Data , Information System and Decision Making

From: Usha Mokariya(36), Kinjal Biniwale(18), Shweta Joshi(04), Janki Swami(29), 7/21/12 Nilesh

Data and Information

Data: are streams of raw facts representing events occurring in the organization or the physical environment. Information: The data when it is organized and arranged in the form that people can understand effectively and use is called information.

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What is an Information System?

It is a set of interrelated components that collect, process, store and distribute information to support decision making and control in an organization. Information Systems contain information about significant people, places and things within the organization or in the environment surrounding it.

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Information system
Control of System Performance

Input of Data Resources

Processing Data

Output of Informatio n Products

Storage of Data Resources

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Components of Information System

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Role of Information System in Business Today

Organization making wise decisions regarding investment in Information Technology can outperform competitors. Business Transformation with the help of IS.

Globalization Opportunities. The Emerging Digital firm.

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How business use information system?

Business Processes refer to the manner in which work is organized, coordinated and focused to produce a valuable product or service. They are the unique way in which organizations coordinate work , information and knowledge and the ways in which management chooses to coordinate work.

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Types of Business Information Systems

Since a business has many different processes , different specialists performing different functions and different levels of operation, no single system can provide all the information an organization requires. The types of information systems in business can be viewed in two different perspectives: 1. From a functional Perspective: i.e from the perspective of functions these 7/21/12 systems aid

Systems from a functional perspective

1. Sales and Marketing Systems 2. Manufacturing and Production Systems 3. Finance and accounting systems 4. Human resource systems

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Systems from a Constituency Perspective

This examines systems in terms of the various levels of management and types of decisions that they support.

An organization is made up of different levels of management who have different information need. Senior management requires summary information that can quickly inform about the overall performance of the organization
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Middle management requires more specific information about the performance of the different functional areas Operational level management requires transaction level information like the amount of raw material used in production used each day. Knowledge workers may require information from some external source.

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Types of Information Systems

Operations Support system

-Transaction process system -Process control System -Office Automation System

Management Support System

-Management Information System -Decision Support System

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Transaction Process Systems

A transaction processing system is a computerized system that performs and records the daily routine transactions necessary to conduct the business. This system provides answers to questions related to routine tasks, and goals which are predefined and highly structured. TPS helps managers to monitor the status of internal operations and also the firms relation with external environment. TPS are also producers of major
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Information Systems and Decision Support Systems systems which are used These are the

by the middle management.

MIS provides middle management with reports on organizations current performance. This information is used to monitor and control the business and predict future performance
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MIS uses data and information supplied by TPS to summarize and report on the basic operations of the organization. The reports prepared by MIS are on a regular schedule daily, weekly, monthly, yearly. MIS also answers questions that are routine and have been pre defined. These systems are generally not flexible and have little analytical capability.

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Decision Support Systems: They are also used by the middle management, but support the non routine decision making. They focus on problems that are unique and are rapidly changing and the solution of the problem may not be pre defined. They use information generated by TPS and MIS along with information from external sources.

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Executive Support Systems

These are the systems which help senior managers in issues that address strategy, long term trends both in the firm and the external environment. They help the managers take non routine decisions that require judgment, evaluation and insight as there is no agreed on solution for arriving at the solution.
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They use information generated by MIS, DSS and filter, compress and track critical data and also present the data of greatest importance to the senior managers.

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What is Decision Making?

Decision making is the process of sufficiently reducing uncertainty and doubt about alternatives to allow a reasonable choice to be made from among them.

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Types of Decision Making:1.

Structured Decision- Repetitive, routine,

handled using a definite procedure.

2. Unstructured Decision- Non routine,

decision maker provides judgment, evaluation, and insights into problem definition, no agreed-upon procedure for decision making

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Decision Making Process

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Intelligence : Collect information; identify problem Design : Conceive alternatives; select criteria Choice :

Use criteria to evaluate alternatives; select

Implementation:

Put decision into effect; allocate resources; control 7/21/12

Thank You
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