This document provides an overview of information systems and their components and roles. It discusses different types of information systems like transaction processing systems, management support systems, and enterprise collaboration systems. It also covers information system frameworks, concepts, and trends. Key points discussed include the components of an IS, types of management support systems, roles of IS in supporting business processes and decision making, and how IS can provide competitive advantage.

1. Dr. Kamal Gulati
- Management Information
System -

2. Information System
• Concerned with Processing the raw facts into
information and transferring this information
to the users. It also takes feedback from the
users so that input can be given.
• An IS can be manual or computer based.

3. • Manual IS: Uses Pen, Pencil, or Papers etc.
• Computer IS: Focus is on CBIS – Computer
Based information System that uses
Information Technology to perform its various
activities.
• Information Technology refers to the
following components:
– Software
– Hardware
– Telecommunication

4. Information Systems Framework

5. Information Systems Concepts
• Foundation Concepts
– Fundamental concepts about the components and
roles of information systems.
• Information Technologies
– Major concepts, developments, and management
issues in information technology.

6. Information Systems Concepts
• Business Applications The major uses of information systems for
operations, management, and competitive advantage.
• Development Processes
– How business professionals and information specialists plan, develop,
and implement information systems.
• Management Challenges
– The challenge of managing ethically and effectively.

7. What is a system?
• A group of interrelated or interacting elements
forming a unified whole, OR
• A group of interrelated components working
together toward a common goal by accepting inputs
and producing outputs in an organized
transformation process (dynamic system).
• Three basic interacting components:
– Input
– Processing (transformation process)
– Output

8. Add Feedback and Control Loops..
• And the system, now called a cybernetic
system, becomes even more useful.
– Self-monitoring
– Self-regulating

9. Other System Characteristics
• A system exists and functions in an environment containing
other systems.
• Subsystem – a component of a larger system.
• Systems that share the same environment may be
connected to one another through a shared boundary, or
interface.
• Open versus closed system.
• Adaptive system

10. Components of an INFORMATION
System

11. Components of an Information System
(Continued)
• People Resources
– End Users
– IS Specialists
• Hardware Resources
– Computer systems
– Peripherals
• Software Resources
– System software
– Application software
– Procedures

12. Components of an Information System
(Continued)
• Data Resources
– Data versus Information
• Network Resources
– Communication media
– Network support

13. Data Versus Information
Monthly Sales Report
for West Region
Sales Rep: Charles Mann
Emp No. 79154
Item Qty Sold Price
TM Shoes 1200 $100

14. Attributes of Information Quality

15. Logical Data Elements
Name
Field
Payroll
Record
Payroll
File
Personnel
Database

16. Information Products
• Focus is on the end-user.
• They are the result of IS activities…
– Input
– Processing
– Output
– Storage
– Control

17. Major Roles of IS
Support
Competitive
Advantage
Support
Business
Decision Making
Support of
Business Processes and Operations

18. Major Roles of IS (continued)
• Support Business Processes
• Support Decision Making
• Support Competitive Advantage

19. The Present and the Future
• E-Business
– The use of Internet technologies to internet work
and empower…
• Business processes
• Electronic commerce, and
• Enterprise communication & collaboration
– Within a company & with its customers, suppliers,
& other business stakeholders.

20. IS in the E-Business Enterprise
• Every business competes globally (whether
they realize it or not)
• IS supports business operations through the
use of:
– Intranets
– Extranets
– Internet
– Other information technologies

21. IS in the E-Business Enterprise
(continued)
• Enterprise Collaboration Systems
– Support communication, coordination, &
collaboration.
• Virtual teams
• Electronic Commerce
– Buying & selling, and marketing & servicing of
products, services, & information.

22. Trends in Information Systems

23. TYPES OF INFORMATION SYSTEMS
I - Operations Support Systems
1. Transaction Processing Systems: An information
system designed to process routine business
transactions
• Batch – transaction data accumulate over time, processed
periodically.
• Real-Time – data processed immediately after a
transaction occurs.
2. Process Control Systems – monitor & control
physical processes.
3. Enterprise Collaboration Systems - Cross-functional

24. Types of Information Systems
(continued)
II - Management Support Systems
1. Management Information Systems – pre-specified
reports & displays to support decision-making.
2. Decision Support Systems – provide interactive ad
hoc support.
3. Executive Information / Support Systems – critical
information tailored to the information needs of
executives.

25. Types of Information Systems
(continued)
III - Other Classifications
1. Expert systems – expert advice
2. Knowledge management systems – support the
creation, organization, & dissemination of
business knowledge
3. Functional business systems – Support the basic
business functions
4. Strategic Information systems – Strategic
Advantage

26. Transaction Processing System (TPS)
• An information system designed to process routine
business transactions.
• Seeks time- and cost-efficiency by automating
repetitive operations in large volumes
• interfaces with an organization’s other information
systems, such as DSS, EIS
• centers around accounting and finance transactions
• e.g,, airline reservation systems, order
entry/processing systems, bank’s account processing
systems

27. The Major Characteristics of TPS
• Large amounts of data are processed.
• The sources of data are mostly internal, and the output is
intended mainly for an internal audience.
• The TPS processes information on a regular basis: daily, weekly,
monthly, etc.
• Large storage (database) capacity is required.
• High processing speed is needed due to the high volume.
• TPS basically monitors and collects past data.
• Input and output data are structured (i.e., standardized).
• Low computation complexity is usually marked in TPS.
• A high level of accuracy, data integrity, and security is needed.

28. A Transaction Processing Model
Data Input Data Processing Output Generation
Data Storage

29. POS(Point Of Sale) TPS
Barcode Scanner
POS
TPS
UPC
Product
DB
Inventory
DB
Information
Reporting System
Customer
Receipt
Exception
Reports
UPC Price
UPC &
Quantity
Product, Quantity,
Date, Time,
Price
Purchasing
DB
Quantity,
Date,
Time

30. Transaction Processing Systems
Methods
• Batch Processing
• On-Line / Real Time Processing and
• On-Line with Delayed Processing

31. Transaction
Data
Data
Processing
Trans.
File
New
Master
FileOld
Master
File
Documents/
Reports
Batch Processing

32. On-line Processing
On-line
Data
Processing
Documents/
Reports
Transaction
Data
Inquiries/
Reponses
Transaction
Data
Transaction
Data

33. Batch versus On-Line Transaction Processing

34. TPS Applications
• Order Processing
• Purchasing
• Accounts Receivables & Accounts Payables
• Receiving & Shipping
• Inventory on Hand
• Payroll
• General Ledgers

36. Transaction Processing Systems

37. Transaction Processing Activities
• Data collection
– Should be collected at source
– Should be recorded accurately, in a timely fashion
• Data Editing
• Data Correction

38. Document Production and Reports

39. - End of TPS -

40. Process Control Systems
• The process of monitoring activities to ensure
that they are being accomplished as planned
and of correcting any significant deviations
• An effective control system ensures that
activities are completed in ways that lead to
the attainment of the organization’s goals

41. • Control
– The task of ensuring that planned activities are
getting the desired results.
– All control systems try to influence behavior.
– Controlling involves setting a target (planning),
measuring performance (evaluation), and taking
corrective action.
– Control also applies to monitoring every task—
large and small—that is delegated.
The Fundamentals Of An Effective Control
System

42. Management and the Control Process

43. Types of Control

44. - End of PCS -

45. Enterprise Collaboration Systems
• Also Cross-functional
– crosses different functional business areas
(accounting, finance, inventory management,
human resources, etc.)
• Systems include:
– Instant Messaging to Video Conferencing
– Lotus Notes (IBM)
– Outlook (Microsoft)

46. Categories

47. Value of ECS
• Operational employees can work together more
Easily and Effectively
– Avoid traveling (telephone or video conferencing)
– Enhanced coordination (document merging, calendaring,
scheduling, workflow systems)
– Enhanced collaboration (project management tools,
discussion forums, instant messaging, etc.)

48. Other Forms of ECS
• Blog Spheres such as MySpace are ECS’s for
non-business communication
• Blackboard is technically an ECS
• Content or Document Management Systems
– Centralize content and documents for the website.

49. -- End of ECS --

50. Management Support Systems
The support of management tasks by the
application of technologies.
It Includes:
1. Management Information Systems (MIS)– pre-
specified reports & displays to support decision-
making.
2. Decision Support Systems (DSS)– provide interactive
ad hoc support.
3. Executive Information / Support Systems (EIS / ESS) –
critical information tailored to the information needs
of executives.

51. Management Support Systems
Tools
• DSS : Decision Support System
• Management Science
• Business Analytics
• Data Mining
• Data Warehouse
• Business Intelligence
• OLAP: on-line analytical processing
• CASE tools
• GSS : Group Support System
• EIS : Executive Information System

52. Management Support Systems
Tools contd…
• EIP : Enterprise Information Portals
• ERM : Enterprise Risk Management
• ERP : Enterprise Resource Planning
• CRM: Customer Relationship Management
• SCM: Supply Chain Management
• KMS: Knowledge Management System
• KMP: Knowledge Management Process
• ES: Expert System
• ANN: Artificial Neural Network
• Intelligent Agents
• E-Commerce DSS

53. Management Support Systems
MSS enables senior management to: -
Access common, Shared Sources of
Internal and External Information that
have been Summarized in Easy-to-
Access, Graphical Displays.

54. MSS Functions
• Function as an integrated approach to sharing
information in an easy-to-use, highly visual,
and personalized way.
• System helps promote a shared view of
business activities due to integration of tools
and distributed data/information.
• Managers can get up-to-date information on
industry news, competitor/market trends and
internal operations.

55. Most successful MSS are developed as
1.One aspect of a distributed, enterprise
information system.
2. Enables flexible and integrated information
sharing and communication
3.Both inside organizations and with external
suppliers, customers and other business
partners.

56. 1980s to 1990s
• 1980s - managers had support tools designed
to run on PCs (e.g. spreadsheets, statistical
packages, graphics packages, word processing,
project management, etc.) - tools consisted of
stand-alone (not integrated!!) systems.
• 1990s - MSS provide integrated environment
for these support tools

57. MSS
• MSS usually designed so that individual
manager can customize the system as needed
• MSS architecture - client/server environment
• One component of a distributed information
infrastructure

58. 1. Management Information Systems (MIS)
• Pre-specified reports & displays to support
decision-making.
Goals of an MIS
• Provide managers with information
• Regular, routine operations
• Control, organize and plan better

60. • Terminology Confusion
–MIS = the study of information technology
in business settings.
–But, MIS is also term to refer to class of
systems used to support operational and
tactical decision making.

61. Typical Inputs and Outputs
• Inputs: Information from the TPS
• Outputs: Hard and Softcopy reports
–Scheduled reports
–On-demand reports
–Key-indicator (business fundamentals)
–Exception Reports

62. Functional Perspectives of MIS
• Financial MIS
• Manufacturing MIS
• Marketing MIS
• Transportation and Logistics MIS
• Human Resources MIS
• Accounting MIS

63. Functional Perspectives of MIS
• Financial MIS
–Will integrate information from multiple
sources
–Functions
• Costing
• P&L reporting
• Auditing
• Funds management

64. • Manufacturing MIS
–Design and Engineering
–Master Production Scheduling
–Inventory Control
–Materials Planning
–Manufacturing and Process Control
–Quality Control

65. • Marketing MIS
–Market research
• Web-based market research
–Pricing
• Transportation and Logistics MIS
–Route and schedule optimization

66. Developing IS Solutions to Business
Challenges

67. Ethical Challenges
• Just because we can, should we?
• Where do we draw the line between customer
privacy and collecting business information?
• Do we owe it to society to use this technology
wisely and responsibly? Why? Isn’t our job to
make a profit?

68. In Summary, the IS Function…
• Is a major functional area of business.
• Is an important contributor to operational efficiency,
employee productivity and morale, and customer service &
satisfaction.
• Is a major source of information and support for decision
making.
• Provides a strategic advantage in developing competitive
products & services.

69. Discussion Questions
• How can information technology support a company’s
business processes and decision making, and give it a
competitive advantage?
• How does the use of the Internet, intranets, and extranets by
an e-business enterprise support their e-commerce activities?
• Why do big companies still fail in their use of information
technology? What should they be doing differently?

70. Discussion Questions (continued)
• How can a manager demonstrate that he or she is a
responsible end user of information systems?
• What are some of the toughest management challenges in
developing IT solutions to solve business problems and meet
new e-business opportunities?
• Why are there so many conceptual classifications of
information systems? Why are they typically integrated in
information systems found in the real world?

71. Discussion Questions (continued)
• In what major ways have the roles of information
systems applications in business expanded during
the last 40 years? What is one major change you
think will happen in the next 10 years?
• Can the business use of Internet technologies help a
company gain a competitive advantage?