123 JMW 08J/13/96 144 P3214 $720

Key Indicator Report Example
Daily Sales Key Indicator Report
This
Month
Last
Month
Last
Year
Total Orders Month to Date $1,808 $1,694 $1,014
Forecasted Sales for the Month $2,406 $2,224 $2,608

Demand Report Example
Daily Sales by Sales Rep Summary Report
Prepared: 08/10/xx
Sales Rep ID Amount
CAR $42,345
GWA $38,950
SAK $22,100
JWN $12,350

Exception Report Example
Daily Sales Exception Report – ORDERS OVER $10,000
Prepared: 08/10/xx
Order
#
Customer
ID
Sales Rep
ID
Ship
Date Quantity Item # Amount
P12453 C89321 CAR 08/12/96 144 P1234 $13,214
P12453 C89321 CAR 08/12/96 288 P3214 $15,660
P12453 C03214 GWA 08/13/96 12 P4902 $11,224
… … … … … … …
… … … … … … …

Outputs of a Management Information System
Earnings by Quarter (Millions)
Actual Forecast Variance
2ND Qtr 1999 $12.6 $11.8 6.8%
1st Qtr 1999 $10.8 $10.7 0.9%
4th Qtr 1998 $14.3 $14.5 -1.4%
3rd Qtr 1998 $12.8 $13.3 -3.0%
Drill Down Reports
Provide detailed data
about a situation.

Characteristics of a Management Information System
 Provides reports with fixed and standard formats
 Hard-copy and soft-copy reports
 Uses internal data stored in the computer system
 End users can develop custom reports
 Requires formal requests from users

Management Information Systems for Competitive Advantage
 Provides support to managers as they work to achieve
corporate goals
 Enables managers to compare results to established
company goals and identify problem areas and
opportunities for improvement

MIS and Web Technology
 Data may be made available from management
information systems on a company’s intranet
 Employees can use browsers and their PC to gain
access to the data

Functional Aspects
 MIS is an integrated collection of functional
information systems, each supporting particular
functional areas.

An Organization’s
MIS
Financial
MIS
Marketing
MIS
Human
Resources
MIS
Etc.
Accounting
MIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databases
of
external
data
Databases
of valid
transactions
Transaction
processing
systems
Business
transactions
Business
transactions
Extranet
Internet
Etc.
Functional Aspects

Financial MIS
 Provides financial information to all financial
managers within an organization.

Financial statements
Uses and management
of funds
Financial statistics
for control
Operational
databases
Databases
of valid
transactions
for each
TPS
Transaction
processing
systems
Business
transactions
Business
transactions
Internet or
Extranet
Financial
MIS
Business
transactions
Databases of
external data
Databases of
internal data
Financial
DSS
Financial
ES
Financial
applications
databases
Customers,
Suppliers
Financial MIS

Inputs to the Financial Information System
 Strategic plan or corporate policies
 Contains major financial objectives and often projects
financial needs.
 Transaction processing system (TPS)
 Important financial information collected from almost
every TPS - payroll, inventory control, order processing,
accounts payable, accounts receivable, general ledger.
 External sources
 Annual reports and financial statements of competitors and
general news items.

Financial MIS Subsystems and Outputs
 Financial subsystems
 Profit/loss and cost systems
 Auditing
 Internal auditing
 External auditing
 Uses and management of funds

Quality control reports
Process control reports
JIT reports
Operational
databases
Databases
of valid
transactions
for each
TPS
Transaction
processing
systems
Business
transactions
Business
transactions
Internet or
Extranet
Manufacturing
MIS
Business
transactions
Databases of
external data
Databases of
internal data
Manufacturing
DSS
Manufacturing
ES
Manufacturing
applications
databases
Customers,
Suppliers
MRP reports
Production schedule
CAD output
Manufacturing MIS

Inputs to the Manufacturing MIS
 Strategic plan or corporate policies.
 The TPS:
 Order processing
 Inventory data
 Receiving and inspecting data
 Personnel data
 Production process
 External sources

Manufacturing MIS Subsystems and Outputs
 Design and engineering
 Master production scheduling
 Inventory control
 Manufacturing resource planning
 Just-in-time inventory and manufacturing
 Process control
 Computer-integrated manufacturing (CIM)
 Quality control and testing

Marketing MIS
 Supports managerial activities in product development,
distribution, pricing decisions, and promotional
effectiveness

Sales by customer
Sales by salesperson
Sales by product
Operational
databases
Databases
of valid
transactions
for each
TPS
Transaction
processing
systems
Business
transactions
Marketing
MIS
Databases of
external data
Databases of
internal data
Manufacturing
DSS
Manufacturing
ES
Marketing
applications
databases
Pricing report
Total service calls
Customer satisfaction
Marketing MIS

Inputs to Marketing MIS
 Strategic plan and corporate policies
 The TPS
 External sources:
 The competition
 The market

Marketing MIS Subsystems and Outputs
 Marketing research
 Product development
 Promotion and advertising
 Product pricing

Human Resource MIS
 Concerned with all of the activities related to
employees and potential employees of the organization

Benefit reports
Salary surveys
Scheduling reports
Operational
databases
Databases
of valid
transactions
for each
TPS
Transaction
processing
systems
Business
transactions
Human
Resource
MIS
Databases of
external data
Databases of
internal data
Manufacturing
DSS
Manufacturing
ES
Human
resource
applications
databases
Training test scores
Job applicant profiles
Needs and planning
reports
Human Resource MIS

Inputs to the Human Resource MIS
 Strategic plan or corporate policies
 The TPS:
 Payroll data
 Order processing data
 Personnel data
 External sources

Human Resource MIS Subsystems and Outputs
 Human resource planning
 Personnel selection and recruiting
 Training and skills inventory
 Scheduling and job placement
 Wage and salary administration

Other MISs
 Accounting MISs
 Provides aggregated information on accounts
payable, accounts receivable, payroll, and other
applications.
 Geographic information systems (GISs)
 Enables managers to pair pre-drawn maps or map
outlines with tabular data to describe aspects of a
particular geographic region.

What will be covered in this section?
 HRIS
 What is an HRIS?
 How is it used in organizations?
 The history of HRIS
 HRIS Defined
 “HRIS can be briefly defined as integrated systems used to
gather, store and analyze information regarding an
organization’s human resources.” (Hedrickson, 2003, p.381).
 HRIS “One which is used to acquire, store, manipulate,
analyze, retrieve and distribute information about an
organization’s human resources.” (Tannenbaum 1990)
Chapter 5: HRIS
186

 Not just technology:
 “HRIS is not limited to the computer hardware and
software applications that comprise the technical part of
the system: it also includes the people, policies,
procedures and data required to manage the HR
function.” (Hedrickson, 2003, p.381).
What will be covered in this class?
Chapter 5: HRIS
187

History of HRIS
 Early (pre-WW II)
 Personnel
 Old term for human resources
 Historically isolated from core organizational functions
 Record keeping
 Name, address, phone, employment historyBetween
1945 and 1960
 Human capital issues
 Employee morale
 Formal selection and development
 No real changes from earlier days
Chapter 5: HRIS
188

 Early (1960s to 1980s)
 Personnel became HR
 HR was seen as key in organizations
 Government and regulatory agencies increased
reporting requirements:
 Affirmative action
 EEO
 OSHA
 Still, HRIS was used mostly for keeping
administrative records
History of HRIS
Chapter 5: HRIS
189

 Contemporary HRIS
 Large and small businesses are utilizing HRIS
 Personal computers have made HRIS available and
affordable for any sized firm
 HRIS has evolved from simple record-keeping to
complex analytical tools to assist management
decision making
History of HRIS
Chapter 5: HRIS
190

Who uses HRIS and how is it used?
 HR Professionals
 Reporting and compliance
 Payroll and compensation analysis
 Benefits administration
 Applicant tracking, skills inventory
 Functional Managers
 Performance management and appraisal
 Recruitment and resume processing
 Team and project management
 Training and skills testing
 Management development
Chapter 5: HRIS
191

 Individual Employees
 Self-service benefit options
 Career planning
 Training and development
Who uses HRIS and how is it used?
Chapter 5: HRIS
192

Benefits of HRIS
 Increased Efficiency
 more transactions with fewer resources
 Increased Effectiveness
 more accurate information and simplification of
processes
Chapter 5: HRIS
193

HRIS Terminology
 HRIS
 Generic term referring to any information system
used for obtaining relevant and timely information on
which to base human resource decisions. (Mondy)
 ERP
 Enterprise Resource Planning Software system that
integrates several data sources and processes into a
unified system. An ERP system provides the
functions of at least two separate systems. i.e.
Accounting and Inventory Management.
(www.bestpricecomputers.co.uk)
Chapter 5: HRIS
194

HRIS Terminology
 SAP
 System Applications and Products
World’s largest business software company providing
integrated software systems. In business since 1972
 Discussion
 What are some examples of HRIS systems,
including both ERP and stand alone?
Chapter 5: HRIS
195

Discussion Topics
 Provide specific examples of HRIS systems and
provide the details (costs, system requirements and
web site resources etc.).
 What are the strengths of the systems?
 What are the weaknesses of the systems?
 Respond to other student’s examples.
 As a group, decide which HRIS is best for a large
organization and which one is best for a small
organization.
Chapter 5: HRIS
196

Discussion Activity
 What are your perceptions of an HRIS?
 Possible discussion topics:
 List HRIS software you have heard of and what
functions they can complete.
 What can an HRIS do for an organization?
 List why your organization would want or does use
an HRIS.
Chapter 5: HRIS
197

Basics
 EVERYONE COUNTS
 Better Information.Better Decisions. Better Health.
 What do you think about it?
 Imagine a world where no death goes unrecorded,
where a baby’s first cry is heard around the globe.
 Imagine a world where
understanding one person’s illness
helps prevent the sickness of many.
Dr. Waqar ali
Chapter 6: HIS
198

 This is a world with sound health information
systems.
 Reliable and timely information is the foundation of
public health.
 Countries cannot afford to be
without health information system,because
they will become poorer and poorer.
Dr. Waqar ali
Basics
Chapter 6: HIS
199

 The world is getting more complex, and so are our
public health challenges.
 Health information systems play a vital role in
improving the quality and efficiency of healthcare by:
 Ensuring access to essential information Delivery of
essential information.
 Health Information Systems can be a powerful tool to
make healthcare delivery more effective and far more
efficient.
Dr. Waqar ali
Basics
Chapter 6: HIS
200

Background
 From the early 1960s through the 1970s, a new era of
computing in healthcare emerged.
 A large group of hospitals in the western world
agreed on the necessity to advance a patient
information management system.
 These hospitals heavily invested money, time, and
effort to move toward computerization
 Seeing the sudden surge of interest among the
hospitals, some commercial companies also joined in
an effort to support patient information systems.
Dr. Waqar ali
Chapter 6: HIS
201

 During the late 1970s and early 1980s,
computerization began to be seen as a magic bullet
for controlling and managing the large medical and
other administrative data processed on a daily basis.
 Medical data range from demographics of patients to
clinical and health services data to epidemiological
and health population statistics.
 Nowadays, it is hard to imagine healthcare without
Information and Communication Technology (ICT).
Dr. Waqar ali
Background
Chapter 6: HIS
202

Why health information system?
 Good management is a prerequisite for increasing the
efficiency of health services.
 Improved health information system is clearly linked to
good management.
 Information is crucial at all management levels of the
health services from periphery to the centre.
 It is required by policymakers, managers, health care
providers, community health workers.
Dr. Waqar ali
Chapter 6: HIS
203

Definitions
 System - Any collection of components that work
together to achieve a common objective.
 Health System - All the activities whose primary
purpose is to promote, restore or maintain health.
 Information - Meaningful collection of facts or data.
 Information System - Systems that provide specific
information support to the decision-making process at
each level of an organization.
Dr. Waqar ali
Chapter 6: HIS
204

 Health Information System (HIS) - A set of
components and procedures organized with the
objective of generating information which will
improve health care management decisions at all levels
of the health system.
Or
 An integrated effort to collect, process, report and use
health information and knowledge to influence policy-
making, programme action and research
Dr. Waqar ali
Definitions
Chapter 6: HIS
205

 The ultimate objective of health information system
is not just “to gain information” but “to improve
action”
Dr. Waqar ali
Definitions
Chapter 6: HIS
206

Health information cycle
Dr. Waqar ali
Chapter 6: HIS
207

Some of the terminologies related to HIS
1. Health/Medical Informatics and Telemetics
2. Health information technology (HIT).
3. Electronic medical record (EMR), Electronic
health record (EHR), Electronic patient record
(EPR).
Dr. Waqar ali
Chapter 6: HIS
208

Classification of health information systems
Information
Systems
Characteristics
1. Patient centered
information
systems
• Manage comprehensive patient care information
such as medical records, appointment scheduling,
theatre management.
2. Clinical
information
systems (CIS)
• Perform specific tasks including collection of
specific data for patient care, research, management,
planning and maintenance of national data
repositories
• CIS are used for administrative support, patient data
collection, decision support, image analysis,
monitoring, reporting, assessment and research
Dr. Waqar ali
Chapter 6: HIS
209

Information
Systems
Characteristics
3. Laboratory
information
systems
• In high demand when a large number of tests
generate large data. Samples are analyzed fully
automatically, and the results are computer generated
• Support clinician to analyze trends to assess treatment
effects
4. Pharmacy
information
systems
• Include functions such as keeping patients’
medication records, checking prescriptions, and
providing drug prescriptions and administration to
physicians and nurses.
Dr. Waqar ali
Chapter 6: HIS
210

Information
Systems
Characteristics
5. Hospital
information
systems
• Support healthcare activities at the operational,
tactical and strategic levels
• Encompass patient management, administration,
facilities management and medical applications
• Contain database systems, data communication
facilities.
6. Telemedicine • Facilitates exchange between primary care physicians
and specialists as well as patients from disperse
locations
• Allows physicians to practice medicine at a distance
Dr. Waqar ali
Chapter 6: HIS
211

OBJECTIVES OF HIS
1. RAPIDLY DETECT AND RESPOND TO HEALTH
PROBLEMS AND EPIDEMICS
2. MONITOR TRENDS IN HEALTH STATUS AND
CONTINUALLY ADDRESS HEALTH-CARE PRIORITIES
3. EVALUATE THE EFFECTIVENESS OF INTERVENTIONS
AND SERVICE COVERAGE
4. ENSURE THAT RESOURCES ARE CORRECTLY
TARGETED TO THE AREAS AND GROUPS OF
GREATEST NEED
5. EVALUATE THE QUALITY OF HEALTH
INTERVENTIONS
Dr. Waqar ali
Chapter 6: HIS
212

APIDLY DETECT AND RESPOND TO HEALTH PROBLEMS AND EPIDEMICS
 To ensure that each health agency is rapidly alerted
to a suspected outbreak, it is necessary to set up an
early warning and response system (EWARS) from
the onset of an emergency.
 As soon as the situation permits this function should
be integrated within the broader objectives of an
HIS.
 This is one of the most immediate and specialized
functions of the HIS
Dr. Waqar ali
Chapter 6: HIS
213

MONITOR TRENDS IN HEALTH STATUS AND CONTINUALLY ADDRESS HEALTH-
CARE PRIORITIES
 Monitoring health status allows health managers to
observe trends in the health profile of a population,
detect the emergence of new health problems and
continually address public health priorities.
 This is closely integrated with timely dissemination
and sharing of information with field partners, UN
agencies, Ministries of Health (MoH) and donors.
Dr. Waqar ali
Chapter 6: HIS
214

 Mortality data are collected from health facilities,
community health programmes, and referral hospitals.
 Morbidity data on injuries, health conditions and
diseases are collected from health facilities providing
outpatient services, inpatient wards, nutrition centers,
mother-child health (MCH) clinics, and community
health workers.
 Age, sex and cause-specific data allow planners to
identify priority areas and groups within the population
and determine whether programmes are equitable and
resources effectively allocated.
Dr. Waqar ali
MONITOR TRENDS IN HEALTH STATUS AND CONTINUALLY ADDRESS HEALTH-
CARE PRIORITIES
Chapter 6: HIS
215

EVALUATE THE EFFECTIVENESS OF INTERVENTIONS AND SERVICE
COVERAGE
 If the utilization rate is lower than expected, it may
indicate inadequate access to health facilities (e.g.
due to insecurity or poor capacity of health
services).
 If the rate is higher, it may suggest over-utilisation
due to a specific public health problem (e.g.
infectious disease outbreak) or under-estimation of
the target population.
Dr. Waqar ali
Chapter 6: HIS
216

 Coverage can be affected by the acceptability of the
programme, location of delivery points, security for staff and
those requiring treatment, waiting times, service quality and
the extent of home visiting. E.g., prevalence of acute
malnutrition and vaccination coverage.
 The HIS also allows health planners to monitor the impact of
specific health interventions, by comparing health indicators
in the population before and after the intervention was started.
 For example, monitoring a reduction in malaria incidence
after implementation of vector control programme, or
increase in vaccination coverage after a targeted community
campaign.
Dr. Waqar ali
EVALUATE THE EFFECTIVENESS OF INTERVENTIONS AND SERVICE
COVERAGE
Chapter 6: HIS
217

ENSURE THAT RESOURCES ARE CORRECTLY TARGETED TO THE
AREAS AND GROUPS OF GREATEST NEED
 Key stratifiers such as age, sex, refugee or host
national status, and geographical location are used to
describe trends and grant visibility to vulnerable
groups.
 Special efforts should be made to ensure balanced male
and female representation across all health service.
 Special consideration is also given to the refugees
because they are important contributions to
numerators such as consultation rates, bed occupancy,
and drugs and usage of other consumables.
Dr. Waqar ali
Chapter 6: HIS
218

 Appropriate disaggregation is also important to
prioritise high-risk groups within specific health
programmes.
 For example, the under 18 age group is given
particular attention within Reproductive Health and
HIV/AIDS programmes to emphasize the unique
reproductive and sexual health needs of young
people.
Dr. Waqar ali
ENSURE THAT RESOURCES ARE CORRECTLY TARGETED TO THE
AREAS AND GROUPS OF GREATEST NEED
Chapter 6: HIS
219

EVALUATE THE QUALITY OF HEALTH INTERVENTIONS
 Health programmes should continually monitor
service quality through measures of community
participation, programme acceptability (e.g. the
rate of defaulting) and programme coverage.
 Rates of hospitalisation, outpatient service
utilisation and admission and discharge can also
provide useful indicators of the appropriateness of
health seeking behaviour in a community
Dr. Waqar ali
Chapter 6: HIS
220

 Default rates can be high when a programme is not
accessible to the population.
 Accessibility may be affected by the distance of the
treatment point from the community, a lack of
security and the quality of the care provided.
 Individual causes of readmission, defaulting and
failure to recover should be investigated on an
ongoing basis.
Dr. Waqar ali
EVALUATE THE QUALITY OF HEALTH INTERVENTIONS
Chapter 6: HIS
221

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