Meaning & Support Sys

8/6/2019 Meaning & Support Sys

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UNIT 1

Meaning & Role

of Information System


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Expanding Roles of IS

1. Data Processing: 1950s-1960s

2. Management Reporting: 1960s-1970s

3. Decision support: 1970s-1980s

4. Strategic and End User Support: 1980s-1990s

5. Global Internetworking: 1990s-2000s


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INFORMATION

TECHNOLOGY

Hardware

Software

Databases

Networks

Other related

components

are used to build

INFORMATION

SYSTEMS

Payroll

System

Inventor

y System

Marketin

g System

Customer

Service

System

IS Vs IT


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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 mechanismto meet an objective

Major parts

1. People

2. H

ardware3. Software

4. Databases

5. Networks


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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.

Computer-based Information System


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Classification of IS

Information Systems

OperationsSupport System ManagementSupport System

Transaction

processing

systems

Process control

systems

Office

automation

systems

Management

information

systems

Decision

support

systems

Executive

information

systems


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Decision-Making Levels of an Organization


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Decision-Making Levels of an Organization

Executive level (top)

Long-term decisions

Unstructured decisions

Managerial level (middle) Decisions covering weeks and months

Semi structured decisions

Operational level (bottom) Day-to-day decisions

Structured decisions


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Administrative Information Systems

Transaction Processing Systems (TPS)

Office Automation Systems (OAS)

Knowledge Work Systems (KWS) Management Information Systems (MIS)

Decision Support Systems (DSS)

Executive Information Systems (EIS)

InterOrganizational Systems (IOS)


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1] Operations Support System

i) Transaction processing systems : Automate handling of dataAutomate handling of data

about business activities (transactions) process business exchange.about business activities (transactions) process business exchange.

a) Maintain records about the exchanges

b) Handle routine, yet critical, tasks.

c) Perform simple calculations

d)d) Used at Operational level of the organizationUsed at Operational level of the organization

e)e) Automate repetitive information processing activitiesAutomate repetitive information processing activities

AdvantagesAdvantages

1.1. Increase speedIncrease speed2.2. Increase accuracyIncrease accuracy

3.3. Greater efficiencyGreater efficiency


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It Includes :

a) Online processing

b) Batch processing

Examples:

Payroll

Sales and ordering

Inventory Purchasing, receiving, shipping

Accounts payable and receivable


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ii) Process control systems monitor and

control industrial processes.

iii) Office automation systems automate

office procedures and enhance office

communications and productivity.


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2. Management support systems

Converts raw data from transaction processing system intoConverts raw data from transaction processing system into

meaningful formmeaningful form used at managerial level of the organizationused at managerial level of the organization

Provide information and support needed for effective decision

making by managers which leads to management of IS inanagement of IS in

organizationsorganizations

Specific information systems for midSpecific information systems for mid--level managerslevel managers

1) Management information systems

a) Routine information for routine decisionsb) Operational efficiency

c) Use transaction data as main input

d) Databases integrate MIS in different functional areas


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MIS T

ypes of reports MIS make: Scheduled report

Key-indicator report

Exception report

Drill-down reportAd hoc report

Examples:

Sales forecasting

Financial management and forecasting

Manufacturing planning and scheduling

Inventory management and planning

Advertising and product pricing


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ii) Decision Support System

a)a) Designed to help decision makers.Designed to help decision makers.

b) Provides interactive environment for decisionb) Provides interactive environment for decision

makingmaking

c) Interactive support for non-routine decisions orproblems

d) End-users are more involved in creating a DSS than

an MIS

1.1. Designed to help decision makersDesigned to help decision makers

2.2. Provides interactive environment for decisionProvides interactive environment for decision

makingmaking


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DSS Contd

Designed to support organizational

decision making

What-if analysis

Example of a DSS tool: Microsoft Excel

Text and graphs

Models for each of the functional areas

Accounting, finance, personnel, etc.


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iii) Executive information systems

1. Provide critical information tailored to theinformation needs of executives

2.2. Highly aggregated formHighly aggregated form

3.3. Data typesData types Soft dataSoft data news and no analytical datanews and no analytical data

Hard dataHard data facts and numbersfacts and numbers

Examples:

Executive-level decision making

Long-range and strategic planning

Monitoring internal and external events

Crisis management

Staffing and labor relations


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Expert systems

1.1. Replicates decision making process Knowledge representationReplicates decision making process Knowledge representation

2.2. Describes the way an expert would approach the problem.Describes the way an expert would approach the problem.

3. Expert Systems are knowledge-based systems that provides

expert advice and act as expert consultants to the users

4.Mimics human expertise by manipulating knowledgeMimics human expertise by manipulating knowledge

5. Rules (If5. Rules (If--then)then)

6.Inferencing6.Inferencing


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Contd

End user computing systems : End usercomputing systems support the direct, hands on useof computers by end users for operational andmanagerial applications

Business information systems : Businessinformation systems support the operational andmanagerial applications of the basic businessfunctions of a firm

Strategic information systems : Strategicinformation systems provide a firm which strategicproducts, services, and capabilities for competitiveadvantage


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Office Automation Systems (OASs)

Examples:

Communicating and scheduling

Document preparation

Analyzing data

Consolidating information


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Information Systems Development


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Technology for Competitive

Advantage

Technology should:

Support competitive priorities

Can require change to strategic plans

Can require change to operations strategy

Technology is an important strategic decision


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Technology for Competitive

Advantage

Technology has positive and negativepotentials

Positive

Improve processes Maintain up-to-date standards

Obtain competitive advantage

Negative

Costly Risks such as overstating benefits


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Operations Strategy Across the

Organization

Business strategy defines long-term plan

Operations strategy support the businessstrategy

Marketing strategy needs to fully understandoperations capability

Financial plans in effect support operationsactivities.


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Opportunities

1. Enhanced global competitiveness

2. Capture market opportunities

3. Support corporate strategy

4. Enhance worker productivity

5. Improve quality of goods and services


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Challenges

1. Workforce downsizing

2. Information overload

3. Employee mistrust4. Difficult to built

5. Security breaches


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Conclusion

Information Systems are indispensable to the

business, industry, academia and any

organization to meet the future challenges


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Conclusion

Meaning & Support Sys

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