Management Information

Systems

Types of the Decision and

Information Systems
 Business Processes and
Information Systems
Information technology enhances
business processes in two main ways:

Increasing efficiency of existing processes

Automating steps that were manual

Enabling entirely new processes that are

capable of transforming the businesses
Change flow of information
Replace sequential steps with parallel steps
Eliminate delays in decision making
 Business Processes and Information Systems

The Order Fulfillment Process

Fulfilling a customer order involves a complex set of steps that requires the
close coordination of the sales, accounting, and manufacturing functions.
 Management Information Systems

Decision Making and Information Systems

Business value of improved decision making

Improving hundreds of thousands of small decisions
adds up to large annual value for the business
Types of decisions:
Unstructured: Decision maker must provide judgment,
evaluation, and insight to solve problem
Structured: Repetitive and routine; involve definite
procedure for handling so they do not have to be
treated each time as new
Semistructured: Only part of problem has clear-cut
answer provided by accepted procedure
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 Management Information Systems

Decision Making and Information Systems

INFORMATION REQUIREMENTS OF KEY DECISION-MAKING GROUPS IN A
FIRM

FIGURE Senior managers, middle managers, operational managers, and employees have different types of decisions
and information requirements.

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 Types of Business
Information Systems
Systems from a constituency perspective
Transaction processing systems:
supporting operational level employees
Management information systems and
decision-support systems: supporting
managers
Executive support systems: supporting
executives
 Types of Business
Information Systems
Transaction processing systems
Perform and record daily routine transactions
necessary to conduct business
Allow managers to monitor status of operations
and relations with external environment
Serve operational levels
Serve predefined, structured goals and decision
making
E.g. sales order entry, payroll, shipping
 Management Information Systems

Types of Information Systems

A Payroll TPS
A TPS for payroll
processing captures
employee payment
transaction data (such as
a time card). System
outputs include online
and hard-copy reports
for management and
employee paychecks.

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Transaction processing
systems
Real Time Transaction Processing
Reservation System
Batch Processing
Clearing of Presented Cheques, Generation of
Bills
 Types of Business
Information Systems
Management information systems
Serve middle management
Provide reports on firms current
performance, based on data from TPS
Provide answers to routine questions with
predefined procedure for answering them
Typically have little analytic capability
 Types of Business
Information Systems
How Management Information Systems Obtain their Data from the
Organizations TPS
 Types of Business
Information Systems
Sample MIS Report
Sample MIS Report
 Types of Business
Information Systems
Decision support systems
Serve middle management
Support nonroutine decision making
E.g. What is impact on production schedule if December
sales doubled?
Often use external information as well from TPS
and MIS
 Types of Business
Information Systems
 Management Information Systems

Decision support systems

Use mathematical or analytical models
Allow varied types of analysis
What-if analysis
Sensitivity analysis
Multidimensional analysis / OLAP
E. g. pivot tables

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 Management Information Systems

A PIVOT TABLE
THAT EXAMINES
CUSTOMER
REGIONAL
DISTRIBUTION
AND
In this pivot table, we
ADVERTISING
are able to examine
SOURCE
where an online
training companys
customers come from
in terms of region and
advertising source.

FIGURE 12-6

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 Management Information Systems

Decision-support for senior management

Help executives focus on important performance
information
Balanced scorecard method:
Measures outcomes on four dimensions:
1. Financial
2. Business process
3. Customer
4. Learning & growth
Key performance indicators (KPIs) measure each
dimension
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 Types of Business
Information Systems
Executive support systems
Support senior management
Address non-routine decisions requiring judgment,
evaluation, and insight
Incorporate data about external events (e.g. new
tax laws or competitors) as well as summarized
information from internal MIS and DSS
Filter, Compress, and track critical data, displaying
the data of greatest importance to senior manager
E.g. ESS that provides minute-to-minute view of
firms financial performance as measured by
working capital, accounts receivable, accounts
payable, cash flow, and inventory
Digital Dashboard
 Types of Business
Information Systems
Relationship of systems to one
another
TPS: Major source of data for other
systems
ESS: Recipient of data from lower-level
systems
Data may be exchanged between systems
 Types of Business
Information Systems
Interrelationships Among Systems
 Group Decision Support Systems (GDSS)
Interactive system to facilitate solution of
structured problems by group
Specialized hardware and software; typically used
in conference rooms
Overhead projectors, display screens
Software to collect, rank, edit participant ideas and
responses
May require facilitator and staff
Promotes collaborative atmosphere,
guaranteeing anonymity
Uses structured methods to organize and
evaluate ideas
Group Decision Support Systems
(GDSS)
Group Decision Support Systems
(GDSS)
What is Office Automation System?
The movements towards automation in
the new hardware and software
technologies like word processors,
spreadsheets, electronic mail, and so on,
which make office workers more
productive.
These combinations of technologies that
have a dramatic impact on day-to-day
office operations are called office
automation(information) systems
(OAS).
What is Office Automation System?

Office Automation (OA) is the use of

technology to help people do their jobs
better and faster.
"The use of computers, micro electronics,
and telecommunications to help us
produce, store, obtain and send
information in the form of pictures, words
or numbers, more reliably, quickly and
economically."
Office Automation System
Types of Office Automation
Systems:
Three major types/categories of office
applications are:
1. Document management systems
2. Message handling systems
3. Teleconferencing systems