This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Slide 1
By: Prof. Riyanka Dwivedi Information systems in
Organizations
Slide 2
Types of management systems : The main purpose of Information
systems is to assist the management in decision making. The various
processes in decision making requires information in various forms.
Basically information is provided by the systems to the management
at various levels like strategic level information, tactical level
information and operational level information. The nature of
information at the operational level is highly structured. The
nature of information at the top level strategic is highly
unstructured. Similarly the volume of information processed is very
high at the bottom level and less at the top level. Management
activities at different levels can be divided depending upon the
nature of management function like marketing function, financial
function, personnel function etc.
Slide 3
Slide 4
Transaction processing system (TPS) TPS are mainly observed at
the bottom level of the management. Plenty of operational
activities at the bottom level results in one or more transactions.
Every transaction may be considered to generate information. The
information generated can be highly structured. A structured
information is easy to process further. Examples payroll system,
transport ticket reservation system, purchase order entry system,
marks tabulation system etc. Output of such systems may be of
printed type or display type on the monitor of the computer. TPS
may further be classified as online systems or batch systems. In
online systems there is direct interaction of the operator and the
TPS system. In batch systems activities of the same type are
batched into groups and then processed. Example of online systems
enquiry, checking availability of tickets etc. example of batch
systems entering parcel details belonging to one destination,
process student marks of one subject etc.
Slide 5
Transaction Processing Systems Most of an organizations daily
activities are recorded and processed by its transaction processing
system (TPS), which receives input data and converts them into
output informationintended for various users. Input data are called
transactionsevents that affect a business. A financial transaction
is an economic event: it affects the firms assets, is reflected in
its accounting statements, and is measured in monetary terms. Sales
of goods to customers, purchases of inventory from suppliers, and
salaries paid to employees are all financial transactions.
Everything else is a nonfinancial transaction. The marketing
department, for example, might add some demographic data to its
customer database. The information would be processed by the firms
TPS, but it wouldnt be a financial transaction.
Slide 6
Slide 7
MIS 175 Spring 2002 Chapter 10 7 Executive Information Systems
What information does a chief executive of board member
require?
Slide 8
Executive information systems (EIS) Executive information
system may be considered to be useful at any level of management,
specially at the middle level and bottom level. It mainly revolves
around the day to day activities of management but not in strategic
decisions. example where EIS is can be used assigning
responsibilities to subordinates, analyzing the data generated out
of a management process, documenting the reports generated,
plotting trends, sales forecast etc. It provides information to the
executives to manage their functions.
Slide 9
Executive Information Systems They set performance targets,
determine whether theyre being met, and routinely scan the external
environment for opportunities and threats. To accomplish these
tasks, they need relevant, timely, easily understood information.
Often, they can get it through an executive information system
(EIS), which provides ready access to strategic information thats
customized to their needs and presented in a convenient format.
Using an EIS, for example, a gaming-company executive might simply
touch a screen to view key summary information that highlights in
graphical form a critical area of corporate performance, such as
revenue trends. After scanning this summary, our executive can
drill down to retrieve more detailed informationfor example,
revenue trends by resort or revenue trends from various types of
activities, such as gaming, hotel, retail, restaurant, or
entertainment operations.
Slide 10
MIS 175 Spring 2002 Chapter 10 10 Executive Information Systems
High level with drill down Key business and industry data
Structured and unstructured information Structured: MTD orders
Unstructured: Industry newsfeed Graphical
Slide 11
DSS
Slide 12
Decision support systems (DSS) In management many a times
problems arise out of situations for which simple solution may not
be possible. To solve such problems complex theories may have to be
used. The models that would be required to solve such problems may
have to be identified. DSS requires a lot of managerial abilities
and managers judgment. Manager may sometimes find it difficult to
solve such problems. Eg in a sales problems if there are multiple
decision variables modeled as a simple linear problem but having
multiple optima, it becomes difficult to take a decision. Since any
of the multiple optima would give optimum results. But the strategy
to select the one most suitable under conditions prevailing in the
market, requires skills beyond the model. A system which consists
of database pertaining to decision making based on certain rules is
known as decision support system. It is a flexible system which can
be customized to suit the organization needs. It can work in the
interactive mode in order to enable managers to take quick
decisions. DSS is a consistent decision making system. It can be
used to generate reports of various level management activity. It
is capable of performing mathematical calculations and logical
calculation depending upon the model adopted to solve the
problem.
Advantages of GDSS Anonymity drive out fear leading to better
decisions from a diverse hierarchy of decision makers Parallel
Communication eliminate monopolizing providing increased
participation, better decisions Automated record keeping no need to
take notes, theyre automatically recorded Ability for virtual
meetings only need hardware, software and people connected
Portability - Can be set up to be portable laptop Global Potential
- People can be connected across the world No need for a computer
guru although some basic experience is a must
Slide 15
Disadvantages of GDSS Cost infrastructure costs to provide the
hardware and software/room/network connectivity can be very
expensive Security especially true when companies rent the
facilities for GDSS; also, the facilitator may be a lower-level
employee who may leak information to peers Technical Failure power
loss, loss of connectivity, relies heavily on bandwidth and LAN/WAN
infrastructure properly setup system should minimize this risk
Keyboarding Skills reduced participation may result due to
frustration Training learning curve is present for users, varies by
situation Perception of messages lack of verbal communication could
lead to misinterpretation
Slide 16
Typical GDSS Process 1) Group Leader (and Facilitator?) select
software, develop agenda 2) Participants meet (in decision
room/Internet) and are given a task. 3) Participants generate ideas
brainstorm anonymously 4) Facilitator organize ideas into
categories (different for user-driven software) 5) Discussion and
prioritization may involve ranking by some criteria and/or rating
to the facilitators scale 6) Repeat Steps 3, 4, 5 as necessary 7)
Reach decision 8) Recommend providing feedback on decision and
results to all involved
Slide 17
Future Implications of GDSS GDSS may play a large role in the
future of the virtual companies GDSS can help the virtual companies
do business in the global business environment GDSS can help
promote a culturally diverse work environment Telework seems to
make a lot of sense using GDSS
Slide 18
Choosing The Right GDSS Consider the following; Decision Task
Type Group Size Location of members of the group
Slide 19
Available Software GroupKit - University Of Calgary - GroupKit
has been used for prototyping groupware, investigating multi-user
architectures and interfaces, and as a CSCW teaching tool. GroupKit
- University Of Calgary http://www.banxia.com/demain.html -
Decision Explorer http://www.banxia.com/demain.html Delphi /
Promethee http://www.teamwave.com/ QuestMap v3.12 Accrue(decision
support analysis software) Accrue
http://www.aliah.com/site/index.html
Slide 20
Management Information System Management information system
(MIS) is one of the major computer based information systems. Its
purpose is to meet the general information need of all the managers
in the firm or in some organizational subunit of the firm.
Management information system (MIS) can be described as "an
organizational method of providing past, present and projected
information related to internal operations and external
intelligence. It supports the planning, control and operation
functions of an organization by furnishing uniform information in
the proper time frame to assist the decision makers. The
information is made is available in form of periodic reports,
special reports and output of mathematical simulations. All
managers use the information output as they make decisions to solve
the firms problems.
Slide 21
Corporate databases of internal data Databases of external data
Databases of valid transactions Operational databases Transaction
processing systems Management information systems Decision support
systems Executive support systems Expert systems Business
transactions Input and error list Drill-down reports Exception
reports Demand reports Key-indicator reports Scheduled reports
Employees Corporate intranet Application databases
Slide 22
Outputs of a Management Information System Scheduled reports
Produced periodically, or on a schedule (daily, weekly, monthly)
Key-indicator report Summarizes the previous days critical
activities Typically available at the beginning of each day Demand
report Gives certain information at a managers request Exception
report Automatically produced when a situation is unusual or
requires management action
Slide 23
Scheduled Report Example Daily Sales Detail Report Prepared:
08/10/xx Order # Customer ID Sales Rep ID Ship DateQuantityItem
#Amount P12453C89321CAR08/12/96144P1234$3,214
P12453C89321CAR08/12/96288P3214$5,660
P12453C03214GWA08/13/9612P4902$1,224
P12455C52313SAK08/12/9624P4012$2,448
P12456C34123JMW08J/13/96144P3214$720
Slide 24
Key Indicator Report Example Daily Sales Key Indicator Report
This Month Last Month Last Year Total Orders Month to
Date$1,808$1,694$1,014 Forecasted Sales for the
Month$2,406$2,224$2,608
Slide 25
Demand Report Example Daily Sales by Sales Rep Summary Report
Prepared: 08/10/xx Sales Rep IDAmount CAR$42,345 GWA$38,950
SAK$22,100 JWN$12,350
Slide 26
Exception Report Example Daily Sales Exception Report ORDERS
OVER $10,000 Prepared: 08/10/xx Order # Customer ID Sales Rep ID
Ship DateQuantityItem #Amount
P12453C89321CAR08/12/96144P1234$13,214
P12453C89321CAR08/12/96288P3214$15,660
P12453C03214GWA08/13/9612P4902$11,224
Slide 27
Outputs of a Management Information System Earnings by Quarter
(Millions) ActualForecastVariance 2 ND Qtr 1999$12.6$11.86.8% 1 st
Qtr 1999$10.8$10.70.9% 4 th Qtr 1998$14.3$14.5-1.4% 3 rd Qtr
1998$12.8$13.3-3.0% Drill Down Reports Provide detailed data about
a situation.
Slide 28
Management Information Systems for Competitive Advantage
Provides support to managers as they work to achieve corporate
goals Enables managers to compare results to established company
goals and identify problem areas and opportunities for
improvement
Slide 29
An Organizations MIS Financial MIS Marketing MIS Human
Resources MIS Etc. Accounting MIS Drill down reports Exception
reports Demand reports Key-indicator reports Scheduled reports
Databases of external data Databases of valid transactions
Transaction processing systems Business transactions Extranet
Internet Figure 9.3 Etc.
Slide 30
MIS 175 Spring 2002 Chapter 10 30 Functional Perspectives of
MIS Financial MIS Will integrate information from multiple sources
Functions Costing P&L reporting Auditing Funds management
Slide 31
MIS 175 Spring 2002 Chapter 10 31 Functional Perspectives of
MIS Manufacturing Design and Engineering Master Production
Scheduling Inventory Control Materials Planning Manufacturing and
Process Control Quality Control
Slide 32
MIS 175 Spring 2002 Chapter 10 32 Functional Perspectives of
MIS Marketing Market research Web-based market research
Pricing
Slide 33
MIS 175 Spring 2002 Chapter 10 33 Functional Perspectives of
MIS Transportation and Logistics Route and schedule optimization
Human Resources Accounting
Slide 34
Slide 35
Slide 36
Expert Systems Expert systems (ES) are programs that mimic the
judgment of experts by following sets of rules that experts would
follow. Theyre useful in such diverse areas as medical diagnosis,
portfolio management, and credit assessment. For example, youve
called the customer-service department of your credit-card company
because you want to increase your credit line. Dont expect to talk
to some financial expert whos authorized to say yes or no. Youll be
talking to a service representative with no financial expertise
whatsoever. He or she will, however, have access to an ES, which
will give you an answer in a few seconds. How does it work? The ES
will prompt the representative to ask you certain questions about
your salary and living expenses. It will also check internal
corporate data to analyze your purchases and payment behavior, and,
based on the results, it will determine whether you get an increase
and, if so, how much.
Slide 37
2-37 Types (Categorization) of Knowledge Shallow (readily
recalled) and deep (acquired through years of experience) Explicit
(already codified) and tacit (embedded in the mind) Procedural
(repetitive, stepwise) versus Episodical (grouped by episodes)
chunks Knowledge exist in chunks
Chapter 3: Knowledge Management Systems Life Cycle Why
Knowledge Management? Organizations are realizing how important it
is to "know what they know" and be able to make maximum use of the
knowledge. Preventing reinvent the wheel many times.
Slide 40
Chapter 3: Knowledge Management Systems Life Cycle Why
Knowledge Management? Thus, organizations need to know: what their
knowledge assets are; how to manage and make use of these assets to
get maximum return. KM can improve organization efficiency by
providing framework, tools and techniques to reuse captured
intellectual assets.
Slide 41
Chapter 3: Knowledge Management Systems Life Cycle Why
Knowledge Management? We have four people in Boston who know how to
solve this problem. How can we get them to help our team in Korea?
"People are leaving the company with a lifetime's experience. How
can we capture and re-use that?" "We had a team that did a
successful proposal for aerospace five years ago. Why did they make
the decisions they did? How did they deal with the customer? What
made the team tick?"
Slide 42
Chapter 3: Knowledge Management Systems Life Cycle Why
Knowledge Management? "How do we start learning from our
experiences and help our people stop repeating others' mistakes?"
"We're involved in an exciting project with four other companies.
How can we all learn how these virtual teams tick?" "Needs change
often these days and we're always bringing new people into
projects. How can we get them up to speed and contributing
quickly?"
Slide 43
Chapter 3: Knowledge Management Systems Life Cycle Knowledge
Management Initiatives Aims Make knowledge visible Develop
knowledge intensive culture Build knowledge infrastructure
Surrounding processes Creation of knowledge Sharing of knowledge
Seeking out knowledge Using knowledge
Slide 44
Chapter 3: Knowledge Management Systems Life Cycle Knowledge
Management Initiatives Knowledge creation Generating new ideas,
routines, insights Modes Socialization, externalization,
internalization, combination Knowledge sharing Willing explanation
to another directly or through an intermediary Knowledge seeking
Knowledge sourcing
Slide 45
Chapter 3: Knowledge Management Systems Life Cycle KM Benefits
Reduction in loss of intellectual capital when people leave the
company Reduction in costs by decreasing the number of times the
company must repeatedly solve the same problem Economies of scale
in obtaining information from external providers Reduction in
redundancy of knowledge-based activities Increase in productivity
by making knowledge available more quickly & easily Increase in
employee satisfaction by enabling greater personal development and
empowerment Strategic competitive advantage in the marketplace
Slide 46
Chapter 3: Knowledge Management Systems Life Cycle Human
Resources Chief knowledge officer (CKO) Senior level Sets strategic
priorities Defines area of knowledge based on organization mission
and goals Creates infrastructure Identifies knowledge champions
Manages content produced by groups Adds to knowledge base CEO
Champion knowledge management Upper management Ensures availability
of resources to CKO Communities of practice Knowledge management
system developers Team members that develop system Knowledge
management system staff Catalog and manage knowledge
Slide 47
Chapter 3: Knowledge Management Systems Life Cycle KM
Integration Since a KM system is an enterprise system, it must be
integrated with other enterprise and information systems in an
organization. The most important systems to integrate with are;
Decision Support Systems Artificial Intelligence Databases and
Information Systems Customer Relationship Management Systems Supply
Chain Management Systems Corporate Intranets and Extranets
Slide 48
Chapter 3: Knowledge Management Systems Life Cycle Factors
Leading to Success and Failure of Systems Success Companies must
assess need System needs technical and organizational
infrastructure to build on System must have economic value to
organization Senior management support Organization needs multiple
channels for knowledge transfer Appropriate organizational culture
Failure System does not meet organizations needs Lack of commitment
No incentive to use system Lack of integration
Slide 49
http://www.websukat.com/SMU-Books/Management-
Information-System/2-MIS-Concepts.pdf
http://www.websukat.com/SMU-Books/Management-
Information-System/2-MIS-Concepts.pdf
http://www.hkiaat.org/images/uploads/articles/AAT_Pap er8_Oct09.pdf
http://www.hkiaat.org/images/uploads/articles/AAT_Pap er8_Oct09.pdf
http://220.227.161.86/21483sm_finalnew_isca_vol2_cp1. pdf
http://220.227.161.86/21483sm_finalnew_isca_vol2_cp1. pdf
http://www.web- books.com/eLibrary/NC/B0/B66/125MB66.html
http://www.web- books.com/eLibrary/NC/B0/B66/125MB66.html
http://www.mbaknol.com/management-information-
systems/types-of-information-systems/
http://www.mbaknol.com/management-information-
systems/types-of-information-systems/