Information System for Management

MBA CP-207

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Information System
 Information Systems is the expression used to describe an Automated
System (which may be referred to as a Computerized Information System),
be it manual, which covers people, machines or organized methods to
collect, process, transmit and disseminate data representing information for
the user or client.
 A management information system (MIS) is a computerized database of
financial information organized and programmed in such a way that it
produces regular reports on operations for every level of management in a
company. It is usually also possible to obtain special reports from the
system easily. The main purpose of the MIS is to give managers feedback
about their own performance; top management can monitor the company
as a whole.
 Information displayed by the MIS typically shows "actual" data over
against "planned" results and results from a year before; thus it measures
progress against goals Chapter 1 2
Characteristics of Information System
 System approach:
MIS follows the system approach, which implies a step by step approach to the study of
system and its performance in the light of the objective for which it has been constituted.
It means taking an inclusive view at sub-systems to operate within an organization
 Management-oriented:
 Management Directed:
 Integrated:
A complete MIS is a combination of its multiple sub-components to provide the
relevant information to take out a useful decision. An integrated system, which
blends information from several operational areas, is a necessary characteristic of
MIS.
 Long-term planning:
MIS should always develop as a long term planning because it involves logical
planning to get success of an organization. While developing MIS, the analyst
should keep future oriented analysis and needs of the company in mind.
 Central database: 3
Components of a Information System
 Hardware - computer equipment used to perform input, processing,
and output activities.

 Software - computer programs that govern the operation of the

computer.

 Database - an organized collection of facts and information, typically

consisting of two or more related data files.

 Telecommunications - the electronic transmission of signals for

communications which enables organizations to carry out their
processes and tasks.

 People - the most important element in most computer-based

information systems.

 Procedures - include the strategies, policies, methods, and rules for

using the CBIS.
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Major capabilities of Information systems
 Perform high-speed high-volume, numerical computations (DSS)
 Provide fast, accurate, reliable, and inexpensive communication
within and between organizations, anytime, anyplace.
 Store huge amounts of information in an easy to access, yet small
space (database management)
 Allow quick and inexpensive access to vast amounts of information
worldwide at any time
 Enable collaboration any where anytime (Extranet)
 Increase the effectiveness and efficiency of people working in
groups in one place or in several locations (ex. data exchange, video
conferencing)
 Vividly present information
 Facilitate global trade (ex. thaigem.com)
 Enable automation of routing decision making
 Can be wireless, thus supporting unique applications
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Information System - Classification By
Support Function

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Transaction Processing System (TPS)

 TPS automates routine and repetitive tasks that are

critical to the operation of the organization, such as
preparing a payroll, billing customers, Point-of-Sale,
and Warehouse operations
 Data collected from this operation supports the MIS
and DSS systems employed by Middle Management
 Primary purpose to perform transactions and collect
data

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 Management Information Systems
(MIS)
 These systems access, organize, summarize,
and display information for supporting routine
decision making in the functional areas. Geared
toward middle managers, MIS are characterized
mainly by their ability to produce periodic reports
such as a daily list of employees and the hours
they work, or a monthly report of expenses as
compared to a budget
 Primary purpose to process data into information

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Decision Support Systems (DSS)
 These systems support complex non-routine decisions
 Primary purpose to process data into information
 DSS systems are typically employed by tactical level
management whose decisions and what-if analyses
are less structured
 This information system not only presents the results
but also expands the information with alternatives
 Some DSS methodologies
 Mathematical Modeling (MIP)
 Simulation (What-If)
 Queries
 Data mining (Bank, Texas Tax Department)
 Forecasting (Nike vs Benetton)
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Inter-Organizational Systems (IOS)
 IOS are systems that connect two or more organizations. These
systems are common among business partners and play a major role in
e-commerce as well as in supply chain management support
 The first type of IT system that was developed in the 1980s to improve
communications with business partners was electronic data
interchange (EDI), which involved computer-to-computer direct
communication of standard business documents (such as purchase
orders and order confirmations) between business partners. These
systems became the basis for electronic markets, which later
developed into electronic commerce.
 Web-based systems (many using XML) deliver business applications
via the Internet. Using browsers and the Internet, people in different
organizations communicate, collaborate, access vast amounts of
information, and run most of the organization’s tasks and processes.

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Extranets
 Connect several intranets via the Internet, by adding a
security mechanism and some additional functionalities

 Form a larger virtual network that allows remote users

(such as business partners or mobile employees) to
securely connect over the Internet to the enterprise’s main
intranet

 Extranets are also employed by two or more enterprises

(suppliers & buyers) to share information in a controlled
fashion, and therefore they play a major role in the
development of business-to-business electronic commerce
and Supply Chain systems (Philip Moris)
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 Four stage model of Information Systems Planning

IS planning activity                                                   Description

Strategic Planning                                 Matches the overall organizational plan with the IS plan.

Requirement Analysis   Identifying broad, organizational information requirements.

Resource allocation                               Allocating resources for IS development and operation.

Project planning                                   Formulating a plan giving resource requirements for

specific IS projects and schedules.
Why Study Information Systems?
 You will be more effective in your chosen career if you
understand how successful information systems are
built, used, and managed
 You also will be more effective if you know how to
recognize and avoid unsuccessful systems and failures
 According to the US Bureau of Labor Statistics, the
“top seven fastest growing occupations fall within IT
or computer related field”

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Multiple Choice Questions Answers
 If a university sets up a web-based information system that faculty could access to
record student grades and to advise students, that would be an example of a/an
1. CRM 2. intranet 3. ERP 4. extranet 5. none of the above

 An information system that supports the planning and assessment needs of

executive management is
1. DSS 2. TPS 3. ERP 4. MIS 5. none of the above

 Contemporary Information Systems are interfacing with customers and suppliers

using :
1. BPR 2. CRM 3. SCM 4. Both A and B 5. Both B and C

 Which of the following is not a class of information system applications?

1. database management system 2. decision support system 3. expert system
4. management information system 5. office automation system
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