MANAGEMENT

INFORMATION SYSTEM

Module 3

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Information System
 The uses of information technology have
grown to gather , process and disseminate
info and enhance the performance of the
business.
 In any organization the management can be
broadly categorized into 3 levels- top , middle
and lower.
 At operational level(lower level),the decisions
are short term and usually involve large scale
processing of internal data like sales data,
attendance etc..
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Cont..
 At middle level(tactical level),decisions have
medium to long term effect. Information
systems help in taking tactical decisions.
 At top level(strategic level) they are
concerned with long term business issues.
These kinds of decisions need info from
internal as well as external sources.

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Types of Information Systems
 1.Transaction processing systems
 2.Management Information Systems
 3.Executive Information Systems
 4.Decision Support Systems
 5.Expert systems
 6.Communication support systems
 7.Office Support systems.

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TPS
 TPS processes business transaction of the org.
Transaction can be any activity of the organization.
Transactions differ from organization to organization.
For example, take a railway reservation system.
Booking, canceling, etc are all transactions. Any
query made to it is a transaction. There are some
transactions common to almost all orgs. Like
employee new employee, maintaining their leave
status, maintaining employees accounts, etc.

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MIS
 They use the results of transaction processing and
some other information also. It is a set of information
processing functions. It should handle queries as
quickly as they arrive. An important element of MIS
is database.
 A database is a non-redundant collection of
interrelated data items that can be processed
through application programs and available to many
users.

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EIS/ESS
 An executive support system (ESS) – an
extension of MIS – is a computer based
information system that helps in decision
making at the top-level of an organization.
The decisions taken with the help of
executive support system are non-routine
decisions that effect the entire organization
and, thus, require judgment and sight.

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Cont..
 As compared to DSSs, ESSs offer more
general computing capabilities, better
telecommunications and efficient display
options. They use the advanced graphics
software to display the critical information in
the form of charts or graphs that help senior
executives to solve a wide range of problems

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DSS
 These systems assist higher management to
make long term decisions. These type of
systems handle unstructured or semi
structured decisions. A decision is
considered unstructured if there are no clear
procedures for making the decision and if not
all the factors to be considered in the
decision can be readily identified in advance.

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ES(Expert System)
 Users communicate with ES through an
interactive dialogue. The ES asks question
(which an expert would ask) and the end
user supplies the answers. Those answers
are then used to determine which rules apply
and ES provides a recommendation based
on the rules.

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CSS & OSS
 Communication support system allows
employee to communicate with each other
and with customers and suppliers. It includes
email, fax, internet access and video
conferencing.
 Office support System: It helps employees to
create and share documents including
reports , proposals and memos. It helps to
maintain info about work schedule and
meetings.
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Strategic role for IS
 IT is used to implement a variety of
competitive strategies.
1.Improving business process: Investments in
IT can help make a firm operational process,
managerial process more efficient. By
making such improvements a firm may be
able to cut costs, improve quality and
customer service and develop innovative
products for new market.

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Cont..
2.Promoting Business Innovation:
Investments in IT can result in
development of products, services and
processes. This can create new
business opportunities, enable firm to
enter new market or enter new market
segments of existing markets.

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Cont..
3.Look In Customers and suppliers:
Investments in IT can allow a business to look
in customers and suppliers by building
valuable relationships with them. This deters
both customers and suppliers from
abandoning a firm for its competitors. Offer
better quality to customers allow a company
to differentiate themselves from their
competitors.

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Cont..
4.Raising barriers to entry:
By increasing the amount of investment or the
complexity of technology required to compete
in the market segment, we can discourage
firms from entering the industry.
5.Leveraging a Strategic IT Platform: Acquire
hardware, software, develop telecommunication
network, hire IT specialists and train end users to
build strategic IT platform.

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Breaking Business Barriers
 Several vital capabilities of IT break
traditional barriers include:
1.Breaking time barriers: IT is used to
shorten the intervals between the critical
steps in business process.
Telecommunication is lot faster and can
provide info to remote locations
immediately after the request.

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Cont..
2.Breaking Geographic Barriers:
Networks enable to communicate people
almost anywhere in the world. Computing
technologies make it possible to distribute
key business activities to where they are
needed, where they are best performed or
where they best support the competitive
advantage of business.

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Cont..
3.Breaking cost barriers:
IT helped companies to cut labor costs,
minimize inventory levels, lower
communication costs.
4.Breaking Structural barriers:
Telecommunication networks can support
innovations in delivery of services, increase
in scope and create good alliances with
customers, suppliers and even a firms
competitors.
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BUSINESS PROCESS
REENGINEERING

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