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CIS Itm Unit 1 2
CIS Itm Unit 1 2
Mahabala Shetty M
Examples of information system
• Redbus.in
• Railway reservation system
• Hospital Management system
• GST system
• Land Records system
• GEM, Amazon.com
• Walmart, …
• What is Information ?
…….> Processed data (pertaining
to the Business / Organization)
Processing
(calculating,
Data Information
comparing, sorting,
analyzing, ….)
Computer Information System ( or
Management Information System )
Manufacturing Inventory
Distribution Purchased
Finished Materials
Goods
Information required for the
Management & other stake holders
• Details of Customer orders received
weekly/monthly/total cost involved/materials to be
procured/human resources required/profit likely to
get, ……
• Out of these, no. of requests for New Products
development (strategic decision)
• Details of Orders issued by the Marketing Department,
but work not started by the Production department
(Middle Management)
• Details of finished products and payment received and
pending
…. Information required for the
Management & other stake holders
• Details of shipping orders from Marketing Department
to Distribution Department
• Details of orders to be executed by Purchase
Department for procuring raw materials
• Inventory available at the Inventory (Stores
Department )
• Details of materials to be received at the Inventory
from the Vendors for which advance payment already
made
• stocking
….. Information required for the
Management & other stake holders
• Raw materials required for another 6 months
• HR to be recruited for another 1 year
(Engineers/Salesmen/….)
• Lending of money to be done for the next one year
• No. of units to extended/cost involved for the next two
years
• Likely profit / loss in the financial year
• Taxes to be paid to the Government/Bonus to be paid to
the share holders
• Details of non-performing units, …..
• ………. etc ….
Computer Information System
Information system refers to the
Eg:
– New Product Development
– New plant to set up
– HR to be recruited ….
… Reasons for the adoption of the
Information system
• To provide information quickly as and when
required.
Eg:
• Though sales is increasing
– Revenue collection is reducing
… Reasons for the adoption of the
Information system
• To assist in identifying the managerial
problems and arrive at their solutions.
Eg:
– Distribution is not taking place properly
– Sales is not happening as expected …
… Reasons for the adoption of the
Information system
• To provide information regarding work force
planning.
Eg:
• Engineers to be recruited for the new plants to
be opened
• No. of clerical staff required in the accounts
department …
… Reasons for the adoption of the
Information system
• To provide the information regarding the
financial health of the business organization.
Eg:
• Income & Expenditure statements for the last
quarter
• Loans to repay
• Tax to be paid
• Salary payment pending, ..
… Reasons for the adoption of the
Information system
• To provide information regarding Production
and Inventory.
Eg:
– No. of equipments manufactured in the last six
months and the stock available
… Reasons for the adoption of the
Information system
• To provide information regarding sales and
other marketing aspects, i.e. Product, Price,
Promotion, Market, Physical distribution,
Payment, Collection, Market segmentation
etc.
… Reasons for the adoption of the
Information system
• To speed up the execution of the results with
the reliable data available.
• Smoothen the flow of data through various
levels of the organization.
• ……..
Computerised Information flow in a Business Organization
Invoices Disbursement
Customers Accounting Vendors
& Finance
Customers Purchase
New Orders Customers Bills
Orders
Ideas Shipment
For Approved
Production For Purchase Purchased
Marketing
Bills Materials
New
Requests Copy
Purchase
R&D Regular of
Requisition
Shipping Orders Purchase
Orders Order
Manufacturing Inventory
Distribution Purchased
Finished Materials
Goods
Importance of Information System
• It helps in minimizing risk in decision making.
• It processes the data and derives information out
of them.
• It provides information about the various aspects
of business.
• It helps the executives to avail the information
regarding the functional areas quickly.
• The database helps in inducting research.
– The data stored are used as secondary data.
… Importance of Information System
• It provides sound information regarding the
financial health of business organization.
• It helps in preparing corporate report.
• It helps the HRD manager in finding out the
requirement of the human resource, their
wages and salary, performance appraisal,
training, promotion, absenteeism and
employee’s turnover, which is useful in
drafting sound HRD polices.
… Importance of Information System
• The data regarding production helps the
production manager in deciding about
– capacity utilization
– number of rejections per batch
– frequency of break down
– status of shipment of processed order and product,
region wise.
• It provides information regarding
– inventory position and
– ensures that the chances of inventory out of stock are
minimized.
It provides information regarding
• Product
• Price
• Promotion
• Segmentation
• Demand
• Sales etc.
to marketing manager instantly and ensures
smooth functioning of that department.
Importance of IS
• Every business organization has to give due
importance to this department.
• The credit of growth and development of
many of the business organizations goes to it.
• If organization underestimates the importance
of Information System, they may have greater
chances of generating negative profit.
Need of Information System
• Information System plays a very important
role in the organization function
• it creates an impact on the organization's
functions, performance and productivity.
• The Information System creates impact in
the organization which relates to the
understanding of the business itself.
… Need of Information System
Information System increases productivity
Functions
Of
Information
Systems Storage of Information
Connectivity
Retrieval of Information
Functions of Information System
Data Capturing:
• Information System captures data from
various internal and external sources of an
organization.
• Data capturing may be manual or through
computer terminals.
… Functions of Information System
Processing of data:
• The captured data is processed to convert it
into the required management information.
• Processing of data is done by such activities as
– calculating
– comparing
– sorting
– classifying and
– summarizing.
… Functions of Information System
Storage of information:
• Information System stores processed or
unprocessed data for future use.
• If any information is not immediately required, it
is saved as an organizational record.
• In this activity, data and information are retained
in an organized manner for later use.
• Stored data is commonly organized into records,
files and databases.
Functions of Information System
Retrieval of information:
• Information system retrieves information from
its stores as and when required by various
users.
• As per the requirements of the management
users, the retrieved information is either
disseminated as such or it is processed again
to meet the exact demands.
… Functions of Information System
Characteristics
of
Information
Systems
Need Based
Characteristics of Information System
System approach:
• The information system follows a System’s
approach.
• The system’s approach implies a holistic
approach to the study of the system and its
performance to achieve the objective for
which it has been formed.
… Characteristics of Information System
Management oriented:
• For designing of Information system, top-down
approach should be followed.
• Top-down approach suggests that the system
development starts from the determination of
the management needs and overall business
objectives.
• Management oriented characteristic of
Information system also implies that the
management actively directs the system
development efforts.
… Characteristics of Information System
Need based:
• Information system design and development
should be as per the information needs of
managers at different levels that are strategic
planning level, management control level and
operational control level.
Data Processing &
Information Generation Communication
Role of
Information
Systems
Facilitating Decision
Problem Identification making
The Role of an Information System
Components of
Information
Systems Databases
Connectivity
Human Resources
Components of Information Systems
Hardware
Information
Generators
Payment
Purchasing
Collection
Distribution Internal
Middle
Tactical decisions
Management
Supervisory
Lower Management Role
Operational Management
(functional)
Horizontal & Vertical integration of
Information Systems
Vertical Integration :
The internal functional systems are connected
vertically as major systems
FUNCTIONAL SYSTEMS
Marketing System Sales, Distribution, …
Production System
Purchasing, Receiving,
Inventory, Production, ..
Financial System
Billing, Collection, Payment, …
Administrative / HR System
Personnel, Contracts, …
Horizontal & Vertical integration of
Information Systems
…. Vertical Integration within a system :
PRODUCTION SYSTEM
Machine assignment & job time Functional
reporting
Comparison
of desired Eg: Management Systems --- Manufacturing company
and actual
outputs
Information System Organization
Management can be broadly classified
depending upon the requirements of
information for performing the Management
functions
Information
Systems
Types Executive Support
Decisions Support System
System
Office Automation
system
Types of Information Systems
1. Transaction Processing System (TSS)
• structured operational applications and to a lesser degree
management control applications
• Data collection & processing
eg: payroll system
OAS covers
everything
Information system versus Data processing
Finance &
HR
Accounting
DMBS
Database
Synthesis of a Information System structure
Management
control
Structured
Operational Control decisions
Transaction processing
Information System Development Model
Planning
… Establishing an Information system
1 . Planning for the Information System
• Hardware projection
• Human Resources projection
• Financial Projection
… Establishing an Information system
1 . Planning for the Information System
2. Designing the IS
3. Implementing the IS
4. Improving the IS
Planning
Designing
… Establishing an Information system
2 . Designing the Information system
Planning
Designing
Implementing
… Establishing an Information system
3 . Implementing the Information system
• Putting the planned and designed MIS into
operation/action
• The equipment is acquired and integrated into
the organization
• Designated data are gathered, analyzed as
planned and distributed to appropriate
managers within the organization
• Hardware platform selection and acquisition
… Establishing an Information system
• Software tool selection and acquisition
• Resource allocation
• Development & Testing (unit, integration, system,
performance, load, regression, …)
• Quality assurance & auditing
• Corrective actions through feedback & control
• Joint review with the users of the system
• Documentation (SRS, SDD, UM, Test cases, …)
• Configuration Management (version control)
… Establishing an Information system
• Trouble shooting & fine tuning
• System & database administration
… Establishing an Information system
4 . Improving the Information System
Planning
Designing
Implementing
Improving
Improving the Information System
Manufacturing Inventory
Distribution Purchased
Finished Materials
Goods
Computerised Information flow in a Business Organization
Invoices Disbursement
Customers Accounting Vendors
& Finance
Customers Purchase
New Orders Customers Bills
Orders
Ideas Shipment
For Approved
Production For Purchase Purchased
Marketing
Bills Materials
New
Requests Copy
Purchase
R&D Regular of
Requisition
Shipping Orders Purchase
Orders Order
Manufacturing Inventory
Distribution Purchased
Finished Materials
Goods
Development of Information system
for the Manufacturing company
Study the business process of the company
Starting from, how the customer gives the order, what Marketing
department does after receiving the order, with what details it is
forwarded to the Production department.
What Stores does when the raw materials is received from the Vendor
and the procedure of making available the raw materials with the
Production Department, …..
Think of Business Process Reengineering (BPR)
• Whether some of the process can be avoided
• Any improvement can be infused into the
new system
• Develop software module to capture
Customers orders data ( Name, Mobile No,
product specifications, quantity, date, …)
• This data has to be stored in the customers
database
• Software module for the Marketing Manager
to pick the data from the customers
database, and to forward this requisition to
the Production department
• The forwarding details should be stored in the
Marketing database
• Software module for the Production Manager to
give the requisition to the Purchase department
• Purchase requisition details to be stored in the
Production database
• Software module for the Purchase Manager to
issue the Purchase Orders to the
Accounts/Finance Department
• Purchase order details to be stored in the
Purchase department database
• Software module for the Accounts Manager to
make disbursements to the Vendor for
supplying raw materials
• Payment made details to be stored in the
Accounts department
• Vendor supplies the raw materials to stores
(inventory)
• Software module for the stores to record the
details of receipt of raw materials
• Software module for the Stores Manager to
record the details of raw materials made available
to the Production Department
• The details have to be stored in the Inventory
database
• Software module for the Production Manager to
capture the details of raw materials received
• Software module for the production
department to record the details of finished
goods to the Distribution section
• The details to be stored in the Production
database
• Software module for the Distribution section
to record the details of finished goods
received and made available to the customer
• Integrate all the databases (Customers,
Marketing, Production, Purchase,
Accounts/Finance, Vendors, Inventory,
Distribution, …)
• Integrate all the software modules
• As all processes and databases are now
integrated, identify the Reports to be made
available for the Top, Middle, Supervisory and
Operational level functionaries for taking
Strategic, Tactical and Operational decisions
• Develop the required software modules for
generating these Information from the
integrated databases
Thank You