Information SystemThe term Information System (IS) refers to a
system of people, data records and activities that process the data
and information in an organization, and it includes the
organization's manual and automated processes. In a narrow sense,
the term information system (or computer-based information system)
refers to the specific application software that is used to store
data records in a computer system and automates some of the
information-processing activities of the organization.
Computer-based information systems are in the field of information
technolgy
There are various types of information systems, for example:
Transaction processing systems, Decision support systems Expert
system Management information system office information systems
Information Systems have a number of different areas of work:
Information systems strategy Information systems management
Information systems development Information systems security
Decision Support SystemDecision Support Systems (DSS) are a
specific class of computerized information systems that supports
business and organizational decisionmaking activities. A
properly-designed DSS is an interactive software-based system
intended to help decision makers compile useful information from
raw data, documents, personal knowledge, and/or business models to
identify and solve problems and make decisions.
Example Arlington software - ERGO is a decision support system
that allows you to simplify and quantify complex decisions build,
maintain, and grow your organization's knowledge capital
standardize your data and evaluation processes Bank Rate monitor :
It helps to take decision about the credit card rates , home loan
rates etc.
Application One example is the clinical decision suport system
for medical diagnosis. Other examples include a bank loan officer
verifying the credit of a loan applicant or an engineering firm
that has bids on several projects and wants to know if they can be
competitive with their costs.
Improves personal efficiency Expedites problem solving(speed up
the progress of problems solving in an organization) Facilitates
interpersonal communication Promotes learning or training Increases
organizational control Generates new evidence in support of a
decision Creates a competitive advantage over competition
Encourages exploration and discovery on the part of the decision
maker Reveals new approaches to thinking about the problem space
Helps automate the Managerial processes.
BENEFITS
Management Information System MIS is a system or process that
provides the information
necessary to manage an organization effectively. MIS generates
are generally considered essential component of prudent and
reasonable business decision Management Information System (M.I.S.)
is basically concerned with processing data into information.which
is then communicated to the various Departments in an organization
for appropriate decision-making.
DataInformationCommunicationDecisions According to Philip Kotler "A
marketing information system consists of people, equipment, and
procedures to gather, sort, analyze, evaluate, and distribute
needed, timely, and accurate information to marketing decision
makers
Advantage 1. It Facilitates planning : MIS improves the quality
of plants by providing relevant information for sound decision
making . Due to increase in the size and complexity of
organizations, managers have lost personal contact with the scene
of operations. 2. In Minimizes information overload : MIS change
the larger amount of data in to summarized form and there by avoids
the confusion which may arise when managers are flooded with
detailed facts. 3. MIS Encourages Decentralization :
Decentralization of authority is possibly when there is a system
for monitoring operations at lower levels. MIS is successfully used
for measuring performance and making necessary change in the
organizational plans and procedures. 4. It brings Co ordination :
MIS facilities integration of specialized activities by keeping
each department aware of the problem and requirements of other
departments. It connects all decision centers in the organization
.
It makes control easier : MIS serves as a link between
managerial planning and control. It improves the ability of
management to evaluate and improve performance . The used computers
has increased the data processing and storage capabilities and
reduced the cost .
MIS assembles, process , stores , Retrieves , evaluates and
Disseminates the information .
Strategy Support While computers cannot create business
strategies by themselves they can assist management in
understanding the effects of their strategies, and help enable
effective decision-making. Data Processing Not only do MIS systems
allow for the collation of vast amounts of business data, but they
also provide a valuable time saving benefit to the workforce. Where
in the past business information had to be manually processed for
filing and analysis it can now be entered quickly and easily onto a
computer by a data processor, allowing for faster decision making
and quicker reflexes for the enterprise as a whole
Application of MIS
Transaction Processing System A Transaction Processing System or
Transaction Processing Monitor is a set of information which
processes the data transaction in database system that monitors
transaction programs (a special kind of program). The essence of a
transaction program is that it manages data that must be left in a
consistent state. E.g. if an electronic payment is made, the amount
must be either both withdrawn from one account and added to the
other, or none at all. an airline seat reservation system is
accessed by multiple operators, after an empty seat inquiry, the
seat reservation data must be locked until the reservation is made,
otherwise another user may get the impression a seat is still free
while it is actually being booked at the time. Without proper
transaction monitoring, double bookings may occur
Advantage of TPS Rapid response Fast performance with a rapid
response time is critical. Businesses cannot afford to have
customers waiting for a TPS to respond, the turnaround time from
the input of the transaction to the production for the output must
be a few seconds or less. Reliability Many organizations rely
heavily on their TPS; a breakdown will disrupt operations or even
stop the business. For a TPS to be effective its failure rate must
be very low. If a TPS does fail, then quick and accurate recovery
must be possible. This makes welldesigned backup and recovery
procedures essential.
Inflexibility A TPS wants every transaction to be processed in
the same way regardless of the user, the customer or the time for
day. If a TPS were flexible, there would be too many opportunities
for non-standard operations, for example, a commercial airline
needs to consistently accept airline reservations from a range of
travel agents, accepting different transactions data from different
travel agents would be a problem. Controlled processing The
processing in a TPS must support an organization's operations. For
example if an organization allocates roles and responsibilities to
particular employees, then the TPS should enforce and maintain this
requirement.
Expert SystemAn expert system is software that attempts to
reproduce the performance of one or more human experts, most
commonly in a specific problem domain, and is a traditional
application and/or subfield of artificial intelligence.
Advantages: Provides consistent answers for repetitive
decisions, processes and tasks Holds and maintains significant
levels of information Encourages organizations to clarify the logic
of their decision-making Never "forgets" to ask a question, as a
human might Can work round the clock Can be used by the user more
frequently A multi-user expert system can serve more users at a
time
Disadvantage Lacks common sense needed in some decision making
Cannot make creative responses as human expert would in unusual
circumstances Domain experts not always able to explain their logic
and reasoning Errors may occur in the knowledge base, and lead to
wrong decisions Cannot adapt to changing environments, unless
knowledge base is changed
Expert systems are designed and created to facilitate tasks in
the fields of accounting, medicine, process control, financial
sevices, production, human resources etc. Indeed, the foundation of
a successful expert system depends on a series of technical
procedures and development that may be designed by certain
technicians and related experts. A good example of application of
expert systems in banking area is expert system for mortgages. Loan
departments are interested in expert systems for mortgages because
of the growing cost of labour which makes the handling and
acceptance of relatively small loans less profitable. They also see
in the application of expert systems a possibility for
standardised, efficient handling of mortgage loan, and appreciate
that for the acceptance of mortgage there are hard and fast rules
which do not always exist with other types of loans.
Application of Expert system
Office Automation Adoption of IT Tools for enhancing
productivity and reduction of manual labor It is associated with
paperless office Office automation refers to the varied computer
machinery and software used to digitally create, collect, store,
manipulate, and relay office information needed for accomplishing
basic tasks and goals. Raw data storage, electronic transfer, and
the management of electronic business information comprise the
basic activities of an office automation system The backbone of
office automation is a LAN, which allows users to transmit data,
mail and even voice across the network. All office functions,
including dictation, typing, filing, copying, fax, Telex, microfilm
and records management, telephone and telephone switchboard
operations, fall into this category.
Advantage Increased Efficiency Employees focus on core business
functions (Not simple repetitive tasks) Increased throughput
Difference between DSS and MIS The essential difference between
the two is in focus. DSS, as the term indicates, is about
leadership and senior management in an organization providing good,
reliable judgment as well as vision. MIS, on the other hand, is
about focusing on the actual flow of information itself.
InformationIn general, information has been verified to be
Accurate and timely, is specific and organized for a purpose, is
presented within a context that gives it meaning and relevance, and
which Leads to increase in understanding and decrease in
uncertainty. The value of information lies solely in its ability to
affect a behavior, decision, or outcome.
Management in all business and human organization activity is
simply the act of getting people together to accomplish desired
goals and objectives.. management to consist of seven function
Planning Staffing, Leading, motivation control, coordination,
organizing
Management
Planning in organisations and public policy is both the
organizational process of creating and maintaining a plan; and the
psychological process of thinking about the activities required to
create a desired goal on some scale. How Should be a plan plan
should be a realistic view of the expectations. Depending upon the
activities, a plan can be long range, intermediate range or short
range. It is the framework within which it must operate
Planning
Purpose of plan Helps management to clarify, focus, and research
their business's or project's development and prospects. Provides a
considered and logical framework within which a business can
develop and pursue business strategies over the next three to five
years. Offers a benchmark against which actual performance can be
measured and reviewed.
Staffing Staffing : - may refer to: * Employment agency * Human
resources
organizing is the act of rearranging elements . Organizing can
be viewed as the activities to collect and configure resources in
order to implement plans in a highly effective and efficient
fashion. Organizing is a broad set of activities, and often
considered one of the major functions of management Coordination is
the act of coordinating, making different people or things work
together for a goal or effect.
Leading It has been described as the process of Social influence
in which one person can enlist the aid and support of others in the
accomplishment of a common task. A definition more inclusive of
followers comes from Alan Keith of Genentech who said "Leadership
is ultimately about creating a way for people to contribute to
making something extraordinary happen Motivation It is the internal
condition that activates behavior and gives it direction; energizes
and directs goal-oriented behavior. The term is generally used for
human motivation
Control Control is one of the managerial functions like
planning, organizing, staffing and directing. It is an important
function because it helps to check the errors and to take the
corrective action so that deviation from standards are minimized
and stated goals of the organization are achieved in desired
manner
Decision making Decision making can be regarded as an outcome of
mental processes (cognitive process) leading to the selection of a
course of action among several alternatives. Every decision making
process produces a final choice.The output can be an action or an
opinion of choice Some of the decision making techniques that we
use in everyday life include: listing the advantages and
disadvantages of each option flipping a coin, cutting a deck of
playing cards, and other random or coincidence methods accepting
the first option that seems like it might achieve the desired
result prayer, tarot cards, astrology choosing the alternative with
the highest probabilityweighted utility for each alternative
GDSS Contains most of the elements of DSS plus software to
provide effective support in group decision-making settings An
interactive computer-based system that facilitates users finding
(partial) solutions to semi-structured problems. A GDSS uses a set
of decision makers working together as a group. A GDSS combines
communication, computing, and decision support technologies to
facilitate formulation and solution of unstructured problems by a
group of people. Participants use a common computer or network to
enable collaboration.
Advantage More precise communication; Synergy: members are
empowered to build on ideas of others; More objective evaluation of
ideas; Stimulation of individuals to increase participation;
Learning: group members imitate and learn from successful behaviors
of others
Characteristics Anonymous input Reduction of negative group
behavior Parallel communication Automated record keeping Cost,
control, complexity factors Special design Ease of use
Flexibility
How GDSS Contributes to Problem Solving Improved communications
Improved discussion focus Less wasted time
GDSS Environmental Settings Synchronous exchange Members meet at
same time Committee meeting is an example
Asynchronous exchange Members meet at different times E-mail is
an example
More balanced participation
Types of decision Unstructured decision : Non-routine decisions
requiringjudgment and insights Examples: Approve capital budget;
decide corporate objectives
Structured decision : Routine decisions with definite
proceduresExamples: Restock inventory; determine special offers to
customers
Semi structured decision : Only part of decision has
clear-cutanswers provided by accepted procedures Examples: Allocate
resources to managers; develop a marketing plan
Three Main Components of GDSS: Hardware (conference facility,
audiovisual equipment, etc.) Software tools (Electronic
questionnaires, brainstorming tools, voting tools, etc.) People
(Participants, trained facilitator, support staff)
Business Value of GDSS :Traditional decision-making meetings
support an optimal size of three to five attendees. GDSS allows a
greater number of attendees. Can increase the number of ideas
generated and the quality of decisions while producing the desired
results in fewer meetings Can lead to more participative and
democratic decision making
Constructing the DSS :In building a specific DSS , the iterative
design process seems to be the most appropriate because of the need
for flexibility and the short development cycle needed by the
decision and decision makers . Flexibility can be viewed as the
ability of the DSS to respond to changes in user decision making
processes as well as ability to easily develop the specific DSS .
An iterative design process compresses the traditional level of the
system life cycle to generate repeated versions of the DSS. It is
facilitated in the use of a DSS generator, which reduces
development time of the DSS . The key aspect of iterative design
are: Focus on a sub problem Focus on a small, but usable DSS Plan
for refinement/ modification cycles Evaluate constantly
Users : This is the final component
of a DSS that influence the way a final decision is reached. The
users is also known as the managers or decision makers. Knowing who
will use the DSS is important in the designing of it. Individuals
can use a DSS for personal support or a portion of DSS in
organizational or group support. non routine and not structured ,
the DSS needs to be custom made form the organization. When similar
functional problems exist in different organization, a generic DSS
can be built with the option of same modification. Such a DSS is
called is ready made DSS. Most are custom made .
Custom made versus ready made DSS : When a problem is
Specific DSS: System that actually accomplish the work are
calleda specific DSS. A DSS involves an application that allow a
specific decision maker or group of them to deal with specific sets
of related problems.
DSS GENERATOR: A generator is an integratedpackage of software
that provides a set of capabilities to build a specific DSS
quickly, in expensively and easily . A DSS generator is an
integrated easy to use package with diverse capabilities ranging
from modeling report generation, graphical presentation to
performing risk analysis.
DSS TOOLS : this is the lower level also called of
thefundamental level of DSS technology and consists of software
utilities or tools . These elements facilitate the development of a
DSS generator Examples include graphics , editors, query system,
random number generators and spreadsheet. A specific DSS may be
built with directly from tools
Factor to consider when designing a DSSAccording to Mallach ,
one should consider the following before starting to design a DSS:
1. One should first determine the purpose of the DSS in terms of
the decision being made and the outputs it must supply. 2. One
should determine any external sources that the DSS will communicate
with and find any data flows to and from these sources. 3. Any
internal data files needed should be determined . One should
determined if the data in these fields are obtained from external
data sources and if it is , specify the external sources. 4. The
major processes in the DSS should be determined. If one can
understand all these considerations, you will understand your DSS
as a system. One test of this understanding is being able to draw
it as a flow diagram