TOPIC Information Systems LECTURE 9 Data is streams of raw facts representing events occurring in organizations or the physical environment before they have been organized and arranged into a form that people can understand and use. Information is data that have been shaped into a form that is meaningful and useful to human beings. Desired Characteristics of Information Accuracy Clarity Conciseness User Relatedness Relevance Timeliness What is an Information System An information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization. In addition to supporting decision making, coordination, and control, information systems may also help managers and workers analyze problems, visualize complex subjects, and create new products. TYPES OF INFORMATION SYSTEMS Transaction Processing Systems Transaction processing systems (TPS) are the basic business systems that serve the operational level of the organization. A transaction processing system is a computerized system that performs and records the daily routine transactions necessary to conduct business. Examples are sales order entry, hotel reservation systems, payroll, employee record keeping, and shipping. At the operational level, tasks, resources, and goals are predefined and highly structured. The decision to grant credit to a customer, for instance, is made by a lower-level supervisor according to predefined criteria. All that must be determined is whether the customer meets the criteria. An example of a TPS is a payroll TPS, which is a typical accounting transaction processing system found in most firms. A payroll system keeps track of the money paid to employees. The master file is composed of discrete pieces of information (such as a name, address, or employee number) called data elements. Data are keyed into the system, updating the data elements. The elements on the master file are combined in different ways to make up reports of interest to management and government agencies and to send paychecks to employees. These TPS can generate other report combinations of existing data elements. Management Information Systems The term management information systems (MIS) designates a specific category of information systems serving management-level functions. Management information systems (MIS) serve the management level of the organization, providing managers with reports and, in some cases, with online access to the organizations current performance and historical records. Typically, they are oriented almost exclusively to internal, not environmental or external, events. MIS primarily serve the functions of planning, controlling, and decision making at the management level. Generally, they depend on underlying transaction processing systems for their data. Figure 1-2 How management information systems obtain their data from the organizations TPS. In the system illustrated by this diagram, three TPS supply summarized transaction data at the end of the time period to the MIS reporting system. Managers gain access to the organizational data through the MIS, which provides them with the appropriate reports. Decision-support systems (DSS) also serve the management level of the organization. DSS help managers make decisions that are unique, rapidly changing, and not easily specified in advance. They address problems where the procedure for arriving at a solution may not be fully predefined in advance. Although DSS use internal information from TPS and MIS, they often bring in information from external sources, such as current stock prices or product prices of competitors.Clearly, by design, DSS have more analytical power than other systems. They are built explicitly with a variety of models to analyze data, or they condense large amounts of data into a form in which they can be analyzed by decision makers. DSS are designed so that...
...1. Discuss five (5) ways in which informationsystems are transforming business.
An InformationSystem (IS) is the study of complementary networks of hardware and software that people and organizations use to collect, filter, process, create and distribute data. Informationsystem is crucial to collect, arrange, store, process and distribute necessary information at the required times to the required personnel. Usually information is much required for day- to- day operations of business, to confront growing competition and to ensure efficient management of the business. Informationsystems are the lifeblood of the modern enterprise. They have the power to create and restructure industries, empower individuals and firms, and dramatically reduce costs. Therefore, informationsystem has been of great concern to business management and operations. Today’s managers simply cannot effectively perform without a solid understanding of the role of informationsystems in organizations, competition and society.
Informationsystems are transforming business through their ability to share information in an instant. Due to lightning-fast technology, the overall pace of business is rapid-fire and growing faster every day. For example, meetings...
In this age of information, almost all fields of endeavor such as education, manufacturing, research, games, entertainment, and business treat informationsystems as a need. Indeed, every activity in our daily life today requires people to get involved in the use of informationsystems. Many organizations today use informationsystems to offer services with greater satisfaction to customers, to access a wider range of information, to handle Business changes at a greater speed, and to increase the productivity of workers. Based on a number of researches, an effective informationsystem should be able to exceed customer expectations and fulfill business needs.
As such information technology, a subset of informationsystems, has become the prime reason for the success and failure of a company to compete in business. This illustrates the impact of information technology on business operations today. As a result, designing an informationsystem of high quality is important so that organizations can compete successfully in the global market.
In Lending institutions, having an automated Loan System that store,update,retrieve and monitor data efficiently and faster is an edge to be more competitive and...
What you think Management of InformationSystems is and why it is important in today’s business environment?
Management InformationSystems (MIS) is the term given to the discipline focused on the integration of computer systems with the aims and objectives on an organization. Modern businesses have been leveraging on MIS to manage, order, organize and manipulate the gigabytes and masses ofinformation generated for various purposes. MIS helps businesses optimize business processes, address information needs of employees and various stakeholders and take informed strategic decisions. The development and management of information technology tools assists executives and the general workforce in performing any tasks related to the processing of information. MIS and business systems are especially useful in the collation of business data and the production of reports to be used as tools for decision making. With computers being as ubiquitous as they are today, there's hardly any large business that does not rely extensively on their IT systems (Kenneth C. Laudon). However, there are several specific fields in which MIS has become invaluable like in decision support systems, resource and people management applications, Enterprise Resource Planning (ERP), Supply Chain Management (SCM), Customer Relationship...
...LUCAS ATIIRU ADITIBA
MANAGEMENT INFORMATIONSYSTEM ASSIGNMENT
The role of management informationsystem in contemporary business/organizations cannot be over emphasized. Discuss
Management InformationSystem (MIS) is a combination of tools, processes, and technologies that an organization deploys in order to gather relevant operating data and gain efficiency in internal processes. Thesystem consists of tools and technologies, such as computer software and hardware, as well as technical personnel.
* Decision Making Tool
Management informationsystem plays an essential role in corporate decision-making processes in organizations by providing operating data necessary for decision-making; the system helps senior leadership make well-informed decisions, depending on current economic trends, regulatory developments and internal business requirements in the short and long terms.
Also, Accounting InformationSystems (AIS) are a subset of a company's total Management InformationSystems aid organizations business decisions and ensure profitable business operations.
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* Organizational Layout and Structure Charts
Using an MIS, an organization is able to establish its hierarchical structure and...
...IMPORTANCE OF MANAGEMENT INFORMATIONSYSTEMS
Management InformationSystems (MIS) is a general name for the academic discipline covering the application of people, technologies, and procedures — collectively called informationsystems — to solve business problems. MIS are distinct from regular informationsystems in that they are used to analyze otherinformationsystems applied in operational activities in the organization. Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. Decision Support Systems, Expert systems, and Executive informationsystems
Management InformationSystems examines how organizations design and manage informationsystems and how they use information as an important corporate resource. This occurs in the context of electronic business trends where organizations are using new e-technologies to achieve and sustain corporate growth and health. Management InformationSystems also covers concepts of how data is used to support basic business processes and how managers and professionals link data to provide...
Chapter 2 Questions MBA:
1) Identify and discuss the major types of informationsystems that serve the main management groups within a business. What are the relationships among these systems?
Main management groups within a business are operational management (employees, staff), middle management and senior, top-management. Accordingly there are three major types of informationsystems – transaction processing system (TPS), management informationsystems (MIS) and decision-support system (DSS), executive support system (ESS). A TPS is a computerized system that performs and records the daily routine transactions necessary to conduct business, e.g. payroll, hotel reservations, shipping, sales orders etc. TPS provides the information to MIS for middle management for summarizing, reporting and monitoring without high analytics. DSS for middle management support management decisions that are unique and rapidly changing using information not only from TPS and MIS, but also from external resources and more advanced analytical models and data analysis capabilities. ESS support top-management by providing data that are often in the form of graph and charts delivered via portals using many sources of internal summarized information from MIS and DSS and external...
...Necessity and importance of System design in MIS
System design is a very important tool because when you are starting business you are dealing with both monetary and legal aspects. Suppose take an example of constructing Taj Mahal in the recent age if you don’t design and straight away construct it what are the impacts of it. : Necessity of MIS is basically for information which could be the main reason for success hence MIS is a necessitySystem design is a very important tool because when you are starting business you are dealing with both monetary and legal aspects. Necessity of MIS is basically for information which could be the main reason for success hence MIS is a necessity. The systems design phase is generally broken into two subphases, top-level design and detailed design. Top-level design consists of the identification of the major system components and their functions. In order to specify the top-level design, a number of alternative system design concepts are synthesized and evaluated in terms of a variety of selection criteria, which include cost (implementation, operation and maintenance), performance, satisfaction of requirements, development risk, flexibility for expansion/upgrading, and political acceptability. The important aspect of top-level design is to present several feasible solutions to the system managers and users, to describe their...
MANAGING THE DIGITAL FIRM
Managing the Digital Firm
Kenneth C. Laudon
Jane P. Laudon
After reading this chapter, you will be able to:
1. Evaluate the role played by the major types of systems in a business and their relationship to each other.
2. Describe the informationsystems supporting the major business functions: sales and marketing, manufacturing and production, finance and accounting, and human resources.
3. Analyze the relationship between organizations, informationsystems, and business processes.
4. Explain how enterprise applications promote business process integration and improve organizational performance.
5. Assess the challenges posed by informationsystems in the enterprise and management solutions.
1. How can a transaction processing system help an organization's strategic-level planning?
2. Which of the four major types of informationsystems do you think is the most valuable to an organization? Explain your choice.
3. Discuss the benefits and challenges of enterprise systems and explain why a firm would want to build one.
4. Discuss how Customer Relationship...