Management information system

Introduction to Information Technology: Your Digital World
© 2013 The McGraw-Hill Companies, Inc. All rights reserved.Using Information Technology, 10e © 2013 The McGraw-Hill Companies, Inc. All rights reserved.Using Information Technology, 10e

© 2013 The McGraw-Hill Companies, Inc. All rights reserved.Using Information Technology, 10e
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Part :1 Danial Akhtar
a. Various Departments
b. R & D, Production, Marketing, Accounting, Human
Resources and Information Systems
c. Tasks Of Departments
d. Traditional Level of Managers
Part :2 Muhammad Saqib
a. Types of Information System
(1) Unstructured
(2) Semi structured
(3) Structured

Part 3: Tahira Naz
a. Computer Based Information System
(1) Transaction Processing Systems
(2) Management Information Systems
Part 4: Khalid Raza
a. Computer Based Information System
(3) Decision Support Systems Biography
(4) Executive Support Systems
(5) Office Automation Systems
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Part 5: Wajahat Hussain
a. System Development
(1) Explanation and the Purpose of a System
(2) Getting the Project going and the Six Phases
of Systems Analysis & Design
(3) The First Phase: Conduct a Preliminary
Investigation
(4) The Second Phase: Do an Analysis of the
System
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Part 6: Mehraaj Batool
a. System Development
(1) The Third Phase: Design the System Biography
(2) The Fourth Phase: Develop the system
Part 7: Rahat Khattak
(5) The Fifth Phase: Implement the System
(4) The Sixth Phase: Maintain the System
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1. Various Departments. Depending on the services or
product they provide, most organizations have departments
that perform six functions: research and development
(R&D), production for operations, marketing and sales,
accounting and finance, human resource (personnel), and
information system (IS).
a. Research & Development: It conducts basic research, relating
discoveries to the organization’s current or new products.
b. Production (Operations): The production department makes
the product or provides the service. Raw Material to Finished
Goods. In many cases, this department uses CAD / CAM
software and workstations, as well as robotics.
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c. Marketing and Sales: The marketing department oversees
advertising, promotion, and sales. The people in this department
plan, price, advertise, promote, package, and distribute the
services or goods to customers or clients.
d. Accounting and finance: The accounting and finance
department handles all financial matters. It handles cash
management, pay bills and taxes etc.
e. Human Resources: The human resources, or personnel,
department finds and hires people and administers sick leave and
retirement matters. It is also concerned with compensation levels,
professional development, employee relations, and government
regulations.
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f. Information systems (IS): The IS department manages the
organization’s computer based systems and plans for and
purchases new ones.
2. Traditional Levels of Management: Large
organizations often have a CEO (chief executive officer)
in charge of all departments. Within each of the
departments, there are traditionally three levels of
management – top , middle, and lower
level(supervisory).
These levels are reflected in the organization chart. “An
organization chart is a schematic drawing showing
the hierarchy of formal relationships among an
organization’s employees”.

a. Top Managers – Strategic Decision: The chief executive
officer or president is the very top manager. However, for our
purposes, top management refers to the vice presidents, one of
whom heads each department. They Are Concerned with:
 long-range, or strategic, planning and decisions.
 Companies Goals & Objectives
 How To achieve them
b. Middle Managers – Tactical Decisions: Middle-level
managers make tactical decisions to implement the strategic
goals of the organization. Examples of middle managers are
plant manager, division manager, sales manager, branch
manager, and director of personnel.
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c. Lower (supervisory) Managers – Operational Decisions:
Supervisory managers make operational decisions – predictable
decisions that can be made by following well-defined sets of
routine procedures. An example of a supervisory manager is a
warehouse manager in charge of inventory restocking.
3. Nexus to above, very few people are at the top management and
many people at the bottom which resembles a pyramid. In this case
most of the power is concentrated at the top. However, this
hierarchical pyramid oriented structure is changing in our computers
and communication based era. The pyramid is flattering somewhat
owing to increased participation of all the employees via computer
enabled program.
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CEO
Vice
President
R&D
Vice
President
Production
Vice Pres
Marketing &
Sales
Vice
President
Accounting
& Finance
Director
Personnel /
Payroll
Director of
Finance
Director of
Accounting
Manager of
Account
Receivable
Manager of
Account
Payable
Manager of
Reports
Vice
President
Human
Resources
Information
Systems

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To make the appropriate decision – strategic, tactical, and
operational – the different levels of managers need the
right kind of information: structured, semi structured,
and unstructured. In general, all information to support
intelligent decision making at all three levels must be:-
 Correct (accurate) and verifiable (checkable).
 Complete, including all relevant data, yet concise, including only
relevant data.
 Cost effective, meaning efficiently obtained, yet understandable.
 Timely meaning time sensitive, based on historical, current or
future information needs.
 Accessible, meaning quickly and easily obtainable. 14

• The information with distinctive features plays a
pivotal role in the growth and progress in any
organization.
a. Level of summarization.
b. Degree of accuracy.
c. Timeliness.
• These properties will be different for structured and
unstructured information. Whether structured or
unstructured information is more appropriate depends on the
level of management and the type of decision making
required.
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There are three types of Information:
a. Structured information:
 It is detailed Information
 Current and not subjective
 Concerned with past events
 it records a narrow range of facts
 covers an organization’s internal activities
 It is used for lower level management. 16

b. Unstructured information.
 It is summarized,
 less current, and highly subjective,
 concerned with future events,
 it records a broad range of facts,
 any covers activities outside as well as inside and organization,
 It is used for top level management who are responsible for
strategic planning.
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c. Semi structured
information:
 It includes some structured
information and some
unstructured information,
 It is used for middle level
management who are
responsible for tactical
planning of an
organization and they
include directors accounts,
finance and personnel etc.
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Appointment Management Level Responsibility Decision base
Vice Presidents of
departments
Top Management Responsible for
Strategic Planning
Unstructured decisions
Director Accounting
Finance & Personnel
Middle Management Responsible for
Tactical Planning
Semi- Structured
Decisions
Managers accounts,
Plants
Lower Management Responsible for
Operational Planning
Structured Decisions

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The purpose of a computer-based information system is to
provide managers (and various categories of employees)
with the appropriate kind of information to help them make
decision.
It is used to collect and analyze data from all departments
and is designed to provide and organization’s management
with up to date information at any time.
There are several types of computers based information
systems, which serve different levels of management:
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a. For Lower and Middle Managers:
 Transaction processing system (TPS)
b. For Middle Managers:
 Management information systems (MISs)
 Decision support system (DSSs), including online analytical
processing (OLAP).
c. For Top Managers:
 Executive support systems (ESSs)
d. For all Levels, including no management:
 Office automation systems (OASs)
 Expert systems (ESs) Cooperative work systems (using
groupware)

a. Transaction Processing Systems:
In most organizations, particularly business organizations, most
of what goes on consists largely of transactions. A transaction is
a recorded event having to do with routine business activities.
And
“A transaction processing system (TPS) is a computer-based
information system that keeps track of the transactions
needed to conduct business”.
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b. Management Information Systems:
“A management information system (MIS) (pronounced
“em-eye-ess”) is a computer-based information system that
uses data recorded by Transaction Processing Systems
(TPS) as input into programs that produce routine reports
as output”.
 It is For Middle Managers
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c. Decision Support System:
“A decision support system (DSS) is a computer-based
information system that provides a flexible tool analysis
and helps managers focus on the future”. It gathers and
presents data from a wide range of sources in a way that
can be interpreted by humans.
 It is also For Middle Managers
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d. Executive Support Systems:
“An executive support system (ESS) is an easy-
to-use DSS made especially for top managers, it
specifically supports strategic decision making”.
An ESS is also called an executive information
system (EIS). It draws on data not only from
systems internal to the organization but also from
those outside, such as news services or market-
research databases.
 It is For top mangers
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e. Office Automation Systems, Expert Systems,
and Cooperative Systems:
i. Office Automation System: Office automation
system (OASs), also called office information system
(OISs), combine various technologies to reduce the
manual labor required in operating an efficient office
environment and to increase productivity.
ii. Expert systems: An expert system, or knowledge-
based system, is a set of interactive computer programs
that helps users solve problems that would otherwise
require the assistance of a human expert.
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iii.Cooperative systems: Organizations that
have networks can use groupware to enable
cooperative work by groups of people. Such
systems are often called computer-supported
cooperative work (CSCW). Through the shared use
of databases, software, videoconferencing, email
intranets, organization forms and reports, and so
on, many people can work together from different
locations to manage information.
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• Purpose of a System
A system is a collection of related components that
interact to perform a task in order to accomplish a
goal
A computer-based system consists of hardware,
software, people, procedures, and data, as well as
communications setups
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• How It Starts, Who’s Involved
Users: The new system must ALWAYS be developed in
consultation with the people who will be using the completed
system
Management: Managers within an organization should be
consulted about the system, because they control the budget and
resources
Technical staff: The Information Systems or IT staff must be
involved, because they will have to execute the project or work
with the people who do
Systems Analyst: Information specialist who performs systems
analysis, design, and implementation
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Systems analysis and design is a six-phase
problem-solving procedure for examining
an information systems and improving it
The systems development life cycle
(SDLC) is the particular step-by-step
process followed during systems analysis
and design.
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•Systems Development Life Cycle (Six
Phases):
1. Preliminary investigation
2. Systems analysis
3. Systems design
4. Systems development
5. Systems implementation
6. Systems maintenance 34

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SDLC

SDLC Phase 1: Conduct a Preliminary Investigation
i. Conduct a preliminary analysis
ii. Propose alternative solutions
Interview people within the organization
Study what competitors are doing
Decide to leave the system as is, improve it, or develop a new system
iii. Describe costs and benefits
iv. Submit a preliminary plan with recommendations
This should be a written report
Get management approvals for next phase
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SDLC Phase 1

SDLC Phase 2: Analyze the System
i. Gather data
Interview employees and managers
Develop, distribute, analyze questionnaires
Review current written documents
Observe people and processes at work
ii. Analyze the data
Use modeling tools, such as CASE tools
Create a data flow diagram to show how data flows through the
system
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Phase 2: Analyze the System (continued)
iii. Write a report
Document how the current system works
Document problems with the current system
Describe the requirements for the new system
Recommend what to do next
Get management approval to proceed
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SDLC Phase 2

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Data Flow Diagram

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SDLC Phase 3: Design the System
i. Do a preliminary design
A preliminary design describes the general functional capabilities of a
proposed information system. It reviews the system requirements and
then considers major components of the system
ii. Do a detail design, showing:
 Output requirements
 Input requirements
 Storage requirements
 Processing requirements
 System controls
 Backup
iii. Write a report and get approval for next phase
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SDLC Phase 3

SDLC Phase 4: Develop the System
i. Develop or acquire the software
Make-or-buy decision
If creating own system, programming (coding must be done)
ii. Acquire or upgrade the hardware
iii. Test the system
Unit testing: performance of system’s individual parts tested
System testing: parts are linked and tested to see if they work
together properly; real data may be used
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SDLC Phase 4

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Phase 5: Implement the System
i. Choose a strategy to convert to the new system
Direct implementation: quit the old and start using
the new
Parallel implementation: use both the old and the
new side by side, until the new system has been
proved reliable
Phased implementation: phase in parts of new in
gradually as parts of old are phased out
Pilot implementation: have the new system tried out
by a few users
ii. Train the users 48

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SDLC Phase 5

SDLC Phase 6: Maintain & Update the System
i. Perform system audits and periodic evaluations
ii. Make changes to the system based on new conditions
iii. Finalize documentation
• Note that documentation should have been continuously
maintained during the entire SDLC
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SDLC Phase 6

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Management information system

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