​ ​ ​ CHP 11 ​

Management
information system
information systemes

general concepts specific IT-based systemes

TPS,MIS,DSS,EXPERT SYSTEME,FINANCAIL
computer systeme computer hardware
REPORTING,ORDER PROCESSING,PERSONNEL SYSTEME INTERGRTEED IT , ERP

input output storage devices network,systeme rchitectures super computer,mainframe,miniframe,PC,laptop

keyborad,mluse,MICR,OMR,scanner,mice,VDE,QR monitor,printer,speaker,storage,projector PS,SS,TS,OS

CHP 11
Management information
systems
GENERAL SYSTEM CONCEPTS OF INFORMATION TECHNOLOGY
Computer systems
1. Input devices facilitate the introduction of data and information into the
system.
2. Output devices facilitate the extraction of processed information from the
system
3. The central processing unit is the ‘brain’ of the computer that takes the
inputs, processes them and then outputs the results.
Computer hardware
1. Supercomputer
 2. Mainframe
3. Minicomputer
4. PCs
5. Portable laptops
6. Handheld computers
Input devices
1. Keyboard
Most common input device, Keyboards can be stand-alone and connected to
the computer with a cable.
2. Touch-sensitive screen
These devices involve the user touching an area of a screen.
3. MICR
It requires the input media to be formed of specially formatted characters
printed in magnetic ink.
4. OMR
It is an automated input method. OMR involves marking a pre-printed form
with a pen or typed line in an appropriate box.
5. Scanners
Scanners read text or illustrations printed on paper and translate the
information into a format the computer can use.
6. Mice, trackball
Hand-operated devices with internal sensors pick up the motion and convert
it into electronic signals which instruct the cursor (pointer) on screen to
move. Mice typically have two or three buttons which can be pressed
(clicked) to send messages to the computer. Trackballs control the cursor on
the screen.
7. VDE
One particularly useful application is found in language translation programs
that support simultaneous translation.
8. QR, EPOS
Barcodes are the groups of black and white marks with variable spacing and
thickness found on product labels such as those at the supermarket. Each
code is unique and can be read automatically by an electronic barcode
reader. EPOS stands for electronic point of sale which is normally integrated
with barcode readers. EPOS allows credit and debit cards to be read for
instant payment for goods.
9. Digital cameras
Digital cameras capture images and videos in digital form and allow easy
transfer to a computer where they can be manipulated by software.
Output devices
1. Monitor
A monitor is a bit like a television screen – it provides visual output from the
computer for text and graphics, monitor can be internal or external.
2. Printer
A device that prints output to a page (on paper).
3. Speaker
Speakers are attached to computers for the output of sound. The sound
 output is produced by a sound card. Speakers range from simple, single-
speaker output devices to surround-sound multi-channel
4. Storage devices
Output may be made to some kind of storage device such as a DVD or CD-
ROM, flash memory.
5. Projector
It translates the digital output into a visual display projected onto a screen.
Storage devices
1. Primary storage
I. Temporary storages
II. Readily accessible by CPU
III. Volatile
IIII. Smaller then SS and TS
2. Secondary storage
I. Not readily accessible
II. Used for data currently being unprocessed
III. Non-volatile
IIII. Larger then PS
3. Tertiary storage
I. Robotic mechanism
II. Removable mass storage
III. Used for archiving data
4. Offline storage
I. Not under control of processing unit
II. Increase general information security
Networks
Computer network:
A computer network is a telecommunications infrastructure that
allows computers to exchange data (or ‘talk’) with each other.
System architectures
Definition:
The term system architecture refers to the way in which the components
of a computer system such as printers, PCs and storage devices are linked together
and how they interact.
A centralised architecture involves all processing being performed on a single
central computer.
Decentralised architectures spread the processing power throughout the
organisation at several different locations. This is typical of the modern workplace
given the significant processing power of modern PCs.

Client-server computing
Client-server computing describes one level of interaction found between
computers in systems architecture.
A server is a machine that is dedicated to providing a particular function or service
requested by a client within a network system.
File servers are used to manage the data files that are accessible to users of the
network.
Network servers are used to route messages from terminals and other equipment
in the network to other parts of the network.
LAN – Local area network
1. Data transfer speed is high
2. Managed by one person
3. Low cost
4. Relatively low data transmission
5. Can be connected to other LAN
WAN – Wide area network
1. High transfer speed
2. Collective ownership
3. High setup cost
4. High transmission error rate.

Information technology
Information technology describes the application of computers and
telecommunications equipment to store, retrieve, transmit and manipulate
data.

Information system
Information systems describe complementary networks of software and
hardware that people and organizations use to collect, filter, and process,
create and distribute data and information.
Open and closed systems
Closed systems
The environment has no effect on the system and the system has no
effect on the environment.
Open systems
Do interact therefore the environment will affect the system and the
system will affect the environment. All businesses, social and information
systems are examples of open systems.
System adaptation
1. Deterministic systems
2. Probabilistic systems
3. Self-organizing or cybernetic system
Control systems
1. Closed loop
I. Inbuilt
II. Not responsive to change
III. Suitable for stable environment entities
2. Open loop
I. No inbuilt system
II. As it comes from outside the system.
Types of information

1. Strategic information
 Relates to long-term decision making e.g. over a 3-5 year time
horizon.
2. Tactical information
Assists managers in making short-term tactical decisions.
3. Operational information
Relates to the day to day activities of an organization.
Role of information systems

1. Planning
2. Controlling
3. Recording transection
4. Performance measurement
5. Decision making
Data entry, batch, online and real time processing
Data entry
Data entry describes any of the techniques used to initially record data into a
system.
Batch processing
Batch processing is the collection of a group of similar transactions over a
period of time, and their processing at a single time as a batch.
Advantages
1. Relatively easy to develop
2. Less processing power is required
3. Checks in place as part of the systems run
4. Less hardware required, therefore cheaper.
Disadvantages
5. Often delays between when a transaction is made and when the master file is
updated and the output generated.
6. Management information is often incomplete due to out of date data.
Online processing
Online processing refers to equipment that operates under control of the central
computer but typically from a different location through some kind of terminal.
Real time processing
Real time processing is the processing of individual transactions as they occur
without the need for batching them together.

SPECIFIC IT-BASED SYSTEMS

Transaction processing systems (TPS)
A TPS performs, records and processes routine transactions.
Finance and accounting TPS
The major functions would typically include:
1. Budgeting
2. The nominal ledger
3. Invoicing
4. Management accounting
Human resources TPS
The major functions would typically include:
1. Personnel records
2. Benefits
3. Salaries
4. Labour relations
5. Training
Management information systems (MIS)
A management information system digests inputted data (distinct pieces of
information such as facts, numbers and words) and processes it into useful
information.
1. Structured decision
2. Report existing operation
3. Analytical capability
4. Internal focus
5. Regular report
Decision support systems (DSS)
A decision support system is a set of related computer programs and data
required to assist with the analysis and decision-making within an organization.
1. Assists manager at tactical level
2. Use formula]real time system
3. User input inquires
4. Contain natural language interpreter
5. user interface is integrated with data management
Executive information systems (EIS)
An executive information system is a type of management information system
that facilitates and supports senior executives in their decision-making.
Expert systems
An expert system is a computer program that simulates the judgement and
behaviour of a human or an organization that has expert knowledge and
experience in a particular field.
Preconditions exist:
1. The problem is reasonably well-defined
2. The expert can define some rules
3. The problem cannot be solved through conventional transaction processing
systems
4. The expert can be released to focus on more difficult problems
5. The investment is cost-justified.
advantages:
1. Allows non-experts to make expert decisions
2. Fast, accurate and consistent advice
3. Ability to change input details to explore alternative solutions
4. Reduction in staff costs - less experts required
5. Improved allocation of human resources experts concentrate on the more
complex issues
6. Can become a competitive advantage
7. Availability potentially 24 hours 365 days per year
8. Multi-access can deal with many problems at one time
Disadvantages may exist, such as:
1. High initial capital expenditure
2. Technical support required
3. System does not automatically learn, it has to be constantly updated by
experts
4. User as a non-expert may give inaccurate advice without recognising
5. Down time - systems failures effect all users
6. Reliance - probable reduction in basic skills
7. Possible user resistance for higher level experts.
Financial accounting and reporting
Financial accounting and reporting involves:
1. Maintaining a system of accounting records for business transactions and
other items of a financial nature; and
2. Reporting the financial position and the financial performance of an entity in
a set of ‘financial statements’.
Order processing
The order processing system should be capable of recording all orders
accurately and in a timely fashion. For some business such as airlines and hotels
the information needs to be updated immediately, whereas for other businesses
an end of day update may be sufficient. The system will typically be linked to
the inventory control system so that the sales person can establish whether the
organisation is capable of fulfilling the order received.

Inventory control system

The objective of the inventory control system is to ensure that the business
maintains an appropriate amount of inventory at all times. The control system
should be able to indicate accurate levels of inventory for all the lines
maintained by a business and trigger the ordering of replacement inventory
when inventory levels fall to a certain level.
Order processing and inventory control systems typically share the following
characteristics:
1. Accurately report the current inventory level at any time.
2. Rule should be associated with each item that will trigger a reorder.
3. Age of the inventory can be tracked.
4. Highlight shortages.
5. Show individual and total cost of items.
6. Maintain supplier details.
7. Delivery dates both inwards and outwards.
Personnel systems
The personnel system exists to support the human resources management
function in performing its duties of maintaining an appropriate workforce. This
involves • Recruitment
1. Selection; and
2. Staff development and appraisal.
The system will typically incorporate a number of components including:
1. Recruitment
 2. Redundancy
3. Personal management and control
4. Personal management and reporting
Integrated IT systems
An integrated IT system describes the scenario where all modules of the
system are linked and function together as a system in a coordinated fashion.
Advantages of integrated systems
1. Complete view
2. Better information
3. Efficient operation
4. Customer satisfaction

Disadvantages of integrated systems

1. Greater risk
2. Complex system
3. Expensive
4. Require higher level support
Enterprise resource planning (ERP)
Enterprise resource planning (ERP) is a cross-functional system driven by an
integrated suite of software modules supporting the basic internal processes of a
business. The system incorporates a real-time view of core business processes such
as:
1. Order processing
2. Inventory management
3. Productions