MBA Semester I

Basics of Information Technology

Unit 5
BY
Dr. Rupali Taru (Assistant Professor)
Bharati Vidyapeeth (Deemed to be University) Department of Management Studies
(Off Campus)
Navi Mumbai, MH-IN
Course Objectives :
 To understand various Information Systems implemented in organizations
 To acquaint with various current trends and concepts of computer Technology.
Unit 5- Introduction to MIS:
 Principles of MIS, Characteristics, functions, structure & Classification of MIS,
information for decisions; MIS in Manufacturing, Marketing, Finance Human
Resource Management, Materials & Project Management; Brief idea about
knowledge management, Information Technology in Knowledge Management,
Roles of people in knowledge management. Types of information systems
(TPS, MIS, DSS, ESS, ES, KWS), GIS Information systems and functional areas-
Transaction processing system, Human Resource systems and Marketing
systems, Operations and Financial Management Systems.
 1.Information Concepts

Data
 Is Single piece of information
 When it organized it becomes information

Information
 Is Proceed Data
 Is perceived value in decision making

5
Meaning and Definition of information

Information is data that

has been proceed into a form is
meaningful to the recipient
and is of real or perceived
value in current or prospective
action or decisions

6
Relationship Between Data & Information

 Is that of raw material to finished product.

7
 Difference Between Data & Information
Data Information
Data is used as input for the Information is the output of data.
computer system.
Data is unprocessed facts figures. Information is processed data.

Data doesn’t depend on Information. Information depends on data.

Data is not specific. Information is specific

Data is a single unit. A group of data which carries news

are meaning is called Information.
Data doesn’t carry a meaning. Information must carry a logical
meaning.
Data is the raw material. Information is the product.

8
 Characteristics of Information

 Timeliness • Appropriateness
 Accuracy • Conciseness
 Frequency • Understandability
 Relevant • Complete
 Current • Economical

9
 Steps need to follow for I/S in Org.

Identification
Collection
Controlling
Measuring
Decision Making

10
 Classification of Information
 Classification By Characteristics: • Classification By
Application
 Action versus No-action Information
• Planning Information
 Recurring versus Non-recurring
Information
• Control Information
• Knowledge Information
 Internal versus External Information

11
Information System (IS)

“An information system (IS)

can be any Organized
combination of people ,software, hardware,
communications networks and data resources that
stores and retrieves, transform and disseminate
information
in an organization”

12
 Need for information system in organization
 Meeting Global Challenges
 Capturing Opportunities in Marketplace
 Supporting Corporate Strategy
 Linking Department-functions are different
 Enhancing worker Productivity
 Increasing quality of goods and services

13
Components of information system
 People Resources
 Hardware Resources
 Software Resources
 Data Resources
 Network Resources

14
Role of Information System

15
 Information System Activities

 Input of Data Resources

 Processing of Data into information
 Output of information Products
 Storage of Data Resources
 Control of System Performance

16
 Major Challenges of Information Systems

 Globalization Challenge
 Information Architecture Challenge
 Strategic Business Challenge
 Responsibility and Control challenge
 Information system Investment Challenge

17
 Organization
 An Organization is a formal social structure that takes resources from the
environment and processes them to produce outputs.

18
 Characteristics of Organization

 Routines and Business Processes

 Organizational Politics
 Organizational Culture
 Organizational Environment
 Organizational Structure
 Organizational Goal

19
 Role of Information System in Org
Reason for switch the
manual techniques
to the computerized
:
 Globalization
 Changing Nature of work
force
 Powerful customer
 Information overload
 Technological
advancement
 Advent of inter-
networked enterprises.
20
Formal & informal Org

21
Organization with respect to Organization
Firm
Behavioral View of Technical View of Org.
Org.
Structure
 Hierarchy
 Division of Labor
 Rules .Procedures
 Business Process
Environmental

Environmental
Culture
Resources

Outputs
Process
 Rights/obligation
 Privileges/Responsi
bilities
 Values
 Norms
 People

22
 Org Structure

Organization Structure Refers to organizational sub

units and the way they relate to the overall
organization.

Types of Organization Structure

 Traditional Organizational Structure
 Project and Team Organizational Structure
 Virtual Organizational Structure

23
Traditional Organizational Structure

24
Project and Team Organizational Structure

25
Virtual Organizational Structure

26
+
Organizational Philosophy /Culture

27
Organizational Hierarchy

28
Information System Impact on Organization & Business firms

29
Types of information system

Information System

Support of business Support of Managerial

operations decision-making

Operational Control Management Control

System System

TPS PCS OAS MIS DSS EIS

30
 Types of information system

Operational Control Management Control

System System

Management Information
Transaction Processing Systems (MIS)
Systems (TPS)

Decision Support Systems

Process Control (DSS)
System(PCS)

Executive Information
Systems (EIS)
Office Automation
System(OAS)
31
Transaction
 TPS is anProcessing Systems
information system (TPS) company
that records
transactions, it generates two types of outputs:
1. It Sends message back to the types of output
2. It generated printed documents

 Examples of TPS
1. Payroll systems
2. Order processing systems
3. Reservation system
4. Stock control system
5. Systems for payments and fund transfers
32
Types Of Transaction

 Internal Transaction
 External Transaction

Types of IS and Data Flow Method 33

Characteristics of TPS
 A TPS Support different Tasks by imposing a set of rules & guidelines that
specify how to record, process & store a given transaction.
 A TPS id source of Data for the other information system
 A TPS performs routine repetitive Tasks
 A TPS records internal & external transaction of the company
 A TPS exist for the various functional areas in an organization

Types of IS and Data Flow Method 34

Importance of TPS
 Process data generated by & about Transactions
 Maintain a high degree of accuracy & integrity
 Avoid processing fraudulent Transactions
 Produce timely user responses and reports
 Increase Labor efficiency
 Help improve customer services
 Help build & maintain customer loyalty
 Achieve competitive advantage

Types of IS and Data Flow Method 35

Competitive advantages
 Customer Loyalty increased
 Superior service provided to customer
 Better relationship with suppliers
 Suppliers information gathering
 Cost dramatically reduced
 Inventory levels reduced

Types of IS and Data Flow Method 36

Functions of TPS

 Data Entry
 Data Capture
 Data Validation
 Processing & revalidation
 Data Storage

Types of IS and Data Flow Method 37

Advantage & Disadvantages of TPS
Advantage of TPS
 Handling Operations
Disadvantages of
 Good data placement TPS
 Short transactions • Data Redundancy
 Real time backup
 High normalization • Too much
 Archiving historical data consolidation
• Security and
hardware problems

Types of IS and Data Flow Method 38

Process Control System

 Process Control System is a feedback mechanism that provides information

about the process characteristics and variables, process performance action
on the process inputs ,transformation process and action on the output

Types of IS and Data Flow Method 39

Components of PCS

Types of IS and Data Flow Method 40

 Requirements of Process Control System

 Geared toward continuous quality improvement

 Measurement control evaluation planning & improvement
 Clear definition of process parameters
 Quality improvement
 Provision of ongoing training
 Attainment of good quality product
 Removal of defeats from a process
 Ownership by everyone involve in process management
 Real time feedback mechanism
 Management philosophy must be that no of level of defeat is acceptable
 database for storage, retrieval access of information about the process

Types of IS and Data Flow Method 41

Advantages of PCS

 Process capability improvement by monitoring corrective action

 Increase in productivity through control of rework
 Minimization of “cost of qaulity”
 Effective control among production & human variables
 Reduction in product cycle time
 Common language for communication about the performance of a process

Types of IS and Data Flow Method 42

Office Automation System(OAS)

 OAS means complete intgration of :

 Word processing
 Electronic Filing
 Dairy management
 Communication, including email, telex fax

Types of IS and Data Flow Method 43

Need of Office Automation

 Reduce clerical workers routine tasks.

 Large firm no longer employ typist
 Employees become more flexible
 Included more public relation work

Types of IS and Data Flow Method 44

Components & other tools in office
automation

 Function
 Software packages
 Software type
 Word processing
 Electronic spreadsheet
 Database management
 Desktop publishing
 Graphics
 Project management
 Calendar
 Electronic mail

Types of IS and Data Flow Method 45

Advantages of OAS

 Increase productivity
 Improved quality of work
 Improve organizational effectiveness
 Elimination of manual work
 Better service to the customer
 Better management control
 Reduction in travel cost & in house meeting due to telecommunication &
teleconferencing respectively.

Types of IS and Data Flow Method 46

Disdvantages of OAS

 Dependent on computer & technology

 It’s expensive
 It also create health problem to emplyee

Types of IS and Data Flow Method 47

Example of OAS
 Document management contract tracking database (semi-conductor
manufacturing firm)
 Office automation bar-code software library(consulting company)
 Art management (food company).
 Restaurant audit management system (restaurant chain)

Types of IS and Data Flow Method 48

Managing Information System (MIS)
 MIS Is integrated man-machine system to support operation management
& decision making function in org.
 Management
 Planning
 Organizing
 Staffing
 Direction
 Co-ordination
 control
 Information
 System

Types of IS and Data Flow Method 49

Characteristics of MIS

 MIS Is integrated system

 MIS is sub-system concept
 MIS provides relevant information to management
 MIS is flexible
 MIS enhance productivity
 MIS is coordinated system
 MIS is feedback system
 MIS is oriented
 MIS is directed
 MIS is distributed data processing
 MIS is computerized system
 MIS transforms data into Information

Types of IS and Data Flow Method 50

Scope of MIS

 MIS Support :
 The operations
 Management
 Decision making function in an organization
 MIS utilized computer hardware software manual procedure management &
decision model & database
 MIS has Pyramidal structure

Types of IS and Data Flow Method 51

Functions of MIS

 Collection Data
 Store & process Data
 Present information to managers

Types of IS and Data Flow Method 52

Advantages of MIS

 Facilitates planning
 Minimizes information overload
 MIS encourages decentralization
 Brings coordination
 Makes control easier

Types of IS and Data Flow Method 53

Determining Information Needs for an Organization/Individual Manager

Types of IS and Data Flow Method 54

Disadvantages of MIS

 Its not substitute of effective management

 Quality of output of MIS
 MIS effectiveness decreases due to frequent changes in top management
 May not have requisite flexibility to quickly update
 MIS may not provide tailor information package for the purpose of every type
decision

Types of IS and Data Flow Method 55

Applications of MIS

 Strategic support
 Data processing

Types of IS and Data Flow Method 56

Decision Support Systems(DSS)

 DSS as Interactive computer based systems which helps decision makers

utilize data model to solve unstructured problem.
 E.g
 Group decision support system (GDSS)
 Computer support cooperative work (CSCW)
 Logistic system
 Financial planning system

Types of IS and Data Flow Method 57

Characteristics of DSS

 Provide rapid access to information

 Handle large amount of data from different sources
 Provide report & presentation flexibility
 Offer both textual & graphical orientation
 Support drill down analysis
 Perform complex , sophisticated analysis & comparison using advance
software package.

Types of IS and Data Flow Method 58

Componeents of DSS

 Data management Sub-system

 DSS database
 Database management system
 Data dictionary
 Data facility
 Model management sub-system
 Model base
 Model base management system
 Modeling language
 Model dictionary
 Model execution, integration & command processor
 User Interface Sub-system
 Knowledgebase management Sub-system

Types of IS and Data Flow Method 59

Classifications of DSS

 File Drawer system

 Data analysis system
 Analysis information system
 Accounting model
 Representational model
 Optimization model
 Suggestion model

Types of IS and Data Flow Method 60

Steps in Constructing a DSS

 Choosing the project or problem to be solved

 Selecting software and hardware
 Data acquisition & management
 Model subsystem acquisition and management
 Dialogue subsystem and its management
 Knowledge component
 Packaging
 Testing evaluation improvement
 User training
 Documentation and maintenance
 Adaptations

Types of IS and Data Flow Method 61

Role of DSS In Business

• What-if analysis
• Goal oriented
• Risk analysis
• Model building
• Graphical analysis

Types of IS and Data Flow Method 62

Advantages of DSS

 Improve personal efficiency

 Improving problem solving
 Facilitating communications
 Promoting learning and training
 Increasing organizational control

Types of IS and Data Flow Method 63

Disadvantages of DSS

 Limited storage capacity

 Limited information sharing
 Difficult
 Require extensive knowledge
 Translation problem
 confliction

Types of IS and Data Flow Method 64

Application of DSS

 Independent problem
 Interrelated problem
 Organizational problem

Types of IS and Data Flow Method 65

Executive Information system (EIS)

 EIS is computer based information delivery & communication system designed

to support the need of top executive
 Layer of EIS
 Board of directors
 President
 Functional area vice president
 Functional area manager

Types of IS and Data Flow Method 66

Characteristics of EIS
• Drill down capabilities
• Designed with management critical success
factors in mind
• Status access , trend analysis &exception
reporting
• Personalized analysis
• Navigation of information
• Present graphical ,tabular or textual
information
Types of IS and Data Flow Method 67
Advantage of EIS
 Ability to analyze trend
 Augmentation of managers leadership capabilities
 Enhance org. competitiveness in the market place
 Better reporting system
 Improve office automation system
 Early identification of company performance
 Time management & team coordination
 Increase communication capacity & quality
 Instruments of change

Types of IS and Data Flow Method 68

Disadvantage of EIS
 Functions are limited can’t perform complex calculations
 Hard to quantify benefits
 System may become slow. large and hard to manage
 Difficult to keep current data
 May lead to less reliable & insecure data
 Executive may encounter information overloaded

Types of IS and Data Flow Method 69

Application of EIS

 Manufacturing
 Marketing
 financial

Types of IS and Data Flow Method 70

Comparison between EIS & DSS
 Focus
 Typical user
 Impetus
 Application
 Decision support
 Type of information
 Principle use
 Adaptability to individual users
 Construction
 Hardware
 Nature of software package
 Nature of information


Types of IS and Data Flow Method 71

Org. Information Systems

 GIS Information systems

 Transaction processing system,
 Human Resource systems
 Marketing systems,
 Operations Systems
 Financial Management Systems
 MIS in Manufacturing, Marketing, Finance Human Resource Management,
Materials & Project Management.
A geographic information system
 A geographic information system ( GIS) is a system that creates, manages,
analyzes, and maps all types of data. GIS connects data to a map, integrating
location data (where things are) with all types of descriptive information
(what things are like there).
A knowledge management
 The systems develop to capture, create, refine, tag and circulate
information used to improve business productivity of the
organization. There are three broadways of managing the knowledge system.
A knowledge management system comprises a range of practices used in an
organization to identify, create, represent, distribute, and enable adoption to
insight and experience.
Learning Outcomes :
 Will have a greater understanding of with Information Systems implemented
in organizations
Reference Books
Online Resources:
MOOCs: