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Published by: Aouf Pa on Apr 30, 2012
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Types of Information Systems

Business Information Systems

Objectives What are the key information systems in a business? What role do they play ?Classify IS based on the organizational level they support How do information systems support the major business functions? How do these functions interrelate? What role does software have in management of those interrelationships?

Business Information Systems

Why Organizations need Information Systems • Linking Departments whose functions are different • Enhancing Worker Productivity • Improving the Quality of Goods and Services • Meeting Global Challenges • Capturing opportunities in the Market Place • Supporting Corporate Strategy 4 .

• To make available. right information at the right place at the right time at the lowest cost • To ensure that wrong and unwanted information is not generated. the condition of the ‘information overload’ is avoided .BIS -Objectives • To provide requisite information support for managerial functions within the organization.

Management Functions • • • • • Planning Organising Staffing Directing and Controlling .

Management Hierarchy Top (Strategic) Management Middle (Tactical) Management Line (Operational) Management .

Information Systems IS support needed by people depends on their role in the organization. – – – – Top managers make strategic decisions Middle managers make tactical decisions Line managers make operations decisions Knowledge workers create and integrate knowledge – Clerical workers use and manipulate information .

Types of Information Systems .

Information Systems .

Operations Support Systems – – – – Efficiently process business transactions Control industrial processes Support communication and collaboration Update corporate databases 2.Types of Information Systems 1. Management Support Systems – Provide information as reports and displays – Give direct computer support to managers during decision-making .

Operations Support Systems Efficiently process business transactions Control industrial processes Support communications and collaboration Update corporate databases .1.

2 Process Control Systems 1.1 Transaction Processing Systems 1.Types of Operations Support Systems 1.3 Enterprise Collaboration Systems .

merging. production instructions Student grade cards preparation .Transaction Processing Systems (TPS): A computerized system that performs and records daily routine transactions necessary to the conduct of the business Inputs: Transactions or events Processing: Sorting. supervisors Examples: payroll system. listing. summaries Users: Operational personnel. updating Outputs: Detailed reports. lists.

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

2 Process Control Systems – Monitor and control physical processes – Example: using sensors to monitor chemical processes in a petroleum refinery 1. video conferencing .3 Enterprise Collaboration Systems – Enhance team and workgroup communication – Examples: email.Operations Support Systems-contd 1.

3 Executive information systems .2.1 Management information systems 2. Management Support Systems Provide information and support for effective decision making by managers 2.2 Decision support systems 2.

. monthly. low level analysis • Outputs: Summary reports. and annual resource allocation. Not five year plans and not daily details.displays • Users: Middle managers Example: Weekly.Management Information System (MIS): • Inputs: Summary transaction data • Processing: Simple models. but something in between.

statistical test results.which regions to concentrate? etc Example: Could answer the following query: . Simulations and statistical analysis Outputs: Responses to queries. Users: Professionals. Which items are the worst performing? “Sales analysis. staff “We need to trim 5% of our service offerings to limit complexity in operations.Decision Support System (DSS): • • • • Inputs: databases optimized for statistical analysis Processing: Interactive.

Types of DSS .Analytical Modeling • What-if Analysis • Goal Seeking Analysis • Optimization Analysis .

year) to evaluate how to proceed next (quarterly sales data for past 5 years) .MIS Vs DSS • DSS has more analytical capabilities built into it.managers can change inputs and get an idea of the changes in the output • Some characteristics of MIS that make them differ from DSS • Structured and semi-structured decisions – Output is often the kind that you need routinely each term (quarter. Perform what-if analysis. month.

Answer questions like “what are long-term industry cost trends and how are we doing relative to them?” “ What business should we be in ?How to diversify?Competition scenario?Which unit to sell?What to buy? etc • Gets data from all internal IS plus external industry data bases .Executive Information System (EIS): Top level (strategic level)• • • • Inputs: Aggregate data. Internal and external Processing: Interactive and graphical simulations Outputs: Projections Users: Senior managers Example: 5-year operating plan.

Characteristics of Executive Information Systems (EIS) Top level management Designed for the individual requirements Ties CEO to all levels Very expensive to keep up Extensive support staff .

Interrelationships among systems EIS MIS DSS KWS TPS .

Overlapping perspective A single software package like Microsoft Office or even an application like Microsoft Excel could be classified as any or all of the following: DSS. . a CBIS meets a need posed by the environment • A service provided by the CBIS is a solution. TPS.Systems . It is a MIS. MIS. EIS etc depending on what solution in the corporate hierarchy it serves. DSS. or EIS • What matters here is how the tool is used • Basically.

MIS.EIS INTERRELATIONSHIPS: - TPS generally feed all other systems MIS generally indicate when a DSS is needed and provide input for them to crunch EIS take all internal data but usually only summary data from MIS and DSS level - Output data from one is input data for others to process .TPS.DSS.

tech staff – Example: intranet access to best business practices .2 Knowledge Management Systems – Support creation.3) Other Information Systems 3. and dissemination of business knowledge throughout company Encompasses the organizational knowledge – mainly useful for professionals .1 Expert Systems – Provide expert advice – Example: credit application advisor 3. organization.

finance. e-commerce Web systems 3. or marketing .4 Functional Business Systems – Focus on operational and managerial applications of basic business functions – Examples: accounting.Other Information Systems 3.3 Strategic Information Systems – Help get a strategic advantage over customer – Examples: shipment tracking.

TPS Management Information Systems Decision Support Systems .History of the role of Information Systems 1950-1960 Data Processing 1960-1970 Management Reporting 1970-1980 1980-1990 1990-2000 Electronic Commerce Decision Support Strategic & End User Electronic Data Processing .Ad hoc Reports End User Computing Exec Info Sys Expert Systems Electronic Business & Commerce -Internetworked E-Business & Commerce .

e-Business • Using Internet technologies to empower… – – – – Business processes Electronic commerce Collaboration within a company Collaboration with customers. an online exchange of value . and other business stakeholders • In essence. suppliers.

How E-Business is Being Used .

coordination and coordination among teams and work groups • Electronic commerce – Buying. marketing. selling.E-Business Use • Reengineering – Internal business processes • Enterprise collaboration systems – Support communications. and servicing of products and services over networks .

Information Architecture and Information Technology Infrastructure TOWARDS THE DIGITAL FIRM .

DSS.MIS.Identify the TPS.EIS in the following functional areas Sales and Marketing Manufacturing and production Finance and accounting Human resources Write down at least two items for each IS in each of the functional areas .

region wise EIS • Sales trend forecasting – 5year .Sales and Marketing TPS • MIS • Order Processing Sales management DSS • Sales analysis .

CAD .Manufacturing and Production TPS • MIS • • DSS • • • EIS • • Material movement monitoring and control Inventory control Production scheduling Operations analysis Inventory analysis Production planning and control Operations planning – 5 year Facilities location KWS .

Human resources TPS • MIS • Employee records/attendance keeping Personnel Info systems DSS • Employee cost analysis EIS • • Personnel planning Succession planning .

Finance and accounting TPS • • MIS • Payroll Accounts payable Annual budgeting DSS • Profitability analysis • Cost analysis EIS • • Profit planning Investment planning .

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

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