Course Code:19BMC209B Course Title: Management Information Systems

Course Code:19BMC209B
Course Title: Management Information

Systems
Course Leader
Mrs. Savitha Kulkarni

savitha.ms.mc@msruas.ac.in
1
Course Code: 19BMC209A
Systems
Course Leader:
Ms. Savitha Kulkarni
Email: savitha.ms.mc@msruas.ac.in
2 2
Course Code: 19BMC209A
Session 4-9: Essentials and types of business information
Systems systems
Information architecture and information technology
infrastructure Essentials and types of business information
systems
Transaction Processing System (TPS), Office Automation system (OAS), Knowledge Work
Systems (KWS)
Management Information (MIS), Decision Support System (DSS) and Group Decision Support
System (GDSS) Expert System, (ES), Executive Support System (ESS)
Email: savitha.ms.mc@msruas.ac.in
3 3
Session Objectives
At the end of this session, student will be able
to: • Discuss essentials and types of business
the information
systems
4 4
Session Contents
• Essentials and types of business information
systems
5 5
Area of Business
Information
Systems
Library resources in business information
systems
5
6 6
Faculty
©M. S. of Management
Ramaiah andofCommerce
University Applied Sciences © Ramaiah University of Applied Sciences
Business Information Systems
• The of suites, object oriented
study office
management, and
programming,
database multimedia
• Understanding and mobilizing technology in business
decision
• Applying analytical techniques to business problems
6
7 7
Faculty
Essentials of Business Information
Systems
• Identify and describe the major features of
a business that are important for understanding
the role of information systems
• Describe the information systems supporting the

major business functions: sales and
marketing, manufacturing and production,
finance and accounting, and human resources
7
8 8
Faculty
Systems
• Evaluate the role played by systems serving the
various levels of management in a business
and their relationship to each other
• Explain how enterprise applications and

intranets promote business process integration and
improve organisational performance
• Assess the role of the information systems function in

a business 8
9
9
Faculty
InformationSystems
systems help Kia Motors solve its quality problems
• Problem: High level of defects in

product, new
government requirements for reporting defects
• Solutions: Improve quality and monitor defects so
that defects and quality problems are easily identified
• Info gain data repository and clarify CRM system
link results in reduced costs and increased sales
• Demonstrates IT’s role in centralizing data,
interfacing with customers, and improving production
processes
• Illustrates digital technology’s role in improved
quality and lower rate of defects leading to customer 10 10
InformationSystems
systems help Kia Motors solve its quality problems
• Use the Internet to find the latest data on defects

per vehicle in the automobile industry. Look for new
articles on Kia’s use of information systems.
• What new data are available?
• Has Kia’s ranking changed?
• If so, what factors may have contributed to the change?
• What kinds of warranties is Kia offering on its
vehicles these days?
• How do these warranties affect Kia’s to be
ability profitable?
10
10 11
Faculty
Any computer-based information
systems (MIS included)
Consists of...
• Hardware
• Software
• Databases
• Telecommunicatio
n
• Procedures
• People
11 12
Major types of Business
Systems
• Transaction Processing Systems (TPS)
• Office Automation Systems (OAS)
• Knowledge Work Systems (KWS)
• Decision-Support Systems (DSS)
• Management Information Systems

(MIS)
• Executive Support Systems (ESS) 12
13 13
Faculty
Transaction Processing Systems
Computerized system the
performs and
that records
daily
business; thesetransactions
routine necessary
systems serve levelthe
to conduct
the operational of
the organisation
• Type: Operational-level
• Inputs: transactions, events
• Processing: updating
• Outputs: detailed reports
• Users: operations personnel, supervisors
• Decision-making: highly structured
Example: Payroll, Accounts payable
14 14
Payroll
TPS
A symbolic representation for a Payroll
TPS
Employee data (various departments) To general ledger: wages and salaries
Payrol l System
Management
Reports
Government documents
P ayrol l
master Employee check s
fi l e On-line
queries
15 15
TPS data for MIS Applications
TPS MIS
SALES
Order DATA
Processing
ORDER FILE System UNIT
Materials Resource PRODUCT
COST
Planning System MIS REPORTS
PRODUCT
PRODUCTION MASTER FILE CHANGE
DATA
General Ledger
EXPENSE DATA MANAGERS
System
ACCOUNTING FILES
MIS FILES
16 16
Typical Applications of TPS
TYPE OF TPS SYSTEM
Sales/ Manufacturing! Finance/ Human Other types
marketing production accounting resources (e.g., university)
systems systems systems systems
Major Sales Scheduling Budgeting Personnel Admissions
functions management recard
of system Market research Purchasing General ledger Benefits Grade records
Promotion Shipping/ Billing Cornpensation Course records
receiving
Pricing Engineering Cost Labor relations Alumni
accounting
New products Operations Training
Major Sales order Materials General ledger Payroll Registration
resource system
application information planning
system systems
systems Market research Purchase order Accounts Employee Student
records transcript
system control systems receivable/ system
payable
Pricing system Engineering Budgeting Benefit Curriculum class 17 17
Management Information System (MIS)
What is MIS?
• Identifying the information that is needed

for effective decision making in organisations
and developing information systems to satisfy
those needs
• In other words…
“ MIS is using technology
to create business value.”
18 18
Information system at the management level of an organisation
that serves the functions of planning, controlling, and decision
making by providing routine summary and exception reports
• Type: Management-level
• Inputs: High volume data
• Processing: Simple models
• Outputs: Summary reports
• Users: Middle managers
• Decision-making: Structured to semi-structured
• Example: Annual budgeting
19 19
• Structured and semi-structured decisions
• Report control oriented
• Past and present data
• Internal orientation
• Lengthy design process
20 20
Management Information Systems
(MIS) (continued)
20
21 21
Faculty
A sample MIS Report
21
22 22
Faculty
Characteristics of MIS
• An MIS provides managers with information and support
for effective decision making, and provides feedback on
daily operations
• Output, or reports, are usually generated through
accumulation
of transaction processing data
• Each MIS is an integrated collection of subsystems, which
are intypically
• Aid organised
decision making usingalong functional
past and present lines within an
data
organisation
Have an internal rather than an external
• orientation
23 23
Internet An Organization’s
MIS
Financial
MIS
Business
transactions
Accounting Drill down

Transaction MIS reports
Databases Exception reports
processing
systems of
Demand reports
valid
transactions Key-indicator
Marketing
MIS reports
Scheduled reports
Business
transactions Databases
of Human Etc.
external Resources
data MIS
Extranet
Etc.
Functional perspectives of MIS

24 24
Employees
Corporate
Databases Corporate
databases
of intranet
of
external
internal
data Decision
data
support
systems
Transaction Management Executive

Databases
Business processing of information Application support
transactions systems valid systems databases systems
transactions
Expert
Drill-down reports systems
Exception reports
Demand reports
Operational Key-indicator reports
databases
Input and Scheduled
error list reports
25 25
Typical Inputs and Outputs
• Inputs: Information from the
TPS
• Outputs: hard and softcopy reports
– Scheduled reports
– On-demand reports
– Key-indicator (business fundamentals)
– Exception reports
26 26
Outputs of a Management
Information System
• Scheduled reports
• Produced periodically, or on a schedule (daily, weekly,
monthly)
• Key-indicator report
• Summarizes the previous day’s critical activities
• Typically available at the beginning of each day
• Demand report
• Gives certain information at a manager’s request
• Exception report
• Automatically produced when a situation is unusual or
requires management action
27 27
Scheduled Report
Example
Daily Sales Detail Report
Prepared: 08/10/xx
Order Customer Sales Rep Ship Quantity Item # Amount
# ID ID Date
P12453 C89321 CAR 08/12/96 144 P1234 $3,214
P12453 C89321 CAR 08/12/96 288 P3214 $5,660
P12453 C03214 GWA 08/13/96 12 P4902 $1,224
P12455 C52313 SAK 08/12/96 24 P4012 $2,448
P12456 C34123 JMW 08J/13/96 144 P3214 $720
28 28
Key Indicator Report
Example
Daily Sales Key Indicator Report

This Last Last
Month Month Year
Total Orders Month to Date $1,808 $1,694 $1,014
Forecasted Sales for the Month $2,406 $2,224 $2,608
29 29
Demand Report
Example
Daily Sales by Sales Rep Summary Report

Prepared: 08/10/xx
Sales Rep ID Amount
CAR $42,345
GWA $38,950
SAK $22,100
JWN $12,350
30 30
Exception Report
Example
Daily Sales Exception Report – ORDERS OVER $10,000
Prepared: 08/10/xx
Order Customer Sales Rep Ship Quantity Item # Amount
# ID ID Date
P12453 C89321 CAR 08/12/96 144 P1234 $13,214
P12453 C89321 CAR 08/12/96 288 P3214 $15,660
P12453 C03214 GWA 08/13/96 12 P4902 $11,224
… … … … … … …
… … … … … … …
30 31
Outputs of a Management Information
System
Earnings by Quarter (Millions)

Actual Forecast Variance
2ND Qtr 1999 $12.6 $11.8 6.8%

Drill Down Reports
Provide detailed 1st Qtr 1999 $10.8 $10.7 0.9%
data about a
4th Qtr 1998 $14.3 $14.5 -1.4%
situation.
3rd Qtr 1998 $12.8 $13.3 -3.0%
32 32
Decision Support Systems (DSS)
Information system at the management level of an organisation
that combines data and sophisticated analytical models or data
analysis tools to support semi-structured and unstructured decision
making
• Type: Management-level
• Inputs: Low volume data
• Processing: Simulations, analysis, Interactive
• Outputs: Decision analysis
• Users: Professionals, Staff managers
• Decision-making: Semi-structured and unstructured
Example: Sales region analysis, Contract Cost Analysis 33 33

Decision-Support Systems
(DSS)
Voyage-estimating decision-support system
33
34 34
Faculty
Executive Support Systems (ESS)
Information system at the strategic level of an organisation
that address unstructured decision making through advanced
graphics and communications
• Type: Strategic level
• Inputs: Aggregate data, Internal and external
• Processing: Interactive
• Outputs: Projections
• Users: Senior managers
• Decision-making: Highly unstructured
Example: 5 year operating plan

35 35
Model of a Executive Support System ESS
w o r kstati o n
Me n u s
Gra phics
C o m m u n i ca t io n s
L o ca l pro ce s s in g
ESS Inte r nal D ata Exte r nal D ata

ESS
w o r kstati o n
TP S/M IS D ata D o w J o ne s w o r kstati o n
F i nanc i al G al l up P o l l
D ata O ffi c e Standar d &
Syste m s P o o r 's
Me n u s M o de l i ng / Me n u s
Gra phics anal ysi s Gra phics
C o m m u n i ca tio n s C o m m u n i ca t io n
L o ca l pro ce s s in g L o ca l pro ce s s i n
36 36
Office Automation Systems (OAS)
Computer system, such as word processing, electronic mail
system, and scheduling system, that is designed to increase the
productivity of data workers in the office
• Type: Knowledge-level
• Inputs: Documents, schedules
• Processing: Document management, scheduling, communication
• Outputs: Documents; schedules
• Users: Clerical workers
Example: Document imaging system
37 37
Knowledge Work Systems (KWS)
Information system aids knowledge worker in

that s the
integration of new
creation
knowledge in the
and
organisation
• Type: Knowledge-level
• Inputs: Design specifications
• Processing: Modelling
• Outputs: Designs, Graphics
• Users: Technical staff,
Professionals
38 38
The Interdependence between
Organisations and Information Systems
Business
Strategy
Rules
Processe
s
39 39
Information Architecture and
Information Technology
Infrastructure
40 40
Enterprise Applications
• Enterprise applications are systems that span functional
areas and automate processes for multiple business
functions and organisational areas
• Enterprise systems are also called enterprise
resource planning systems, ERP's
• Provide a single information system for organisation-
wide coordination and integration of key business processes
40
41 41
Faculty
• Information that was previously fragmented in

different systems can seamlessly flow throughout the firm
so that it can be shared by business processes in
manufacturing, accounting, human resources, and other
areas
41
42 42
Faculty
Enterprise Application Architecture
42
43 43
Faculty
• Enterprise applications are systems that span
functional areas and automate processes for multiple
business functions and organisational areas; they
include:
 Enterprise systems (also called Enterprise
Resource Planning systems, ERPs)
 Supply Chain Management (SCM) systems
 Customer Relationship Management (CRM)

systems 43
44 44
Faculty
Enterprise Systems
Manufacturing Accounting
Enterprise System
Business Process
Organization
Organization
Boundaries
Boundaries
Business Process
Vendors Business Process Customers
Enterprise-wide business
al
al
processes
Human Sales and

Mark eting Finance
Resources
45 45
Systems that span the Enterprise
Enterprise Systems
• Enterprise Systems are also known as

Enterprise
Resource Planning (ERP) systems
• Integrate key business processes of an entire firm

into a single system enabling managers of large
firms to assemble an overall view of operations
• Alcoa used ERP to eliminate redundancies

and 45
46 46
Faculty
Benefits of Enterprise Systems
• Firm structure and organisation: One organisation
• Management: Firm-wide knowledge-based

management processes
• Technology: Unified platform
• Business: More efficient operations and customer-

driven
business processes
47 47
Challenges of Enterprise Systems
• Difficult to build: Require fundamental changes in the way

the business operates
• Technology: Require complex pieces of software and
large
investments of time, money, and expertise
• Centralised organisational coordination and decision making: Not
the best way for the firms to operate
• One of the most important strategic decisions a firm must make
is understanding what business processes need improvement 48 48
The Systems Approach
The systems approach to problem solving
• Recognize and define a problem or

opportunity
using systems thinking
• Develop and evaluate alternative system solutions
49 49
The Systems Approach (continued)
Systems approach to problem solving (continued)
• Select the system solution that best meets
your requirements
• Design the selected system solution
• Implement and evaluate the success of the designed

system
50 50
Systems thinking
• “Seeing the forest AND the trees”
Seeing “interrelationships” among “systems”

rather than linear cause-and-effect chains
when events occur
Seeing “processes” of change among
“systems” rather than discrete “snapshots”

of change, whenever change occurs
50 51
Systems thinking (continued)
• Use a systems context
Try to find systems, subsystems, and

components
of systems in any situation you are studying
52 52
Systems Development Life Cycle
(SDLC)
SDLC stands for:

• Systems
• Development
• Life
• Cycle
• What does it mean?
53 53
Summary
• Business Information Systems are understanding

and mobilizing technology in business
• In information technology, hardware is the
physical aspect of
• computers, telecommunications, and other devices
• Software can be a single program or a group of programs needed to

perform several functions
54 54
Summary
• Enterprise applications are systems that span functional
areas and automate processes for multiple business
functions and organisational areas
• ERP is a solution which facilitates company-wide integrated
information systems, covering all functional areas
• ERP modules are designed for data capture,
data transaction validation, analysis, accounting
updation and reporting
55 55
Course Code: 19BMC209B
Course Title: Management Information Systems
Session 2: Changing Environment and its impact on Business
Course Leader:

Email:
savitha.ms.mc@msruas.ac.in
56 56
Session
Objectives
At the end of this session, student will be able to:
• Discuss the different types of information systems
• Discuss the changing environment and its impact on

Business
57 57
Session
Contents
• Qualities of Information
• Activities in an Information
System
• Management Challenges
• Contemporary approaches to IS
• Types of Information Systems
58 58
Qualities of
• Accurate Information
• Complete
• Trustworth
y
Timely
•
• Up to date
• Relevant
• Brief
• Significance
understandable
59 59
Activities in an Information
System
INPUT PROCESS OUTPUT
FEEDBACK
6
60 60
Faculty
Management Challenges
• Design competitive and effective
systems
Understand system requirements of global business
•
environment
• Create information architecture that
supports
organisation’s goal
61 61
Management
Challenges
• Determine business value of information
systems
Design systems people can control, understand
•
and use in a socially, ethically responsible manner
62 62
Information
Systems
ORGANIZATIONS TECHNOLOGY
INFORMATIO
N
SYSTEMS
MANAGEMENT
63 63
Contemporary approaches to
IS
TECHNICAL APPROACHES
COMPUTER
OPERATIONS
SCIENCE
RESEARCH
MANAGEMENT
SCIENCE
MIS
SOCIOLOGY
PSYCHOLOG POLITICAL SCIENCE

Y
BEHAVIORAL
APPROACHES 10 64
Examples of Information
Systems
• An inventory control system
• An order entry system
• A production scheduling system
11 65
Types of Information
Systems
Systems from a functional perspective
• Sales and marketing systems

• Manufacturing and production systems
• Finance and accounting systems
• Human resources systems
12
66 66
Faculty
Types of Information
Systems
Systems from a constituency perspective
• Transaction processing systems
• Management information systems and decision-support
systems
• Executive support systems
13
67 67
Faculty
Sales and Marketing
Systems
• Major functions of systems:
• Sales management, market research, promotion, pricing, new
products
• Major application systems:
• Sales order info system, market research system, pricing system
68 68
Sales and Marketing
Systems
SYSTEM DESCRIPTION ORGANIZATIONAL
LEVEL
ORDER ENTER, PROCESS, TRACK OPERATIONAL

PROCESSING ORDERS
MARKET ANALYSIS IDENTIFY CUSTOMERS & KNOWLEDGE

MARKETS
PRICING ANALYSIS DETERMINE PRICES MANAGEMENT
SALES TRENDS PREPARE 5-YEAR FORECASTS STRATEGIC
69 69
Manufacturing and Production
Systems
• Major functions of systems:
• Scheduling, purchasing, shipping, receiving, engineering,
• operations
Major application systems:

• Materials resource planning systems, purchase order
control systems, systems, quality
control
engineering systems
70 70
Manufacturing and Production
Systems

LEVEL
MACHINECONTROL CONTROL ACTIONS OF EQUIPMENT OPERATIONAL
COMPUTER-AIDED- DESIGN NEW PRODUCTS KNOWLEDGE

DESIGN
PRODUCTION DECIDENUMBER, SCHEDULEOF MANAGEMENT

PLANNING PRODUCTS
FACILITIES DECIDEWHERETO STRATEGIC

LOCATION LOCATEFACILITIES
71 71
Overview of Inventory Systems
72 72
Financing and Accounting
Systems
Major functions of systems:

• Budgeting, general ledger, billing, cost accounting

• General ledger, accounts receivable,
accounts
payable, budgeting, funds management systems
73 73
Financing and Accounting
Systems
LEVEL
ACCOUNTS TRACK MONEY OWED TO OPERATIONAL

RECEIVABLE FIRM
PORTFOLIO DESIGN FIRM'S INVESTMENTS KNOWLEDGE

ANALYSIS
BUDGETING PREPARE SHORT TERM MANAGEMENT

BUDGETS
PROFIT PLANNING PLAN LONG-TERM PROFITS STRATEGIC
20 74
Human Resource Systems
Major functions of systems:
• Store personnel benefits, compensation,
records, labor relations,
• training
They identify manpower requirements for
meeting
long-term business plans
Payroll, employee records, benefit systems,

path systems, personnel training
career 75 75
Human Resource
Systems
SYSTEM DESCRIPTION ORGANIZATIONA
L LEVEL
TRAINING& TRACK TRAINING, SKILLS, OPERATIONAL

DEVELOPMENT APPRAISALS
CAREER PATHING DESIGN EMPLOYEECAREER KNOWLEDGE

PATHS
COMPENSATION MONITOR WAGES, SALARIES, MANAGEMENT

ANALYSIS BENEFITS
HUMAN RESOURCES PLAN LONG-TERM LABOR STRATEGIC

PLANNING FORCENEEDS
76 76
Human Resource
Systems
77 77
Business
Systems
• Understanding business concepts, terminology and culture
• A system which is capable of performing business

functions
78 78
Systems
• Transaction Processing Systems (TPS)
• Office Automation Systems (OAS)
• Knowledge Work Systems (KWS)
• Decision-Support Systems (DSS)
• Management Information Systems

(MIS)
• Executive Support Systems (ESS) 25
79
©M. S. Raaiah University of Applied Sciences
Systems
• Operational-level systems
 Support operational managers by monitoring the day-to-
day’s elementary activities and transactions of the
organisation. e.g. TPS
• Knowledge-level systems
 Support knowledge and data workers in designing products,
distributing information, and dealing with paperwork in
an organisation. e.g. KWS, OAS
26
80 80
Faculty
Systems
• Management-level systems
 Support the monitoring, controlling, decision-making,
and
administrative activities of middle managers. e.g. MIS, DSS
• Strategic-level systems
 Support long-range planning activities of senior management. e.g.
ESS
27
81
Faculty
Disclaimer
• All data and content provided in this presentation are

taken from the reference books, internet – websites
and links, for informational purposes only.
82

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Course Code:19BMC209B

Course Title: Management Information

Mrs. Savitha Kulkarni

• Describe the information systems supporting the

• Explain how enterprise applications and

• Assess the role of the information systems function in

• Problem: High level of defects in

• Use the Internet to find the latest data on defects

• Office Automation Systems (OAS)

• Knowledge Work Systems (KWS)

• Decision-Support Systems (DSS)

• Management Information Systems

Example: Payroll, Accounts payable

• Identifying the information that is needed

• Example: Annual budgeting

• Report control oriented

• Past and present data

• Lengthy design process

Accounting Drill down

Functional perspectives of MIS

Transaction Management Executive

Daily Sales Key Indicator Report

Forecasted Sales for the Month $2,406 $2,224 $2,608

Daily Sales by Sales Rep Summary Report

Earnings by Quarter (Millions)

2ND Qtr 1999 $12.6 $11.8 6.8%

Example: Sales region analysis, Contract Cost Analysis 33 33

Example: 5 year operating plan

ESS Inte r nal D ata Exte r nal D ata

Example: Document imaging system

Information system aids knowledge worker in

• Information that was previously fragmented in

 Customer Relationship Management (CRM)

Human Sales and

• Enterprise Systems are also known as

• Integrate key business processes of an entire firm

• Alcoa used ERP to eliminate redundancies

• Management: Firm-wide knowledge-based

• Business: More efficient operations and customer-

• Difficult to build: Require fundamental changes in the way

• Recognize and define a problem or

• Develop and evaluate alternative system solutions

• Implement and evaluate the success of the designed

Seeing “interrelationships” among “systems”

“systems” rather than discrete “snapshots”

• Use a systems context

Try to find systems, subsystems, and

SDLC stands for:

• What does it mean?

• Business Information Systems are understanding

• Software can be a single program or a group of programs needed to

Course Title: Management Information Systems

Session 2: Changing Environment and its impact on Business

Ms. Savitha Kulkarni

• Discuss the changing environment and its impact on

• Types of Information Systems

INPUT PROCESS OUTPUT

PSYCHOLOG POLITICAL SCIENCE

• An inventory control system

• An order entry system

• A production scheduling system

Systems from a functional perspective

• Sales and marketing systems