Management

Information Systems

Types of the Decision

and Information
Systems
 Business Processes and
Information Systems
Information technology enhances
business processes in two main ways:

Increasing efficiency of existing processes

Automating steps that were manual

Enabling entirely new processes that are

capable of transforming the businesses
Change flow of information
Replace sequential steps with parallel steps
Eliminate delays in decision making
 Business Processes and Information Systems

The Order Fulfillment Process

Fulfilling a customer order involves a complex set of steps that requires the
close coordination of the sales, accounting, and manufacturing functions.
Major Roles of Information
Systems

Support
Strategies for
Competitive Advantage

Support
Business Decision Making

Support
Business Processes and Operations
 Types of Business
Information Systems
Systems from a constituency perspective
Transaction processing systems:
supporting operational level employees
Management information systems and
decision-support systems: supporting
managers
Executive support systems: supporting
executives
 Types of Business
Information Systems
Transaction processing systems
Perform and record daily routine transactions
necessary to conduct business
Allow managers to monitor status of operations
and relations with external environment
Serve operational levels
Serve predefined, structured goals and decision
making
E.g. sales order entry, payroll, shipping
 Management Information Systems

Types of Information Systems

A Payroll TPS
A TPS for payroll
processing captures
employee payment
transaction data
(such as a time card).
System outputs
include online and
hard-copy reports for
management and
employee paychecks.

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Transaction processing
systems
Real Time Transaction Processing
Reservation System
Batch Processing
Clearing of Presented Cheques,
Generation of Bills
 Types of Business
Information Systems
Management information systems
Serve middle management
Provide reports on firms current
performance, based on data from TPS
Provide answers to routine questions with
predefined procedure for answering them
Typically have little analytic capability
 Types of Business
Information Systems
How Management Information Systems Obtain their Data from the
Organizations TPS
 Types of Business
Information Systems
Sample MIS Report
Sample MIS Report
 Types of Business
Information Systems
Decision support systems
Serve middle management
Support nonroutine decision making
E.g. What is impact on production schedule if December
sales doubled?
Often use external information as well from TPS
and MIS
 Types of Business
Information Systems
 Management Information Systems

Decision support systems

Use mathematical or analytical
models
Allow varied types of analysis
What-if analysis
Sensitivity analysis
Multidimensional analysis / OLAP
E. g. pivot tables

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 Management Information Systems

SENSITIVITY ANALYSIS

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 Management Information Systems

A PIVOT TABLE THAT

EXAMINES CUSTOMER
REGIONAL
DISTRIBUTION AND
ADVERTISING
SOURCE

In this pivot table, we are

able to examine where an
online training companys
customers come from
in terms of region and
advertising source.

FIGURE 12-6

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 Management Information Systems

Decision-support for senior management

Help executives focus on important
performance information
Balanced scorecard method:
Measures outcomes on four dimensions:
1. Financial
2. Business process
3. Customer
4. Learning & growth
Key performance indicators (KPIs) measure each
dimension

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 Types of Business
Information Systems
Executive support systems
Support senior management
Address non-routine decisions requiring judgment,
evaluation, and insight
Incorporate data about external events (e.g. new
tax laws or competitors) as well as summarized
information from internal MIS and DSS
Filter, Compress, and track critical data, displaying
the data of greatest importance to senior manager
E.g. ESS that provides minute-to-minute view of
firms financial performance as measured by
working capital, accounts receivable, accounts
payable, cash flow, and inventory
Digital Dashboard
 Types of Business
Information Systems
Relationship of systems to one
another
TPS: Major source of data for other
systems
ESS: Recipient of data from lower-level
systems
Data may be exchanged between systems
 Types of Business
Information Systems
Interrelationships Among Systems
Group Decision Support Systems
(GDSS)
Interactive system to facilitate solution
of structured problems by group
Specialized hardware and software;
typically used in conference rooms
Overhead projectors, display screens
Software to collect, rank, edit participant
ideas and responses
May require facilitator and staf
Promotes collaborative atmosphere,
guaranteeing anonymity
Uses structured methods to organize
and evaluate ideas
Group Decision Support
Systems (GDSS)
Group Decision Support
Systems (GDSS)
What is Office Automation
System?
The movements towards
automation in the new hardware
and software technologies like word
processors, spreadsheets, electronic
mail, and so on, which make office
workers more productive.
These combinations of technologies
that have a dramatic impact on day-
to-day office operations are called
office automation(information)
systems (OAS).
What is Office Automation
System?
Office Automation (OA) is the
use of technology to help people do
their jobs better and faster.
"The use of computers, micro
electronics, and
telecommunications to help us
produce, store, obtain and send
information in the form of pictures,
words or numbers, more reliably,
quickly and economically."
Office Automation System
Types of Office
Automation Systems:
Three major types/categories
of office applications are:
1. Document management
systems
2. Message handling systems
3. Teleconferencing systems