BHAGWAN MAHAVIR COLLEGE OF MANAGEMENT

Subject: Management Information System

Prepared by: Name Roll No. Hansa Bokade (35) Himanshu Yadav (36)

Submitted to: Mrs Rutvi Umrigar

Question: 1. Discuss major factors to be considered in building International Information System. Also discuss main Technical issues faced by Information System.
International information systems architecture consists of basic information systems required by organizations to coordinate worldwide trade and other tasks. A business driver is an environmental force to which businesses must respond and that influence a businesss direction.

Global Environment: Business Drivers and Challenges Corporate Global Strategies Organization Structure
Management and Business Processes

Technology Platform

International Information Systems Architecture

Global business drivers are [a] general cultural factors and [b] specific business factors Global culture, created by TV and other global media (e.g., movies) permit cultures to develop common expectations about right and wrong, desirable and undesirable, heroic and cowardly A global knowledge base--strengthened by educational advances in Latin America, China, southern Asia, and Eastern Europe--also affects growth Particularism, making judgments and taking action based on narrow or personal features, rejects the concept of shared global culture

 Trans border data flow is the movement of information across international boundaries in any form National laws and traditions create disparate accounting practices in various countries, impacting how profits and losses are analyzed Additional factors: cultural differences about technology, different languages, and currency fluctuations Despite business challenges, many firms still do not have rationally developed IT systems Most companies inherited patchwork international systems from the past Significant difficulties still exist in building proper international architectures Domestic exporter characterized by heavy centralization of corporate activities in home country of origin Multinational concentrates financial management and control out of a home base, but decentralizes production, sales, and marketing Franchisers involve creating, designing, and financing in the home country, then rely on foreign personnel for further production, marketing, and human resources (e.g., McDonalds) Transnational may or may not have a world headquarters, but will have many regional headquarters Global Systems Information technology and improved global telecommunications - give international firms more flexibility to shape global strategies Domestic exporters - tend to have highly centralized systems in which one domestic systems development staff develops worldwide applications Reorganizing the Business Organize value-adding services along lines of comparative advantage Develop and operate systems units at each level of corporate activity regional, national, and international Establish a world headquarters at one office responsible for developing international systems A traditional U.S. multi-national consumer-goods company, also operating in Europe, wants to expand into Asia

 It knows it must develop a transnational strategy and supportive IT system structure It has dispersed production and marketing to regional and national centers while maintaining a world headquarters and strategic management in the U.S. The result: a hodgepodge of hardware, software, and communications (e.g., incompatible e-mail systems, different manufacturing resources planning, different marketing / sales / human resources systems) Technical issues: Hardware and Systems Integration Developing global systems based on core systems raises questions about how new cores systems will fit within existing applications Connectivity Telecommunications is heart of international systems, linking systems and people in global firm into single, integrated network Potential solutions including putting together leased private network, building ones own network, or creating global intranets over Intranet Software Developing new core systems poses unique challenges for software, involves problems of human interface design and system functionality Many firms increasingly turn to supply chain management and enterprise systems to standardize business processes globally

Question: Describe the characteristics of transaction processing system and role they play in the system. Ans: Characteristics of Transaction Processing Systems TRANSACTION PROCESSING SYSTEMS- collect, store, modify and retrieve the transactions of an organisation. A transaction is an event that generates or modifies data that is eventually stored on an information system. The main information processes are collecting and storing. The four important characteristics of a TPS are:

Rapid response: Fast performance with a rapid response is critical. Customers should not be made wait a long time. The quicker the response time the happier the customer and the more revenue that can be collected. Reliability: Organisations rely heavily on their TPS with failure possibly stopping business. Back-up and recovery procedures must be quick and accurate. This information system involves cash. Any mistakes here can have serious consequences for the companies bottom line, customer satisfaction, auditors, the taxation department and the list goes on. I think you get the idea. You really don't want mistakes when it comes to money. Inflexibility: A TPS wants every transaction processed in the same way regardless of user or time. If it were flexible there would be too many opportunities for nonstandard operations. You don't want people making up their own rules when it comes to money. It must be performed the same way every time. If any step is altered it becomes more likely that a mistake may be made. With computers it must Controlled processing: The processing must support an organisation's operations. There must be procedures in place to check that everything and everyone is doing the right thing. On the computers end is something called a transaction processing monitor to ensure that everything is right with the TPS but there must also be human controls to ensure that everyone is doing the right thing.

Role play of TPS in MIS:

Transaction processing systems were among the earliest computerized systems. Their primary purpose is to record, process, validate, and store transactions that take place in the various functional areas/of a business for future retrieval and use. A transaction processing system (TPS) is an information system that records company transactions (a transaction is defined as exchange between two or more business entities). Transaction processing systems (TPS) are cross-functional information systems that process data resulting from the occurrence of business transactions.

Transactions are events that occur as part of doing business, such as sales, purchases, deposits, withdrawals, refunds, and payments. Transaction processing activities are needed to capture and process data, or the operations of a business would grind to a halt. Let us look at a simple example of a business transaction. McDonald's, which sells a large number of hamburgers every day, orders raw materials from its suppliers. Each time the company places an order with a supplier, a transaction occurs and a transaction system records relevant information, such as the supplier's name, address, and credit rating, the kind and quantity of items purchased, and the invoice amount.

Features of TPS: 1. A TPS supports different tasks by imposing a set of rules and guidelines that specify how to record, process, and store a given transaction. There are many uses of transaction processing systems in our everyday lives, such as when we make a purchase at retail store, deposit or withdraw money at a bank, or register for classes at a university. Almost all organizations, regardless of the industry in which they operate, have a manual or automated TPS 2. A TPS is the data life-line for a company because it is the source of data for other information systems, such as MIS and DSS (Decision Support Systems). Hence, if the TPS shuts down, the consequences can be serious for the organization 3. A TPS is also the main link between the organization and external entities, such as customers, suppliers, distributors, and regulatory agencies

4. TPS exist for the various functional areas in an organization, such as finance, accounting, manufacturing, production, human resources, marketing quality control, engineering, and research and development. Until a few years ago, many companies viewed the TPS for each business function as separate entity with little or no connection to other systems in the company. Today, however, many companies are trying to build cross-functional TPS to promote the free exchange of information among different business units. This is a desirable goal, but is still very difficult to achieve.