1. MANAGEMENT
INFORMATION SYSTEMS
By Aruldoss Vithakan
1

2. DATA VS INFORMATION
 Information System can be technically defined as a set
of inter-related components that collect ( or retrieves)
,process, store and distribute information to support
decision making and control in any organization.
 IS also helps to analyse problems, visualise complex
subjects and create new products.
 While date is raw facts representing events,information
refers to data that has been shaped into a form that is
meaningful and useful for human beings.
2

3. DATA VS INFORMATION
3

4. FUNCTIONS OF INFORMATION SYSTEM
4

5. DIMESNSIONS OF INFORMATION SYSTEMS
5

6. LEVELS IN MANAGEMENT
6

7. INFORMATION SYSTEM REQUIREMENTS
 SOFTWARE SKILLS: Presentation software
 BUSINESS SKILLS: Management analysis and
information system recommendations BASED ON:-
 Company’s goals and culture
 Products and services of the company and what are
available to customers in the in market
 How the company sells?
 Employees strength and the hierarchy
 Present information system
 Use of electronic data base and software
7

8. Business processes and
8

9. An Organization’s
MIS
Financial
MIS
Business
transactions
Drill down reports
Accounting
Transaction Databases MIS Exception reports
processing of
Demand reports
systems valid
transactions Key-indicator reports
Marketing
MIS Scheduled reports
Business
transactions Databases Human
of
Resources Etc.
external
data MIS
Extranet
Etc.
9

10. Financial
Financial MIS DSS
Business
transactions
Transaction Databases
processing of valid
Financial
systems transactions MIS Financial
for each applications
TPS databases
Business
transactions
Financial statements
Financial
Operational Uses and management ES
Internet databases of funds
or Financial statistics
Extranet for control
Business Customers,
transactions Suppliers
10

11. Manufacturing
Marketing MIS DSS
Transaction Databases
Business processing of valid
Marketing
transactions systems transactions MIS Marketing
for each applications
TPS databases
Sales by customer
Sales by salesperson Manufacturing
Operational Sales by product ES
databases Pricing report
Total service calls
11

12. Databases of Manufacturing
Databases of
HR MIS internal data external data DSS
Transaction Databases Human
Business processing of valid Resource Human
transactions systems transactions resource
MIS
for each applications
TPS databases
Benefit reports
Salary surveys Manufacturing
Operational Scheduling reports ES
databases Training test scores
Job applicant profiles
12

13. Information Systems
An information system(IS) is typically considered to be a
set of interrelated elements or components that
collect(input), manipulate(processes), and disseminate
(output) data and information and provide a feedback
mechanism to meet an objective.
Open System
Close System
13

14. Computer-based Information System
An Information System is an organized combination of
people, hardware, software, communication networks and
the data resources that collects, transforms and
disseminates information in a organization.
14

15. Payroll
System
INFORMATION
TECHNOLOGY Inventor
y
Hardware System
Software are used to build
INFORMATION
Databases SYSTEMS
Networks
Marketin
Other related g System
components
Customer
Service
System
15

16. Classification of IS
Information Systems
Operations Support
Management
System
Support System
Transactio Office Manageme Decision
n Process automation support
control nt
processing systems information systems
systems systems
systems
16

17. 1. Operations support systems process data generated by business
operations
Major categories are:
i) Transaction processing systems
ii) Process control systems
iii) Office automation systems
2. Management Support Systems provide information and support needed for
effective decision making by managers
Major categories are
viii) Management Information System
ix) Decision Support Systems
x) Executive Information System
17

18. 1. Operations Support System
i) Transaction processing systems
• Process business exchanges
• Maintain records about the exchanges
• Handle routine, yet critical, tasks
• Perform simple calculations
ii) Process control systems monitor and control industrial processes.
iii) Office automation systems automate office procedures and enhance
office communications and productivity.
18

19. . Management support systems provide information and support needed for
effective decision making by managers
Major categories are:
iv) Management information systems
 Routine information for routine decisions
 Operational efficiency
 Use transaction data as main input
 Databases integrate MIS in different functional areas
19

20. ii) Decision Support System
• Interactive support for non-routine decisions or problems
• End-users are more involved in creating a DSS than an MIS
iii) Executive information systems
provide critical information tailored to the information needs of executives
20

21. Other categories
b) Expert systems
c) End user computing systems
d) Business information systems
d) Strategic information systems
a) Expert Systems are knowledge-based systems that provides expert advice
and act as expert consultants to the users
b) End user computing systems support the direct, hands on use of
computers by end users for operational and managerial applications
c) Business information systems support the operational and managerial
applications of the basic business functions of a firm
d) Strategic information systems provide a firm which strategic products,
services, and capabilities for competitive advantage
21

22. Enterprise Resource Planning (ERP)
Integrated programs that can manage a company’s entire set of business
operations
Often coordinate planning, inventory control, production and ordering
22

23. Information Systems Development
23

24. 24

25. Challenges
1. Workforce downsizing
2. Information overload
3. Employee mistrust
4. Difficult to built
5. Security breaches
25

26. Opportunities
1. Enhanced global competitiveness
2. Capture market opportunities
3. Support corporate strategy
4. Enhance worker productivity
5. Improve quality of goods and services
26

27. An Overview of Transaction Processing
Systems/MIS/DSS
27

28. Traditional Transaction Processing Methods
Batch processing – method of computerized processing in which
business transactions are accumulated over a period of time and prepared
for processing as a single unit
On-line transaction processing (OLTP) - method of computerized
processing in which each transaction is processed immediately and the
affected records are updated
28

29. Batch versus On-Line Processing
29

30. Integration of a Firm’s TPSs
30

31. Transaction Processing Activities
Data collection: Capturing data necessary for the
transaction
Data editing: Check validity and completeness
Ex: 400 hours/week instead of 40 hours/week
Data correction: Correct the wrong data
Data manipulation: Calculate, summarize
Data storage: Update transactions
Document production and reports: Create end
results (paychecks)
31

32. Data Processing Activities Common in Transaction
Processing Systems
32

33. Point-of-Sale Transaction System
33

34. Systems that Support Order Processing
Order Processing System Purpose
Order entry Data for order
Sales configuration Ensure enough products
Shipment planning Which order from which
location
Shipment execution Right products on time
Inventory control Reflect exact quantity
Invoicing and billing Generate customer invoice
Customer management Monitor customer contact
Routing and scheduling Best way to move products
34

35. Order Processing Systems
35

36. Enterprise Decision Support Systems
DSS to provide enterprise-wide support
Executives
Many decision makers in different locations
Enterprise Resource Planning (ERP) systems
36

37. 37

38. Enterprise Systems: Concepts and Definitions
Executive information systems (EIS)
Executive support systems (ESS)
Enterprise information systems (EIS)
38

39. Executive Information System (EIS)
A computer-based system that serves the information needs of top executives
Provides rapid access to timely information and direct access to management
reports
Very user-friendly, supported by graphics
Provides exceptions reporting and "drill-down" capabilities
Easily connected to the Internet
Drill down
39

40. Executive Support System (ESS)
Comprehensive support system that goes beyond EIS to
include
Communications
Office automation
Analysis support
Intelligence
40

41. 41

42. 42

43. Enterprise Information System
 Corporate-wide system
 Provides holistic information
 From a corporate view
 Part of enterprise resource planning (ERP)
systems
 For business intelligence
 Leading up to enterprise information portals and
knowledge management systems
43

44. Executives’ Role and Their
Information Needs
 Decisional Executive Role (2 Phases)
1. Identification of problems and/or opportunities
2. The decision of what to do about them
 Flow chart and information flow (Figure 8.1)
 Use phases to determine executives’
information needs
44

45. 45

46. 46

47. 47

48. Methods for Finding
Information Needs
 Wetherbe's Approach
1. Structured Interviews
 IBM's Business System Planning (BSP)
 Critical Success Factors (CSF)
 Ends/Means (E/M) Analysis
2. Prototyping
 Watson and Frolick's Approach
 Asking (interview approach)
 Deriving the needs from an existing information system
 Synthesis from characteristics of the systems
 Discovering (Prototyping)
 Ten methods
48
 Other Methods

49. 49

50. Characteristics of EIS
 Drill down
 Critical success Factors (CSF)
 Status access
 Analysis
 Exception reporting
 Colors and audio
 Navigation of information
 Communication
50

51. 51

52. Critical Success Factors (CSF)
Monitored by five types of information
1. Key problem narratives
2. Highlight charts
3. Top-level financials
4. Key factors (key performance indicators (KPI))
5. Detailed KPI responsibility reports
52

53. 53

54. Critical Success Factors
54

55. 55

56. Characteristics and Benefits of
EIS
(Table 8.1)
 Quality of information
 User interface
 Technical capability provided
 Benefits
56

57. 57

58. 58

59. 59

60. Comparing and Integrating
EIS and DSS
 Tables 8.2 and 8.3 compare the two systems
 Table 8.2 - DSS definitions related to EIS
 Table 8.3 - Comparison of EIS and DSS
 EIS is part of decision support
60

61. 61

62. 62

63. 63

64. 64

65. 65

66. Integrating EIS and
Group Support Systems
 EIS vendors - easy interfaces with GSS
 Some EIS built in Lotus Domino / Notes
 Comshare Inc. and Pilot Software, Inc. -
Lotus Domino/Notes-based enhancements
and Web/Internet/Intranet links
66

67. 67

68. Traditional EIS Software
 Major Commercial EIS Software Vendors
 Comshare Inc. (www.comshare.com)
 Pilot Software Inc. (www.pilotsw.com)
 Application Development Tools
 In-house components
 Comshare Commander tools
 Pilot Software’s Command Center Plus and Pilot
Decision Support Suite
68

69. 69

70. Soft Information Used in Most
EIS
 Predictions, speculations, forecasts, estimates (78.1%)
 Explanations, justifications, assessments, interpretations
(65.6%)
 News reports, industry trends, external survey data
(62.5%)
 Schedules, formal plans (50.0%)
 Opinions, feelings, ideas (15.6%)
 Rumors, gossip, hearsay (9.4%)
Soft Information Enhances EIS Value
70

71. 71

72. Organizational DSS (ODSS)
 Three Types of Decision Support
 Individual
 Group
 Organizational
Hackathorn and Keen (1981)
72

73. 73

74. Organizational DSS (ODSS)
 Three Types of Decision Support
 Individual
 Group
 Organizational
Hackathorn and Keen (1981)
74

75. 75

76. Organizational DSS (ODSS)
 Three Types of Decision Support
 Individual
 Group
 Organizational
Hackathorn and Keen (1981)
76

77.  Definitions of ODSS
 A combination of computer and communication
technology designed to coordinate and disseminate
decision-making across functional areas and
hierarchical layers in order that decisions are congruent
with organizational goals and management's shared
interpretation of the competitive environment (R. T.
Watson, 1990)
 A DSS that is used by individuals or groups at several
workstations in more than one organizational unit who
make varied (interrelated but autonomous) decisions
using a common set of tools (Carter et al., 1992)
77

78. 78

79.  A distributed decision support system (DDSS). Not
a manager's DSS, but supports the organization's
division of labor in decision making (Swanson and
Zmud, 1990)
 Apply the technologies of computers and
communications to enhance the organizational
decision-making process. Vision of technological
support for group processes to the higher level of
organizations (King and Star, 1990)
79

80. 80

81. Common Characteristics of
ODSS (George, 1991)
 Focus is on an organizational task or activity or a decision
that affects several organizational units or corporate
problems
 Cuts across organizational functions or hierarchical layers
 Almost always involves computer-based technologies, and
may involve communication technologies
 Can Integrate ODSS with Group DSS and Executive
Information Systems
 ODSS are an enterprise information system directly
concerned with decision support
81

82. 82

83. 83

84. 84

85. 85

86. 86

87. Decision Maker Views
The decision making-
intrepretation process
T itle
S u b title
N o te : T h is is th e fo o tn o te
Y 50
1
45
T
i 40
t
l 35
e
30
25
20
Cognitive Style 15
Cognitive Style C o lu m n 1 C o lu m n 2 C o lu m n 3
C o lu m n T i t l e
C o lu m n 4
Mental Models R ow 1 Row 2 R ow 3 Row 4
Mental Models R o w T it l e
Infromation Sources
Outcomes
Links: relationships
bewteen nodes
New link
Nodes: data, models, knowledge
Hypertext Links
87

88. 88

89. Management Decision Making Processess
ools
ess T
Proc
Strategy Formulation
Planning & Budgeting
Dialectical
Intelligence Inquiry
90 Consensus
80 Design
Generating
70 Choice
60
50
Stakeholder East
40 West
Communications 30 North
20
10
0
1st Qtr 2nd 3rd 4th
Qtr Qtr Qtr
Performance
Measure ment &
Reporting
Technical Infrastructure Building
Human Resource Management
89

90. 90

91. Repository-Based EIS ESS Architecture
GSS Structure
Data Model
Repository Interface GSS
Environmentally Base Base
Target IS Collected & Scanned Information:
Development Tools Interface
Internal/External
Process
Support
Problem & Problem Process
Opprotunity Identification:
Data Base Intelligence Tool Data Base
Normative Descriptive
Business
Design Design
Process
DeSanctis and Gallupe, 1985 Redesigns
Turban and Watson, 1989
Decision
Teng, Kettinger, and Guha, 1992
Choice
Chen, 1995
This paper
Implementation/Outcomes
91

92. 92

93. Future of Executive and Enterprise
Support Systems
 Toolbox for customized systems
 Multimedia support
 Better access (via PDFs and cell phones)
 Virtual Reality and 3-D Image Displays
 Merging of analytical systems (OLAP / multidimensional
analysis)) with desktop publishing
 Client/server architecture
 Web-enabled EIS
 Automated support and intelligent assistance
 Integration of EIS and Group Support Systems
 Global EIS
 Integration and deployment with ERP products
93