Structure of Mis 2

8/7/2019 Structure of Mis 2

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Information system

Combination of hardware , software ,infrastructure and trained personnel organized

to facilitate planning , control , coordination ,and decision making .


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planned system of the collecting, processing,storing and disseminating data in the form ofinformation needed to carry out the functionsof management.Information systems include systems that arenot intended for decision making..


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M IS is mainly designed to take care of the needs of themanagers in the organization.

M IS aids in integrating the information generated byvarious departments of the organization.

M IS helps in identifying a proper mechanism of storageof data.

M IS also helps in establishing mechanism to eliminateredundancies in data.


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Information Systems in Organizations

Information Systems are important to the success of an organization at all manageriallevels. Earlier Technology was considered, too technical for the rest of us tounderstand. The use of computers was limited. It was a different world As the timemoves, technology and its associated Information Systems are now integratedthroughout the organization. Everyone is concerned about technologys role andimpact on their work activities.


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Information is a business resource.Information is vital to the survival of businessorganization.In every business vast quantities of informationflow to decision makers and other stakeholders to meet variety of needs.


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topM iddle

lower

Stakeholder

Customers

Suppliers


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Information flow in two directions within theorganization.HorizontallyVertically


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T his flow supports operational level tasks withhighly detailed information about the maybusiness transactions affecting theorganization. this include such as sale &shipment of goods, use of labor and material inproduction process.


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T he vertical flow distributes summarizedinformation about operation and otheractivities upward to managers at all levels.M anagement use this information to supportits various planning and control functions.


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A third flow of information exchange betweenthe organization and user in externalenvironment.


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IS create an impact on the organizationfunctions. With good information supportmanagement of finance,production,marketingand personnel become more efficient.IS create a database which save managersprecious time.

IS helps in improving administration ofbusiness .T he tools & techniques of IS enable managersto do task more efficently.


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A business Information System is a collectionof components that interact to fulfill somebusiness information processing need. they areused to satisfy information needs in the processof decision making in business.T he basic components of IS are:

HardwareSoftwareData, procedure and people.


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B usiness information system can be classifiedinto two categories:Shared business information systemPersonal business information system


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T hey are large expensive and more complex inthe sense that they are more complicated .T hey have multiple users.

T he advantage of shared IS are that multiple userscan:

Shared hardware

Shared softwareA ccess to dataShared systems such as email.


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Development & use of business IS enable shareability of information in these systems. sharingof resources by large number of users results inlow per user cost of resources.


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T PSM ISDSSESSOA S


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F igure 2-2


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Types of information s ystem

Organizations and individuals use different t ypes of s ystems for different purposes.

Here are some of the main t ypes of information s ystems and their uses.

Components of information s ystem: people, equipment, procedures, data.

Transaction Processing Systems (TPS) record dail y routine transactions such assales orders from customers, or bank deposits and withdrawals . TPS are vital for the

organization, as the y gather all the input necessar y for other t ypes of s ystems. Thinkabout how one could generate a monthl y sales report for middle management orcritical marketing information to senior managers without TPS. TPS provide the basicinput to the compan y's database . A failure in the TPS often means disaster for theorganization. Imagine what happens when the reservation s ystem at Turkish Airlinesfails: all operations stop, no transactions can be carried out until the s ystem is upagain. Long queues form in front of A TMs and tellers when a bank 's TPS crashes.

A TPS is a basic business s ystem.It serves the most elementar y da y-to -da y activities of an organization;

supports the operational level of the business.supplies data for higher -level management decisions.is often critical to survival of the organization .


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F igure 2-5


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M anagement information system ( MI S) :converts TPS data into information for monitoring performance and managing anorganization. Transactions recorded in a TPS are anal yzed and reported b y an MIS.The y have large quantities of input data and the y produce summar y reports asoutput. Used b y middle managers. An example is an annual budgeting s ystem.

An MIS provides managers with information and support for effectivedecision making, and provides feedback on dail y operations.Output, or reports, are usuall y generated through accumulation of transaction processing data Each MIS is an integrated collection of subs ystems, which are t ypically organized along functional lines within anorganization.

Outputs of a Management Information S ystem

Scheduled reportsProduced periodicall y, or on a schedule (dail y, weekl y, monthl y)

Key-indicator report Summarizes the previous da y s critical activitiesTypically available at the beginning of each da y

Demand report Gives certain information at a manager s request

Exception report

Automaticall y produced when a situation is unusual or requiresmana ement action


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F igure 2-3


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Characteristics of MIS

Provides reports with fixed and standard formatsHard-cop y and soft -cop y reports

Uses internal data stored in the computer s ystemEnd users can develop custom reportsRequires formal requests from users


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D ecision support system ( D SS):

helps strategic management staff (often senior managers ) make decisions b y providinginformation, models, or anal ysis tools.

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Ex ecutive Support Systems ( E SS) or Executive Information S ystemsESS provide a generalized computing and communication environment to seniormanagers to support strategic decisions. The y draw data from the MIS and allowcommunication with external sources of information. But unlike DSS, the y are not designed to use for specific problem solving. ESS are designed to facilitate seniormanagers ' access to information quickl y and effectivel y.

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O ffice automation system ( OA S) :

OAS provides individuals effective wa ys to process personal and organizational data,perform calculations, and create documents.e.g. word processing, spreadsheets, file managers, personal calendars, presentationpackagesFor are used for increasing personal productivit y.


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F igure 2-9


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T hey are used by single user. they are used bythe individuals to help them to do their jobmore efficiently.B eing personal in nature these systems areunder the direct control of user.T hey are less expensive & less flexible.T

hey are easy to design & develop becausesingle person takes up the responsibility ofdefining the requirements.


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T hey have limited capacity to handle complexproblem.Personal business IS can process only that datato which an individual has an access.T hey are less secured.


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A management information system ( M IS) is anorganized combination of people, hardware,communication networks and data sources that

collects, transforms and distributes informationin an organization.A n M IS helps decision making by providingtimely, relevant and accurate information tomanagers. T he physical components of an M ISinclude hardware, software, database,personnel and procedures.


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H ardwareA ll physical components of a computer systemcompose the computer hardware. Importantcomponents include the central processingunit, input/output devices, storage units andcommunication devices. Communication canbe over fiber-optic cables or wireless networks.


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S oftwareSoftware provides the interface between usersand the information system. Software can bedivided into two generic types: systemsoftware and applications. T he system softwarecomprises of the operating system, utilityprograms and special purpose programs.A pplications are developed to accomplish aspecific task


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D atabaseA database is a centrally controlled collectionof organized data. Central control reducesredundancy and duplication of data. Data isstored in an organized and structured way tofacilitate sharing and improve availability tothose who need it.


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P roceduresT hree types of procedures are required for anM IS to operate effectively: user instructions,instructions for input preparation andoperating instructions for M IS personnel whomaintain the M IS.


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P ersonnelT he personnel in the M IS function includecomputer operators, programmers, systemsanalysts and managers. Human resourcerequirements should be assessed byconsidering both the present system needs andthe future system growth. T he quality of M ISpersonnel is a key factor in its effectiveness. A nM IS manager needs a combination of bothmanagerial and technical skills


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T oday's business environment contains copiousamounts of information, both internal andexternal to a company's operations. B usinesses

often look to capture this information formaking decisions and improving operationsbased on different factors gleaned from data


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IdentificationM anagement information systems representclassic concepts for gathering information froma variety of business processes for the purposeof management review. T he structure andscope of this theory relates that someinformation or data exists that can improvebusiness decisions


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F eaturesCompanies often attempt to design andimplement an information gathering systemthat will encompass their organization's entireoperations.


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C onsiderationsF or maximum effectiveness, managementinformation systems should not be static.Companies will often need a system that willexpand or adjust to changes in operations. T hisallows business owners and managers access tothe most up-to-date information when makingbusiness decisions


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Structure of Mis 2

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