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Types of Information systems

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1 Types of Information systems
BY, Ikhlaq

Operational-level systems Support operational managers by monitoring the day-to-day’s elementary activities and transactions of the organization. e.g. TPS and OAS Knowledge-level systems support knowledge and data workers in designing products, distributing information, and coping with paperwork in an organization. e.g. KWS. 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

3 Classification of IS Information Systems Operations Support System
Management Support System Transaction processing systems Office automation systems Decision support systems Executive information systems Management information systems Process control systems

4 Major Types of Information Systems

5 TPS The first Computer-based Information System Called EDP systems.
Latter it was coined as Account information system (AIS) Today known as TPS TPS is an organized collection, store and dissemination of people, procedures, S/W & DB, devices used to process the basic business transaction data and records to complete business transactions. Transaction Processing Systems (TPS): designed to reflect large volumes of routine repetitive transactions or routine operations /activities or tasks of a firm which are related to customer contacts. Most of the information produced by the TPS are for the use of the person outside the organization eg employees are paid at regular intervals, expenses are monitored are compared to budget

6 Features of TPS Provide foundation data for many other systems eg they provide support for decision makers through MIS & DSS Essential to business success even today, as TPS work with a large amount of I/P & O/P data & use this data to update the official records of the company. These information play a vital role in providing value to the customers E.g. transactions like sales to customers, customer orders,, accounts payable ,payments to suppliers, A/C receivables , Billing, payroll, supplier payments are examples.

TYPE: Operational-level INPUTS: transactions, events PROCESSING: listing, merging ,updating OUTPUTS: detailed reports USERS: operations personnel, supervisors DECISION-MAKING: highly structured

8 OIS Operations Information Systems (OIS):
Gathers comprehensive data, organizes it and summarizes it in a form valuable to managers. Can help managers with non-routine decisions such as customer service and productivity. Provides sales, inventory & performance oriented data.

9 Management Information System
TPS were generally unable to transform the volumes of data into aggregated ,stored ,organized and processed information needed by the managers. Over the time IS became aware of underlying logic of the processes that they followed in problem solving and structured decision making. Integrated collection of people, procedures, DB, & devices that collect, process, store and disseminate information to support decision making and Problem Solving and to help & achieve organizational goals”. MIS role is to provide the right information to the right person in the right format at right time it also answer queries and forecast trends and emphasizes on producing periodic/routine reporting on known and anticipated issues in different functional areas of businesses eg a daily list of employees and the hours they work, or a monthly report of expenses as compared to a budget.

10 Objectives of MIS An Information system at the management level of an organization that serves the functions of planning, controlling, and decision making by providing routine summary, exception reports and results of mathematical simulation. MIS is a computer based system , operational at management level/Functional level. The information provided by the MIS describes the firm or one of its major system in the terms of What happened in the past, What is happening What is likely to happen in future. Primary purpose of an MIS is to help an org to archive its goals by providing managers with insight into the regular operations of the org MIS help to control, organize & plan the org program more effectively These systems monitor, organize, summarize, and display information for supporting the transaction processing systems and routine decision making in the functional areas. 10

11 MIS Vs PS Transaction Processing Systems (TPS)
Support operation Management and control Routine, normal operations Management Information Systems (MIS) Provide decision-making support for routine, structured decisions Closely linked to and fed by TPS

12 MIS TPS MIS Order Processing system Sales data Customer file Product
Cost data Materials Mgt system Production file Reports Production data General Ledger system Expenses data Mangers A/C file

13 SUMMARY OF MIS MIS is activities to manage information for problem solving and decision making in an entity by managed the following activities: Acquiring information by gathering data and processed the data to be the valuable information efficiently Using the information in the most effective way Discarding the information at the proper time TYPE: Management-level INPUTS: high volume data PROCESSING: simple models OUTPUTS: summary reports Periodic Schedule reports Demand or Response report Exception report Push report USERS: middle managers DECISION-MAKING: structured to semi-structured EXAMPLE: annual budgeting MIS support structured decisions at the operational and management control levels. However, they are also useful for planning purposes of senior management staff.

14 Skills required in MIS Computer literacy
understanding of computer terminology a recognition of the strength and weakness of the computer an ability to use the computer Information literacy Understanding how to use information at each step of problem solving process. Understanding where information can be obtained Understanding how to share information with other

15 MIS USES SOFTWARE MIS produces information using two types of software: 1- Report –writing software that produces both periodic and special reports (special reports are also called ad-hoc reports) e.g. database management systems. 2-Mathematical models are used to produce information as a result of simulation of the firm’s operations. Mathematical models that describe the firm’s operations can be written in any programming language. However special modeling languages make the task more easier and faster. 15

16 MIS USERS Cont… Managers require information to identify problems ,develop alternative solution, select the best ones, and finally review the consequences of their decision. MIS are used by managers ,however other non-manager inside the firm as well as persons and organizations outside the firm. professionals use the out puts of MIS. Managers are the individuals who need the information vary widely. Managers The idea of using the computer as a management information system was a breakthrough because it recognized managers’ need for problem solving information. Embracing the MIS concept made several firms develop applications specifically aimed at management support. Non-managers Non-manages and staff specialists also use the MIS output. Persons & organizations in the firm’s environment Users outside the company benefit from the MIS as well. They can be customers receiving invoices, stockholders getting dividend checks, and the federal government checking tax reports.

Systems that enable office automation by using EDP and communication facilities e.g. VOIP, Video conferencing, FAX, Computer conferencing, voice -mail, , audio conferencing to make manager more efficient. Now a days these systems are referred as personal productivity systems (PPS) e.g. PDA digital dairies etc. The ability of office automation also led the concept of Virtual Offices that is the performance of office activities independent of a particular physical location eh telecommuting, hoteling and other telecommuting-services. Hoteling is a extended concept of telecommuting that defines that come to the central office only when needed. Because all employees of telecommuting do not have all facilities at their homes. Hotels are the central offices with the all telecommuting facilities for all business processes. Virtual offices have made managers more available to customer and others within the organization.

18 DSS Information system at the management level of an organization that combines data and sophisticated analytical models or data analysis tools to support semi-structured and unstructured decision making. However latter on DSS were subsequently expanded to encompass group decision making ,AI and on-line analytical processing (OLAP) It offer greater computing as well as graphical Capabilities Support all phases of decision making and a variety of decision-making processes and styles DSS SUMMARY TYPE: Management-level INPUTS: low volume data PROCESSING: simulations, analysis OUTPUTS: decision analysis USERS: professionals, staff managers DECISION-MAKING: semi-structured EXAMPLE: sales region analysis

19 Decision Support Systems
Decision Support Systems (DSS): provides interactive models to help managers make better decisions. Excellent for unusual, non-programmed decisions Analyzes investment potential, new product pricing. Often used by middle and upper managers DSS use sophisticated analysis & modeling tools. DSS Levels of Analysis Sensitivity Analysis The study of the effect that changes in one or more parts of a model have on other parts of the model. What-if Analysis Checks the impact of a change in the assumptions or other input data on the proposed solution. Goal-seeking Analysis Find the value of the inputs necessary to achieve a desired level of output

20 Components and Structure of DSS
Data Management Includes the database containing relevant data for the decision situation User Interface Enables the users to communicate with and command the DSS Model management software Provides a variety of solution models Includes software with financial, statistical, graphical, project management, management science, or other quantitative models Dialogue Manager Allows user interaction with DSS Knowledge Management Provides knowledge for solution of the problem; supports any of the other subsystems or act as an independent component.

21 DSS (continued)

22 Relational Database Knowledge Database Multidimensional Database
Management sys Inference Engine Multidimensional Database Management sys Report writing software Mathematical models Groupware Solutions and Explanations Outputs from OLAP Periodic and Special reports Mathematical Models Output Groupware Output DSS USERS

23 Cont…… 1.DSS offer users flexibility, adaptability, and a quick response. 2. DSS operate with little or no assistance from professional programmers. 3. DSS provide support for decisions and problems whose solutions cannot be specified in advance. 4. DSS use sophisticated data analysis and modelling tools. NOTE: A DSSS take a rifle approach to solve an un-structured problem where as an MIS takes a shotgun approach by providing a large group of problem solving with information to solve wide range of problems

24 General Structure of DSS
Model Base DB DSS S/W product computer Analytical model DB Comprises of process cost 1.Behaviour Model 2.Mgt science Model 3.OR Model Graphics & Reports competitors

25 Differences b/w MIS & DSS
Decision support provided Provide inform. About the performance of the org Provide inform. & support techniques to analyze specific problems or opportunities. Not innate human decision. Can’t overcome a faulty decision making Information form & frequency Periodic, exception, demand & push report & responses Interactive inquiries & responses Information format Pre specified & fixed format Flexible & adaptable format Information Processing methodology Inform. Produced by extraction & manipulation of business data Inform. Produced by analytical modeling of business data

26 Enterprise Systems

27 Enterprise Application Architecture
Suppliers E M P L O Y s P A R T N E s SCM Sourcing & Procurement Knowle dge Mgt Collaboration & Decision support Partners Relationship Mgt ERP Internal business processes CRM Marketing, sales & service Customers

28 Enterprise Systems As MIS and DSS were developed without an overall master plan. Each of them is sparing support at individual department level. During 1990 the firms began to integrate these system and consequently establishing an integrated system application that is aimed at meeting the needs of particularly all types of organization in its all types of functional areas. How to control all major business processes with a single s/w architecture in real time This was named as ERP system. An integration of all of (MISs) across the firm is known as enterprise resource planning system. An ERP is a cross functional computer based system that enables the management of all of the firm’s resources on an organization-wide basis. Integrated programs that can manage a company’s entire set of business operations, Often coordinate planning, inventory control, production and ordering ERP provides a support systems in the transaction processing, updating, & reporting across the functions. ERP is a package encompassing all major functions of the business.

29 Cont… ERP is a cross functional enterprise systems driven by an integrated suite of S/W modules that supports the basic internal business process of a company. ERP packages build information base & provide knowledge base business function mgt. The ERP is the main system, interfaced (or) assisted by the other systems in the org. These systems provide the DB to the ERP. Enterprise systems provide a technology platform where org can integrate & co-ordinate their major internal business processes. They address the problem of organizational inefficiencies created by isolated island of information business processes & technology. ERP is a firm wide single IS that integrate key business processes so that information can flow freely between different parts of the firm to solve the business problems. ERP Systems can co-ordinate activities like decisions, & knowledge across many diff. functions, levels & business units in a firm. It includes enterprise systems or ERP, SCM, CRM, & KMS

30 Basic features of ERP Separation of the program code & the data areas
Command language Screen based flow control Common service functions Transaction flow control & help functions Word processing, text editing & action message Diagnostic functions Business values embedded in the process Extensive use of stored procedures, triggers & alerts Strange wise cost data capture for analysis & decision making Resources planning, scheduling & optimization Can run in different network environment

31 Challenges of ERP Daunting Implementation
High Up-front Costs and Future Benefits Inflexibility Expensive & time in implementation Difficulty implementation change Risks in using one vendor Risk of implementation failure

32 BENEFITS OF THE ERP Better management of resources
Customer satisfaction Business operation transparency b/w business partners The process become faster due to work group technology The ERP scope enlarged through the internet/intranet access Due to the client/server, the application of object technology & use of the front end tools, the process changes can be easily carried out. The ERP design is proactive, it make mgt alert at a no. of points like demanding the decisions. ERP still remain a valid solution with the expansion of business as it is a scalable architecture. Firm structure and organization: One Organization Management: Firm wide Knowledge-based Management Processes Technology: Unified Platform Business: More Efficient Operations and Customer-driven Business Processes

33 ERP SELECTION Only a few vendors market offers an ERP packages. Even world’s two largest companies like Microsoft and IBM do not make ERP yet they run large portions of their businesses using software from ERP vendors. One ERP provider is SAP, is a large multinational company. Based in Germany. However Oracle and Siebel are main SAP competitors. PeopleSoft was another formerly a competitor ,but in Jan 2005 Oracle acquired PeopleSoft. Each product has its own USP & differs in a no.of ways in content, scope, in case of implementation etc. The selection can be made on 3 dimensions. It as follows; 1. Vendor Evaluation 2. Technology Evaluation 3. ERP solution Evaluation

34 Vendor Evaluation Business strength of the vendor
Product share in total business of the vendor Future plans of the vendor Market reach & resource strength of the vendor Ability to execute the ERP solution Perspective plan of the ERP improvement with technology development Business philosophy of the vendor

35 Technology Evaluation
Client server architecture & its implementation 2 tier or 3tire Object orientation in development & methodology Interface mechanism: data transfer, real time access Support system technology like bar coding, EDI, imaging, comm., network H/W – S/W configuration mgt Operating system & its levels of usage in the system Use of case tool, screen generators, report writers, screen printers & batch processor Handling of client/server data & application logic

36 ERP Solution Evaluation
ERP fit for the business of the org in terms of the functions, features & processes Degree of deviation from the standard ERP product Ease of use: easy to learn, implement & train Flexible design & ability to migrate to the ERP environment Rating on performance, response & integration product quality in terms of security, reliability, & precision in results Solution architecture & technology Documentation for system handling & administration

37 Extended Enterprises Extended Enterprises: Networks linking systems of multiple firms in an industry. Also called extended enterprises. Vertical industrial networks Networks for integrating the operations of a firm with its suppliers. Horizontal industrial networks Networks for linking firms across an entire industry.

38 Thank you 38

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