Contemporary Approaches to IS

Management Information Systems

MBA (Family Business and Entrepreneurship)

Term – III, Batch 2010-12Session – IV December 28, 2010

-NM

System Process• The manner in which work is organized, coordinated

and focused to produce a valuable product or service.

Functional Area Business Process Manufacturing and Production

Assembling the product, checking the quality, producing bills for material.

Sales and Marketing Identifying customer, product awareness, selling product.

Finance and Accounting Paying creditors, creating financial statements, Managing cash accounts.

Human Resources Hiring Employee, Evaluating employee’s job performance, Enrolling employees in benefits plans.

Types of Information System• No single system can provide all the information an

organization needs. Even small firms have a collection of different systems: e-mail systems, sales tracking systems, etc.

Different systems can be described through: • A functional perspective: Identifying systems by

their major business function.• A constituency perspective: Identifying systems in

terms of the major organizational groups that they serve.

Systems Based on Major Business Function• There are four main types of information

systems that serve different functional systems.

1. Sales and marketing information systems.2. Manufacturing and production information systems.3. Finance and accounting information systems.4. Human resources information systems.

1. Sales and Marketing information systems• It help the firm with marketing business processes

– Identifying customers for the firm's products or services– Developing products and services to meet customers needs,

promoting products and services)

• Sales processes – Selling the products and services, – Taking orders– contacting customers– providing customer support

Example of Sales Information System

2. Manufacturing and Production Information Systems

• It deals with the – Planning, development, and production of

products and services– Controlling the flow of production.

Example of Inventory IS (MPIS)

3. Finance and Accounting Information systems• This Information System keeps a track of the

firm's financial assets and fund flows

Example of Accounts Receivable System.

4. Human Resources Information Systems• This Information System maintain:

– Employee records– Track employee skills– Job performance and training – Support planning for employee compensation and

career development

Example of HRIS (An Employee Record Keeping System)n

Systems Based on Constituency Perspective Function• There are four main types of information

systems that serve different functional systems.

1. Transaction processing systems (TPS).2. Management information systems (MIS).3. Decision support systems (DSS).4. Executive support systems (ESS).

and Experts Systems

Strategic

Systems

Staff Support

Managerial systems

Operational Systems

Office Automation & Communication Systems

Information Infrastructure and TPS

IT at various levels in an Organization

Top Managers

Professionals

Middle Managers

Line Managers & Operators

Clerical Staff

DSS

MIS

TPS

Transaction processing systems (TPS).

• TPS are basic business systems that serve the operational level of the organization by recording the daily routine transactions required to conduct business, such as payroll and sales receipts

Management information systems (MIS).

• This IS serve middle level managers‘ by providing current and historical performance information to aid in planning, controlling, and decision making at the management level.

• MIS typically compress TPS data to present regular reports on the company's basic operations.

Example of TPS and MIS(Management Information System Obtaining Data from the Organizations’ TPS )

MIS Report (Sample)

Decision support systems (DSS),

• DSS is also known business intelligence systems, help managers with non-routine decisions that are unique, rapidly changing, and not easily specified in advance. DSS are more analytical than MIS, using a variety of models to analyze internal and external data or condense large amounts of data for analysis.