Finl Classification of Information System at Various Levels of Mgt

8/3/2019 Finl Classification of Information System at Various Levels of Mgt

1/30


2/30

Information Systems

An information system(IS) is typicallyconsidered to be a set of interrelatedelements or components that collect(input),manipulate(processes), and disseminate(output) data and information and provide a

feedback mechanism to meet an objective.

y Open System

y Close System


3/30

Introduction

Datay Elementary description of things, events, activities, and

transactions that are recorded, classified, and stored, but not

organized to convey any specific meaning

Informationy Data that has been organized so that they have meaning and

value to the recipient

Knowledgey Information that has been organized and processed to convey

understanding, experience and expertise as they apply to a

current problem or activity


4/30

Information System :Concepts and Definitions

Hardware

Software

Data

Network

Procedures

People

Hardware

Software

People

Data

ApplicationApplication

An information system (IS) collects, processes, stores,analyzes, and disseminates information for a specificpurposeApplication.


5/30

Information System Classification ByOrganizational Structure

Departmental IS

Enterprise-Wide IS

Inter-Organizational IS

Appliance

Server

Store 3

PCThin Client

Appliance

On-line Multi-station Store

Appliance

Server

Store 3

PCThin Client

Appliance

On-line Multi-station Store

Store Location 1

ThinClient

PC

PC

ThinClient

PC

In-house operations

Serial Terminals

Mux

Hub

Unix

Enterprise

Server

Unix

Enterprise

Server

DIALUP/T1/T3/ISDN/FRAME RELAY

Online Telenet System using the Internet

Store Location 2

DIALUP/T1/T3/ISDN/FRAME RELAYMux

Mux

An information system (IS) can span departments,business units and corporations.

Information systems areusually connected by meansof electronic networks


6/30

Information System - Classification By Function(Department)

Operations

Accounting Finance Marketing Human resources

An information system (IS) support each department ina corporation.

Transaction Processing Systems (TPS): Automatesroutine and repetitive tasks that are critical to theoperation of the organization

Point-of-Sale (POS)


7/30

Classification of IS

Information Systems

Operations SupportSystem

Management SupportSystem

Transaction

processing

systems

Process

control

systems

Office

automation

systems

Management

information

systems

Decision

support

systems

Executive

information

systems


8/30

Information System - Classification By SupportFunction

Operational Managers

Data Workers

Middle Managers

Senior MgrExecutive Support SystemExecutive Support System

Management Information SystemManagement Information SystemDecision Support SystemDecision Support System

Intelligent Support SystemsIntelligent Support Systems

Knowledge Management SystemKnowledge Management System

OfficeAutomation SystemOfficeAutomation System

Transaction Processing SystemTransaction Processing System

5-year sales trendProfit Planning5-year budget forecastingProduct development

Sales ManagementInventory Control

Annual budgetProduction SchedulingCost AnalysisPricing Analysis

SimulationPgm codingSystem supportWord Processing

Desktop Publishing

Order ProcessingFulfillmentMaterial MovementA/R, A/P, GLPayrollPOS


9/30

Transaction Processing System (TPS)

TPS automates routine and repetitive tasks that are critical tothe operation of the organization, such as preparing a payroll,

billing customers, Point-of-Sale and Warehouse operations.

Data collected from this operation supports the MIS and DSS

systems employed by Middle Management

Computerizes the primary and most of the secondary activitieson the Value Chain.

Primary purpose to perform transactions and collect data.

In addition to this

Process business exchanges Maintain records about the exchanges

Handle routine, yet critical, tasks

Perform simple calculations


10/30

Transaction Processing System (TPS)


11/30

Example of a Transaction

Processing System


12/30

Typical Applications ofTPS


13/30

Office Automation Systems (OAS)

Electronic communication is only one aspect of what

is now known as an office automation system (OAS).

Other aspects include word processing systems,

document management systems and desktop

publishing systems.

OAS systems are predominantly used by clerical

workers who support managers at all levels. Among

clerical workers, those who use, manipulate, or

disseminate information are referred to as dataworkers.


14/30

Examples of Office Automation

System

Word processing

Tele conferencing

Electronic mail


15/30

Knowledge Management Systems

Knowledge Management Systems ("KMS") exist to

help businesses create and share information.

These are typically used in a business where

employees create new knowledge and expertise -

which can then be shared by other people in the

organization to create further commercial

opportunities. Good examples include firms of

lawyers, accountants and management

consultants.


16/30


17/30

Decision Support Systems (DSS)

These systems support complex non-routine decisions.

Primary purpose to process data into information

DSS systems are typically employed by tactical level management

whose decisions and what-if analysis are less structured.

This information system not only presents the results but also

expands the information with alternatives.

Some DSS methodologies

y Mathematical Modeling

y Simulation

y Queries

y Data minin


18/30

Decision-Support Systems (DSS)


19/30

Decision Support System


20/30

Management Information Systems (MIS)

These systems access, organize, summarize, anddisplayed information for supporting routine decisionmaking in the functional areas. Geared toward middlemanagers, MIS are characterized mainly by their

ability to produce periodic reports such as a daily listof employees and the hours they work, or a monthlyreport of expenses as compared to a budget

Typical uses would be in Replenishment, Pricing

Analysis (Markdowns) and Sales Management Decisions supported are more structured.

Primary purpose to process data into information


21/30

ORGANISATIONAL PROBLEM

SOLVERS

OPERATIONAL

MODELS

REPORT

WRITING

ENVIRONMENT

ENVIRONMENT

MANAGEMENT

INFORMATION SYSTEM

DATA INFORMATION

DATABASE

Working of MIS


22/30

Management Information Systems (MIS)


23/30

Executive Support System (ESS)

Support information needs of very senior executives lack of

computer literacy among senior executive prevent widespread use

but situation fast changing

Graphical

Easy to use interface

Broad aggregated, perspective

Optionally expand to detail level

Provide context

Integrate many sources of data

Timeliness crucial


24/30

Executive Support Systems (ESS or EIS)

Internal Data

TPS/MIS data Financial data

Office systems

Modeling/

analysis

External Data

Dow Jones Internet news

Standard &

Poors


25/30

Example ofESS


26/30


27/30

Advantages of IS1. It Facilitates planning : MIS improves the quality of plants by providing

relevant information for sound decision making.

2. In Minimizes information overload : MIS change the larger amount of data in

to summarized form and thereby avoids the confusion which may arise when

managers are flooded with detailed facts.

3. MIS Encourages Decentralization : Decentralization of authority is possiblywhen there is a system for monitoring operations at lower levels.

4. It brings Co ordination : MIS facilities integration of specialized activities by

keeping each department aware of the problem and requirements of other

departments. It connects all decision centers in the organization .

5. It makes control easier : MIS serves as a link between managerial planning

and control. It improves the ability of management to evaluate and improve

performance . The use of computers has increased the data processing and

storage capabilities and reduced the cost .

6. MIS assembles, process , stores , Retrieves , evaluates and Disseminates theinformation .


28/30

Disadvantages of IS

Risk of exposing confidential data

Synchronizing the deliverables

Hidden costs

Lack of customer focus


29/30


30/30

Thanks

Finl Classification of Information System at Various Levels of Mgt

Documents

Transcript of Finl Classification of Information System at Various Levels of Mgt