MIS_Unit1

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MISMIS

UNITUNIT--11

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DefinitionsDefinitionsData

Raw facts such as an employee¶s name and number of hours worked in a week, inventory part numbers or sales

orders.

Information

A collection of facts organized in such a way that theyhave additional value beyond the value of the facts

themselves.

DataInformation

$35,000 12 Units

$12,000 J. Jones

Western Region

$100,000 100 Units

35 Units

Data

Processing

Salesperson: J. Jones

Sales Territory:

Western Region

Current Sales: 147

Units = $147,000

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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 mechanism to meet an

objective.

Definitions

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Information SystemsInformation SystemsEarlier applications

Airline Reservations Keeping

records

of

transactions

Keeping

records

of Stock

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INFORMATION

TECHNOLOGY

Hardware

Software

Databases

Networks

Other related

components

are used to build

INFORMATIONSYSTEMS

Payroll

System

Inventory

System

Marketing

System

Customer

Service

System

IS Vs ITIS Vs IT

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Expanding Roles of ISExpanding Roles of IS1.

Data Processing:1950

s-1960

s2. Management Reporting: 1960s-1970s

3. Decision support: 1970s-1980s

4.

Strategic andE

nd User Support:1980

s-1990

s5. Global Internetwork ing: 1990s-2000s

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Classification of ISClassification 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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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

i) Management Information System

ii) Decision Support Systems

iii) Executive Information System

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1. Operations Support System

i) Transaction processing systems

Process business exchanges

Maintain records about the exchanges

Handle routine, critical tasks

Perform simple calculations

ii) Process control systems monitor and control industrial

processes.

iii) Off ice automation systems automate office procedures and

enhance office communications and productivity.

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2. Management support systems provide information and support

needed for effective decision making by managers

Major categories are:

i) Management information systems

Routine information for routine decisions

Operational efficiency

Use transaction data as main input

Databases integrate MIS in different functional areas

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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

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Other categories

a) Expert systems

b) End user computing systems

c) Business information systems

d) Strategic information systems

a) Ex pert Systems are knowledge-based systems that providesex pert advice and act as ex pert 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

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TopManagers

Middle

Managers

First-Line

Managers

Operatives

ExerciseExercise.. MatchMatch thethe typetype of of informationinformation systemsystem withwith thethe

organizationalorganizational levellevel wherewhere theythey areare mostmost

commonlycommonly usedused::

Transaction Processing Systems (TPS)Transaction Processing Systems (TPS)

Management Information Systems (MIS)Management Information Systems (MIS)

Decision Support Systems (DSS)Decision Support Systems (DSS)

Ex pert Systems (

ES)

Ex pert Systems (

ES)

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Types of Information SystemsTypes of Information Systems

Transaction Processing Systems (TPS) ± Automate handling of data about business activities

(transactions) Management Information Systems (MIS)

± Converts raw data from transaction processing systeminto meaningful form

Decision Support Systems (DSS) ± Designed to help decision makers

± Provides interactive environment for decision making

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Types of Information SystemsTypes of Information Systems

and Systems Developmentand Systems Development

Ex pert Systems (ES)

± Replicates decision making process

± Knowledge representation describes the way an

ex pert would approach the problem

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Operations Support SystemOperations Support System

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Operating Information SystemOperating Information System

In Business, the communication systems

that are developed to make the basic

operations of the company possible.

For Eg ± In a Manufacturing System, IS

needed for planning & control of day-to-day

activities.In Order processing System, forms must be

setup to accept orders.

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OIS for Order Processing OIS for Order Processing

SystemSystemSalesman preparesan order

Salesman preparesan order

Issue work orders

to prod. workers

Setup Accounts

Receivable

Customer

Master File

Inventory

Master File

Collects

Orders

Calculate

Orders

Prepare

& Mail

Invoices

InformationInformation

Operation Operation Operation

InformationInformation

OperationOperation

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Transaction Processing SystemsTransaction Processing Systems

A transaction is an event that generates or

modifies data that is eventually stored in an

information system.

A transaction processing system is a type

of information system. TPSs collect, store,

modify, and retrieve the transactions of anorganization

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Transaction Processing SystemsTransaction Processing Systems

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Eg

Eg ± ± Payroll TPSPayroll TPS

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Enterprise Collaboration SystemsEnterprise Collaboration Systems

Enterprise collaboration systems are information systemsthat use a variety of Information technologies to help

people work together. Enterprise collaboration systems

help us

Collaborate- to communicate ideas

Share resources

Co-ordinate our cooperative work efforts as members of the many

formal and informal process and project teams. The goal of enterprise collaboration systems is to use information

technology to enhance the productivity and creativity of teams and

workgroups in the modern business enterprise.

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ECS helps in improving team ECS helps in improving team

communicationcommunication

Virtual meetings don¶t require everyone to be in the same place atthe same time.

± Conference calls

± Videoconferencing

± Email

± Discussion forums

± Team surveys

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Use of ECS to manage contentUse of ECS to manage content

There are three categories for sharing content. Your choice depends on the degree of control your teamneeds to complete their tasks.

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How do businesses use collaboration systems How do businesses use collaboration systems

for decision making?for decision making?

Collaboration Needs for Decision Types

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Management support systems focus on

providing information and support for

effective decision making by managers.

They support the decision-making needs of

strategic (top) management, tactical(middle) management, and operating

(supervisory) management.

Management Support SystemManagement Support System

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Management level

Inputs:High volume data

Processing: Simple models

Outputs: Summary reports

Users: Middle managers

Example: Annual budgeting

Management Information Management Information

SystemSystem

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Management Information System (MIS)

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System Architecture: System Architecture:

Management Information Management Information

SystemSystem

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Management Information SystemManagement Information System

Scheduled reports

Key-indicator reports

Exception reports

Ad hoc (demand) reports

Creates reports managers can useCreates reports managers can useto make routine business decisionsto make routine business decisions

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Scheduled

Reports

Produced periodically, or

on a schedule

(daily, weekly,

monthly).

Outputs of a Management Information SystemOutputs of a Management Information System

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Key-Indicator Report

Summarizes the previous day¶s critical activities

and typically available at the beginning of each

day.

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Demand Report

Gives certaininformation at a

manager¶s

request.

Exception

ReportAutomatically

produced when a

situation is unusual

or requires

management action.

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It is a system that provides integrated tools,data, models & language to users that help them

in the decision making process.

It supports and not replaces the manager¶s

decisions.

Used for semi-structured problems. Parts of

analysis can be systemized but, decision

maker¶s insight is also needed.

Effective problem solving is interactive &

enhanced by a dialog b/w user & system.

Decision Support SystemDecision Support System

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Decision Support SystemDecision Support System

DSS DatabaseFinance Data

Accounting Data

Sales/Mkg Data

Employee Data

Model BaseStatistical Model

Forecasting Model

Operational

Planning

DSS S/w System

Manage DSS D/b &

Model Base

User Interface

User

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An Executive Information System (EIS) is a system that provides information to the executives on the overall

performance of the firm.

The information can be accessed easily and can also providevarying levels of details.

It usually consists of a PC networked to a central computer.

The PC works as the executive workstation providing access

to the executive database.

Its also known as Executive Support System (ESS).

Executive Information SystemExecutive Information System

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Executive

databasePersonal

Computer

Information

request

Information

display

Making

Corporate

Information

available

Corporate Database

Electronic Mailboxes

Software library

Current news,

ex

planations

External data & information

CE NTRAL COMPUTER

EXECUTIVEWORKSTATION

Executive Information SystemExecutive Information System

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Cross-Functional Information

System` Transcend boundary between sales,

marketing, manufacturing, and research and

development

` Group employees from different functional specialties to a complete piece of work

Example: Order Fulfillment Process

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The Order Fulf illment Process

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Artificial intelligence (AI) is the intelligence of

machines and the branch of computer science that

aims to create it. A

I tex

tbooks define the field as "the study and design of intelligent agents" where

an intelligent agent is a system that perceives its

environment and takes actions that maximize its

chances of success.

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Artificial Intelligence System

Natural

Language

Native Language

Knowledge

Language

Reasoning

Expert

Knowledge

Human Like

Reasoning

Perception

Size, Shape,

Image, Voice

Sensing Abilities

for Reasoning

Uses

Applies

Uses

Applies

Uses

Applies

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AI Applications

Uses Human

Information

Processing

Capability

Uses Computer

Intelligence for

producing

Human Like

Capacity

Uses Human

capabilities in

speech

recognition,

Multi SensoryInterfacing

AI Applications

Intelligent AgentsFuzzy Logic

Learning System

Expert System

Robotics

Applications

Robot Systems

for doing Human

Jobs

Natural Interface

Applications

VR Systems

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` Hardware or software emulating processing patterns of biological brain.

An artificial neural network (ANN), usually called neuralnetwork (NN), is a mathematical model or computational modelthat is inspired by the structure and/or functional aspects of biological neural networks.

A neural network consists of an interconnected group of artificialneurons, and it processes information using a connectionistapproach to computation.

In most cases an ANN is an adaptive system that changes itsstructure based on external or internal information that flowsthrough the network during the learning phase.

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` Fuzzy logic is a form of many-valued logic; it dealswith reasoning that is approximate rather than fixedand exact.

` In contrast with traditional logic theory, where binarysets have two-valued logic: true or false, fuzzy logicvariables may have a truth value that ranges in degreebetween 0 and 1.

` Fuzzy logic has been extended to handle the concept

of partial truth, where the truth value may rangebetween completely true and completely false.

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` Rule-based AI

` For example, a simple temperature regulator that

uses a fan might look like this:

` IF temperature IS very cold THEN stop fan

IF temperature IS cold THEN turn down fan

IF temperature IS normal THEN maintain level

IF temperature IS hot THE

N speed up fan

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` The typical architecture is often described as

follows:

user interface

inference

engine

knowledge

base

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The system holds a collection of general principles whichcan potentially be applied to any problem - these arestored in the knowledge base.

The system also holds a collection of specific details thatapply to the current problem (including details of how the

current reasoning process is progressing) - these areheld in working memory .

Both these sorts of information are processed by the

inference engine.

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` Virtual reality (VR) is a term that applies to

computer -simulated environments that can

simulate physical presence in places in the real

world, as well as in imaginary worlds.

` Virtual reality can serve to new product design,

helping as an ancillary tool for engineering in

manufacturing processes, new product prototypes,and simulation.

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