MANAGEMENT INFORMATION SYSTEM

MANAGEMENT INFORMATION SYSTEM

Data: Raw fact with no knowledge of relationship (unprocessed data), symbols. Example: records of customer

Information: Processed data, useful to take decisions. (Data + Meaning)

Knowledge: Ability to understand information, to make predictions and to give judgments. (Data + Meaning + Purpose)

Wisdom: Deep understanding (Data + Meaning + Purpose + Experience)

System: A group of interrelated components with clear boundary to achieve goal.

Information System: A set of interrelated components that collect, process store and distribute information. Examples: Online order system, Account management system, Railway reservation system.

Elements of Information System – People, Procedure, and Data.

Characteristics of Information – Accuracy, Relevancy, and Timeliness.

EVOLUTION OF INFORMATION SYSTEMS:

• The Era of Efficiency (1960): Doing the things right such as, Productivity gains, Cost savings, expanded processing capability, Cost/Benefit analysis, Return on Investment, Management Information Systems.
• The Era of Effectiveness (1975-80): Doing the right things such as, Client-server systems, End-User computing, Decision Support Systems, Executive Information Systems.
• The Era of Competitiveness (1980-95): Doing new things such as, strategic and market orientation, Organizational transformation, Strategic Information System
• The Era of E- Business (1995-today): Doing new things with the help of Business Information Systems.

TYPES OF INFORMATION SYSTEM

FUNCTIONAL PERSPECTIVE:

1. Sales and Marketing systems: It includes Sales management, customer identification market research, advertising and promotion, pricing, new products.

Examples: Order Processing, Pricing analysis, Sales and forecasting.

2. Manufacturing and Production systems: It includes Managing production facilities, Production goals, Production materials, and Scheduling.

Examples: Machine control, Production planning, Facilities location.

3. Finance and Accounting systems: It includes managing financial assets and capitalizing of firm, and managing firm’s financial records.

Examples: Accounts receivable, Budgeting, Profit planning.

4. Human resource systems: It includes Identifying potential employees, maintaining employee records, creating programs to develop employee talent and skills.

Examples: Training and development, Compensation analysis, Human resources planning.

HIERARCHY PERSPECTIVE:

I. OPERATIONS SUPPORT SYSTEMS

1. Transaction processing systems: Supports operations, Updates operational databases. Its purpose is to perform transactions and to collect data.

Examples: ATM machine system, Cash register system, Accounting System

2. Process control systems: Monitor and control the Industrial/Manufacturing process

Examples: Petroleum refining, Power generation, Automobile manufacturing.

3. Enterprise collaboration systems: Team work, communication, and collaboration

Examples: E-mail, chat, video conferencing, calendaring, workflow, file sharing.

II. MANAGEMENT SUPPORT SYSTEMS

1. Management Information System: Captures and turns data into information which is helpful to make decision. It includes analysis and reporting, charts, graphs, summary tools.

Examples: Spreadsheet (Excel), Oracle’s corporate performance management.

2. Decision Support Systems: Generates number of alternatives to solve semi-structured problem. Methodologies are Simulation, Queries, data mining

3. Executive Support System: Facilitate and support the information, provides easy access to both internal and external information, Helps the senior executives to make decisions.

III. INTELLIGENT SUPPORT SYSTEMS

1. Expert Systems: A computer program that mimics a human expert

Example: Credit application advisor

2. Knowledge management Systems: Support creation, organization and dissemination of business knowledge throughout company.

Examples: Intranet access

SYSTEMS DEVELOPMENT LIFE CYCLE & METHODOLOGY

• Systems development life cycle (SDLC) – Procedures, steps, and documents for a project to its technical development.
• Methodology to develop information systems.
• SDLC Phases:

Ø System Investigation

Ø System Analysis

Ø System Design

Ø Testing & Implementation

Ø Evaluation & Maintenance.