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MIS Prelim Summary

An AI system that can understand natural language conversations and provide helpful information to users. Chatbot: A chatbot is an AI assistant created by Anthropic to be helpful, harmless, and honest.

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0% found this document useful (0 votes)
117 views225 pages

MIS Prelim Summary

An AI system that can understand natural language conversations and provide helpful information to users. Chatbot: A chatbot is an AI assistant created by Anthropic to be helpful, harmless, and honest.

Uploaded by

cyka blyat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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INTRODUCTION TO

INFORMATION
MANAGEMENT
Topics
• Data Induction
• Information
• Intelligence The information management (IM) process is a set of activities associated with the
• Information Technology (IT) collection and management of information from one or more sources and the
distribution of that information to one or more audiences. Information, in its most
Learning Outcome restricted technical sense, is an ordered sequence of symbols that record or transmit a
message. The key idea is that information is a collection of facts that is organized in
• Explain the role of data, such a way that they have additional value beyond the value of the facts themselves.
information, and databases The systems engineer is both the generator and recipient of information products;
in organizations thus, the systems engineer has a vital stake in the success of the development and use
of the IM process and IM systems.
• Discuss the advantages of
using a database over
traditional file processing
1.1 Data

Data is defined as facts or figures, or information that's stored in or used by a computer. An example of data is
information collected for a research paper. the quantities, characters, or symbols on which operations are
performed by a computer, which may be stored and transmitted in the form of electrical signals and recorded on
magnetic, optical, or mechanical recording media.

1.2 Information

Information is a stimulus that has meaning in some context for its receiver. When information is entered into and
stored in a computer, it is generally referred to as data. After processing (such as formatting and printing), output
data can again be perceived as information.

Information (shortened as info or info.) is that which informs, i.e. that from which data can be derived. At its most
fundamental, information is any propagation of cause and effect within a system. Information is conveyed either as
the content of a message or through direct or indirect observation of something. That which is perceived can be
construed as a message in its own right, and in that sense, information is always conveyed as the content of a
message. Information can be encoded into various forms for transmission and interpretation. For example,
information may be encoded into signs, and transmitted via signals.
These are difficult times for all organizations of all sizes and in all sectors. On the one hand, customers have ever-
increasing expectations in terms of the speed and quality of service they expect and, on the other resources are
continually under pressure.

This document sets out how effective information and records management can help any organization to move
forward in this challenging environment through,

•  achieving cost and efficiency savings;


•  making best use of information assets and
•  Taking advantage of the opportunities offered by new technologies.

1.3 Intelligence

Intelligence has been defined in many different ways such as in terms of one's capacity for logic, abstract thought,
understanding, self-awareness, communication, learning, emotional knowledge,
memory, planning, creativity and problem solving
1.3.1 Knowledge

Knowledge is a familiarity, awareness or understanding of someone or something, such as facts, information,


descriptions, or skills, which is acquired through experience or education by perceiving, discovering, or learning.
Knowledge can refer to a theoretical or practical understanding of a subject.

Importance:

•  Learning Better
•  Setting Goals As You Learn
•  Learn Complex Things Faster
•  Knowledge Helps You Solve Problems
•  Understanding Yourself
1.4 Information Technology (IT)

Information technology (IT) is the application of computers and telecommunications equipment to store,
retrieve, transmit and manipulate data, often in the context of a business or other enterprise.

1.4.1 Need

• Education is a lifelong process therefore anytime anywhere access to it is the need

• Information explosion is an ever increasing phenomena therefore there is need to get access to this
information

• Education should meet the needs of variety of learners and therefore IT is important in meeting this need

• It is a requirement of the society that the individuals should posses technological literacy

• We need to increase access and bring down the cost of education to meet the challenges of illiteracy and
poverty-IT is the answer
1.4.2 Importance

• access to variety of learning resources


• immediacy to information
• anytime learning
• anywhere learning
• collaborative learning
• multimedia approach to education
• authentic and up to date information
• access to online libraries
• teaching of different subjects made interesting
• educational data storage
• distance education
• access to the source of information
• Multiple communication channels-e-mail, chat, forum, blogs, etc.
Summary

Information management (IM) concerns a cycle of organizational activity: the acquisition of information from one or
more sources, the custodianship and the distribution of that information to those who need it, and its ultimate disposal
through archiving or deletion.

This cycle of information organization involves a variety of stakeholders, including those who are responsible for
assuring the quality, accessibility, and utility of acquired information; those who are responsible for its safe storage and
disposal; and those who need it for decision making. Stakeholders might have the right to originate, change, distribute
or delete information according to organizational information management policies.

Information management embraces all the generic concepts of management, including the planning, organizing,
structuring, processing, controlling, evaluation, and reporting of information activities, all of which are needed to meet
the needs of those with organizational roles or functions that depend on information. These generic concepts allow the
information to be presented to the audience or the correct group of people. After individuals can put that information
to use, it then gains more value.
References

Books/e-Books

• Mcknight, W. (2013). Information Management: Strategies for Gaining a Competitive Advantage with Data (The
Savvy Manager’s Guides) (1st ed.). Morgan Kaufmann.

Internet

• Sakariya, K. (2016). Information management. Www.Slideshare.Net.


https://www.slideshare.net/kishorsakariya/information-management-65247251
• Khan, M. T. (2013). Information management. Https://Www.Slideshare.Net/.
https://www.slideshare.net/MuhammadTufailKhanTufail/information-management-21415577

Journal Articles

• Kaur, B. (2013). Information Management. INTERNATIONAL JOURNAL OF COMPUTERS & TECHNOLOGY, 3(3), 424–
427. https://doi.org/10.24297/ijct.v3i3a.2949
INFORMATION
SYSTEMS
Overview

Information Systems and Management


An Introduction to Information Systems
Information System:

An information system is a set of interrelated components that collect,


manipulate, store data and disseminate information and provide a feedback
mechanism to monitor performance.
What is an Information System?

An organized combination of people,


hardware, software, communications
networks, and data resources that
collects data, transforms it, and
disseminates information.
Data Vs. Information
Data: Raw unorganized facts

Information:
A collection of facts organized in such a way that they have
additional value beyond the value of the facts themselves.

Defining and organizing relationships among data creates


information.
Information Concepts
Process:
A set of logically related tasks performed to achieve a defined
outcome.

Knowledge:
An awareness and understanding of a set of information and
ways that information can be made useful to support a specific
task or reach a decision
The Value of Information

The value of Information


is directly linked to how
it helps decision makers
achieve their organization’s
goals.
System

A system is a set of elements or


components that interact to
accomplish goals.
(CBIS) Computer-based information system
Hardware:
Computer Equipment

Software:
Computer Programs

Databases:
An organized collections of facts
CBIS
Telecommunications:
Electronic transmission of signals for communication

 Networks: Distant electronic communication


 Internet: Interconnected Networks
 Intranet: Internal Corporate Network
 Extranet: Linked Intranets
CBIS
People

Procedures:
Strategies, policies, methods, and rules for using a CBIS.
Business Information Systems
Electronic and Mobile Commerce
E-Commerce:
Any business transaction executed electronically

M-Commerce:
Transactions conducted anywhere, anytime

Relies on wireless communications


TPS and ERP
• Transaction
• business related exchange
• Evidence of a business event
• Transaction Processing System (TPS)
• A system which records completed business transactions
• Enterprise Resource Planning (ERP)
• A set of integrated programs for managing the entire business operations
Business Information Systems
Management Information System:
A system used to provide routine information to managers and
decision makers

Decision Support System:


A system used to support problem- specific decision making
Specialized Business I.S.
Artificial Intelligence (AI):

A field in which the computer takes on the


characteristics of human intelligence
Expert System:
A system that gives a computer the ability to make
suggestions and act like an expert in a particular
field.

Knowledge Base:
The collection of data, rules, procedures,
and relationships that must be followed
to achieve value or the proper outcome.
Virtual Reality:

The simulation of a real or imagined


environment that can be experienced
visually in three dimensions
Systems Development
Systems Development:

The activity of creating or modifying existing


business information systems
Systems Investigation and
Analysis

Understand the problem


and potential solutions
Systems Design, Implementation,
Maintenance and Review

 Determine how the new system will


meet business needs
 Put the new system into operation
 Ensure the system continues to meet
changing business needs
Information Systems in Society

Security, Privacy, Ethical Issues in Information


Systems and the Internet.
Computer Literacy:

Knowledge of computer systems and equipment and


the ways they function
General Information Systems Diagram
Management
Decisions
(Environment)

Data Input Process Output Information

Control

Feedback
Data:
Raw unorganized facts

Information:
Data organized in a meaningful way for
the user (in consideration of the
environment)
Informal Information System

Each organization has a unique culture, or


fundamental set of assumptions, values, and ways of
doing things, that has been accepted by most of its
members
Environment:
• Business - other functional areas
• Computer – hardware, software, other IS

Sub System:
Component of a larger system

System Boundary:
Interaction with environment (user or other
system) via an interface
Information System Activities

1. Input of Data Resources


2. Process Data into Information
3. Output of Information
Input of Data Resources
• Data entry
• Editing
• Machine readable
• Source documents
• Formal record of a transaction
• User interface
• How users interact with information system
• Optical scanning; menu; prompts; fill in blanks
Process Data into Information
• Calculate
• Compare
• Sort
• Classify
• Summarize

The quality of the data must be maintained by a continual process of


correcting and updating activities
Output of Information
• Transmit information to users
• Display; paper; audio
• Storage of data
• Data are retained in an organized manner
• Fields; records; files; data bases
• Control of system performance
• Feedback must be monitored and evaluated to determine if the information
system is meeting established performance standards
Systems Applications in the Organization

Decisions Management Levels Information Systems

Unstructured Senior ESS


Strategic Management
DSS
Knowledge and
GIS, CAD/CAM,
Tactical Data Worker
OAS
Middle
Management MIS

Lower
TPS
Management
Technical
(Operational)
Buy Make Sell Keep
Functions
Structured Track
Introduction Of Information Technology

42
• Data vs. Information
• What Is Technology?
• Defining Information Technology
• Utilizing IT In The Society
• The Functions Of Information Technology
• The Benefits of Information Technology
• What Are The Characteristics Of Good Information?
• Examples on IT Careers
• Conclusion
• Useful Link

43
Data vs. Information
There is different between data and information. In fact, Information is created
from data.

44
Data vs. Information

• Data is raw, unorganized facts that need to be processed.


 Data can be something simple and seemingly random and useless until it is
organized.

• When data is processed, organized, structured or presented in a given


context so as to make it useful, it is called information.

. 45
What Is Technology

• Technology is humans using objects (tools, machines, systems, and


materials) to change the natural and human-made environment.
• Technology is developed by people to modify their environment.
• Technology is evolving every months , so company must keep up with
the newest technology to earn customer satisfaction and make profit.

. 46
Defining Information
Technology
IT stands for "Information Technology," and is pronounced "I.T."

. 47
Defining Information Technology
• Information technology is “ anything related to computing
technology, such as networking, hardware, software, the
Internet, or the people that work with these technologies”.
• Success in business is largely determined by the
effectiveness with which information technology is used.

. 48
Utilizing IT In The Society
Information Technology Is All Around Us, Improving Our Lives

. 49
Information Technology Is All Around Us,
Improving Our Lives

• Education
• Training
• Entertainment
• Shipping
• Manufacturing
• Journalism

. 50
Information Technology Is All Around Us,
Improving Our Lives

• Money and Investments


• Taxation and Accounting
• Health and Medicine
• Solving Problems
• Problem Solving: The process of recognizing a problem, identifying
alternatives for solving it, and successfully implementing the chosen
solution.

. 51
Utilizing IT In The Society (people)
• Personal Communication
• Conversations (phone, cell)
• Messaging (E-mail, SMS)
• Video
• Entertainment
• Web surfing
• Downloading video and audio files
• Interactive gaming
• Day-to-Day living
• Buying airline ticket
• Ordering books
• Electronic banking/ stock market

. 52
Utilizing IT In The Society (business)
• Information technology is embedded in many products and services.
• Internal Communication
• Computer network
• Video teleconferencing
• Messaging (SMS, email)
• Electronic Commerce
• Corporate website
• Call Centers
• Electronic transactions
• Online sales

. 53
Classroom Exercise :
Utilizing IT In The Society (university )

. 54
The Functions Of Information Technology
There are six main functions for information technology which are :
1.Capture
2.Process
3.Generate
4.Store and retrieve
5.Transmit
. 55
The Functions Of Information Technology

. 56
The Functions Of Information Technology

• Capture: This is the process of compiling information


• Example: AMAZON.COM use internet cookies to capture data about
a customer’s purchases via their website.

• Processing: The process of converting, analyzing, computing,


and producing all forms of data, information.
• Information Processing
• Image Processing
• Voice Processing

. 57
The Functions Of Information Technology

• Generation: The process of organizing information into a useful form, whether as numbers,
text, sound, or visual image.

• Storage and Retrieval:


• Storage is the computer process of retaining information for future use.
• Retrieval is the process by which a computer locates and copies stored data or information for further
processing or for transmission to another user.
• Example : Search Engine like Google , Bing , Yahoo ” these companies have data centers which store information which
can be used at a latter stage by the end user who will be searching for information online.

• Transmission: The computer process of distributing information over a communications


network.
• Electronic Mail, or E-Mail
• Voice Messaging, or Voice Mail

. 58
The Benefits of Information
Technology
There are four main benefits for Information technology which are :
1.Speed
2.Consistency
3.Precision
4.Reliability

. 59
The Benefits of Information Technology
• Speed
• Users of information technology can use tools like computers to perform
different tasks faster, such as: calculation and filtering .
• Computer can perform multiple functions on the same time which can not be
done by humans.
• Computers have applications which can store data in a systematic way making
it easy to understand and organize important facts.
• Organizations can use internet to interact with their customers in real time
and respond to their needs.

. 60
The Benefits of Information Technology
• Consistency
• The information will be consistent in all departments or branches of the
company.
• Example : you can use your order number to track your order in real time.
• Precision or accuracy
• The information will be accurate.
• Even though information technology is managed by humans, it is more likely to be more
accurate than humans.
• Example : computers never make mistakes in calculation.

. 61
The Benefits of Information Technology
• Reliability
• Information technology systems can run 24hrs 7 days a week.
• These systems can only be interrupted for repairs and maintenance which takes just
a few hours and the system will be up for use.
• This is a win-win process for both organizations and customers who need the
service in time.
• Let’s take a simple example of a Bank.
• This is a financial institution whose services are needed by the end-user on time. Banks use IT
systems to deliver services like remote banking so customers can easily deposit money,
withdraw money or print out bank statements without coming to a physical main branch of that
bank.
• IT experts make sure that these remote ATM machines and other remote banking systems are
running all the time, they can do maintenance in the late hours when users are not active so
that they do not interrupt the service when needed by the user.

. 62
What Are The Characteristics Of Good Information?

• It has to be accurate
• It has to be Timely (should be communicated in time to be used )
• It has to be consistent and reliable
• It has to be Up-to-date
• Easy to understand

 Using Information technology makes your information better


somehow.
. 63
Examples on IT Careers
There are a lot of careers for IT graduates.

. 64
Examples on IT Careers
• Database Administration
• Managing corporate database
• Information Security Jobs
• Address information security
• IT Analyst
• Translate business requirement into technical specification
• Network Administration
• Configure and operate computer network

. 65
Examples on IT Careers
• Management Consulting
• Provide consulting for organizations
• Computer Forensics Expert
• Extracts computer evidence for detecting/preventing /prosecuting crimes
• IT Sales:
• people on frontline to sell products
• Software development:
• develop software solutions

. 66
Conclusion
• There is different between data and information. In fact,
Information is created from data.
• Information Technology Is All Around Us, Improving Our Lives
• Company , organization, university and government must adopt
Information technology to survive in these technical world.
• There are six main functions for information technology which
are capture, process, generate , store ,retrieve and transmit.
• There are four main benefits for Information technology which
are speed, consistency, precision ,reliability .
• new careers have been emerged because of of IT. However,
there are some careers have been vanished

. 67
Useful Link

• What is IT?
https://www.youtube.com/watch?v=cWNEZLbP9Lk

• Future Technology | Our Digital World 2020


https://www.youtube.com/watch?v=MiowXhyZTtg

. 68
INFORAMTION
SYSTEM
Information system
1.5 Information system

An information system (IS) is a system composed of people and computers that


processes or interprets information. The term is also sometimes used in more
restricted senses to refer to only the software used to run a computerized
database or to refer to only a computer system.
1.5.1 Importance

1. To control the creation and growth of records

Despite decades of using various non-paper storage media, the amount of paper in our offices continues to escalate.
An effective records information system addresses both creation control (limits the generation of records or copies
not required to operate the business) and records retention (a system for destroying useless records or retiring
inactive records), thus stabilizing the growth of records in all formats.

2. To reduce operating costs

Recordkeeping requires administrative dollars for filing equipment, space in offices, and staffing to maintain an
organized filing system (or to search for lost records when there is no organized system).It costs considerably less per
linear foot of records to store inactive records in a Data Records Center versus in the office and there is an
opportunity to effect some cost savings in space and equipment, and an opportunity to utilize staff more
productively - just by implementing a records management program.
3. To improve efficiency and productivity

Time spent searching for missing or misfiled records are non-productive. A good records management program
(e.g. a document system) can help any organization upgrade its recordkeeping systems so that information
retrieval is enhanced, with corresponding improvements in office efficiency and productivity. A well designed and
operated filing system with an effective index can facilitate retrieval and deliver information to users as quickly as
they need it.

Moreover, a well managed information system acting as a corporate asset enables organizations to objectively
evaluate their use of information and accurately lay out a roadmap for improvements that optimize business
returns.

4. To assimilate new records management technologies

A good records management program provides an organization with the capability to assimilate new technologies
and take advantage of their many benefits. Investments in new computer systems whether this is financial,
business or otherwise, don't solve filing problems unless current manual recordkeeping or bookkeeping systems
are analyzed (and occasionally, overhauled) before automation is applied.
5. To ensure regulatory compliance

In terms of recordkeeping requirements, China is a heavily regulated country. These laws can create major compliance
problems for businesses and government agencies since they can be difficult to locate, interpretand apply. The only way
an organization can be reasonably sure that it is in full compliance with laws and regulations is by operating a good
management information system which takes responsibility for regulatory compliance, while working closely with the
local authorities. Failure to comply with laws and regulations could result in severe fines, penalties or other legal
consequences.

6. To minimize litigation risks

Business organizations implement management information systems and programs in order to reduce the risks
associated with litigation and potential penalties. This can be equally true in Government agencies. For example, a
consistently applied records management program can reduce the liabilities associated with document disposal by
providing for their systematic, routine disposal in the normal course of business.
7. To safeguard vital information

Every organization, public or private, needs a comprehensive program for protecting its vital records and
information from catastrophe or disaster, because every organization is vulnerable to loss. Operated as part of a
good management information system, vital records programs preserve the integrity and confidentiality of the
most important records and safeguard the vital information assets according to a "Plan" to protect the records.
This is especially the case for financial information whereby ERP (Enterprise Resource Planning) systems are being
deployed in large companies.

8. To support better management decision making

In today's business environment, the manager that has the relevant data first often wins, either by making the
decision ahead of the competition, or by making a better, more informed
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9. To preserve the corporate memory

An organization's files, records and financial data contain its institutional memory, an irreplaceable asset that is often
overlooked. Every business day, you create the records, which could become background data for future
management decisions and planning.

10. To foster professionalism in running the business

A business office with files, documents and financial data askew, stacked on top of file cabinets and in boxes
everywhere, creates a poor working environment. The perceptions of customers and the public, and "image" and
"morale" of the staff, though hard to quantify in cost-benefit terms, may be among the best reasons to establish a
good management information system
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1.5.2 Evolution

The first business application of computers (in the mid- 1950s) performed repetitive, high-volume, transaction-
computing tasks. The computers‖ crunched numbers‖ summarizing and organizing transactions and data in the
accounting, finance, and human resources areas. Such systems are generally called transaction processing systems
(TPSs).

Management Information Systems (MISs): these systems access, organize, summarize and display information for
supporting routine decision making in the functional areas.Office Automation Systems (OASs): such as word
processing systems were developed to support office and clerical workers.

Decision Support Systems: were developed to provide computer based support for complex, non routine decision. „
End- user computing: The use or development of information systems
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Intelligent Support System (ISSs): Include expert systems which provide the stored knowledge of experts to non
experts, and a new type of intelligent system with machine- learning capabilities that can learn from historical cases.
„ Knowledge Management Systems: Support the creating, gathering, organizing, integrating and disseminating of
organizational knowledge.

Data Warehousing: A data warehouse is a database designed to support DSS, ESS and other analytical and end-user
activities. „ Mobile Computing: Information systems that support employees who are working with customers or
business partners outside the physical boundaries of their company; can be done over wire or wireless networks.

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Four General Kinds of IS

• Operational-level systems
• Support operational managers by monitoring the day-to-day‘s elementary activities and transactions of
the organization. e.g. TPS.
• Knowledge-level systems
• Support knowledge and data workers in designing products, distributing information, and coping with
paperwork in an organization. e.g. KWS, OAS
• Management-level systems
• Support the monitoring, controlling, decision-making, and administrative activities of middle managers.
e.g. MIS, DSS
• Strategic-level systems
• Support long-range planning activities of senior management. e.g. ESS
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• Executive Support Systems (ESS)
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• Knowledge Work Systems (KWS)
• Office Automation Systems (OAS)
• Transaction Processing Systems (TPS)
Transaction Processing Systems (TPS)

Computerized system that performs and records the daily routine transactions necessary to conduct the business;
these systems serve the operational level of the organization.

• TYPE: Operational-level
• INPUTS: transactions, events
• PROCESSING: updating
• OUTPUTS: detailed reports
• USERS: operations personnel, supervisors
• DECISION-MAKING: highly structured

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Office Automation Systems (OAS)

Computer system, such as word processing, electronic mail system, and scheduling system, that is designed to
increase the productivity of data workers in the office.

• TYPE: Knowledge-level
• INPUTS: documents, schedules
• PROCESSING: document management, scheduling, communication
• OUTPUTS: documents; schedules
• USERS: clerical workers

EXAMPLE: document imaging system


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Knowledge Work Systems (KWS)

Information system that aids knowledge workers in the creation and integration of new knowledge in the
organization.

• TYPE: Knowledge-level
• INPUTS: design specifications
• PROCESSING: modelling
• OUTPUTS: designs, graphics
• USERS: technical staff; professionals

EXAMPLE: Engineering workstations


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Decision Support Systems (DSS)

Information system at the management level of an organization that combines data and sophisticated analytical
models or data analysis tools to support semi-structured and unstructured decision making.

• TYPE: Management-level
• INPUTS: low volume data
• PROCESSING: simulations, analysis
• OUTPUTS: decision analysis
• USERS: professionals, staff managers
• DECISION-MAKING: semi-structured
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EXAMPLE: sales region analysis
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Management Information Systems (MIS)

Information system at the management level of an organization that serves the functions of planning,
controlling, and decision making by providing routine summary and exception reports.

TYPE: Management-level
INPUTS: high volume data
PROCESSING: simple models
OUTPUTS: summary reports
USERS: middle managers
DECISION-MAKING: structured to semi-structured
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EXAMPLE: annual budgeting
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Executive Support Systems (ESS)
Information system at the strategic level of an organization that address unstructured decision making through
advanced graphics and communications.

• TYPE: Strategic level


• INPUTS: aggregate data; internal and external
• PROCESSING: interactive
• OUTPUTS: projections Classification of IS by Organizational Structure
• USERS: senior managers
• DECISION-MAKING: highly unstructured • Departmental Information Systems
• Enterprise Information System
EXAMPLE: 5 year operating plan • Inter-organizational Systems
• NYCE
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• SABRE or APOLLO
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Classification of IS by Functional Area
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• The accounting information system
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• The finance information system
• The manufacturing (operations, production) information system
• The marketing information system
• The human resources information system
1.5.4 System development methodologies

Introduction

A system development methodology refers to the framework that is used to structure, plan, and control the
process of developing an information system. A wide variety of such frameworks have evolved over the years,
each with its own recognized strengths and weaknesses. One system development methodology is not necessarily
suitable for use by all projects. Each of the available methodologies is best suited to specific kinds of projects,
based on various technical, organizational, project and team considerations. CMS has considered each of the
major prescribed methodologies in context with CMS‘ business, applications, organization, and technical
environments. As a result, CMS requires the use of any of the following linear and iterative methodologies for
CMS systems development, as appropriate.
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1.5.4.1 Prototyping 1.5.5 Functional Information System (FIS)
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1.5.4.3 Spiral of the text ,

1.5.4.4 Rapid Application Development (RAD)


1Functional Information System (FIS)

Supports a functional area by increasing its internal effectiveness and efficiency. Typically found for:

• Finance (FIN): provide internal and external professional access to stock, investment and capital spending
information.

• Accounting (ACC): similar to financial MIS more related to invoicing, payroll, receivables.

• Marketing (MKT): pricing, distribution, promotional, and information by customer and salesperson.

• Operations (OPS): regular reports on production, yield, quality, inventory levels. These systems typically deal
with manufacturing, sourcing, and supply chain management.
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• Human Resources Management (HR): employees, benefits, hiring‘s, etc.
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THANK YOU
Information System

87
Information System – Primary Purpose

Collects data, processes it into information then converts information


into knowledge for a specific purpose.
• Data
• Elementary description of things, events, activities, and
transactions that are recorded, classified, and stored, but not
organized to convey any specific meeting
• Information
• Data that has been organized so that they have meaning and value
to the recipient
• Knowledge
• Information that has been organized and processed to
convey understanding, experience and expertise as they
apply to a current problem or activity

88
Activity 1

89
Basic component of ISs:
1. Hardware: it’s a set of devices such as processor, monitor,
keyboard, and printer.
• Together, they accept data and information as an input, process
them, and display them as an output.

90
Basic component of ISs:
2. Software: it’s a set of programs that instruct the hardware to
process data.
3. A database: is a collection of related files, tables, relations, and so
on, that stores data and the associations among them.

91
Basic component of ISs:
4. A network: is a connecting system that permits the sharing of
resources by different computers. It can be wireless.
5. Policies and Procedures: are the set of instructions about how to
combine the above components in order to process information
and generate the desired output.

92
Basic component of ISs:
6. People: are those individuals who work with the system, interface
with it, or use its output.

93
IS Activities
• Input of data resources
• Data entry activities
• Processing of data into information
• Calculations, comparisons, sorting, and so on
• Output of information products
• Messages, reports, forms, graphic images
• Storage of data resources
• Data elements and databases
• Control of system performance
• Monitoring and evaluating feedback

94
Recognizing Information Systems
• As professional of EMIS, you should be able to look at an information
system and identify…
• The people, hardware, software, data, and network resources they use
• The type of information products they produce
• The way they perform input, processing, output, storage, and control
activities

95
Major Capabilities of Information Systems

1. Facilitate work in hazardous environments.


2. Facilitate interpretation of vast amounts of data.
3. Perform high-speed, high-volume, numerical computations.
4. Store huge amounts of information in an easy-to-access, yet small space.
5. Provide fast, accurate, and inexpensive communication within and between
organizations.
6. Allow quick and inexpensive access to vast amounts of information
worldwide.

96
Major Capabilities of Information Systems

7. Enable communication and collaboration anywhere, any time.


8. Increase the effectiveness and efficiency of people working in groups in one place or in
several locations.
9. Vividly present information that challenges the human mind.
10. Automate both semiautomatic business processes and manually done tasks.
11. Facilitate global trade.
12. Can be wireless, thus supporting unique applications anywhere.
13. Accomplish all of the above much less expensively than when done manually.

97
All ISs have a purpose and social
context.

98
Purpose
• A typical purpose is to provide solution to a (business) problem.
• Example:
• To coordinate internal units
• To collaborate
• To improve performance

99
Social context
• The social context of the system consists of the values and beliefs
that determine what is admissible and possible within the culture of
the people and groups involved.

100
Foundations of
Information Systems

101
Foundation Concepts
• Why study information systems and information technology?
• Vital component of successful businesses
• Helps businesses expand and compete
• Improves efficiency and effectiveness of
business processes
• Facilitates managerial decision making and workgroup collaboration

102
What is a System?
• A group of interrelated or interacting elements forming a unified
whole

103
What is a System?
• A set of interrelated components
• With a clearly defined boundary
• Working together
• To achieve a common set of objectives

104
What is a System?
• A system is…
• A set of interrelated components
• With a clearly defined boundary
• Working together
• To achieve a common set of objectives
• By accepting inputs and producing outputs
• In an organized transformation process

105
System Concepts: A Foundation
• System concepts help us understand…
• Technology: hardware, software, data management,
telecommunications networks
• Applications: to support inter-connected information
systems
• Development: developing ways to use information
technology includes designing the basic components
of information systems
• Management: emphasizes the quality, strategic
business value, and security of an organization’s
information systems

106
Cybernetic System
• All systems have input, processing, and output
• A cybernetic system, a self-monitoring, self-regulating system, adds
feedback and control:
• Feedback is data about the performance of a system
• Control involves monitoring and evaluating feedback to determine whether a
system is moving toward the achievement of its goal

107
Other System Characteristics
• If a system is one of the components of a larger system, it is a subsystem
• The larger system is an environment
• Several systems may share the same environment
• Some may be connected via a shared boundary, or interface
• Types of systems…
• Open
• Adaptive

108
What is an Information System?
• An organized combination of…
• People
• Hardware and software
• Communication networks
• Data resources
• Policies and procedures
• This system…
• Stores, retrieves, transforms, and disseminates information in an organization

109
Information Technologies
• Information Systems
• All the components and resources necessary to deliver information and
functions to the organization
• Could be paper based
• Information Technologies
• Hardware, software, networking, data management
• Our focus will be on computer-based information systems (CBIS)

110
What Should Business
Professionals Know?

111
Fundamental Roles of IS in Business

O'Brien, James; Marakas, George 2008

112
Trends in InformationO'Brien,
SystemsJames; Marakas, George 2008

113
Types of Information Systems
• Operations Support Systems
• Efficiently process business transactions
• Control industrial processes
• Support communication and collaboration
• Update corporate databases
• Management Support Systems
• Provide information as reports and displays
• Give direct computer support to managers during decision-making

114
Purposes of Information Systems

O'Brien, James; Marakas, George 2008


115
Operations Support Systems
• What do they do?
• Efficiently process business transactions
• Control industrial processes
• Support communications and collaboration
• Update corporate databases

116
Types of Operations Support Systems
• Transaction
Process Control Systems Systems
Processing
•• Monitor and control
Record and processphysical
businessprocesses
transactions
•• Example:
Examples:using sensors
sales to monitor
processing, chemical
inventory processes
systems, in a petroleum
accounting refinery
systems
• Enterprise Collaboration Systems
• Enhance team and workgroup communication
• Examples: email, video conferencing

117
Two Ways to Process Transactions
• Batch Processing
• Accumulate transactions over time and process periodically
• Example: a bank processes all checks received in a batch at night
• Online Processing
• Process transactions immediately
• Example: a bank processes an ATM withdrawal immediately

118
Management Support Systems
• What do they do?
• Provide information and support for effective decision making by managers
• Management information systems
• Decision support systems
• Executive information systems

119
Types of Management Support Systems
• Management Information Systems (MIS)
• Reports and displays
• Example: daily sales analysis reports
• Decision Support Systems (DSS)
• Interactive and ad hoc support
• Example: a what-if analysis to determine where to spend advertising dollars
• Executive Information Systems (EIS)
• Critical information for executives and managers
• Example: easy access to actions of competitors

120
Other Information Systems
• Expert Systems
• Provide expert advice
• Example: credit application advisor
• Knowledge Management Systems
• Support creation, organization, and dissemination of business knowledge
throughout company
• Example: intranet access to best business practices

121
Measuring IT Success
• Efficiency
• Minimize cost, time, and use of information resources
• Effectiveness
• Support business strategies
• Enable business processes
• Enhance organizational structure and culture
• Increase customer and business value

122
Developing IS Solutions

O'Brien, James; Marakas, George 2008


123
Components of an IS

O'Brien, James; Marakas, George 2008


124
Information System Resources
• People Resources
• Specialists
• End users
• Hardware Resources
• Machines
• Media
• Software Resources
• Programs
• Procedures

125
Information System Resources
• Data Resources
• Product descriptions, customer records,
employee files, inventory databases
• Network Resources
• Communications media, communications
processors, network access and control software
• Information Resources
• Management reports and business documents
using text and graphics displays, audio responses,
and paper forms

126
ACTIVITY 3

127
System development methodologies
• Structured design
Waterfall development
Parallel development
• Rapid Application development
Phased development
Prototyping
Throwaway prototyping
• Agile Development
Extreme Programming (XP)
Waterfall Development

PLANNING

ANALYSIS

DESIGN

IMPLEMENTATION

SYSTEM
WaterfallAdvantages:
Development Disadvantages:
System requirements
identified long before Design must be completely
programming begins specified on paper before
Large degree of management programming begins
control promotes
documentation and Use of paper specifications can
ensures ability to trace
user requirements thus result in misunderstanding of
minimizing changes to user requirements
requirements
Complex and lengthy – large
amount of time elapses between
analysis and delivery of the
system – user needs may change
Parallel Development
PLANNING

ANALYSIS

OVERALL SUBDESIGN
DESIGN
SUBDESIGN
SUBIMPLEMENT
SUBDESIGN
SUBIMPLEMENT

SUBIMPLEMENT
OVERALL
IMPLEMENTATION

SYSTEM
Parallel Development
Advantages Disadvantages
Same as for waterfall Same as for waterfall plus:
development plus:
Subsystems are not usually
Time is reduced compared to independent so changes in
the waterfall method which one subsystem can affect
decreases the chances that others
user needs will change
before the system is Additional work to coordinate
implemented and integrate subsystems
Phased Development
PLANNING
V1 ANALYSIS
OVERALL
ANALYSIS V1 DESIGN

V1 IMPLEMENT

V2 ANALYSIS

V2 DESIGN
SYSTEM
V2 IMPLEMENT VERSION 1
V3 ANALYSIS

V3 DESIGN
SYSTEM
V3 IMPLEMENT VERSION 2

SYSTEM
VERSION 3
Phased Development Disadvantages
Advantages
User begins to work on a system
Quickly gets a useful version into that is intentionally incomplete
the hands of the users
Problems with success and
System provides business value acceptance of the system can
sooner compared to structured occur if the essential features
methodologies are not identified for the first
version.
Users able to provide feedback
and discover important new Must manage user expectations in
requirements sooner terms of having to wait for
features that will be
implemented in subsequent
versions
Prototyping

PLANNING

ANALYSIS

DESIGN

IMPLEMENTATION
SYSTEM
IMPLEMENTATION
PROTOTYPE

SYSTEM
PrototypingAdvantages Disadvantages

Provides users with a system to Fast pace makes it more difficult


interact with very quickly to conduct a thorough analysis

Reassures users that the project is Initial prototype could lead you
indeed progressing towards a down an ineffective path and
finished system once started, it is difficult to go
back to the beginning
Helps to refine requirements more
quickly – users can interact
with the prototype and better
understand what it can and
cannot do easier than if the
system were on paper.
Throwaway Prototyping
PLANNING

ANALYSIS

ANALYSIS
DESIGN
IMPLEMENTATION DESIGN
PROTOTYPE

DESIGN

IMPLEMENTATION

SYSTEM
Throwaway Prototyping
Advantages Disadvantages

Combines complete analysis and Slower than prototyping since the


design with advantages of design prototypes are thrown
prototyping to refine key issues away and do not become part of
before that system is built the final system
Tends to produce more stable and
reliable systems than
prototyping.
Four General Kinds of IS
CONTENTS
Operational-level systems
Knowledge-level systems
Management-level systems
Strategic-level systems
• Operational-level systems
• Support operational managers by monitoring the day-to-day‘s elementary activities and
transactions of the organization. e.g. TPS.
• Knowledge-level systems
• Support knowledge and data workers in designing products, distributing information, and
coping with paperwork in an organization. e.g. KWS, OAS
• Management-level systems
• Support the monitoring, controlling, decision-making, and administrative activities of middle
managers. e.g. MIS, DSS
• Strategic-level systems
• Support long-range planning activities of senior management. e.g. ESS
•  Executive Support Systems (ESS)

•  Management Information Systems (MIS)

•  Decision Support Systems (DSS)

•  Knowledge Work Systems (KWS)

•  Office Automation Systems (OAS)

•  Transaction Processing Systems (TPS)


Transaction Processing Systems (TPS)
Computerized system that performs and records the daily routine transactions necessary to
conduct the business; these systems serve the operational level of the organization.

• TYPE: Operational-level

• INPUTS: transactions, events

• PROCESSING: updating

• OUTPUTS: detailed reports

• USERS: operations personnel, supervisors

• DECISION-MAKING: highly structured

EXAMPLE: payroll, accounts payable


Office Automation Systems (OAS)
Computer system, such as word processing, electronic mail system, and scheduling system, that
is designed to increase the productivity of data workers in the office.

• TYPE: Knowledge-level

• INPUTS: documents, schedules

• PROCESSING: document management, scheduling, communication

• OUTPUTS: documents; schedules

• USERS: clerical workers

EXAMPLE: document imaging system


Knowledge Work Systems
(KWS)
Information system that
aids knowledge workers
in the creation and
integration of new
knowledge in
the organization.
• TYPE: Knowledge-level
• INPUTS: design
specifications
• PROCESSING:
modelling
• OUTPUTS: designs,
graphics
• USERS: technical staff;
professionals
EXAMPLE: Engineering
workstations
Decision Support Systems
(DSS)
Information system at
the management level of
an organization that
combines data and
sophisticated
analytical models or data
analysis tools to support
semi-structured and
unstructured decision
making.
• TYPE: Management-
level
• INPUTS: low volume
data
• PROCESSING:
simulations, analysis
• OUTPUTS: decision
analysis
• USERS: professionals,
staff managers
• DECISION-MAKING:
semi-structured
EXAMPLE: sales region
analysis
Executive Support
Systems (ESS)
Information system at the strategic level of an organization that address
unstructured decision making
through advanced graphics and communications.
TYPE: Strategic level
• INPUTS: aggregate data; internal and external
• PROCESSING: interactive
• OUTPUTS: projections
• USERS: senior managers
• DECISION-MAKING: highly unstructured
EXAMPLE: 5 year operating p
Management
Information
Systems (MIS)
Information system at the management level of an organization that
serves the functions of planning,
controlling, and decision making by providing routine summary and
exception reports.
• TYPE: Management-level
• INPUTS: high volume data
• PROCESSING: simple models
• OUTPUTS: summary reports
• USERS: middle managers
• DECISION-MAKING: structured to semi-structured
EXAMPLE: annual budgeting
Enter title
THANKYOU
Types of Information
systems
Transaction processing systems and Management information systems
Different Kinds of Systems

Four main types of IS serve four different organizational levels:


1. Operational-level systems
2. Management-level systems
3. Strategic-level systems
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
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
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
Major Types of systems
• Executive Support Systems (ESS)
• Decision Support Systems (DSS)
• Management Information Systems (MIS)
• Transaction Processing Systems (TPS)
Transaction processing systems
• Definition: A Transaction Processing System (TPS) is a type of information
system that collects, stores, modifies and retrieves the data transactions of
an enterprise.
• – E.g. sales order entry, payroll, shipping

• – For example McDonald's, which sells a large number of hamburgers every


day, orders raw materials from its suppliers. Each time the company places
an order with a supplier, a transaction occurs and a transaction
system records relevant information, such as the supplier's name,
address, and credit rating, the kind and quantity of items purchased, and the
invoice amount.
Types of transactions
• Transactions can be internal or external.
• When a department orders office supplies from the purchasing
department, an internal transaction occurs
• When a customer places an order for a product, an external
transaction occurs.
Transaction processing systems are the data
lifeline of the company
• If a company fails to capture a transaction it may lead not only to
customer dissatisfaction and lost profit but also to serious penalties
and lawsuits.
• TPS s become the source of data for other systems in the
organization. If analyzed and integrated it will give business key
information about new company plans. A better plan how to meet
customer needs and preferences.
• TPS is a link between the organization and external entities, such as
suppliers, customers & distributors.
Batch processing
• Transactions are accumulated over time and processed identically.
• Batch processing may be done on a daily, weekly, or monthly basis or
any other time period appropriate to the application.
• For example, a company may process the travel expenses of its employees on
a monthly basis
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.
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
TPS payroll system
Management Information Systems
• 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
Management Information Systems
• 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


Management Information Systems
Management
Transaction Processing
Information
Systems
Systems
(TPS)
(MIS)
• Provide
Support decision-making
operation support for routine, structured decisions
• Closely
Management
linked and
to and
control
fed by TPS
• Structured
Routine, normal
and Semi-structured
operations decisions
• Structured decisions
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
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.
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.
MIS systems obtain data from TPS systems
MIS report
MIS report types
• Scheduled reports
• Key-indicator reports
• Exception reports
• Ad hoc (demand) reports
• Drill-down reports
Scheduled reports
• Produced periodically, or
on a schedule (daily,
weekly, monthly
Key-Indicator report
• Summarizes the previous day’s
critical activities and typically
available at the beginning of
each day.
Demand and exception reports
• Gives certain
information at
a manager’s
request.

• Automatically
produced when a
situation is
unusual or
requires
management
action
Drill Down Reports
• Provide
detailed data
about a
situation.
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
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
Information Systems to support decisions
Management Decision Support
Information Systems
Systems
Decision Provide information about Provide information and
support the performance of the techniques to analyze
provided organization specific problems
Information Periodic, exception, Interactive inquiries and
form and demand, and push reports responses
frequency and responses
Information Prespecified, fixed format Ad hoc, flexible, and
format adaptable format
Information Information produced by Information produced by
processing extraction and manipulation analytical modeling of
methodology of business data business data
Decision support systems
• 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.
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)
TYPES OF INFORMATION SYSTEMS
TYPES OF INFORMATION SYSTEMS
1. Transaction processing systems (TPS)
2. Management information system (MIS)and
3. Decision support systems (DSS)
4. Executive support system (ESS) for senior
management
1) Transaction processing system
• Transaction processing system is a type of information system.
• TPSs collect, store, modify and retrieve the transactions of an
organization.
• A Transaction is an event that generates or modifies data that
is eventually stored an information system.

E.g: Order entry system, cheque processing systems, accounts


receivables systems, payroll systems and ticket reservation
systems
• These systems help any company to conduct operations and
keep track of its activities.
A PAYROLL TPS
To general ledger
EMPLOYEE DATA

Employee Payroll
/file
database System

Management
Employee number reports
Address
Pa rate
Gross pay To government
Federal tax agencies
Medicare
State tax
Net pay Employee paychecks

Online
queries
TPS CHARACTERISTICS
• A TPS records internal and external transactions for a company. It is a
repository of data that is frequently accessed by other systems
• A TPS performs routine , repetitive tasks .It is mostly used by lower level
managers to make operational decisions
• Transactions can be recorded in batch mode or online. In batch mode the
files are updated periodically. In online mode , each transaction is
recorded as it occurs
• There are six steps in processing a transaction:
1. data entry ,
2. data validation ,
3. data processing and
4. revalidation ,
5. storage – output generation and
6. query support
Objectives of TPS

• Process data generated by and about transactions


• Maintain a high degree of accuracy and integrity
• Avoid processing fraudulent transactions
• Produce timely user responses and reports
• Increase labor efficiency
• Help improve customer service
• Help build and maintain customer loyalty
• Achieve competitive advantage
TYPES OF TPS
• Online system:
• it involves a direct connection between the operator and
TPS program , they provide immediate result eg . An order
arrive by telephone call it is processed at that moment and
results are produced
• Batch processing:
• it is the second type of TPS ,where transactions are
grouped together and processed as a unit
• for eg: a cheque proccesing system in a bank all the
cheque received in a particular day are grouped together.
They are then sorted by the account no and processed in a
batch
More Examples
• Batch transaction processing:
• Cheque clearance :written order asking bank to pay money
to a person
• Bill generation : an invoice for general services provided to
the customers
• credit card sales transaction
• Examples of real time transaction processing:
• reservation systems; set aside service/product for future
use
• point -of-sale (POS) terminals ;sells goods/services
• library loan system ; keeps track of items borrowed from
library
Difference between real time and Batch

• Real time:
• each transaction is unique ; transactions are
standlone; requires master file to be available more
often for updating; fewer errors-transaction data is
validated and entered immediately; infrequent errors
may occur; not practical to shut down the whole system
• Batch:
• each transaction pat of a group; database not
accessible all of the time; more errors; data is organized
and stored before master file is updated -errors can
occur during these steps; easier to maintain than real-
time.
2) MIS

• Designates a specific category of information


systems serving middle management.
• Provides middle managers with reports on
organization’s current performance.
• Information thus obtained is used to monitor and
control and business and predict future
Characteristics of MIS

• MIS is an integrative system


• MIS is Sub System concept
• Provides relevant information to management
• MIS is flexible
• Enhances productivity
• Is a coordinated system
• Feedback system
MIS

TPS MIS

Order
file Order
Sales
Processing data
system

Production Unit
Materials reports
Master Product
file Resource MIS
Cost data
Planning
system
managers
Product
change
Accounting data
file General
Ledger Expense
system data
3)Decision Support System
• A decision support system (DSS) is a computer program
application that analyzes business data and presents it so that
users can make business decisions more easily.
• It is an "informational application" (to distinguish it from an
"operational application" that collects the data in the course of
normal business operation).
• Typical information that a decision support application might
gather and present would be:
1) Comparative sales figures between one week and the next
2) Projected revenue figures based on new product sales assumptions
3) The consequences of different decision alternatives, given past
experience in a context that is described
4) A decision support system may present information graphically and
may include an expert system or artificial intelligence (AI). It may be
aimed at business executives or some other group of Knowledge
workers
Characteristics of Decision support system
• Provides rapid access to information
• Handles large amount of data from different
sources
• Provides report and presentation flexibility
• Offer both textual and graphical orientation
• Support drill down analysis
• Perform complex ,sophisticated analysis aqnd
comparisons using advanced s/w
Activities in decision support system

• What if analysis
• Sensitivity analysis
• Goal seeking analysis
• Optimization analysis
VOYAGE-ESTIMATING DECISION SUPPORT
SYSTEM

Ship file eg
speed,capacity
PC

Port distance
Restriction file

fuel consumption
cost file

Ship charter hire


history cost file

Analytical
Models Port expense
database file

Online
queries
DSS:Example
• Voyage estimating system calculates financial and
technical voyage details. It is based on analytical
models.
• Financial calculations include :
• ship/time costs(fuel, labor, capital) ,freight rates for
various types of cargo and port expenses
• Technical details include factor as:
• ship cargo capacity, speed ,port distances ,fuel and
water consumption and loading patterns ( locations of
cargo for different ports
Continued…
• The system can answer questions such as:

Given a customer delivery schedule and an


offered freight rate, which vessel should be
assigned at what rate to maximize profits?
What is the optimal speed at which a particular
vessel can optimize its profit and still meet its
delivery schedule?
What is the optimal loading pattern for a ship
bound for US west coast from Malaysia?
DSS : Intrawest(largest Ski operator in
north America
The system is not not model driven , focusing instead on
extracting useful information to support decision making
from massive quantities of data.
It uses special software to analyze these data to
determine the value , revenue potential and loyalty of
each customer so managers can make better decisions
on how to target their marketing programs
The system segments the customers into categories
from “passionate experts” to “ value – minded family
vacationers “ etc
The company then emails video clips that would appeal
to each segment to encourage more visits to its resort
4) EXECUTIVE SUPPORT SYSTEMS FOR
SENIOR MANAGEMENT
Issues at senior Management level:
• What will employment be in 5 yrs ?
• What are long term industry cost trends , where does our
firm fit in?
• What products should we be making in next 5 yrs?
• What new acquisitions would protect us from cyclical
business swings ?
Characteristics of ESS
• Are tailored to individual executives
• Are easy to Use
• Have drill down abilities
• Support the need for the external data
• Can help with situations that have high degree of
uncertainty
• Have a future orientation
• Are linked with value added business processes
Role of ESS
• Addresses non routine decision requiring judgement , evaluation, and insight
• Presents graphs and data from many sources through an interface that is easy
for senior managers to use
• Incorporates data about external events such as new tax laws or
competitors ,but also draws a summarized information from internal MIS and
DSS
• It filters ,compresses and track critical data , displaying that data of greatest
importance to senior managers.
MODEL OF AN EXECUTIVE SUPPORT
SYSTEM
ESS
Workstation/Portal

• Menus
• Graphics
ESS • Communications ESS
Workstation/Portal • Digital Dashboards Workstation/Portal

Internal data External data


TPS/MIS data Dow Jones
Financial data Internet news feeds
Office systems Standard & Poor • Menus
• Menus Modelling/analysis • Graphics
• Graphics • Communications
• Communications • Digital Dashboards
• Digital Dashboards
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

KEY SYSTEM APPLICATIONS IN THE ORGANIZATION

Types of Information Systems

Figure 2-1
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

TYPES OF INFORMATION SYSTEMS

Figure 2-2
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise

INTERRELATIONSHIPS AMONG SYSTEMS

Figure 2-9

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