2. Because there are different interests, specialties, and
levels in an organization, there are different kinds of
information systems. No single system can provide all
the information an organization needs.
Following figure illustrates the decision structure and
information requirements of different level of
managers in organization.
2
3. Types of MIS
Operations
support system
(TPS)
Office Automation
System (OAS))
Management
Support System
MIS DSS ESS
Expert
System
• In general, management information system can be
divided into operations support system and
management support system.
3
5. Operations Support Systems
Information systems that are used at lower level managers or
operations level managers are known as operations support
system.
They support operational managers by keeping track of the
elementary activities and transactions of the organization,
such as sales, receipts, cash deposits, payroll, credit decisions,
and the flow of materials in a factory.
Operations support systems are basically concerned with
efficiently process business transactions, control industrial
processes, support enterprises collaboration, and update
corporate database.
The principal purpose of systems at this level is to answer
routine questions and to track the flow of transactions
through the organization.
5
6. Operations Support Systems
However, they do not emphasize producing the
specific information products that can be used by
managers. Further processing by management
information systems is usually required.
Examples of operational-level systems include a
system to record bank deposits from automatic teller
machines or one that tracks the number of hours
worked each day by employees on a factory floor.
Systems that perform or support operational
managers in carrying their daily or routine activities
can be grouped in to transaction processing systems
or office automation systems.
6
8. Transaction Processing Systems (TPS)
Transactions are events that occur as a part of doing
business, such as sales, purchases, deposits,
withdrawals, refunds, payments etc.
Without information systems, recording and
processing business transactions would consume
much more time and resources in organization. TPS
is used for this task in organization
Computerized system that records, processes,
validates and stores transactions that take place in
various functional areas of business is known as TPS.
TPS processes data resulting from the occurrence of
business transactions.
8
10. Transaction Processing Systems (TPS)
The input of this system includes basic business transactions,
such as customer orders, purchase orders, receipts, time
records, invoices and customer payments.
Transaction processing systems are often so central to a
business that TPS failure for a few hours can lead to a firm’s
demise and perhaps that of other firms linked to it.
Managers need TPS to monitor the status of internal
operations and the firm’s relations with the external
environment. TPS are also major producers of information
for the other types of systems.
There are two fundamental types of TPS–batch processing,
online processing.
10
11. Transaction Processing Systems (TPS)
Batch processing TPS:
Transaction processing system which accumulates
the transactions for a certain period of time and then
process them at same time is batch processing TPS.
In batch processing system data are collected for a
certain period- hours, days, weeks, months, and then
those accumulated data are processed at a specified
time.
for example, a theater sells tickets for Friday 12pm
movie show before 12 pm. All those sold tickets are
checked and authenticated at gate between 11.30am
to 12 pm i.e. just before the show.
11
12. Transaction Processing Systems (TPS)
Online and Real time processing TPS:
Online processing TPS is an interactive data processing system
which involves a direct connection between TPS programs and
operator.
Online processing system which processes data immediately after
it is feed in system is known as real time processing.
Online processing is the milestone for any real-time processing
TPS.
As soon as a single transaction is entered into a computer systems,
the program interacts with the user for that transaction. There is
no time lag between data creation and it’s processing.
When you withdraw money form your ATM card, as soon as you
receive money form ATM machine, your account is debited. This is
the example of real-time processing.
12
13. Office Automation system (OAS)
Office automation system refers to the use of
mechanical, electrical, and electronic devices to
enhance communication in the workplace and
increase the efficiency and productivity of
knowledge workers and clerical workers.
Office automation systems include:
i. Word processing
ii. E-mail
iii. Voice mail
iv. Tele-conference
v. Facsimile transmission or FAX
vi. Desktop publishing
vii. Multimedia system etc.
13
15. Management Support System
When information system applications focus on
providing information and support for effective
decision making by mangers, they are called
management support systems.
Information system that generates reports
containing information which are essential for
middle and top level managers in making semi
structured and unstructured decisions are known as
management support system.
Several major types of information systems support
a variety of decision-making responsibilities:
Management information systems, Decision support
systems, executive support systems, expert systems
etc..
15
18. Management Information System (MIS)
We define management information systems as the
study of information systems in business and
management. The term management information
systems (MIS) also designates a specific category of
information systems serving management level
functions.
Management information systems (MIS) serve the
management level of the organization, providing
managers with reports and often online access to the
organization’s current performance and historical
records.
Typically, MIS are oriented almost exclusively to internal,
not environmental or external, events. MIS primarily
serve the functions of planning, controlling, and decision
making at the management level.
18
Managementsupportsystem
19. Managementsupportsystem
Management information systems primarily seve the
functions of planning, controlling and decision
making at the middle level.
MIS summarize and report on the company’s basic
operations. The basic transaction data from TPS are
compressed and are usually presented in long
reports that are produced on a regular schedule.
An MIS produces information that support many of
the day to day decision making needs of managers
and business professionals. Reports, displays, and
responses produced by management information
systems provide information that these decision
makers have specified in advance as adequately
meeting their information needs.
19
Management Information System (MIS)
20. Managementinformationsystem(MIS)
Such predefined information products
satisfy the information needs of decision
makers at the operational and tactical
levels of the organization who are faced
with more structured types of decisions
situations.
Managers and other decision makers use
an MIS to request information at their
networked workstations that supports
their decision making activities.
20
Management information system (MIS)
22. Management information system (MIS)
Human resource information system, marketing
information system, financial information system,
sales information systems etc. are examples of MIS.
Management information systems (MIS) require
information on a periodic basis instead of on a daily
recurring basis like those using a transaction
processing system.
The output of the MIS takes the form of periodic,
exception, and demand reports and immediate
response to inquiries.
22
23. Management information system outputs
Management information systems provide a variety
of information products to managers.
Four major reporting alternatives are provided by
such systems
i. Periodic scheduled reports
ii. Exception reports
iii. Demand reports and responses
iv. Push reporting
23
24. Management information system outputs
Periodic scheduled reports are traditional form
of providing information to the managers on a
regular basis.
Generally the format of such schedule is pre-
specified and information contents are also
predefined.
Monthly sales report, monthly income
statement, financial statements are some of the
examples of periodic scheduled reports.
24
25. Management information system outputs
Sometimes reports are produced only when
exceptional conditions occurs.
The report containing the information about
exceptional conditions and the measures to
correct them are exception reports.
An exception report outlines any deviations
form the expected output. Its main purpose is
to draw the attention of middle management to
any significant differences between actual
performance and expected performance.
25
26. Management information system outputs
Through the use of online system managers
can access the required information in real
time.
Managers use Web browsers, DBMS query
languages, and report generators at pc stations
to get immediate responses or find and obtain
customized reports as a result of their request
for the information they need. Thus managers
do not have to wait for periodic reports to
arrive as scheduled.
26
27. Management information system outputs
Information is pushed to the managers.
Various automated software push display
customized reports that can be useful of
managers at their work.
27
29. Managementsupportsystem
Decision support systems are computer based information
systems that provide interactive information support to
managers and business professional during decision making
process.
DSS implies the use of computers to assist managers in their
decision processes in semi-structured task; to support rather
than replace managerial judgmental; to improve the
effectiveness of decision making rather the efficiency.
DSS uses analytical models, specialized databases, a
decision maker’s own insights and judgements, and an
interactive computer based modeling process to support
semi structured business decisions.
Decision-support systems are used for complex "what-if"
questions that require internal and external data. Decisions at
this management level are mostly semi structured so the
information system must respond to the unique requirements
of the executives.
29
Decision Support Systems (DSS)
31. 31
TPS External Data
o DSS Software
o DSS Models
o OLAP tools
o Data mining tools
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32. Managementsupportsystem
• A DSS uses internal data but also combines it with
external data to help analyze various decisions
management must make. Analyzing complex, interactive
decisions is the primary reason for a company to use a DSS.
• The sales and marketing management of company would
use a DSS to answer a semi structured question such as:
"What price should we charge for the product so that we
can maximize our profits, minimize our costs, and still
remain competitive?"
• Using a DSS, the manager in charge of the manufacturing
division could determine the best answer to this semi
structured question: "How does the change in the size and
packaging of the product affect the other products we
produce, not just in shipping, but also on the display shelf
at the convenience store?"
32
Decision Support Systems (DSS)
34. Decision support system
• DSS rely on model bases as well as databases as
vital system resources.
34
Componentsof(DSS)
35. Components of Decision support system
1. DSS Database:
• The DSS database is a collection of current or historical
data from a number of applications or groups.
• It may be a small database residing on a PC that contains a
subset of corporate data that has been downloaded and
possibly combined with external data. Alternatively, the
DSS database may be a massive data warehouse that is
continuously updated by major corporate TPS (including
enterprise systems and data generated by Web site
transactions).
• The data in DSS databases are generally extracts or copies
of production databases so that using the DSS does not
interfere with critical operational systems.
35
36. Components of Decision support system
2. DSS Software:
• The DSS software system contains the software tools that
are used for data analysis.
• It may contain various OLAP tools, data-mining tools, or a
collection of mathematical and analytical models that easily
can be made accessible to the DSS user.
• A model is an abstract representation that illustrates the
components or relationships of a phenomenon. A model
can be a physical model (such as a model airplane), a
mathematical model (such as an equation), or a verbal
model (such as a description of a procedure for writing an
order). Each decision-support system is built for a specific
set of purposes and makes different collections of models
available depending on those purposes. .
36
37. Components of Decision support system
DSS Software: cont…..
• The most common models are linear programming
model, multiple regression forecasting model, capital
budgeting present value model, analytical models like
what if analysis, sensitivity analysis, goal seeking
analysis etc.
37
38. Components of Decision support system
3. User interface:
• The DSS user interface permits easy interaction between
users of the system and the DSS software tools.
• A graphic, easy-to-use, flexible user interface supports the
dialogue between the user and the DSS.
4. DSS users can be managers or employees with no
patience for learning a complex tool, so the interface must be
relatively intuitive.
• Many DSS today are being built with Web-based interfaces
to take advantage of the Web’s ease of use, interactivity, and
capabilities for personalization and customization. Building
successful DSS requires a high level of user participation to
make sure the system provides the information managers
need.
38
39. Managementsupportsystem
Information system at the strategic level of an
organization designated to address unstructured decision
making through advanced graphics and communication is
known as executive information system.
EIS or ESS support the information need of top level
executives.
The primary goal of ESS is the display and delivery of
information rather than the analysis or diagnosis of
problems and solutions.
It is computer based tools with features such of graphic,
voice activated commands, and natural language interface
that executives to quickly retrieve, navigate, summarize,
analyze and disseminate information.
39
Executive support system or Executive information
Systems
40. Managementsupportsystem
The executive support systems is the information
systems for top level managers who take the
responsibilities for making decision in
unstructured market environment and derive the
organization towards progress.
EIS is generally online information systems,
which connect executives with internal as well as
external data.
40
Executive support system
42. Executiveinformationsystems
42
Characteristics
i. Easy to use:
The systems are such that the executives are able to
use easily without having special knowledge of
technology, software, network etc.
ii. Drill Down:
EIS provides broad aggregated information because
executives are more concern with strategic level
decisions.
The systems enable executives to expand to a detail
level when they need to understand additional data.
The systems are very handy in providing or digging
in depth detail information about any problem or
topic.
For example, sales of company might get a
breakdown by product, by sales office, by period, by
employee or any other category.
43. Executiveinformationsystems
43
Characteristics
iii. Context information:
The executives are very curious to know data in
comparison context.
The financial data is looked against budget or
against previous year etc.
This comparison is meaningful and a long term
strategy may be derived.
iv. Integration of Data:
As executives are very sensitive to wards external
environmental phenomenon. They are looking for
such integrated data in the systems.
EIS integrates internal and external data and
presents the result to the executives’ terminal.
44. Executiveinformationsystems
44
Characteristics
v. Timeliness:
Circumstances are changing rapidly so executives
need to respond them quickly.
Information that is even a week old may often not
useful to an executive. EIS therefore are capable to
provide current data to executives.
vi. Key Performance Indicator:
EIS can be set up to highlight a user’s key
performance indicator as soon as they turned
terminal on.
