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Basic Ideas
Problemsin business are undesirablesituations
To solve problems, managers must make
decisions to resolve the undesirablesituation
Decisions involve selecting a solution fromamong several alternatives.
Good decisions require information
Information systems produce information(among other things)
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Dataare defined as raw facts (dates, monetary amounts,names, addresses, account numbers, prices, etc.)
Informationis processed data put into some context.Contextual elements include things like relevance,completeness, accuracy, or timeliness).
Asystem is a set of components that work together to produce
a common goal (or goals)
An information systemis a set of components whose goal isto produce information that benefits an organization
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Characteristics of ManagementInformation
Needs to be new
Needs to be True
It is required to be about something
The transmission of Information is always through regular
communication channels
All rules of effective communication are relevant to Information
transmission
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The Organizational Pyramid
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Categories of Systems
Operational Level System:-Supports operational managers bykeeping track of elementary activitiesand transactions of the organization
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Management Level System :-Serves the monitoring , control,decision making and administrativeactivities of middle managers.
It provides periodic reports.
They focus on less structured
decisions
They often answer what if questions
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Strategic Level :- Helps seniormanagement tackle and addressstrategic issues and long term trends.
Their concern is matching changes inthe external environment with
existing organizational capability
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Characteristics of Informationat Different Managerial Levels
Different management levels havedifferent information needs
Information needed by differentmanagerial and operational levelsvaries in the time span covered
level of detail
Source
other characteristics over a broad spectrum
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Characteristics of Informationat Different Managerial Levels
Data Range
Amount of data from which information
is extracted
Time Span
How long a period the data covers
Level of Detail
Degree to which information is specific
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Characteristics of Informationat Different Managerial Levels
Source: Internal vs. External Internal data: collected within the organization
External data: collected from outside sources
Media, newsletters, government agencies, Internet
Structured and Unstructured Data Structured data: numbers and facts easily stored and
retrieved Unstructured data: drawn from meetings,
conversations, documents, presentations, etc.
Valuable in managerial decision making
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Information System
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Components of an IS include :
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Ways to Organize Information Systems
By the groups they serve
Operational level
Management level
Strategic level
By functional area
Sales and marketing
Manufacturing and production
Finance and accounting Human resources
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The Four Major Types of Information Systems
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TPS are the basic business systems thatserve the operational level of theorganization.
TPS is a computerized system thatperforms and record daily transactions
necessary to conduct business.
Ex: - Sales order entry , Hotel Reservation
Systems , Payroll
Transaction-Processing Systems (TPS)
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TPS
Entry point for recording data
Critically important to the functioning of the organization
mostly for predefined, structured tasks
usually has high volumes of input and output
provides data to systems which summarize the data intoinformation for the use of higher levels of management
needs to be fault-tolerant.
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Typical Applications of TPS
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Management Information System (MIS)
MIS serve the management level of the organization,providing managers with reports and online access to theorganizations current performance and historical records.
MIS are oriented almost exclusively to internal events
MIS serves the functions of planning, controlling, decision
making, or problem solving at the management level
Data collected by a TPS is usually the basis for an MIS
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MIS
MIS summarizes and reports on theCompanys operations.
Transaction data from TPS is compressed andpresented in the form of report
MIS serves managers primarily interested inweekly , monthly and yearly results.
MIS provides answers to routine questions
M I f i S (MIS)
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Management Information Systems (MIS)A sample MIS report
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MIS
MIS
MIS FILES
SALESDATA
UNITPRODUCTCOST
PRODUCTCHANGEDATA
EXPENSEDATA
MISREPORTS
MANAGERS
TPS
Order Processing
System
Materials Resource
Planning System
General LedgerSystem
ORDER FILE
PRODUCTION MASTER FILE
ACCOUNTING FILES
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Decision Support Systems (DSS)
DSS also serve the management level of theorganization.
It helps managers make decisions that are unique ,
rapidly changing and not easily specified in advance
They address problems where the procedure for arrivingat a solution may not be fully predefined in advance
It support more complex and nonroutine decision-making and problem-solving activities.
It uses information from TPS and MIS
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DSS
DSS has more analytical power thenother systems
They use a variety of models toanalyze data
They are interactive users canchange assumptions , ask newquestions and include new data
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DSS
For example a bank loan officer verifyingthe credit of a loan applicant
an engineering firm that has bids onseveral projects and wants to know if theycan be competitive with their costs.
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Provide timely, concise information aboutorganization to top managers
Senior managers use ESS
They address non routine decisions requiringjudgment , and insight.
Combination of MIS and DSS designed specificallyfor upper levels of management
Executive Support Systems (ESS)
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ESS
Employ most advanced graphicssoftware
Makes use of less analytical models
Ex:- What are the competitors doing?
In what business should we be ?
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Office Automation System
The term office automation refers to all tools andmethods that are applied to office activities which make itpossible to process written, visual, and sound data in acomputer-aided manner.
Office automation provide elements which make it possibleto simplify, improve, and automate the activities of acompany
It also includes the following activities: exchange of information
management of administrative documents
handling of numerical data
meeting planning and management of work schedules
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The backbone of office automation is aLAN, which allows users to transmitdata, mail and even voice across the
network.
All office functions, including dictation,
typing, filing, copying, fax, telephoneand record management operations,fall into this category.
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The term "office suite" refers to all softwareprograms which make it possible to meet officeneeds.
In particular, an office suite therefore includesthe following software programs:
word processing
a spreadsheet
a presentation tool
a database
a scheduler
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Generally, there are three basicactivities of an office automationsystem:
data storage of information,
data exchange,
data management
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