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MIS Unit 2

Generation Gap
https://www.youtube.com/watch?v=
m-GK8hgfWKc
What is Twitter?
https://www.youtube.com/watch?v
=xWJq1SvgWQ0
Sparrow

Curious case of Sony


Entertainment got hacked- Cyber
threat

Cyber threat
Last month, hackers infiltrated the computer
network of Sony Pictures Entertainment, a major
Hollywood movie studio. The attackers stole a
huge number of confidential documents, which are
now being downloaded (primarily by journalists)
from file-sharing networks.
he hackers are widely believed to be backed by
the North Korean government, which is furious at
Sony for producingThe Interview, a movie that
depicts the assassination of North Korean leader
Kim Jong Un.
https://www.youtube.com/watch?v=DkJA1rb8Nxo 2:14

What happened to Sony?


When Sony Pictures employees got into the office on
Monday, November 24, 2014 they discovered that
their corporate network had been hacked.
The attackers took terabytes of private data, deleted
the original copies from Sony computers, and left
messages threatening to release the information if
Sony didn't comply with the attackers' demands.
Someone claiming to be a former Sony employee
posted this screenshot, which (allegedly) shows the
message that appeared on Sony employees' computer
screens:

Hack Message

Loss to Sony Entertainment


But the greater damage was from all the
confidential information that got leaked to the
public.
The hackersposted five Sony movies(four
unreleased) to file-sharing networks.
And they also leaked thousands of confidential
documents everything from private
correspondence among Sony executives to salary
and performance data about Sony employees.
Those documents were password protected, and
whoever is behind the hack provided said password
only to journalists.

Define Information System


Information System -an integrated set of

components for collecting, storing, and


processing data and for delivering information,
knowledge, and digital products. Business firms
and other organizations rely on information
systems to carry out and manage their
operations, interact with their customers and
suppliers, and compete in the marketplace.

Three activities in an Information System produce the


information that organizations need to make decisions ,
control operations, analyze problems and create new
products and services.
These activities are input, processing and output.
Input captures raw data from within the organization or
its external environment.
Processing converts this raw data into a meaningful form.
Output transfers the processed information to the people
who will use it.
Information Systems also require feedback so that the
organization can evaluate and correct the input stage.

What is an Information System?


https://www.youtube.com/watch?v=jdFQBYZSEiQ
types of I.S. story of Jimmy
http://www.youtube.com/watch?v=Qujsd4vkqFI
I.S.
https://www.youtube.com/watch?v=PVRgIXLWDHs
ERP
http://articles.economictimes.indiatimes.com/200308-21/news/27525145_1_trl-belpahar-c-d-kamath
Tata Refractories Ltd and ERP

In the IPL system for selling tickets through its website,


the raw input consists of order data for tickets, such as
purchasers name, address, credit card number, number of
tickets that are ordered and the date of the game for
which the ticket is being purchased.
Computers store these data and process them to
calculate order totals , to track ticket purchases and to
send request for payment to credit card companies.
The output consists of tickets to print out, receipts for
orders and reports on online ticket orders.
The system provides meaningful information such as the
number of tickets sold for a particular game, the total
number of tickets sold each year and frequent customers.

System related hazards- Good to


know
Computer vision syndrome(CVS) is a temporary
condition resulting from focusing theeyeson acomputer
displayfor protracted, uninterrupted periods oftime.
Somesymptomsof CVS includeheadaches, blurredvision,
neck pain, redness in the eyes ,fatigue ,eye strain,dry eyes,
irritated eyes, double vision,dizziness and difficulty
refocusing the eyes.
According to theNational Institute of Occupational Safety
and Health, computer vision syndrome affects about 90% of
the people who spend three hours or more a day at a
computer.Another study in Malaysia was conducted on 795
college students aged between 18 and 25. The students
experienced headaches along with eyestrain, with 89.9% of
the students surveyed feeling any type of symptom of CVS.

Types of Information System


Information System has evolved over the past 50
years from transaction information system to strategic
information system.
I.S. is classified into five types:
Transaction Information/ Processing System
Management Information System
Decision Support System
Executive Support System

Types of Information Systems


A business firm has systems to support different
groups or levels of management. These systems
include transaction processing system,
management information system, decision support
systems and systems for business intelligence.
Transaction Processing System Operational
Managers need systems to keep track of the
elementary activities and transactions of the
organizations, such as sales, receipts, cash
deposits, payroll, credit decisions and flow of
materials in a factory.
TPS provide this kind of information.

A TPS is a computerized system that performs and


records the daily routine transactions necessary to
conduct business such as sales order entry, hotel
reservations, payroll, employee record keeping.
The principal purpose of systems at this level is to answer
routine questions and to track the flow of information
through the organization.
How many parts are in inventory?
What happened to Mr Lees payment?
To answer to these questions information must be
accurate, updated and complete
At the operational level tasks, resources and goals are pre
defined and highly structured.

The application has a query system which processes


and retrieves data in the de. The sired format and style.
The system generates the status of various business
elements such as stock status, payment status, order
and so on.
The system also generates real time documents for
example invoices , purchase orders, sales orders,
dispatch advices, delivery notes, payment vouchers.
These applications also provide analytical information
on various transactions . The analysis can be used to
determine various trends and results such as sales
trends, expense trends and inventory trends over a
period of time.

TPS Classification
TPS can be classified as online or batch systems:
Online systems- Online TPS is in real time. That is the
data is processed immediately as the transaction occurs.

Each transaction in real-time processing is unique;


it is not part of a group of transactions. Example of
online TPS are enquiry, checking the availability of
the tickets and credit card authentication.
Batch systems- In batch TPS, the transactions of
the same type are stored in groups and then
processed. For example entering parcel details
belonging to one particular destination, processing
student marks for one subject.

Incomputer
science,ACID(Atomicity,Consistency,Isolation,Durability) is
a set of properties that guarantee thatdatabase
transactionsare processed reliably.
Atomicityrequires that each transaction is "all or nothing": if
one part of the transaction fails, the entire transaction fails,
and the database state is left unchanged. An atomic system
must guarantee atomicity in each and every situation,
including power failures, errors, and crashes.
For example you add products to the shopping cart, then you
are billed and finally you make payment using your credit
card. Lets say that credit card could not be read properly, then
the complete set of transactions will get cancelled. Both pay
and reserve a seat in the flight or neither of them happens.

Consistency- Theconsistencyproperty ensures


that any transaction will bring the database from
one valid state to another. The transaction must
preserve the database integrity.
Isolation- Theisolationproperty ensures that the
concurrent execution of transactions results in a
system state that would be obtained if transactions
were executed serially, i.e. one after the other.
Durability- means that once a transaction has
been committed, it will remain so, even in the event
of power loss,crashes, or errors.

Physical Structure of Management


Information System
An MIS helps decision making by providing timely,
relevant and accurate information to managers. The
physical components of an MIS include hardware,
software, database, personnel and procedures.
Hardware
All physical components of a computer system compose
the computer hardware. Important components include
the central processing unit, input/output devices, storage
units and communication devices. Communication can
be over fiber-optic cables or wireless networks.
Software provides the interface between users and the
information system.

Transaction Information System


A transaction is a basic business system with the following
characteristic:
Serves an elementary day to day activities of an
organization.
Supports the operational level of the business
Supplies data for higher level management decisions
Most suitable for predefined, structured tasks.
Usually has high volumes of input and output
Mostly repetitive in nature.
http://www.business-standard.com/article/currentaffairs/himachal-indias-first-ever-hi-tech-assembly114080400453_1.html Himachal Pradesh with an elegislative assembly.

Subsystems of Transaction
Information Systems
Sales and Marketing Systems- these are the systems that
support the sales and marketing function by facilitating the
movement of goods and services from producers to customers.
Examples of transactions in marketing and sales system
include the following :
Sales order processing process order processing, invoice
production, inventory control.
Sales support- customer records, follow up.
Telemarketing- sales via phone calls.

Point of sale support- sales capture data at cash


register- http://www.youtube.com/watch?

v=w32ICWSyX5g
Customer credit card authorization

Marketing Applications
Marketing application tools help marketing staff identify ,
execute and replicate effective marketing initiatives across
channels.
They can assign, schedule and track marketing campaign
activities and measure campaign performances
There are lead management tools like Sales force automation
that use computing and internet technologies to automate
marketing activities for management support.
Applications such as SFA help the sales staff manage more
leads and also close more deals. It provides customers
complete data.
https://www.youtube.com/watch?v=b7ooOoxekOg Sales Force
Automation
https://www.youtube.com/watch?v=de_79frgjgk# Zoho CRM

Manufacturing and Production Systems- These are the


systems that supply data to operate, monitor and control
the production process-purchasing, receiving, shipping,
process control, inventory systems, production planning and
control, production scheduling, quality control, maintenance
management etc.
Example : A system in a factory that
Enables production control
Gets information by measuring sample of products
Does statistical analysis of samples
Enables operators to take corrective actions
Generates bill of materials
Generates production orders.

Finance and Accounting Systems these are the


systems that maintain the record regarding the flow of the
funds in the firm and produce financial statements such as
balance sheets and income statements.
For example budgeting, general ledger, billing, accounts
receivable, accounts payable , funds management and
payroll. These were among the earliest systems to be
computerized.
Examples of financial systems:
Cash Management
Loan Management
Cheque processing
Payroll processing

Human Resource Management System These


are systems that deal with recruitment, placement,
training, performance evaluation, appraisal,
compensation and career development of the firms
employees.
Examples of subsystem of Human Resources:
Personnel Record Keeping
Applicant Tracking
Promotions Record Keeping
Training and Skills Development
Leave Record Management

Management Information System


This is an information system that serves the
functions of planning , controlling and decision
making by providing routine summary and exception
reports.
These systems serve the Middle Management.
MIS normally draws data from TPS and convert data
into information for monitoring performance and
managing an organization.
It essentially caters to slightly changing decisions or
semi structured decisions.
Summary Reports, Exception Reports, Detailed
Reports.

Executive Information System

Executive Information System


Also known as an Executive Support System, an
Executive Information System usually allows
summary over the entire organization and also
allows drilling down to specific levels of detail.
Used by the top level ( strategic ) management, it is
designed to the needs of individual executives. It
lets the CEO of the organization coordinate with all
the levels of organization.
EIS is used for support of semi structured and
unstructured decisions.
It is used for analytical work, rather than the
general office support

It is however very expensive to run and requires


extensive staff support to operate.
Characteristics of EIS:
Caters to top executives
Provides user friendly interface
Aids and supports management decision making
Allows what if analysis

Have you ever heard of a Hotel that is


manned by a Robot?

https://www.youtube.com/watch?
v=SuNl_sAv1OM Japans Weird
hotel

Material Management Applications


The scope of material management systems include the
complete process of material procurement, storage and control
of inventory.
It covers material requirement planning, vendor management
and ware housing functions.
Material Management systems ensures availability of material
to the production department at the right time in the right
quantity.
It provides analysis on requirement of materials based on the
customer orders in hand, availability of the materials in the
warehouse and the capacity of the plant and the warehouse.
The warehousing functions involve receipt, storage and
dispatch of goods.
JIT Inventory.

FinancialManagementInformation
Systems
FinancialManagementInformation Systems
accumulate and analyze financial data in order to
make good financialmanagement decisions in running
the business.
The basic objective of the financial information system
is to meet the firm's financial obligations as they come
due, using the minimal amount of financial resources
consistent with an established margin of safety.
Outputs generated by the system include accounting
reports, operating and capital budgets, working capital
reports, cash flow forecast, and various What-If
Analysis reports.

The evaluation of financial data may be performed


through ratio analysis, trend evaluation, and financial
planning modeling. Financial planning and forecasting
are facilitated if used in conjunction with a Decision
Support System (DSS).
http://www.youtube.com/watch?v=3GMnt5wAd1k

What is
FinancialManagementInformation
Systems?

Financialmanagementinformation system is:


Information system that tracks financial events and
summarizes information
supports adequatemanagementreporting, policy
decisions, fiduciary responsibilities, and preparation of
auditable financial statements
Should be designed with good relationships between
software, hardware, personnel, procedures, controls
and data
Generally, financialmanagementinformation system
refers to automating financial operations.

The Ideal FMIS Systems


Collect accurate, timely, complete, reliable, consistent
information
Provide adequatemanagementreporting
Support government-wide and agency policy decisions
Support budget preparation and execution
Facilitate financial statement preparation
Provide information for central agency budgeting,
analysis and government-wide reporting
http://articles.economictimes.indiatimes.com/2012-0810/news/33137736_1_indian-navy-deploys-fis

Accounting and Finance


Subsystem
One of the most obvious ways in which the finance
department becomes involved in the activities of other
departments is through the administration of the
budget.
It includes cost accounting, funds management ,
accounts receivable, accounts payable.
Budget- The budget provides control over an
organizations financial resources, and because other
resources can be expressed in monetary terms, the
budget is a control measure over those resources as
well. The budget is also a planning tool- a means of
implementing plans by allocating resources to various
activities in the organization for specific purposes.

Cost Accounting-goal is to advise the management


on the most appropriate course of action based on the
cost efficiency and capability. Cost accounting
provides the detailed cost information that
management needs to control current operations and
plan for the future.
Funds Management- the purpose of funds
management is to ensure that funds will be available
to meet the financial obligations of the organization
while at the same time maximizing the returns on
invested funds.

Financial Accounting- Financial


Accountancy(orfinancial accounting) is the field
ofaccountancyconcerned with the preparation offinancial
statementsfor decision makers, such
asstockholders,suppliers,banks, employees,government
agencies, owners, and other stakeholders. The primary
purpose is to paint a financial picture of the organization
for investors and creditors and to satisfy legal
requirements.
Billing Module- The Billing module allows users to enter
billable time and items in issues, generate work orders and
invoices. With minimal set up and configuration, this
valuable tool helps integrate your Help Desk/Customer
Support system and invoicing operations.

Accounts receivable- Money owed by customers


(individuals or corporations) to another entity in
exchange for goods or services that have been
delivered or used, but not yet paid for. Receivables
usually come in the form of operating lines of credit
and are usually due within a relatively short time
period, ranging from a few days to a year.
On a public company's balance sheet, accounts
receivable is often recorded as an asset because this
represents a legal obligation for the customer to remit
cash for its short-term debts.

Accounts Payable- an accounting entry that


represents an entity's obligation to pay off a shortterm debt to its creditors. The accounts payable entry
is found on a balance sheet under the heading current
liabilities.
Accounts payable are often referred to as "payables".
Another common usage of AP refers to a business
department or division that is responsible for making
payments owed by the company to suppliers and
other creditors.

Production Subsystem
Production involves the conversion of resource inputs
into goods and outputs. For instance military units
provide national security using labour, ships, tanks,
aircrafts and other military hardware.
Modules in the production subsystem are shipping
and receiving, engineering, materials
requirement planning, operations and quality
control.

Material requirements planning (MRP)is a production


planning andinventorycontrol system used
tomanagemanufacturingprocesses.
MRP combines two most impior
Most MRP systems aresoftware-based, while it is possible to
conduct MRP by hand as well . An MRP system is intended to
simultaneously meet three objectives:
Ensure materials are available forproductionandproductsare
available fordeliveryto customers.
Maintain the lowest possible material and product levels in
store
Plan manufacturing activities, delivery schedules and
purchasing activities.

Engineering- The engineering section whether included in


the production department or organized as a separate
department, as it is in many large manufacturing firms- is
chiefly responsible for the design of the product and the
production facilities.
Engineering especially when it has research and development
can be very expensive activity if not closely controlled.
Shipping and Receiving- In this MIS module interfaces with
two important environmental elements: vendors and
customers.
Vendors are suppliers of the raw materials, components and
subassemblies used to manufacture finished products and the
customers are those who purchase the finished products.

The customers of a manufacturing firm may be wholesalers,


retailers, or other manufacturers and should not be
confused with consumers who are the ultimate users of the
manufactured goods.
In the absence of a separate inventory module in this
model, we will assume that data on the inventory of both
materials and finished goods are maintained by shipping
and receiving.
Two additional inputs to the shipping and receiving module
are the shipping instructions from the finance subsystem
and invoices from the vendor. Shipping Instructions give
the authority to ship finished goods to customers, after
billing actions have been initiated in finance.

Quality Control- ensures that materials, work in


process, finished goods meet acceptable standards of
quality. Quality control emphasizes testing of products
to uncover defects and reporting to management who
make the decision to allow or deny product release

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