Topic 4

Information Systems
Integration in the
Organisation
Information Systems &
Organisational Planning
 Information system planning has to be performed after
all parties have agreed to redesign the organisation
using an information system.

 Information system planning is a process using goals,

strategies, objectives and organisational information to
identify and select a system that will be developed and a
suitable time to develop it.

 There are several steps to ensure the success of the

information system (IS) planning process.

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Steps for IS Planning

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Standardisation in Planning
 Management should standardise its information
technology when it decides to adopt a certain
information technology resources for all its units.

 Standardisation results in several benefits:

Cost savings
Efficient training
Efficient support

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Organisational Change
 The restructuring of the organisation with an information
system will directly or indirectly affect the daily activities
of the organisation.

 The changes brought by information technology have to

be realised so that the function and task for each party
will proceed smoothly with the use of information system.

 This change is normally divided into four parts:

 Automation
 Rationale Procedure
 Business Process Restructuring
 Paradigm Shift 5
Information System Categories for
Different Levels of Management
Level of
Category Example
Management
Strategic
Strategic  SIS – Strategic Information System
Management
Management  EIS – Executive Information (Support) System
System

Tactical  MIS – Management Information System

Mid-level
Management  DSS – Decision Support System
Management
Support System  OAS – Office Automation System

 TPS – Transaction Processing System

Operations Operations
 PCS – Process Control System
Management Support System
 ECS – Enterprise Collaboration System
 ES – Expert System
All three levels
Other types  KMS – Knowledge Management System
of management
 FIS – Functional Business System

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Management Information System
(MIS)
 As mentioned in Topic 1, MIS is a system that has
information processing capabilities that include
collecting, processing, storing and disseminating data in
the form of information through analytical processing and
conveying information to whoever needs it.

 The aim of MIS:

 To develop a viable system to maximise the effective use of
latest data approaches to management practices.
 To construct timely and accurate information (e.g. report) not
only to decide current and future operations, but also to identify
potential problems that need to be rectified.

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Input & Output of MIS
 MIS consists of several collections of subsystems that
focus on certain functions or tasks, like Accounting MIS,
Marketing MIS and Manufacturing MIS.

 The input for MIS is information produced from internal

data, which is obtained from the results of the
Transaction Processing System (TPS) and external data.

 The output is a collection of reports:

 Periodical Report
 Requested Reports
 Unexpected Reports

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Characteristics of MIS
 Prepares reports using a permanent and uniform format.

 Prepares reports in soft copy or hard copy forms.

 Uses internal and external data or TPS information.

 Enables the end user to produce report that he/she

requires.

 Able to prepare information for the use of strategic and

tactical managers.

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Transaction Processing System
(TPS)
 Every organisation performs business
transactions daily.

 In order to perform these transactions more

effectively and efficiently, the TPS is introduced.

 TPS main function: to collect all information

relating to the business transactions and to
process it as well as produce a relevant output.

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Objectives of TPS
 Preparing the required information so that the organisational
operations can be implemented effectively and accurately.

 Preparing accurate data for the strategic and tactical systems, for
example data for the MIS and DSS.

 Ensuring the accuracy and reliability of the data and information.

 Preparing reports and documents right on time.

 Increasing the competitive advantage of the organisation.

 …… and many others

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Methods or Processes of TPS
 Batch Processing: all transactions are collected
into a batch for a certain period of time before
processing (allows time for updating).

 Online Transaction Processing (OLTP): also

known as real-time processing and the
transaction is processed as soon as it occurs.

 Hybrid System (Online Entry with Delayed

Processing): This process or method is a
combination of both the earlier methods.

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Activities of TPS

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