Transcript Chapter 2 - Softech Computer Education

Chapter [2]
Information System
Concepts
• System : Definition
A set of inter-related, inter-connected, inter-dependent
elements which are operating together to achieve
common goal.
• Example
Human body
Computer
Business Organization
• Types of elements
Abstract
Physical
Types of
System
Type of
Elements
Abstract
Physical
Interaction
with
Environment
OPEN
CLOSED
Degree of
Automation
Manual
Automated
Working
Behavior
Determin
istic
Probabil
istic
IS and its Components
Components of
Information
System
People
Computer
System
Hardware
Software
Data
Network
Steps of IS model
 Data collection and conversion into machine
language (INPUT)
 Transforming data into information (PROCESS)
 Providing useful information to users (OUTPUT)
Characteristic of CBIS
 Work for predetermined objectives;
 Has a number of interrelated and interdependent
subsystems.
 If one subsystem fails the whole system does not
work;
 The work done by individual subsystems is
integrated to achieve the central goal of the system
Operation
Support System
Management
Support System
Office
Automation
System
TPS
DSS
WPS
MIS
EIS
DMS
ERP
ES
MCS
TCS
Characteristics ~
 Used to process routine business transaction.
 Aimed at improving quality of routine business
activities.
 Fully automated system.
 Nothing to do with decision making.
 Report generated are routine and used y
supervisory level management.
Activities ~
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Capturing data.
Organizing data in file and databases.
Processing of database.
Generating information in the form of output.
Processing of queries.
Components ~
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INPUT : Source documents
PROCESS : Batch or On-line
STORAGE : Data file or Database
OUTPUT : Any document generated after processing
Features ~
 Large Volume of data
 Automation of basic operation
 Benefits are measurable
 Source of input for other systems.
Process Control System
It is used to control physical processes and
make decision automatically to keep the
process going on. E.g. - Automated factories
Enterprises Collaboration System
IT is used to help people work together. It
support collaboration to communicate ideas,
share resources and coordinate work efforts.
Management Information System
Definition ~
MIS is an : Integrated man-machine system,
for providing timely information to managers,
to support managerial function and decision making.
It utilizes : Computer hardware and software,
Manual procedures, and
Data Bases.
Characteristic of Effective MIS
1
• Management Orientation
2
• Management Directed
3
• Common Data Flows
4
• Common Data Base
5
• Sub-system Concept
6
• Integration
7
• Heavy Initial Planning
8
• Computerised
Misconception about MIS
1)
2)
3)
4)
5)
6)
7)
8)
Any computer based information system is a MIS.
Any reporting system is MIS.
MIS is a management technique.
MIS is a bunch of technologies.
MIS is an implementation of organizational
systems and procedures.
The study of MIS is about use of computers.
More data in reports refers more information to
managers.
Accuracy plays vital role in reporting.
• Data Base
Pre-requisites of
MIS
– User oriented
– Common to all sub-system
– Accessed by authorised persons only
– Controlled by DBA
• Qualified Staff
– Management Expert
– System Expert
• Support of Top Management
– To obtain fund
– To obtain data from Source
• Control and Maintenance
– Control plan to stop bad practice.
– Maintenance plan to update MIS regularly.
• Evaluation of MIS
– Information evaluation
– Flexibility
Constraints in operating MIS
1
• Non-availability of expert
2
• High turn over of expert
3
• Mobility of expert
4
• Selection of sub-system
5
• Non-standardized methodology
6
• Non-cooperation from staff
7
• Difficulty in measuring benefits
Limitations of MIS
1
• Quality of O/P depends upon Quality of I/P
2
• It does not automate decision making
3
• It is not very flexible to update quickly
4
• It can’t provide tailor made information
5
• It takes into a/c only quantitative factors
6
• Less useful in non-programmed decision
7
• Less effective in org. culture of hiding info.
8
• Effectiveness decrease due to change in top mgmt
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Provides tools to managers to assist
them
in
solving
un-structured
problems.
It does not intend to make decision
for managers.
Useful
for
higher
level
of
management.
Provides tailor made information.
 DSS only supports decision making.
 DSS should be flexible and adaptable
 DSS
focuses on decision rather than data and
information.
 DSS can be used for structured problems.
 DSS should be user-friendly.
 DSS should be extensible and evolve overtime.
 DSSs are used mainly for decision making
rather than training purposes.
Components of DSS
• User ~
 Managers with un-structured problem.
 Computer background is not required.
 Knowledge of problem and factors to be
considered in solving the problem is essential.
• Data Base ~
 One or more database with routine and non-
routine data from internal and external sources.
 Database must be implemented at 3 levels :
Physical level, Logical level and External level.
• Model base ~
 It is the “Brain” of DSS.
 Decision model is a program used to test the
decision from consequences.
 Models are custom developed.
• Planning Language ~
 It is user interface of DSS.
 Types :
• General purpose planning language
• Special purpose planning language
Examples of DSS
DSS v/s MIS
Dimensions
Philosophy
DSS
Traditional MIS
Providing
integrated Providing structured
tools, data, models, and information to end users
languages to end users
Orientation
External orientation
Internal orientation
Flexibility
Highly flexible
Relatively inflexible
Analytical capability
More
Little
System analysis
Emphasis on tools to be Emphasis
on
used
in
decision information requirement
process
analysis
Interactive process
System design
Based on static information
requirements
• Definition ~
EIS is a tool that provides direct on-line access to
relevant information in a useful and navigable format.
• Characteristics ~
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Specially designed to meet executive’s info. Need
On-line analysis tools
Can access both internal and external data
User friendly
Used directly by top executives
Able to perform “What-if” analysis
……
Characteristics
Of
information
Lack of Structure
High degree of Uncertainty
Executive decisions
Future orientation
Informal source
Low-level detail
Contents of EIS
Whatever is interesting to executives
• Characteristics ~
– Easy to understand and collect.
– Should reflect organizational objectives
– Performance indicator must show
everyone’s contribution.
– Performance indicator must promote
healthy competition.
– Available to everyone.
– Flexible
EIS v/s MIS
Dimensions of
Difference
Level of management
Nature of Information
Access
Nature of information
provided
Information Sources
Drill down facility to go
through details
Information format
Nature of interface
Executive Information
System
For top or near top
executives
Specific issues/problems
and aggregate reports
Traditional
Information System
For lower staff
Status reporting
Online tools and analysis Offline status reporting
More external, less
internal
Internal
Available
Not available
Text with graphics
Tabular
Computer operator
oriented
User-friendly
Word Processing System
Word processing software or DTP system
supported by Ink-jet printer and Scanner are
used to produce good quality documents.
 Editing
 Formatting
 Saving
 Proof checking
 Mail merging
 Printing
 Template
Document Management System
Using Scanner, DMS is a system of maintaining
the information document in electronic form.
 Accessibility
 Accuracy
 Availability
 Capacity
 Cost
 Security
 Versatility
Message Communication System
Tele-Conferencing System
 Using Microphone, Speaker, Sound card,
Web camera and VDU like hardware and
MMX like software.
 It does not require the participants of a
meeting to physical present at a common
place. They can attend conference from their
respected places.
• Definition
– ES are the software that imitate the reasoning
processes of human expert and provide expert
advice to the decision makers.
• Benefits
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It is cost effective then an expert.
Never stressed out.
Can consider many factors before delivering advices.
Preserve the knowledge of an expert who is leaving
the organization.
– Provide better quality and time tested advice.
– Delivers timely advice to the managers.
• Properties
– Availability ~ always available to the user
– Complexity ~ complex tasks which are not possible
to handle by traditional IS.
– Domain ~ The subject area of ES is relatively small.
– Expertise ~ Deliver advice/decision as an expert.
– Structure ~ handles un-structured problems
Knowledge Management System
 Knowledge
based system used to create and
share knowledge within the enterprises.
 KMS
are very commonly used in the firms of
lawyers,
accountants,
management
consultants etc. where employees create new
knowledge and expertise which can be
shared by other people.
Application of IS in Enterprises
• “Support
an
organization’s
business
processes and operations” This includes OSS,
TPS, PCS.
• “Support business decision-making”. This
includes MIS, DSS, EIS.
• “Support strategic competitive advantage”.
This includes ES, KMS, SIS.
Some of the important implication of IS are ~
 It helps managers in efficient decision-making to
achieve the organizational goals.
 It can help an organization to survive and thrive in a
highly competitive environment.
 It helps in making right decision at the right time i.e.
just on time.
 It may help in generating innovative ideas for solving
critical problems.
 Knowledge gathered though Information system may
be utilized by managers in unusual situations.
 It can be integrated to formulate a strategy of action
or operation.
Knowledge required for effective
use of MIS
Foundation
Concepts
Management
Challenges
Development
Process
Information
Technology
Business
Applications
“Information is a data that has been processed
into the form which is meaningful to the
recipient and is of some value in current or
progressive decision.”
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Availability
Mode and Format
Rate
Completeness
Cost-Benefit analysis
Quality
Value
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Purpose
Decay
Frequency
Reliability
Validity
Transparency
Importance of IS from Strategic
to Operational perspective
• General Management
Decision making, planning, strategy development
• Operation Management
Production Planning, Inventory, QC, R&D, Costing
• Human Resource Management
Create, maintain and retain highly qualified staff.
• Logistic Management
Real time tracking of shipment, routing
Operational
Level
• Keep track of routine business activities and
transactions
• Sales, Payroll, Purchase, Receipts and Payments etc.
Knowledge
Level
• Integrate and share knowledge into the business
• Data Mining, OLAP etc.
Management
Level
• Monitoring, decision making and administrative
activities
• Perform ‘what-if’ analysis. MIS DSS etc.
Strategic
Level
• Identify and resolve strategic business problems.
• Long range planning. EIS, ES
Business Applications of IT
E-Business
Financial Sr.
Sector
Wholesaling
& Retailing
Public
Sector
Others
Ecommerce
Banks
Dealer
Education
Entertain
ment
CRM
Insurance
Stockiest
Hospitals
Agricult
ure
Retailer
Governm
ent
Tour &
Travel
SCM
Societies
WWW
Underlying
IT
Software
Network
Technologies
Hardware