3 mis & business functions
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Transcript of 3 mis & business functions
TYPES OF INFORMATION SYSTEM
Two perspective
1. Based on different functions
Marketing, Finance, HRM, Operations etc.
2. Based on constituency
Lower mgmt., Middle mgmt., Top mgmt.
Financial Information System
Every organisation whether business or non-business is required to perform financial activities in order to carry its operations.
Financial decisions have three major dimensions: Determination of total amount of funds to be used by the
organisation Determination of what specific assets the organisation should
acquire, i.e. allocation of funds among various assets in an efficient manner
Determination of how the needed funds would be financed/raised
Basically, raising, distributing and administrating funds.
Model of Financial Information System
Accounting subsystem
Financial Intelligence subsystem
Database Users
Funds Management subsystem
Control subsystem
Data flow
Information flow
Output Subsystem Input Subsystem
Accounting Subsystem
Captures transaction data and processes these to prepare various account books.
To ascertain the cumulative effect of the transactions in the form of financial statements like P&L statement, Balance sheet etc.
Financial Intelligence Subsystem
It gathers relevant information from financial environment comprising specialized financial institutions, commercial banks, stock exchange, monetary policy etc. for raising funds and investing surplus funds for making profits.
Funds Management Subsystem
It tracks the information flow related to acquisition, distribution and administration of funds.
Control System
Another output of financial information systems.
Task of ensuring that activities are producing the desired results.
Helps in exercising control related to financial aspects of organizational operations.
Budgetary Control – Preparing budgets and optimum utilization of resources to achieve the goal.
Marketing Information System
Marketing Information System
It consists of people, equipment and procedures to collect, sort, analyze, evaluate and distribute needed, timely, and accurate information to marketing decision makers.
For this, we may take the following aspects of marketing: Types of products to be offered Price at which products to be offered Place where products to be offered Promoting products to win customers
Model of Marketing Information System
Marketing research subsystem
Marketing Intelligence subsystem
Database Users
Product subsystem
Pricing subsystem
Distribution subsystem
Promotion subsystem
Data flow
Information flow
Output Subsystem Input Subsystem
Marketing Research System
Marketing research subsystem collects data from external sources particularly from distributors, retailers and customers
Various packages are available performing variety of applications like statistical analysis etc.
Marketing Intelligence System
Concerned with appraising total marketing environment for assessing opportunities & threats.
Product Subsystem:
Product subsystem collects information that helps in determining product features, market segmentation, product positioning and branding.
Pricing System:
Traces information related to price fixation and price change.
Distribution subsystem:
Traces information for selecting distribution channel and managing supply chain/ distribution.
Promotion Subsystem:
Traces information to design promotion mix and various promotional efforts that can be undertaken.
HRM Information System
Model of a Human Resource Information System
H R research subsystem
H R Intelligence subsystem
Database Users
H R Acquisition subsystem
H R Development subsystem
Appraisal & Compensation
subsystem
Industrial relations subsystem
Data flow
Information flow
Output Subsystem Input Subsystem
Production Information System
Production Information System
Industrial Engg. subsystem
Production Intelligence subsystem
Database Users
Manufacturing subsystem
Inventory subsystem
Quality subsystem
Cost subsystem
Data flow
Information flow
Output Subsystem Input Subsystem
Based on Constituency
– MIS Classification
This perspective examines systems in terms of the various levels of management and the type of decisions that they support.
Transaction Processing System (TPS)
Management Information System (MIS)
Decision Support System (DSS)
Executive Support System (ESS)
Office Automation Systems (OASs)
Business Expert Systems (BESs)
Transaction Processing System
TPS represents automation of fundamental,
routine processing used to support to business operations.
Does not provide any information to user for decision – making.
DATA
PROCESSING
DATA
Input Output
It is also known as Data Processing System.
It is restricted to the lowest level of management hierarchy.
Transaction may be
External (from customers, suppliers etc.)
Internal ( transferring work in process from one stage to the next, recording depreciation on equipment)
Transaction Processing System
Management Information System
Input Processing Output
TPS
DATA
INFORMATION
Management Information System
MIS uses TPS as its input
Information generated may be used for control of operations
Strategic and long-range planning
Short-range planning
Management control
Other managerial problem solving
Management Information System
The domain of MIS is management level control of management hierarchy.
MIS is more comprehensive as compared to TPS.
MIS is capable of providing analysis, planning and decision-making support.
As MIS is an integrated system, it caters to information needs for managers in all functional areas.
The functional areas of a business may be
Marketing
Production
Human resource
Finance etc.
Management Information System
Decision Support System (DSS)
Decision support system is tailored to specific managerial task or specific problem.
It is designed primarily to serve management control and strategic planning level managers.
Comprises of three components :
Database
Model base
User Interface
Decision Support System (DSS)
DATABASE
MODEL BASE
USER INTERFACE
USER
Database : Contains master files (internal corporate data) and data from external sources.
Model Base : Library of models to manipulate and analyze the data in the desired ways. This model might include econometric models to forecast demand by industry and simulate models of the corporation.
User Interface : The interface through which the user can communicate with the DSS.
Decision Support System (DSS)
DSS can be differentiated from MIS in terms of its processing capabilities.
The MIS processes data to convert it to information whereas DSS processes information to support the decision making process of a manager.
Decision Support System (DSS)
Information from MIS
Decision (most
appropriate)
A1
A2
A3
A4
ALTERNATIVE PROCESSING
Decision Support System (DSS)
ESS is an extension of MIS which is a special kind of DSS.
It is tailored for the use of chief executive of an organization to support his/her decision-making.
It is comprehensive information system which includes various types of decision-support systems.
Executive Support System (ESS)
Hierarchy of Information System
ESS
DSS
MIS
TPS
MIS STRUCTURE-Holistic view
MIS STRUCTURE CONSISTS OF DIFFERENT INFORMATION SYSTEMS WITH EACH SYSTEM PROVIDING INFORMATION RELEVANT TO A SPECIFIC AREA WHICH MAY BE IDENTIFIED ON THE BASIS OF:
MANAGEMENT LEVELS – TOP, MIDDLE, AND LOWER
ORGANISATIONAL FUNCTIONS – PRODUCTION, MARKETING, FINANCE, AND PERSONNEL
FUNCTIONS OF MANGEMENT – OPERATIONAL PLANNING AND CONTROL, MANAGEMENT CONTROL,STRATEGIC PLANNING.
Various information systems and their integration determine the MIS architecture/structure.
MANAGEMENT LEVELS
MANAGEMENT FUNCTIONS
INFORMATION SYSTEMS
Top
Middle
Lower
Strategic Planning
Management Control
Operational Planning and Control
Overall Management
Organizational Functions
Pro
duct
ion
Mark
eting
Fin
ance
Pers
onnel
MIS support facilities
Hardware, Software, database, MIS Professionals
Executive Support System
Decision Support System
Expert System
& OAS Management Information System
Transaction Processing Systems
M I S S T R U C T U R E
MIS PROFESSIONAL
1. Chief Information Officer
2. System Analyst
3. Database Administrator
4. Network Specialist
5. Programmer
6. Operator
CONCLUSION
To understand information system, one must understand
Organization goals/objectives
The problem they are designed to solve
Their architectural and design elements
The organizational process that lead to these solutions.