Management Information System

Module: 4

Information Systems

Prepared By: Vinayan PV

Information system - meaning

Information systems are computer systems that support end users, giving them access to the information. Information system handles the flow and maintenance of information that supports a business or some other operation. It consist information about significant people, places and things within the organisation or in the environment surrounding it.

Information system - definition

a system of persons, data record and activities that process the data and information in an organisation, and it includes the organisations manual and automated processes. a set of interrelated components that collect or retrieve, process, store and distribute information to support decision making and control in an organisation.

Information system - Types

1. 2. 3. 4. 5. 6. 7. Transaction Processing System (TPS) Office Automation System Information Reporting System (IRS) Decision Support System (DSS) Executive Support System (ESS) Expert System Enterprise Resource Planning System (ERP)

Transaction Processing System (TPS)

TPS collects, store, modifies and retrieve the transactions of an organisation. Eg: ATM, Electronic fund transfer transaction processing systems are computerised systems that perform and record the daily routine transactions necessary to conduct the business. It include: cash registers, recording sales, recording cash withdrawal, purchase etc

Transaction Processing System - Features

1. 2. 3. 4. 5. 6. 7. 8. Rapid Processing Reliability Standardisation Controlled access Supplier of information to other systems Historical data Link with external environment Provide information to other functional subsystems 9. Meet the requirements of operational levels of organisation

Transaction Processing Qualifiers

ACID test Atomicity:- transaction is either completed in full or not at all. If one account is debited, then another account has to be credited. Consistency:- TPS exist within a set of operating rules, it must always be consistent with its own rules. Isolation:- isolating transaction means that other processes never see information during the transaction. Durability:- there are back-ups in place in the transaction processing system to ensure that the record stays permanent.

Components of TPS Input Processing Storage Output

Subsystems of TPS Manufacturing & production system

Purchase, shipping, inventory, quality control

Sales & marketing system

Order processing, invoice, sales analysis

Finance & accounting system

Cash mgt, loan mgt, cheque processing

Human resource system

Personnel record, training, benefits

Methods of processing transactions

1. Batch processing Transactions are collected and accumulated over a period of time and processed periodically. The data collected is not put for processing immediately, rather waits for accumulation of such data. After the end of the particular period the whole data accumulated is processed and results are obtained. E.g.: banking cheque deposited by customer in a day is grouped in a batches for processing each evening

2. On-line processing Data can be directly entered in to the computer system and results are available immediately. Each type of data is feed to the computer system and results are available immediately. After processing input data, the system gives some signal or confirmation to the user as to the completion of processing. E.g.: Railway ticket reservation system

3. Real time processing Data processing system in which data is processed immediately after they are originated and provide immediate output to users. Real time systems are designed to respond to an event within a predetermined time. E.g.: Traffic signal control, Robotics etc

Office Automation System

The information system developed to make offices more efficient is called office automation system Using computer and communication technology to help manager for a better use and management of information. It include all types of computers, telephone, email, other office machines and equipments.

Need for Office Automation

Labour saving Time saving Accuracy Less chance for committing fraud Uniformity in work Greater control on information

Office Automation Applications

1. 2. 3. 4. 5. 6. 7. 8. 9. Word processing Desktop publishing Document imaging E-mail Voice systems Voice mail Audio conferencing video conferencing Fax

Information Reporting System (IRS)

It provides various reports to the management for decision making process. Reports are generally given on request or periodically. In exceptional cases, urgent one time reports are also produced.

Decision Support System (DSS)

Interactive computer based systems and subsystems that help people use computer communications, data, documents, knowledge and models to solve problems and make decisions. a decision support system is a computer system at the management level of an organisation that combines data, sophisticated analytical tools, and user friendly software to support semistructured and unstructured decision making.

Components of Decision Support System

1. Data base:- it is a collection of current or historical data from a number of application or groups such as production, marketing etc. 2. Model base:- it is a collection of mathematical and analytical models that can be made available to DSS users. A model is an abstract representation that illustrates the various components or relationship of a phenomenon.

3. DSS software / generators:- it contains the software tools that are used for data analysis. It allow user to interact with the data base and model base. 4. People resources:-DSS are generally utilised by manager and executive, for develop such system they seek the help of experts.

Functions of Decision Support System

Quick response Monitor and control functions User interface

Types of Decision Support System

1. Model driven DSS
Decisions are based on models. statistical, financial models etc

2. Data driven DSS

Collected data manipulated to fit the decision the decision makers need. Daily sales, inventory etc

3. Document driven DSS

Uses documents in a variety of data types such as text, spreadsheet for decision.

4. Knowledge driven DSS

Special rules stored in a computer or used by a human to determine whether a decision should be made.

5. Personal decision support system

Designed for individuals in order to carryout daily work

6. Intelligent decision support system

A special selection module to help the user to select the right model, based on the type of problem being analysed.

Executive Support System (ESS)

The system provides valuable information and assistance to the top level management Information system which provides relevant information to top management for strategic planning and control. An executive support system is an information system at the strategic level of an organisation designed to address unstructured decision making through advanced graphics and communications.

Features of Executive Support System

Meant for higher level management Pervasive in nature Emphasis on external data Information in summary form

Components of Executive Support System

Hardware Software Models & Graphics

Benefits of Executive Support System

1. 2. 3. 4. 5.

Flexibility Reduce information overload Ability to analyse and compare Monitoring performance Improve the performance

Expert System
An expert system is a knowledge based information system. It utilises its knowledge in a specific area and provide suggestion to the users. An expert system is a knowledge intensive program that solves a problem by capturing the expertise of a human in limited domains of knowledge and experience. Used in medicine, engineering, business etc

Components of Expert System

1. 2. 3. 4.

Hardware resources Software resources Knowledge base People resources

Enterprise Resource Planning System (ERP)

Enterprise resource planning systems were made to replace Material Requirement Planning systems & coordinate information requirements for purchasing, planning, scheduling & distribution in a complex global environment. An ERP system is a fully integrated business management system that integrates the core business and management process to provide an organisation a structured environment in which decisions concerning demand, supply, operations, personnel, finance, logistics etc, are fully supported by accurate and reliable real time information.

ERP Modules
Sales, marketing, distribution Manufacturing Stores management Finance Personnel Maintenance Purchase, inventory Planning and control

Benefits of ERP
Faster inventory turnover Improved customer service Faster inventory audit Reduce setup times Higher quality Timely debt collection

Thank You