mis-pres-1 report

7/27/2019 MIS-Pres-1 report

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Management Information Systems

-Meaning & Role of Information- System, Types of IS


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The Purpose of Information Systems

Businesses use information systems

To make sound decisions

To solve problems

Problem is any undesirable situation

Decision arises when more than one solution to

problem exists


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The Purpose of Information Systems

(continued)

Problem solving and decision making require

information

Keys to success in business are:

Gathering correct information

Storing information

Using information


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Data, Information, and Information

Systems

Data & information are commonly used terms

Important to understand their similarities and

differences.


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Data vs. Information

Data: a given or fact

Can be number, statement, or picture

Information: facts or conclusions that have

meaning within context

Composed of data that is manipulated


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Data Manipulation

Data is manipulated to make useful information

Survey is common method of collecting data

Raw data is hard to read

Information is more useful to business than data


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Generating Information

Figure 1.1: Input-process-output


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Information in Context

Not all information is useful

Useful inform at ion is

Relevant

Complete

Accurate

Current

Obtained economically (in business)


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Information in Context (continued)


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What Is a System?

System: array of components that work

together to achieve goal or goals

System

Accepts input

Processes input

Produces output


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What is a system? (continued)

System may have multiple goals

System may contain subsystems

Subsystems have sub-goals that meet main goal

Subsystems transfer output to other subsystems


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What is a system? (continued)

Closed system: has no connections with other

systems

Open system: interfaces and interacts with

other systems

Often a subsystem of a bigger system

Information System: processes data and

produces information


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Information and Managers

Systems thinking: thinking of an organization interms of subsystems

Database: collection of electronic records.

Information systems automate exchange amongsubsystems.

Information map: network of information

systems.

Information technology: technologies thatfacilitate construction and maintenance of

information systems.


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The Benefits of Human-Computer

Synergy

Humans are relatively slow and make mistakes

Computers cannot make decisions

Synergy: combining resources to produce

greater output


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The Benefits of Human-Computer

Synergy (Continued)Figure :Qualities of

humans

and

computers

that

contributeto synergy


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Information Systems in Organizations

Computer-based Information system: system

with computer at center

Certain trends have made information systems

important in business

Organizations lag behind if they do not useinformation systems


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Components of information systems

Figure : Components of an information system


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The Four Stages of Processing

Input: collect and introduce data to system

Transaction: a business event, usually entered

as input

Data processing: perform calculations on input

Output: what is produced by the information

system

Storage: vast amounts of data stored on opticaldiscs, magnetic tapes, magnetic hard disks etc.


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Computer Equipment for Information

Systems

Input devices: receive inpu t

Computer: process data

Output: disp lays informat ion

Storage devices: sto re data

Network devices:t rans fer data


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Computer Equipment for Information

Systems (continued)

Figure: Input, process, output, storage, and networking devices


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From Recording Transactions to Providing

Expertise:

Types of Information Systems

Many types of information systems

Capabilities of applications have been combined

and merged

Management Information System: supports

planning, control, and making decisions


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Transaction Processing Systems

Most widely used type of system

Records data collected at point where

organization interacts with other parties

Encompasses cash registers, ATMs and

purchase order systems


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Supply Chain Management Systems

Supply chain: sequence of activities involved in

producing products

Activities include marketing, purchasing raw

materials, manufacturing, shipping, billing,

collection, and after-sale services

Also known as enterprise resource planning

systems


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Customer Relationship Management

Systems

Customer relationship management:

managing relations with customers

Used in combination with telephones to providecustomer service

Often linked to Web applications that track onlinetransactions


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Business Intelligence Systems

Business Intelligence: gather data to help

organization compete.

Often contains statistical models

Access large pools of data

Data warehouse: large database that usuallystore transactional records


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Decision Support and Expert Systems

Decision support system: supports decision-

making

Relies on models to produce tables

Extrapolates data to predict outcomes

Expert system: supports knowledge-intensivedecision-making

Uses artificial intelligence


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Geographic Information Systems

Geographic information system: ties data tophysical locations

Represents data on a map in different formats

May reflect demographic information in addition

to geographic

May use information from GPS satellites


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Geographic Information Systems

(continued)


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Information Systems in Business

Functions

Functional business area: services within a

company that support main business

Includes accounting, finance, marketing, andhuman resources

Part of a larger enterprise system


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Accounting

Information systems help record transactions

Produce periodic statements

Create required reports for law

Create supplemental reports for managers


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Finance

Finance systems facilitate financial planning and

business transactions

Tasks include organizing budgets, managingcash flow, analyzing investments, and making

decisions


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Marketing

Pinpoint likely customers and promote products

Marketing information systems analyze demand

for products inregions and demographicgroups

Identify trends in demand for products/services(It helps in marketing the right product to right customers)

Web provides opportunity to collect marketingdata


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Human Resource

Human resource management systems aid

record-keeping

Must keep accurate records

Aids recruiting, selection, placement, and reward

analysis

Performance evaluation systems providegrading utilities


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Web Empowered Enterprises

E-commerce: Buying and selling goods and

services through Internet

Internet is a vast network of computersconnected globally

Web has a profound impact on informationsystems


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Information system

Operations

Support system

Management

Support Systems

Transaction

Processing

Systems

Enterprise

Collaboration

Systems

Process

Control

Systems

Management

Information

Systems

Executive

Information

Systems

Decision

Support

Systems

Support of

Business

Operations

Support ofManagerial

Decision

Making

Processing

BusinessTransactions

eg. Sales &

Inventory

Processing

Control of

IndustrialProcesses eg.

Power

generation

Team and

WorkgroupCollaboration

eg. email.,

chat, video

conferencing

Pre specified

Reporting forManagers eg.

Sales

Analysis,

Production

Performance

Interactive

DecisionSupport

eg.

Product

Pricing,

Risk

Analysis

Information

Tailored forExecutives eg.

Analysis of

Business

Performance,

actions of

Competitors


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Summary

Computer-based information systems pervade

almost every aspect of our lives

A system is a set of components that work

together to achieve a common goal Subsystem: a system performs a limited task

that produces an end result, which must be

combined with other products from other

systems to reach an ultimate goal

Data processing has four stages


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Summary (continued)

Any IS that helps in management is a

management information system (MIS)

Many different types of MIS

Enterprise application systems (SCM or ERP) tietogether different functional areas of a business

ISs are used in accounting, finance, marketing,

and human resources

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