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Major Types of Systems in Organization

Strategic Level Systems (ESS) Management Level Systems (MIS & DSS) Operational Level Systems (TPS & OAS)

Transaction Processing Systems;

TPS is an organized collection of people, procedures, S/W & DB, devices used to record completed business transactions.

E.g transactions like sales to customers, payments to suppliers, A/C receivables etc

computerized systems that performs & records the daily routine transactions necessary to the conduct of the business, they serve the org’s operational levels.

Input ------------- events Process -------------- listing, merging, updating Output -------------- detailed reports Users --------------- operations personnel

Characteristics of TPS

• Supports routine operations associated with customer order, billing etc

• Support for decision makers through MIS & DSS• TPS work with a large amount of I/P & O/P data & use

this data to update the official records of the company

• TPS perform activities related to customer contacts, these information play a vital role in providing value to the customers

Types of TPS; 1. Batch processing 2. On-Line Processing

Office Automation SystemsOffice Automation Systems

Computer systems, such as word processing, e-mail systems, & scheduling systems that are designed to increase the productivity of data workers in the office.

OA may be defined as a separate sub-system includedWithin information processing. It includes a wide-range ofSupport facilities for knowledge work & clerical activities.

Examples are;

Word processing Electronic mail Electronic filing Data & voice communications

Overview of OASOverview of OAS Office publishing systemsOffice publishing systems

Word processingWord processingDesktop publishing Desktop publishing

Image processing systemsImage processing systemsImage processingImage processingElectronic document mgt Electronic document mgt

Electronic communication systemsElectronic communication systems

Electronic mailElectronic mailVoice mailVoice mailFacsimile (FAX)Facsimile (FAX)

Management Information SystemManagement Information System“Integrated collection of people, procedures, DB, & devices that provides managers & decision makers with information to help & achieve orgal goals”.

IS at the mgt level of an org that serve the functions ofplanning, controlling, & decision making by providing routine summary & exception reports. MIS help M’gers in both like semi-structure & structured decisions.

Semi-structured ----- reduces the risk & complexity

MIS use simple analytical models which are often used in most of the business problems.

MIS use detailed reports from TPS as I/P. MIS consumes high volume of tractions data.

MIS in Perspective; Primary purpose of an MIS is to help an org to archive its goals by

providing M’gers with insight into the regular operations of the org MIS help to control, organize & plan the org program more effectively MIS role is to provide the right information to the right person in

the right format at right timeCharacteristics of MIS;

MIS support structured & semi structured decisions at the operational & management control levels

MIS rely on existing corporate data & data flows MIS are relatively inflexible Information requirements are known & stable MIS are generally reporting & control oriented MIS designed to report on existing operations It aid in decision making, using the past & present data

Types of MIS Reports;1. Periodic Schedule reports2. Demand or Response report3. Exception report4. Push report

OrderProcessing

system

MaterialsMgt

system

GeneralLedgersystem

Salesdata

ProductCostdata

Productiondata

Customerfile

Productionfile

A/Cfile

Expensesdata

MIS

Reports

Mangers

TPS MIS

Decision Support System [ DSS]Decision Support System [ DSS]

Supporting system at the mgt level of an org that combine data & sophisticated analytical models to support semi-structured decision making. It offer greater computing as well as graphical Capabilities.

It consume relatively less data but can use the data from different fields of the business.

DSS provide managerial end users with information in an interactive session

General Structure of DSSGeneral Structure of DSS

process

cost

competitors

product

DB

Analytical model DBComprises of

1.Behaviour Model

2.Mgt science Model

3.OR Model

Model Base DSS S/W

computer

Graphics &Reports

Characteristics of DSS;

DSS offer users flexibility, adaptability & a guide response.

DSS allow users to initiate & control the I/P & O/P.

DSS operate with little (or) no assistance from professional programmers.

DSS provide support for decision & problems whose solutions can’t be specified in advance.

DSS use sophisticated analysis & modeling tools.

Disadvantages of DSSDisadvantages of DSS Unable to replicate some innate Unable to replicate some innate

human knowledge mgt skillshuman knowledge mgt skills May be too specificMay be too specific Can’t overcome a faulty decision Can’t overcome a faulty decision

makingmaking Over dependence dangersOver dependence dangers May not match DM mode of May not match DM mode of

expression or perceptionexpression or perception

Differences b/w MIS & DSSDifferences b/w MIS & DSSMISMIS DSSDSS

Decision Decision support support providedprovided

Provide inform. About Provide inform. About the performance of the performance of the orgthe org

Provide inform. & support Provide inform. & support techniques to analyze specific techniques to analyze specific problems or opportunitiesproblems or opportunities

Inform. form Inform. form & frequency& frequency

Periodic, exception, Periodic, exception, demand & push demand & push report & responsesreport & responses

Interactive inquiries & Interactive inquiries & responsesresponses

Inform. Inform. formatformat

Pre specified & fixed Pre specified & fixed formatformat

Flexible & adaptable formatFlexible & adaptable format

Inform. Inform. Processing Processing methodologymethodology

Inform. Produced by Inform. Produced by extraction & extraction & manipulation of manipulation of business databusiness data

Inform. Produced by Inform. Produced by analytical modeling of analytical modeling of business databusiness data

Executive Support Systems [ESS]Executive Support Systems [ESS]

Definition;

“ Is at the strategic level of an org designed to address unstructured decision making through advanced graphics & communication”.

ESS help M’gers with unstructured problems, focusing on the inform. Needs of senior mgt data from internal & external source.

ESS help senior executives for monitor org.al performance, track activities of computer, spot problems, identify opportunities, & forecast trends.

MenuMenu Internal DB/Internal DB/ DataData

External DB/External DB/ DataData

1.Graphics1.Graphics2.Communications2.Communications

1.TPS data1.TPS data2. MIS data2. MIS data3. Office systems3. Office systems4. Analytical4. Analytical ModelsModels

1. Competitors 1. Competitors StrategyStrategy2.Money Market2.Money Market DataData3.Published3.Published NewsNews4. BSE index4. BSE index

ESS

Roles of ESS in Organization The systems developed specifically for executives in the early 1980s. 1. Briefing Books 2. Drill-DownBenefits or Advantages of ESS

ESS is found in their flexibility ESS is capable of analyzing, comparing, & highlighting

the trends Executives are free to shape the problems as they needs ESS can & do changes in the working of organization It improves management performance & increase the

upper mgt span of control ESS helps executives for monitor performance more

successfully in their own areas of responsibility Better monitoring of activities through – identifying

changing market conditions, formulating responses, tracking implementation efforts & learning from feedback

Expert SystemsExpert Systems Definition; A computer based IS that uses its knowledge about a specific complex application area to act as an expert consultant to users.

Components of Expert Systems;

Explanationfacility

Inferenceengine

KnowledgeBase

Acquisitionfacility

Userinterface Knowledge

Base

Experts User

Knowledge acquisition facility;

Knowledge base

KnowledgeAcquisition

Facilityinterface

HumanExperts

ES have been used to monitor;

Perform medical diagnoses Design & configuration IS components Develop marketing plans for new product Locate possible repair problems Nuclear reactors

Development of ES; Like other computer systems, ES require a systematic development approach for best result.

Determine requirements

Identifying one or more experts

Maintaining & reviewing system

Implementing results

Constructing ES components

ES

DomainExpert

KnowledgeEngineer

KnowledgeUser

Values of Expert SystemsValues of Expert Systems ES capture the expertise of an expert or group of ES capture the expertise of an expert or group of

experts in a CBISexperts in a CBIS ES can perform as a single expert in many ES can perform as a single expert in many

situationssituations ES is facts & more consistent, can have the ES is facts & more consistent, can have the

knowledge of several experts knowledge of several experts It does not get tired or disturbed by overwork or It does not get tired or disturbed by overwork or

stressstress ES also help to preserve & reproduce the ES also help to preserve & reproduce the

knowledge of expertsknowledge of experts

Group Decision Support System [GDSS]Group Decision Support System [GDSS]

GDSS is an interactive, computer based system that helps a team of decision-makers solve problems and make choices. GDSS are targeted to supporting groups in analyzing problems situations and in performing group decision making tasks.

GDSS is a hybrid system that uses an elaborate comm. In fracture, & quantitative model to support decision making.

GDSS is a groupware. It facilitates interaction among a group of decision makers. GDSS were developed in response to a growing concern over the quality & effectiveness of meetings. GDSS coverts simple electronic boardroom to elaborate collaboration laboratories & with GDSS individuals work on their own PCs, there I/p is integrated on a fileserver.

Characteristics of GDSS;

Each participant has a computer workstation A leader 9facilitator0 co-ordinate the meeting The room has a display screen that all participants can view Computers are networked & client/server architecture is used GDSS used specialized S/W like groupware & tools Tools for voting or setting priorities [ GDSS S/W tools]

Advantages of GDSS;

Broad perspective for problem definition & analysis Improved pre-planning to make meeting more effective & efficient Increased participation & open, collaborative atmosphere-feel free

to contribute More knowledge, fact, & alternatives can be evaluated Documentation of meetings Preservation of organizational memory Criticism free idea generation

HRM ISHRM IS

Systems maintain E’yees records, track E’yee skills, job performance, training, E’yee compensation & carrier development information by support planning.

HR Systems Mgt Report

Online queries

E’yeesMasterfile

E’yees data (from various Dept) To pay roll

Financial ISFinancial IS

Computer based financial IS supports business m’gers & Professionals in decisions. 1. The financing of a business 2. The allocation & control of financial resources

CashMgt

InvestmentMgt

Capitalbudgeting

Financialplanning

FinancialIS

Reports

Enterprise ApplicationsEnterprise Applications

Systems that can co-ordinate activities, Decisions, & knowledge across many diff. functions, levels & business units in a firm. It includes enterprise systems or ERP, SCM, CRM, & KMS.

Suppliers

SCMSourcing & Procurement

ERPInternal business processes

CRMMarketing, sales & service

EMPLOYEEs

PARTNERs

Customers

Knowle dgeMgtCollaboration&Decisionsupport

PartnersRelationshipMgt

Enterprise Application Architecture

Enterprise Systems;

Enterprise systems provide a technology platform where org can integrate & co-ordinate their major internal business processes. They address the problem of organizational inefficiencies created by isolated island of information business processes & technology.

Enterprise systems other wise knows as ERP, it solve the problem by providing a single IS for organization wide co-ordination of key business Processes.

Knowledge based IS

An IS that adds a knowledge base to the DB & other components found in other types of computer based IS.

Knowledge based systems that support the creation & dissemination of business knowledge within the enterprise.

For many companies information portal are the entry to corporate intranet, that serve as their knowledge mgt systems.So such portals are called enterprise knowledge portal by their vendors.

Web User

Enterprise Knowledge Portal

Structured data source Unstructured data source Enterprise knowledge

ERP DB

CRM DB

Other DB

E-mailGroupware

Filesystem

WebNetwork

EnterpriseKnowledgebase

Portal server withKM engine/server

Supply Chain MgtSupply Chain Mgt SCM; Integrating mgt & IT to optimize information & product flows among the processes & business partners within a supply chain. Supply Chain; The network of business processes & inter-relationships among business that are needed to build, sell, & deliver a product to its final customer. A successful SCM strategy is base on accurate order processing, just-in-time Inventory mgt, & timely order fulfillment.Goal of SCM; To create a fast, efficient, & low-cost network of business relationships, to get a company’s products from concept of market. Supply chain processes should add value to the products (or) services a company produces, a supply chain called a value chain.Objective of SCM;

To reduce costs Increase efficiency & improve supply chain cycle times Effective distribution Channel networks among business partners

SCM life cycle; commit schedule make deliver Main Goal of SCM;

Business Value Goals

Rapid demand fulfillmentCollaborative supply chain

Planning & execution

Customer Value Goals

Give customer what they wantWhen & how they want it

At the lowest cost

Inter-enterpriseCo-ordination ofMgt & business

processes

Responsiveness &Accountability

Tocustomers

Effective

Distribution&

Channelpartnership

Customer Relationship Mgt [CRM]Customer Relationship Mgt [CRM] CRM; Across-functional e-business application that integrates & automates many customer serving processes in sales, direct-marketing, accounting & order mgt & customer service & support, retain loyal customers.

Goal of CRM; To understand & anticipate the needs of current & potential customers to increase retention & loyalty while optimizing the way that products & services are sold.

Benefits to Organization; Improve customer satisfaction Increase customer retention Reduced operating costs Ability to meet customer demand Automate & integrate the function of marketing Data about customer contact of a company CRM system

Customer life cycle; Acquire Enhance Retain

Application of CRM;

ProspectsOr

customers

Fax E-mail

WebTelephone

Marketing &Fulfillment

Customer service & support

Retention &Loyaltyprograms

Contact &A/C mgt

Sales