Management Information

System
Unit-I

By :- MOHD SADAF AHMAD

Components of an Information System
Components of an Information System
People Resources:
People resources are the essential ingredient for the successful
operation of all information systems.
End Users are people who use an information system or the
information it produces. They can be customers, salespersons,
engineers, clerks, managers and are found at all levels of an
organisation.
IS Specialists are people who develop and operate information systems.
They include systems analysts, software developers, system operators
and other managerial , technical personnel
Components of an Information System
Hardware Resources :
The concept of hardware resources includes all physical devices and
materials used in information processing. Specifically it includes not
only machines, such as computers and other equipments, but also all
data media, i.e. tangible objects on which data are recorded magnetic
disks.
Computer systems which consist of central processing units containing
micro processors and a variety of interconnected peripheral devices
such as printers, scanners , monitors etc
Computer peripherals which are devices such as keyboard, electronic
mouse for the input of data and commands
Components of an Information System
Software Resources:
It consists of software including the sets of operating instructions called
programs which direct and control computer hardware.
Also the sets of information processing instructions called procedures that
people need.
System software such as an operating system program, which controls and
supports the operations of a computer system.ex Microsoft windows and Unix
Application Software are programs that direct processing for a particular use
of computers by end users.ex. Sales analysis, payroll and word processing
programs
Procedures are operating instructions for the people who will use an
information system.ex instructions for filling out a paper form or using a
software package.
Components of an Information System
Data Resources:
Data are more than the raw material of information systems. The
concept of data resources have been broadened by managers. They
realize that data constitute valuable organisational resources.
Data that previously were captured as a result of common transactions
now stored, processed and analysed using sophisticated software
applications that can reveal complex relationships among sales,
customers, competitors and markets.
Database that holds processed and organised data
Knowledge bases that hold knowledge in a variety of forms, such as
facts, rules and case examples about successful business practices
Components of an Information System
Network Resources:
Telecommunications technologies and networks like the Internet,
intranets, and extranets are essential to the successful e-business and
e-commerce operations of all types of organizations and their
computerbased information systems.
Network resources include :
Communication media: examples include twisted-pair wire, coaxial and
fiberoptic cables and microwave, cellular wireless technologies
Network Infrastructure: This generic category emphasizes that many
hardware, software and data technologies are needed to support the
operation and use of a communications network examples-
modems,internetwork processors, browser packages
Contemporary Approaches to Information System
Contemporary Approaches to Information System
• The study of Information Systems is a multidisciplinary field.
• In general the field can be divided into Technical and Behavioural
approaches.
• Though IS are composed of machines, devices and hard physical
technology, they require substantial social, organizational and
intellectual investments to make them work properly
Contemporary Approaches to Information System
Technical Approach
The technical approach to Information systems emphasizes mathematically
based models to study information systems.
The disciplines that contribute to the technical approach are computer
science, management science and operations research.
Computer science is concerned with establishing theories of computability ,
methods of computation, and methods of efficient data storage and access.
Management science emphasizes the development of models for decision
making and management practices.
Operations research focuses on mathematical techniques for optimizing
selected parameters of organizations, such as transportation, inventory
control and transaction costs
Contemporary Approaches to Information System

Behavioural Approach
An important part of the information systems field is concerned with behavioural
issues that arise in the development and long-term maintenance of information
systems.
Issues such as strategic business integration, design, implementation, utilization and
management cannot be explored usefully with models used in the technical
approach.
For instance, sociologists study information systems with an eye towards how
groups and organisations shape the development of systems and also how systems
affect individuals, groups and organizations.
Psychologists study information systems with an interest in how human decision
makers perceive and use formal information.
Economists study information systems with an interest in understanding the
production of digital goods, the dynamics of digital markets, and how new
information systems change the control and cost structures within the firm
MIS Functions/Roles
Types of Information Systems
Because there are different interests, specialities and levels in an organisation,
there are different kinds of systems.
A typical business organisation has systems supporting processes for each of
the major business functions- systems for sales and marketing, manufacturing
and production, finance and accounting, and human resources.
A business firm has systems to support different groups or levels of
management.
These systems include:-
Transaction processing system
Management Information system
Decision Support system
Systems for business Intelligence
Transaction Processing System
Operational managers need systems that keep track of the elementary
activities and transactions of the organisation, such as sales, receipts,
cash deposits, payroll, credit decisions, and the flow of materials in a
factory.
A transaction processing system 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, and shipping.
At the operational level, tasks, resources, and goals are predefined and
highly structured. The decision to grant credit to a customer, for
instance, is made by a lower level supervisor according to a predefined
criteria
A Payroll TPS
A Payroll TPS
A payroll system keeps track of money paid to employees. An employee
time sheet with the employee’s name, social security number and
number of hours worked per week represents a single transaction for
this system.
Once this transaction is input into the system, it updates the system’s
master files that permanently maintains employee information for the
organisation.
The data in the system are combined in different ways to create reports
of interest to management and government agencies and to send
paychecks to employees
Managers need TPS to monitor the status of internal operations and
the firm’s relations with the external environment.
TPS & MIS
Management Information System
Middle management needs systems to help with monitoring,
controlling, decision-making and administrative activities.
The term management Information systems (MIS) also designates a
specific category of information systems serving middle management.
MIS provides middle managers with the reports on the organisation’s
current performance. This information is used to monitor and control
the business and predict future performance.
MIS summarize and report on the company’s basic operations using
data supplied by transaction processing systems.
The basic transaction data from TPS are compressed and usually
presented in reports that are produced on a regular schedule.
Sample MIS Report
Decision –Support system (DSS)
DSS support more non-routine decision making. They focus on
problems that are unique and rapidly changing, for which the
procedure for arriving at a solution may not be fully predefined in
advance.
Although DSS use internal information from TPS and MIS, they often
bring in information from external sources, such as current stock prices
or product prices of competitors.
These systems use a variety of models to analyze the data and are
designed so that users can work with them directly
Decision Support System (DSS)
Decision Support Systems (DSS)
Decision support systems are computer-based information systems that
provide interactive information support to managers and business
professionals during the decision-making process.
Decision support systems use:-
1. Analytical models
2. Specialized databases
3. Decision maker’s own insights and judgements
4. An interactive, computer-based modelling process to support
business decisions.
DSS Components
Decision support systems rely on model bases as well as databases as
vital system resources. A DSS model base is a software component that
consists of models used in computational and analytical routines that
mathematically express relationships among variables.
For example : a spreadsheet program might contain models that
express simple accounting relationships among variables, such as
Revenue – Expenses = Profit.
System for Business Intelligence
Business Intelligence is a contemporary term for data and software
tools for organising, analysing and providing access to data to help
managers and other enterprise users make more informed decisions.
Business intelligence applications are not limited to middle managers,
and can be found at all levels of the organization, including systems for
senior management.
Senior managers need systems that address strategic issues and long
term trends, both in the firm and in the external environment
Executive Support System (ESS)
• Executive Support Systems help senior management make these
decisions. They address non-routine decisions requiring judgement,
evaluation and insight because there is no agreed-on procedure for
arriving at a solution
• ESS present graphs and data from many sources through an interface
that is easy for senior managers to use.
• Often the information is delivered to senior executives through a
portal, which uses a Web interface to present integrated personalised
business content.
ESS showing Dashboard
Information System
Components of Web-enabled marketing Decision support system
Enterprise Applications of Decision Support
System (DSS)
Management Reporting Alternatives
Management information systems provide a variety of information
products to managers. Four major reporting alternatives are provided
by such systems:-
1. Periodic Scheduled Reports:
This traditional form of providing information to managers uses a
prespecified format designed to provide managers with information on
a regular basis. Typical examples of such periodic scheduled reports are
dailyor weekly sales analysis reports and monthly financial statements
Management Reporting Alternatives
2. Exception Reports :
In some cases , reports are produced only when exceptional conditions
occur. In other cases, reports are produced periodically but contain
information only about these exceptional conditions. For example, a
credit manager can be provided with a report that contains only
information on customers who have exceeded their credit limits.
Management Reporting Alternatives
3. Demand Reports and Responses:
Information is available whenever a manager demands it. For example,
Web browsers, DBMS query languages, and report generators enable
managers at PC workstations to get immediate responses or to find and
obtain customized reports as a result of their requests for the
information they need
Management Reporting Alternatives
4. Push Reporting:
Information is pushed to a manager’s networked workstation. Thus
many companies are using webcasting software to broadcast selective
reports and other information to the networked PCs of managers and
specialists over their corporate intranets.