SKS1362

INFORMATION AND COMMUNICATION TECHNOLOGY

INFORMATION SYSTEMS
BASED ON MALAYSIA MADANI

GROUP 2 (MLB3)

LECTURER: DR. NURDIANA BINTI AZIZAN

GROUP MEMBERS:

1. NUR FARIESHA HUDA BINTI ZAIHAN 1222097

2. NURFARAH NABILLAH BINTI DININ 1222099

3. RABIATUL ADAWIYAH BINTI BHAIF 1222100

4. TASNIM AMANIYAH BINTI MD AMIR 1222104

5. FARAH NAZIRAH BT ABDUL KARIM 1222108

FACULTY OF SYARIAH AND LAW  

UNIVERSITI SAINS ISLAM MALAYSIA  
SEMESTER II, 2022/2023 
TABLE OF CONTENTS

Contents
1.0 INTRODUCTION.........................................................................................................................3
2.0 INSTRUCTION.............................................................................................................................3
3.0 ORGANIZATIONAL SYSTEM...................................................................................................4
4.0 COMPUTER BASED-INFORMATION SYSTEM....................................................................6
4.1 TRANSACTION PROCESSING SYSTEMS (TPS)...............................................................6
4.2 MANAGEMENT INFORMATION SYSTEM (MIS)...............................................................12
4.2.1 BENEFITS OF MANAGEMENT INFORMATION SYSTEM (MIS)...............................................13
4.2.2 REPORTS OF MANAGEMENT INFORMATION SYSTEM (MIS)...............................................13
4.3 DECISION SUPPORT SYSTEM...........................................................................................16
4.3.1 COMPONENTS OF DSS........................................................................................................16
4.3.2 TYPES OF DSS..................................................................................................................17
4.3.3 ADVANTAGE AND DISADVANTAGE OF DSS..........................................................................18
4.3.4 DECISION SUPPORT SYSTEM EXAMPLES.............................................................................18
4.4 EXECUTIVE SUPPORT SYSTEM.......................................................................................21
4.4.1 Features of Executive Information System..........................................................................22
4.4.2 The Organization's Function of Executive Support Systems................................................23
4.4.3 Positive and Negative Aspects of Executive Support System..............................................25
5.0 CONCLUSION............................................................................................................................26
6.0 REFERENCE..............................................................................................................................28
1.0 INTRODUCTION
Information Systems is a vital component in today's world, and it plays a significant
role in our daily lives since it has revolutionized the way we live, work, and communicate.
Information system also helps individuals, organizations, and governments make informed
decisions and maintain their competitive edge. One such emerging system is Malaysia
Madani, which is an information system based on the concept of digitalization and smart
governance. Malaysia Madani is a vision for a civilised, skilled and inclusive society based
on few values and the information system based on Malaysia Madani would be one from that
supports these values and helps to achieve the vision. This system is designed to streamline
various administrative processes and improve the overall efficiency of the government.
Information systems based on Malaysia Madani have become an essential tool for businesses,
organizations, and individuals in the country, as it provides them with easy access to
information, streamlined processes, and efficient services since information system based on
Malaysia Madani could be used to improve the lives of Malaysians in countless ways.

2.0 INSTRUCTION
First, we analyse the objectives behind the information system of Malaysia madani. As we all
know Malaysia as a country for sure there is a lot of confidential data and information that
need to be kept and held secure by the responsible party. Technology advancement has
facilitated the work of keeping these crucial information and data in a very private but easy to
access place. The first objective of the information system that can contribute to Malaysia
Madani advancement is that this system helps to collect and save data to help in supporting
decision making. In a big organisation such as a country there is a lot of data and information
that needs to be analysed and looked at before coming out with a decision because at the end
of the day it will affect all the people in the country as a whole. For example, the minister
needs to refer and analyse a graph which records and shows the statistics of expenditure of
the country before making the decision on the amount that will be spent and funded by the
citizen. This data is very crucial to be referred to. Other than that, information systems also
help in controlling and managing the organisation for example a country. Organization
usually holds and stores very confidential information and data regarding the employee’s
private and personal information as well as the organisation confidential information. It is
important to have an organisation and database for a big organisation. By applying this in an
organisation database, it can control people who can access to it but still can be find easily
when needed. 

NURFARAH NABILLAH BINTI DININ (1222099)

3.0 ORGANIZATIONAL SYSTEM

Organizational systems are structures that are designed to help businesses and other
organizations achieve their goals and objectives. Organizational systems based on
information systems are becoming increasingly important especially in today's digital era.
These systems are designed to support the flow of information within an organization, these
systems also can be comprised of a variety of different components, including people,
processes, technology, and resources. The goal of an organizational system is to create a
framework that allows the organization to operate efficiently and effectively besides, it might
help to ensure that employees have the information they need to make informed decisions and
take appropriate actions.

An information system is a set of interconnected components that collect, process,

store, and distribute information to support decision-making and control in an organization 1.
These components can include hardware, software, data, people, and procedures. One key
component of an organizational system based on information systems is the database.
Databases are used to store and organize large amounts of data, making it easier for
employees to access and analyze information. They can be used to track customer orders,
employee performance, financial data, and much more. Another important component of an
organizational system based on information systems is the software applications that are used
to support business processes. For example, a company might use an Enterprise Resource
Planning (ERP) system to manage its finances, inventory, and production processes. These
systems are designed to automate routine tasks, reduce errors, and improve efficiency.

Every organization has five basic functions and more that are critical to its success
which are accounting, marketing, human resources, production, and research. These functions
work together to ensure that the organization is able to achieve its goals and objectives in a
systematic and efficient manner. Hence we will go through with the details of these functions.

NURFARAH NABILLAH BINTI DININ (1222099)

1
1. David Bourgeois, “Chapter 1: What Is an Information System?,” Information Systems for Business and
Beyond (2019), August 1, 2019, https://opentextbook.site/informationsystems2019/chapter/chapter-1-what-is-
an-information-system-information-systems-introduction/
 1. Accounting: The accounting function is responsible for tracking the financial
activities of an organization. By tracking financial activities, the accounting function can help
identify areas where costs can be reduced or revenue can be increased, it also helps in
preparing financial statements, the accounting function can help stakeholders make informed
decisions about the organization's future. Next the function of managing cash flow, the
accounting function can help ensure that the organization has enough money to meet its
financial obligations. This includes recording all income and expenses or preparing financial
statements. The accounting function is important for providing stakeholders with accurate
information about the financial health of the organization. According to a study by the
American Institute of Certified Public Accountants titled "The Value of Accounting, "in 2016,
it reveals that organizations that have strong accounting systems are 50% more likely to
survive for five years than organizations that do not. These statistic shows that accounting is
an important part of organizational success. By providing accurate and timely financial
information, accounting can help organizations make better decisions, manage risk, and
improve efficiency.

2.Marketing: The marketing function is responsible for creating and communicating

value for an organization's products or services. It also helps in identifying and understanding
customer needs, ensure that the organization is developing products or services that
customers want. developing marketing strategies, help the organization reach its target
audience and communicate the value of its products or services. Besides it will be putting
marketing campaigns and the marketing function can generate awareness or interest in the
organization's products or services. The marketing function is important for generating
demand for an organization's products or services and for increasing sales. The study was
conducted in 2022, the study was conducted Demand Gen Report surveyed over 1,000 B2B
buyers 97% of B2B buyers say they make purchase decisions based on content and
experiences provided by brand. B2B marketing, also known as business-to-business
marketing, is a type of marketing that focuses on selling products or services to other
businesses, rather than to consumers. The study found that marketing can help organizations
by generating leads, nurturing leads and closing deals.
NURFARAH NABILLAH BINTI DININ (1222099)

Figure 1 - example of marketing planning process

3. Human resources: The human resources function is responsible for attracting,

hiring, and developing the best talent for an organization. This includes attracting and hiring
the best talent, the human resources function can help the organization build a strong team of
employees, providing training and development opportunities, the human resources function
can help employees develop their skills and knowledge. By managing employee relations, the
human resources function can help resolve employee conflicts and create a positive work
environment. The human resources function is important for ensuring that an organization has
the right people in the right roles and for creating a positive work environment. Organizations
with strong human resources (HR) departments are 21% more likely to achieve their business
goals than those with weak HR departments. (Source: The Society for Human Resource
Management). This statistic shows that HR departments play a critical role in helping
organizations achieve their goals. By providing strategic advice, developing and
implementing talent management initiatives, and creating a positive work environment, HR
departments can help organizations attract, retain, and develop the best talent, which is
essential for success.

4. Production: The production function is responsible for creating the products or

services that an organization offers. This includes planning and scheduling production,
managing inventory, and ensuring quality control planning and scheduling production. The
production function also can ensure that products or services are produced in a timely and
efficient manner. Next managing inventory, the production function can ensure that the
organization has the right amount of inventory on hand to meet customer demand. Besides
ensuring quality control, the production function can ensure that products or services meet the
organization's standards. The production function is important for ensuring that an
organization can meet customer demand and for delivering high-quality products or services.
Based on statistic comes from a study by the Aberdeen Group Organizations, a high-
performing production systems are 25% more likely to be profitable than organizations with
low-performing production systems. The study also found that production systems are
becoming increasingly important for organizations. The study by the Aberdeen Group
provides strong evidence that production systems can help organizations achieve their goals.
By investing in production systems, organizations can improve their efficiency, quality, costs,
and customer satisfaction.

5. Research and development: the research and development (R&D) function is

developing new products or services, the R&D function can help the organization attract new
customers and increase sales. It also improving existing products or services, the R&D
function can help the organization retain existing customers and increase customer
satisfaction. Besides the R&D team will finding new ways to improve the efficiency of an
organization's operations, it also can help the organization reduce costs and increase profits.
The R&D function is important for ensuring that an organization remains competitive,
driving innovation for them to stay striking and valid in this challenging era. This was
supported by "Companies that invest in R&D are more likely to survive and grow than those
that do not." this statistic is from a study by the National Science Foundation, which found
that companies that invest in R&D are 2.5 times more likely to survive for 10 years than
those that do not invest in R&D. The study also found that R&D investment is positively
correlated with company growth.

Figure 2 - Research and development process

Malaysia Madani is a vision for Malaysia to become a developed, progressive, and

prosperous country that is based on Islamic values. To achieve this vision, it is important to
develop a strong and effective organizational system that can manage the country's resources
and deliver services to its citizens in a fair and efficient manner. The organizational system of

NURFARAH NABILLAH BINTI DININ (1222099)

Malaysia Madani should be designed to ensure that the country's resources are used
efficiently and effectively, and that services are delivered fairly and equitably to all citizens.
This requires a strong focus on transparency, accountability, and good governance. The
system must be able to adapt to changing circumstances and address emerging challenges
while remaining true to the values of Malaysia Madani. One of the key principles that should
underpin the organizational system of Malaysia Madani is sustainability. This means that the
system should be designed to be maintained over the long term without putting undue strain
on the country's resources. This requires a focus on environmental sustainability as well as
economic sustainability. The system must be able to balance the needs of the present with the
needs of future generations. Ultimately, the success of Malaysia Madani will depend on the
commitment and collaboration of all Malaysians, as well as the effective implementation of
policies and programs that support the vision. This requires a strong focus on education,
innovation, and entrepreneurship, as well as a commitment to continuous improvement and
learning. By working together and staying true to the values of Malaysia Madani, Malaysians
can build a brighter and more prosperous future for themselves and future generations.

RABIATUL ADAWIYAH BINTI BHAIF

4.0 COMPUTER BASED-INFORMATION SYSTEM

4.1 TRANSACTION PROCESSING SYSTEMS (TPS)

A transaction is a fundamental activity that occurs throughout business operations. By

processing the financial transactions of a company, systems for processing transactions (TPS)
aid in the smooth operation of businesses. A non-inquiry transaction's papers are created by a
TPS and recorded in the database, along with all of the results. TPS is now used by nearly all
businesses to conduct business. The systems that feed data into the organization's databases
are known as TPSs; Additionally, they act as the foundation for management-focused
information systems. Transaction processing can be accomplished in one of two ways, online
mode and batch mode.
Online transaction processing is characterized by every trade is fully and quickly processed
according to section, more expensive than batch processing data set is always current, and
demand the use of quick secondary storage, such as magnetic discs. The most well-known
approach before in use is Online Analytical Processing (OLAP). OLAP is the system to
analytic querying of a significant number of records—or perhaps all records—in a database is
usually involved, require reaction times that are significantly slower than those predicted by
Online Transactional Processing (OLTP), do not change the data in any way; most
occupations need a lot of reading, store data in a columnar format to make it easier to retrieve
a large number of records, reduce the frequency with which database backups are performed,
they often require a lot of storage space since they keep a lot of historical data, and execute
complex queries on a huge number of records. However, Online Transactional Processing
(OLTP) is the most widely recognized method of utilized today. In the past, OLTP was only
used for transactions that involved the exchange of money, goods, information, or requests
for services. Notwithstanding, the significance of exchange in this sense has developed over
the long run, particularly with the ascent of the web, to now incorporate any sort of
computerized association or commitment with an organization that might be started from any
area on the planet and through any web-associated sensor. In addition, it includes any
interaction or action that could be crucial for the business to record in order to improve
customer service, such as watching a specific video, downloading a PDF from a website, or
commenting on social media. OLTP enables cash registers and e-commerce, ATMs and online
banking, and a plethora of other services we use every day to process data fast and reliably.
OLTP, allows a large number of database transactions to be completed in real time by a large
number of individuals, typically through the internet. OLTP also allow a huge number of
people to simultaneously perform a big number of database transactions, require lightning-
fast replies, small quantities of data are regularly modified using a combination of reads and
writes, use indexed data to accelerate answers, database backups must be performed on a
regular or simultaneous basis, storage space is really limited, and usually, simple searches
with only one or two records are conducted. There are some examples of OLTP system, such
as ATM machines, and online banking applications (Bank Islam, Maybank, RHB), credit card
payment processing, order entry (retail and back-office), online bookings for ticketing, or
reservation systems, record keeping which includes applications like managing inventory,
scheduling production, processing claims, and ticketing for customer service.
The batch processing system is a reliable method for handling a large volume of data fast.
when a series of transactions are accumulated over time. Data collection, entry, and
processing are followed by the production of batch results. A bunch handling framework's
primary capacity is to keep carrying out the positions in a clump in a timely manner. Batch
transaction mode characterized by rely on processing the full batch at once after
accumulating transaction data over time, clump handling is often cyclic that depending on the
nature of the transactions, the run cycle might be daily, weekly, or monthly, it is less
expensive than processing online, control is easier than with online management, the database
is constantly out of date, batch processing is now recorded on disc files. With the introduction
of the centralised server PC in the middle of the twentieth century, cluster management
became a common way of information association, reporting, and collection for large
projects. To process a batch, a computer was initially fed a stack of punched cards containing
commands, or instructions for the machine to follow. In batch processing transaction, the
processor must only be active when tasks are assigned to it, jobs with comparable
specifications are bundled and processed by the computer together, batch processing does not
place a premium on completion time. For corporate applications, it offers the simplest and
most affordable processing option. Batch processing is also compatible with standard
computer specifications. There is no time restriction during this processing. It focuses on
measurements and sorting is done first in this system before processing. This system collects
data for a set length of time and processes it in batches. Large amounts of data should be
processed in chunks, generally overnight or on a timetable. It increased latency because data
is handled in chunks after a wait. The cost per unit of data is reduced since processing is done
in batches. Examples of batch processing are transactions of credit cards, generation of bills,
and processing of input and output in the operating system.

Transaction processing systems (TPS) is now used by nearly all businesses to conduct
business. The systems that feed data into the organization's databases are known as TPS.
Additionally, they act as the foundation for management-focused information systems. TPS
assists an organization to keep updated with its operations and generate data and records that
are saved in a database. It is known as data processing system (DPS). The implementation of
transaction processing system in Malaysia is essential to ensure the development of the
country aligned with the vision of Malaysia Madani.
In Malaysia, a human resources (HR) transaction processing system (TPS) is used to handle
various HR operations inside an organisation through the use of software and processes. The
TPS allows for the automation of administrative activities, the simplification of HR
operations, and the accuracy of personnel data records. Some of the common HR of TPS
instrument in Malaysia are employee information management, recruitment and onboarding,
attendance and leave management, payroll processing, performance management, training
and development, employee self-service, and reporting and analytics. Employee information
management is where the TPS stores personal information, job history, skills, credentials, and
performance records in a centralised database. It enables HR faculty to access and update
representative information based on the scenario. Recruitment and onboarding are the TPS
features for managing the hiring process may include posting job openings, receiving and
monitoring applications, arranging interviews, and assisting with new hire onboarding. It
makes sure that applicant handling is efficient and streamlines the recruiting procedure.
Attendance and leave management are a component monitors and manages the attendance,
working hours, and leave records of the personnel. The TPS automates leave request,
approval, and entitlement computations to ensure precise and recent attendance data. Payroll
processing is where the TPS may interact with payroll software to handle processes including
processing employee wages, tax deductions, statutory contributions, and other payroll-related
duties. Payslips are generated, payroll calculations are timely and correct, and it is simpler to
adhere to regional labour rules thanks to this. Performance management assists in the
performance assessment process, makes goal formulation, performance review, feedback
gathering, and performance rating computation all simpler. It enables HR administrators and
managers to spot areas that need improvement or recognition while evaluating representative
implementation. Training and development functioned keeping track of training needs for
employees, runs training programmes, and records training outcomes. The TPS helps in
training session scheduling, measuring employee engagement, and assessing the success of
training projects. Employee self-service, through the TPS's employee self-service portals or
mobile applications, employees may be able to access their personal information, seek leave,
examine pay stubs, change personal information, and take part in performance reviews.
Employees are given the ability to self-serve, which lessens the administrative burden on the
HR team. Reporting and analytics are where the TPS analyses and reports on HR indicators
including as headcount, attrition rates, training efficacy, and performance evaluations. These
insights enhance strategic workforce planning and help HR professionals make data-driven
decisions. It is essential to remember that the choice and use of HR TPS in Malaysia will
depend on the organization's size, industry norms, and particular needs. Along with other
local work norms and standards, the Business Act and other related regulations should also be
taken into account. TPS may be tailored to your organization's needs and made compliant
with Malaysian HR laws by working with HR software suppliers or talking with HR
consultants. Thus, all these implementations of transactions processing system of information
system are the effective initiatives in enhancing the welfare of Malaysia, aligned with the
vision of Malaysia Madani.

In accounting organization, a transaction processing system (TPS) is a combination of

procedures, software, and hardware used to record, process, and store financial transactions
inside an organisation. It is an important part of an organization's accounting information
system. The accounting organization implemented transaction processing system with the
basis of accounting elements which includes the sales order processing which acquire
customers' needs and requests of the product, accounts receivable for bill’s management,
accounts payable, payroll, and general ledger to keep updated and tracking the transaction.
Accounts receivable is the administration of customer data, sales orders, invoices, receipts,
and other documents is managed by this instrument. It helps assortments and helps with
monitoring neglected client accounts. The association's payables, including solicitations,
installments, and seller information, are overseen by this module. It guarantees prompt
payment and keeps track of unpaid debts. Payroll processing, tax deductions, benefits
administration, and mandatory contributions are all managed by this module for employees. It
ensures convenient and precise finance computations. All descriptions of the previous
transactions are tracked by the general ledger. General ledger system often produced income
statements and balance sheet. Income statements depict a company's financial performance -
income, expenses, and the difference between them for a certain time period. According to
Suhaiza Ismail, in her finding on “Usefulness of financial information prepared under accrual
accounting”, the respondents believed that accrual information would be the most beneficial
in allowing them to manage the assets and liabilities of their departments. She added that it is
very useful as it helps in giving information on government assets and liabilities since it aids
in the successful planning and management of government finances. On top of that, effective
asset management benefits the public by that guarantees sufficient and outstanding public
infrastructure. The function of financial information provided under accrual accounting in
Malaysia will be useful to improve the country's financial management in creating a
developed economy. In general, an accounting transaction processing system is essential for
recording, processing, and storing financial transactions as well as for delivering accurate and
timely information for financial reporting, decision-making, and upholding sound financial
management inside an organisation.

Besides, TPS also assists in developing marketing organizations. Marketing involves

the plan, price, advertise, sell, and distribute the goods and services of a company. Digital
marketing is created by information systems to develop and manage company and marketing
processes both domestically and globally. It is essential to implement structural adjustments
required for the sector to grow rapidly. Insufficient human capital and digital infrastructure
are the key barriers confronting digital marketplaces, limiting consumer access. Malaysia
Madani centered on the pillar of well-being to re-dignify the country as a prosperous and
respected country. Therefore, good transaction processing system (TPS) in marketing
acquires some aspects such as order processing, sales tracking, payment processing, customer
relationship management, loyalty programs, campaign management, data analytics, and
integration with marketing systems. Order processing is managing and handling the order
processing process for clients, including order information capture, inventory availability
verification, invoice generation, and order fulfilment management. Sales tracking in TPS
keeps track of and logs sales information, including the goods, or services sold, their
quantities and costs, as well as client details. This data is helpful for creating sales reports,
analysing consumer purchasing trends, and tracking sales performances. Payments processing
by using credit cards, internet payment gateways, or other payment options, transaction
processing system (TPS) manages payment transactions. It maintains customer account
balances, confirms payments, and guarantees secure transactions.

Next, customer relationship management are integrated with TPS in order to record
and handles customer interaction and transactions. It assists in tracking consumer behaviour,
preferences, purchase history, and other pertinent information to enhance marketing
initiatives and clients’ services. TPS can help loyalty programmes by tracking consumer
activities like point accumulation, reward redemption, and personalised offers. This promotes
consumer loyalty and encourages repeat business. Campaign Management in TPS may
include functionality for managing marketing campaigns, such as tracking leads and logging
campaign reactions. It aids in the evaluation of return on investment (ROI) and the
optimisation of future marketing efforts. TPS data can be used for marketing analytics,
allowing firms to acquire insights into customer behaviour, discover trends, and make data-
driven decisions. It enables the analysis of transactional data to optimise pricing, promotions,
and marketing tactics. Other than that, TPS may integrate with other marketing systems such
as email marketing platforms, customer segmentation instruments, and marketing automation
software. This interface offers continuous data flow and marketing process automation. By
implementing a transaction processing system in marketing, businesses may streamline and
automate their marketing activities, gain crucial insights into customer behaviour, develop
client relationships, and make better marketing decisions. To achieve the well-being of the
community in the country, management and cooperation between managers and employees
plays an important role in making marketing successful. By the implementation of Malaysia
Madani's vision, the information system in the digital market will succeed with the
government's liability, influencing the construction of a developed country.

NUR FARIESHA HUDA BINTI ZAIHAN (122097)

4.2 MANAGEMENT INFORMATION SYSTEM (MIS)

An organisation's decision-making, coordination, control, and analysis are supported

by a management information system (MIS), a computerised system that gathers, organises,
retrieves, and distributes information. It gives managers at all levels the data they require to
efficiently plan, organise, and regulate activities. A business can function more effectively by
using information management systems. Every organisation has it. Records management is
facilitated by information systems. The primary purpose of an information system is to
streamline processes and reduce labour costs for employees (Management information
system (MIS), n.d). According to the Management information system (MIS) article, every
organisation needs data. Businesses are overwhelmed with data in the internet era—and not
just beneficial data. Businesses collect data in the form of documents, files, cloud storage,
hard copies, and soft copies. The MIS is mostly responsible for safely storing data. A bank,
for instance, records customer data, account deposits, and withdrawals.

The system ensures that the appropriate data is gathered from every possible source,
analysed, and implemented in all the locations that need it. The information demands of one
individual, a group of people, and management functionaries, including top management and
managers, are predicted to be met by the system. An integrated group of components or
entities that work together to accomplish a certain purpose, aim, or objective is referred to as
a management information system. As a result, it is a computer-based system that offers data
for making choices regarding the planning, organising, and management of the functioning of
the firm's subsystem while also facilitating a synergistic organisational structure (Chetan,
2015).

Figure 1 – overview of a Management Information System set-up

NUR FARIESHA HUDA BINTI ZAIHAN (122097)

4.2.1 BENEFITS OF MANAGEMENT INFORMATION SYSTEM (MIS)

In addition, because it can manage and analyse large amounts of data from several
sources and produce comprehensive reports that organisations can use to make educated
business decisions, an MIS is valuable in the workplace. Staff members of the firm do not
have to spend a lot of time processing crucial business data since data organisation is
automated. They can instead focus more on incorporating the data into their everyday
operations, using the documented business transactions as a point of reference in their
communications with suppliers and customers, and maintaining organisational elements like
supplies, the employees, raw materials, production, advertising, and financials.

Also, employees of the company may correlate various data points and compare them
using data collected through a MIS to acquire critical insights into its past, present, and future
business operations. For instance, they could compare and analyse sales data from several
years and geographical locations to attempt to uncover strategies to increase sales revenues.
They may provide analytical reports and use them to inform decisions that are in the best
interests of the company (What is an MIS system? (Definition, importance and
benefits),2022).
4.2.2 REPORTS OF MANAGEMENT INFORMATION SYSTEM (MIS)

An MIS report may be viewed as a system that provides vital information for
operating a business. MIS functions inside an organisation in conjunction with staff,
technology, and operational processes. It also describes the effects of the connections your
company has with people and other groups of people. The daily business operations are
highlighted in a MIS report, allowing you to keep track of how your organisation is doing.
These reports offer vital information for decision-making. It acts as a point of reference for
keeping an eye on your communications and company. Management information systems
have grown to be an essential component of successfully running a business in this new era of
rising technology (Azmi, 2023).

A regular MIS report is one that is produced on a regular basis (typically monthly or
quarterly). These reports, which have been generated by different departments within the
company, are provided to the business's management team this is because This is because
MIS reports concentrate on raw data, trends, patterns in that data, and comparisons with
pertinent

NUR FARIESHA HUDA BINTI ZAIHAN (122097)

previous data. MIS reports can also be used by managers to track corporate activity across
many departments. They also increase communication by making things clearer. They also
help corporate leaders and management teams make informed decisions, recognise, and
prevent problems, and capitalise on current market trends (Azmi, 2023). For instance, the
MIS report will contain information on staff demographics and current market trends if a
choice regarding the launch of a new product needs to be made. You can improve short- and
long-term company performance by using the data in the MIS reports to help you make better
decisions.

Every organisation uses a distinct form of MIS report. These reports differ from
industry to industry. Raw data from the reporting process is provided by management
information systems. The people, business procedures, and transactions that come together to
produce intelligible data points generate this raw data. Different MIS report types combine
various data points and present them in a way that offers insights and conclusions that are
crystal obvious. An organization's numerous departments each produce MIS reports outlining
the unique duties of their respective departments. Depending on the data being analysed and
the purpose for which it is being utilised, there might be various sorts of MIS reports. We've
made an effort to condense the most prevalent MIS report types you'll encounter in an
organisation. These are management information report examples:

1. Profit MIS Report: Profit is the major consideration for evaluating performance. The
profit MIS report shows the actual profit in comparison to the predetermined
objectives for a given time frame. The dashboard can provide real-time profit
completions for each month, quarter, and year (How to make MIS report: Your
ultimate guide, 2023). The difference between your company's actual and expected
profits can also be shown in profit reports. This could also look at the factors that
affected the profit or loss for a particular time period (Pearson, 2021).

Figure 2- example of Profits Reports

NUR FARIESHA HUDA BINTI ZAIHAN (122097)

2. The Exception Report: An exception report highlights the instances where actual
performance significantly deviated from predictions, nearly invariably in the wrong
direction. The main objective of the report is to focus management's attention only on
complications that require immediate fixation.

Figure 3 – example of The Exception Reports

 3. Demand Report: Managers can generate an MIS report whenever they need one
through to demand reporting. The requirements of the management who wants the
reports, as well as the current conditions, dictate their formats and the information
they contain. Demand Report is the opposite type of Periodic Report.

Figure 4 – example of Demand Report

NUR FARIESHA HUDA BINTI ZAIHAN (122097)

4.2.3 MANAGEMENT INFORMATION SYSTEM IN MALAYSIA MADANI

In Malaysia, like in other countries, management information systems play a crucial

role in supporting various organizational functions, such as planning, controlling, and
decision-making. MIS in Malaysia is implemented across different sectors, including
government agencies, private companies, educational institutions, and healthcare
organizations, among others. These can be seen in the different ways in which private
businesses in Malaysia apply Management Information Systems (MIS) to support decision-
making. The MIS provides managers with the information they need to make informed
decisions that help them enhance organisational processes (El-Ebiary et al., 2018). Thanks to
MIS systems, managers may obtain up-to-date, reliable information on a variety of
organisational assets, including finances, inventory, people, project timelines, manufacturing,
real estate, marketing, raw materials, and R&D. The management can run reports to assess
the data because the MIS collects, archives, and makes it available to them. The goal of an
MIS is to correlate different data points to establish strategies for improving operations.
Function of MIS is not only to advise decision-makers but also to record all an organization's
business activities while offering advice.

Throughout the years, a variety of factors have had an impact on Malaysia's adoption
of MIS. The following is a discussion of some of the elements that have affected the adoption
of MIS in Malaysia:

1. SMEs' embrace of technology the adoption of technology by SMEs in Malaysia is

influenced by characteristics like perceived usefulness, perceived simplicity of use,
and compatibility, according to a study that sought to discover major aspects that
could have a pervasive influence on this subject matter (Abdullah et al., 2012).
2. Adoption of Hospital Information System (HIS) in Malaysian Public Hospitals:
According to one study, 15.2% of Malaysian public hospitals have implemented HIS.
The scope and accessibility of the hospital, the range of resources, and the level of
management support all influenced HIS deployment (Ismail et al., 2015).

The conclusion here is that the management information system is extremely

beneficial to Malaysia's development in accordance with the Prime Minister's 'Malaysia
Madani' programme.
4.3 DECISION SUPPORT SYSTEM

A Decision Support System (DSS) is an interactive computer-based system that helps

individuals and organizations make better decisions by providing them with relevant
information, analysis tools, and models. It combines data, analytical techniques, and user-
friendly interfaces to support decision-making processes.

4.3.1 COMPONENTS OF DSS

A Decision Support System (DSS) typically consists of several key components that work
together to facilitate decision-making. These components include:

1. Data Management: This component focuses on collecting, storing, organizing, and

managing relevant data for decision-making purposes. It involves tasks such as data
acquisition, data integration, data cleaning, and data storage. DSS may utilize
databases, data warehouses, or other data management techniques.
2. Model Management System: Models are mathematical, statistical, or rule-based
representations of the decision problem or the system being analyzed. Model
management involves developing, selecting, and maintaining these models. It includes
tasks such as model development, parameter estimation, model validation, and model
integration.
3. User Interface: The user interface component enables users to interact with the DSS.
It provides a user-friendly environment for inputting data, specifying parameters,
executing analyses, and interpreting results. The interface may include graphical
displays, charts, tables, forms, and other visualization tools to enhance user
understanding.
4. Knowledge Base: The knowledge base contains data from both internal (information
acquired in a transaction process system) and external (newspapers and online
databases). The knowledge base component stores relevant information, rules,
heuristics, and expertise that are used in the decision-making process. It can include
historical data, best practices, decision rules, guidelines, and domain-specific
knowledge. The knowledge base supports the system in providing context-specific
recommendations and suggestions.
4.3.2 TYPES OF DSS

There are several types of Decision Support Systems (DSS), each designed to address
different aspects of decision-making. Here are some common types of DSS:

1. Data-Driven DSS: These DSS focus on analyzing and interpreting large amounts of
data to support decision-making. They employ techniques such as data mining,
statistical analysis, and data visualization to uncover patterns, trends, and insights that
aid in decision-making processes. It helps companies to store and analyze internal and
external data.
2. Model-Driven DSS: Model-Driven DSS utilize mathematical, statistical, or
simulation models to analyze and evaluate decision alternatives. These models help in
assessing the potential outcomes and impacts of different choices. Optimization
models, forecasting models, and simulation models are commonly used in this type of
DSS.  An example of a model-driven DSS is Dicodess – an open-source model-driven
DSS.
3. Knowledge-Driven DSS: Knowledge-Driven DSS rely on expert knowledge, rules,
and heuristics to guide decision-making. They capture and store domain-specific
knowledge and use it to provide recommendations or suggest courses of action. These
systems are particularly useful in complex and knowledge-intensive domains. It uses
recorded facts, procedures, rules, or interactive decision-making frameworks like
flowcharts to provide factual and specialised solutions to situations.
4. Communication-Driven DSS: Communication-Driven DSS emphasize collaboration
and communication among decision-makers. These systems facilitate information
sharing, discussion, and consensus-building. Group decision support systems and
collaborative tools are examples of this type of DSS. It allows businesses to support
jobs that require more than one person to do. It features built-in capabilities like
Microsoft SharePoint Workspace and Google Docs.
5. Document-Driven DSS: Document-Driven DSS focus on managing and analyzing
textual information such as reports, documents, and articles. A document-driven DSS
is a sort of information management system that retrieves data from documents. Users
of document-driven DSSs can search webpages or databases or locate specific search
phrases. Policies and procedures, meeting minutes, and company records are
examples of documents retrieved by a document-driven DSS.
4.3.3 ADVANTAGE AND DISADVANTAGE OF DSS

ADVANTAGE DISADVANTAGE

Improved Decision-Making Dependence on Data Quality

Time and Cost Savings Complexity and Implementation Challenges

Enhanced Productivity Overreliance on Technology

Increased Agility and Adaptability Lack of User Adoption

Support for Complex Decisions Ethical and Privacy Concerns

Overall, while decision support systems have many benefits for decision-making, they also
have issues with data quality, implementation, user acceptance, and ethical issues. The
advantages of DSS can be maximised by addressing these issues and ensuring correct
implementation and usage.

4.3.4 DECISION SUPPORT SYSTEM EXAMPLES

Decision support systems are used by organisations in a variety of settings, including the ones
listed below:

 GPS navigation. A typical DSS is the design of GPS routes. It contrasts various
routes, accounting for elements like distance, travel time, and cost. Users of the GPS
navigating system can also select alternate routes, which are shown on a map and
come with detailed instructions.
 ERP dashboards. ERP (enterprise resource planning) dashboards can employ a
decision support system to visualise adjustments to business and manufacturing
processes, track current performance against predetermined targets, and pinpoint
opportunities for improvement. ERP dashboards allow business owners to get a quick
overview of the most crucial figures and KPIs for their organisation.
 Clinical decision support system. The finest medical judgements can be made by
doctors with the aid of a clinical decision support system (CDSS), a piece of software.
 These are frequently used by healthcare practitioners to assess patient information,
test findings, and choose the most effective treatment strategy. Healthcare
professionals can use CDSS to discover irregularities during particular tests and to
keep tabs on patients after particular treatments to see if they're experiencing any
negative side effects.

The primary goal of a DSS is to assist decision-makers in solving complex problems or

making strategic choices. It achieves this by providing various features, such as:

1. Data Management: A DSS collects, stores, and manages relevant data from different
sources, both internal and external to the organization. It may incorporate databases,
data warehouses, or data mining techniques to ensure data availability and integrity.

2. Analysis Tools: DSS offers a wide range of analytical tools and techniques to
manipulate and interpret data. These tools can include statistical analysis, data
visualization, simulation, optimization, and predictive modeling. They enable
decision-makers to explore different scenarios and assess potential outcomes.

3. Decision Models: DSS incorporates decision models that represent the structure and
logic of the decision problem. These models can be mathematical, statistical, or rule-
based, depending on the nature of the decision. Decision models help in evaluating
alternatives, identifying risks, and understanding the implications of different choices.

4. User Interface: DSS provides an intuitive and user-friendly interface that allows
decision-makers to interact with the system easily. It enables them to input data,
modify assumptions, execute analyses, and visualize results. The interface may
include dashboards, charts, graphs, and other visual aids to enhance decision-making.

5. Collaboration and Communication: DSS often supports collaborative decision-

making by allowing multiple users to access and contribute to the system
simultaneously. It facilitates communication and information sharing among decision-
makers, improving coordination and consensus building.

6. Integration: DSS can integrate with other organizational systems, such as enterprise
resource planning (ERP), customer relationship management (CRM), or supply chain
management (SCM). Integration enables seamless data exchange and enhances the
overall decision-making process.
Overall, a Decision Support System empowers decision-makers by providing timely and
accurate information, analysis tools, and decision models. It aids in evaluating alternatives,
reducing uncertainty, and making informed decisions that align with the organization's goals
and objectives.
FARAH NAZIRAH BT ABDUL KARIM (1222108)

4.4 EXECUTIVE SUPPORT SYSTEM

Software called an Executive Support System (ESS) enables users to convert corporate data
into executive-level reports that can be easily accessed and used by departments like billing,
accounting, and staffing. Executive decision-making is improved by an ESS. 

In order to support non-programmed decisions in strategic management, executive support

systems are meant to be used directly by senior managers.

These data are frequently external, unorganized, and even unclear. Such information's precise
scope and context are frequently unknown beforehand.

The data below is based on intelligence.

 Market knowledge
 Investment discernment
 Information technology

Information with Intelligence Examples

The examples of intelligent information that are below, which is frequently the source of an
ESS.

 Independent databases
 Reports on technology, such as records of patents.
 Consultants' technical reports
 Economic data
 Competitive knowledge that is not publicly known
 Speculative data, such as market circumstances
 Government initiatives
 Information and reports on finances
FARAH NAZIRAH BT ABDUL KARIM (1222108)

4.4.1 Features of Executive Information System

Status access,
trend analysis,
exception
reporting

Graphical and
Drill down
textual
capabilities
information

EXECUTIVE
SUPPORT
SYSTEM

Design with
Navigation of
critical succes
information
factor in mind

Personalized
analysis
FARAH NAZIRAH BT ABDUL KARIM (1222108)

4.4.2 The Organization's Function of Executive Support Systems

Modern ESS may gather data from around the organisation and provide managers access to it
so they can choose, access, and customise it as needed with the aid of user-friendly desktop
analytical tools and online data displays. The use of the technology has spread down
numerous organisational layers such that any subordinates can view the same data in the
same way as the executive.

           The data can be filtered or shown in a graphic format (if the user chooses), which
helps modern systems avoid the issue of data overload that plagues paper reports. Drilling
down from a piece of summary data to ever-increasing levels of detail is possible using ESS.
Senior executives and personnel at lower levels of the company who need to analyse data
both benefit from the capacity to drill down. This feature is offered by OLAP systems for
large-scale database analysis.

           Integrating data from systems created for quite different reasons so that top executives
can assess organisational performance from a firmwide perspective has been a fundamental
problem of developing executive support systems. Bringing such information together and
making sense of it was a significant effort in the old corporation, which generally had
hundreds or even thousands of incompatible systems. Today, properly structured and
executed enterprise systems may give managers up-to-date, accurate information about the
entire company. Many managers have access to news services, databases on the financial
markets, economic data, and any other public data they could need through their ESS.

           Modelling and analytic tools are part of modern ESS. Most managers discover that
they can utilise these tools to produce graphic comparisons of data by time, geography,
product, price range, and other factors with just a minimal amount of knowledge. (ESS utilise
such tools largely to provide status information regarding organisational performance,
whereas DSS use them primarily for modelling and analysis in a very limited range of
decision circumstances.)
           High-level managers and others must be able to use ESS with little to no training. The
determination of executive information requirements is one area that deserves specific
consideration. ESS must provide some provision for
FARAH NAZIRAH BT ABDUL KARIM (1222108)

Managers at the highest levels as well as others must be able to use ESS with little to no
training. The decision-making process of executive information requirements is one area that
deserves specific consideration. ESS must have some kind of environmental scanning
capability. The capacity to recognise signs of issues in the organisational environment that
point to strategic dangers and possibilities is a crucial information requirement for managers
at the strategic level (Walls et al., 1992). The ESS must be created in a way that allows
environmental scanning to be done using both internal and external sources of information.
FARAH NAZIRAH BT ABDUL KARIM (1222108)

4.4.3 Positive and Negative Aspects of Executive Support System

Advantages Disadvantages

Simple to use for higher level executives Functions are constrained

The capacity to spot trends Benefits are difficult to measure

Improvement of managers' capacity for An executive could experience information

leadership overload.

Enhancing individual judgement and System might sluggish

decision-making, and adding flexibility to

strategic control

Increase the market competitiveness of the A challenge to maintain current data

organisation

Simple to use for higher level executives May result in less trustworthy and unsecure data
5.0 CONCLUSION

Anwar Ibrahim, Malaysia's 10th Prime Minister, proposed the policy framework and official
slogan "Malaysia Madani" (literally, "Civil Malaysia"). The philosophy primarily emphasises
racial harmony in the nation, sustainable development, and good governance. An information
system might be created based on the Malaysia Madani principles to help Malaysia achieve
its objectives of good government, sustainable growth, and ethnic harmony.

Malaysia Madani places a strong emphasis on excellent governance, which calls for rapid and
accurate decision-making. Information systems can help with effective governance by giving
decision-makers accurate and timely information. It encourages sustainable development,
which calls for making choices that strike a balance between social progress, economic
expansion, and environmental preservation. Malaysia Madani emphasises the value of social
cohesiveness and racial harmony in the nation. By providing neutral data and analysis,
information systems can aid in promoting inclusivity and diversity.

In Malaysia, the concepts of good governance, sustainable development, and racial harmony
would be supported by the information system based on Malaysia Madani. To accomplish
these objectives, it would include numerous elements and features, including:

1. Data Collection and Management: The system would collect and manage various
types of data related to governance, development, and racial harmony. This could
include demographic data, economic indicators, environmental data, social welfare
information, and data on racial relations.

2. Performance Monitoring: The information system would track and monitor key
performance indicators (KPIs) related to good governance and sustainable
development. This could involve monitoring metrics such as economic growth, social
equality, environmental conservation, and public satisfaction with governance.

3. Decision Support: The system would incorporate decision support capabilities to

assist policymakers and government officials in making informed decisions. This
could include data analysis tools, modeling techniques, and visualization capabilities
to evaluate different policy options and their potential impacts on governance,
development, and racial harmony.
 4. Policy Evaluation: The information system could provide mechanisms for evaluating
the effectiveness of policies and initiatives implemented under the Malaysia Madani
framework. It could track the outcomes and impacts of specific policies, monitor
progress towards goals, and provide feedback for policy refinement and adjustments.

5. Collaboration and Communication: The information system would facilitate

collaboration and communication among government agencies, policymakers, and
stakeholders. It could include features such as shared workspaces, discussion forums,
and information sharing platforms to promote dialogue, exchange of ideas, and
engagement in policy-making processes.

6. Reporting and Transparency: The system would enable the generation of reports and
dashboards to provide transparent information on governance, development, and
racial harmony indicators. These reports could be made accessible to the public,
promoting accountability and fostering trust between the government and citizens.

7. Citizen Engagement: The information system could include features to encourage

citizen participation and engagement. This could involve platforms for feedback,
citizen surveys, and mechanisms for public consultation on policies and initiatives.

The specific design and implementation of such an information system would require careful
consideration of local requirements, stakeholder needs, and technical feasibility. It would
involve collaboration between government agencies, IT experts, and relevant stakeholders to
ensure that the system aligns with the goals and principles of Malaysia Madani and
effectively supports good governance, sustainable development, and racial harmony in
Malaysia.
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