MANAGEMENT INFORMATION SYSYTEM

BY: ANKITA GAUR (05 MBA 2012) KOKILA SHARMA (21 MBA 2012) SAKSHI GUPTA(45 MBA 2012) SHIPALI GUPTA (50 MBA 2012) SUMIT KUMAR (

Information past and present

Filling the gap

LETS HAVE SOME EXAMPLES

COMPONENTS
HARDWARE SOFTWARE TELECOMMUNICATION DATABASES PEOPLE & PROCEDURES

DIMENSIONS
ORGANISATION

MANAGEMENT

TECHNOLOGY

ROLE OF IT SYSTEMS

operational excellence New products, services Customer and supplier intimacy Improved decision making Competitive advantage

OPERATION SUPPORT SYSTEM

INTRODUCTION

Operations support system is basically an IT system with basic objectives to increase efficiency and productivity. OSS referred to all systems for the management of operations and processes, including business systems. OSS is traditionally used by network planners, service designers, operations, architects, support, and engineering teams in the service provider. Increasingly product managers and senior staff may also use or rely on OSS to some extent.

1.

Operations support systems process data generated by business operations. Major categories are:

i) Transaction processing systems

ii) Process control systems

iii) Office automation systems

1. Operations Support System

i) Transaction processing systems Process business exchanges Maintain records about the exchanges Handle routine, yet critical, tasks Perform simple calculations
ii) Process control systems monitor and control industrial processes. iii) Office automation systems automate office procedures and enhance office communications and productivity.

EXPERT SYSTEM

EXPERT SYSTEM
An

expert system is a computer program that simulates the thought process of a human expert to solve complex decision problems in a specific domain
An

expert system operates as an interactive system that responds to questions, asks for clarification, makes recommendations, and generally aids the decision-making process.
Expert

systems provide expert advice and guidance in a wide variety of activities, from computer diagnosis to delicate medical surgery.

Expert systems are part of a general category of computer applications known as artificial intelligence . To design an expert system, one needs a knowledge engineer, an individual who studies how human experts make decisions and translates the rules into terms that a computer can understand.

An expert system may be viewed as a computer simulation of a human expert

DOMAIN SPECIFICITY

Expert systems are typically very domain specific. For example, a diagnostic expert system for troubleshooting computers must actually perform all the necessary data manipulation as a human expert would.

The developer of such a system must limit his or her scope of the system to just what is needed to solve the target problem.
Special tools or programming languages are often needed to accomplish the specific objectives of the system.

SPECIAL PROGRAMMING LANGUAGES

Expert systems are typically written in special programming languages. The use of languages like LISP and PROLOG in the development of an expert system simplifies the coding process. The major advantage of these languages, as compared to conventional programming languages, is the simplicity of the addition, elimination, or substitution of new rules and memory management capabilities.

COMPONENTS OF AN EXPERT SYSTEM

The knowledge base is the collection of facts and rules which describe all the knowledge about the problem domain

The inference engine is the part of the system that chooses which facts and rules to apply when trying to solve the users query The user interface is the part of the system which takes in the users query in a readable form and passes it to the inference engine. It then displays the results to the user.

NEED FOR EXPERT SYSTEMS

1. Human expertise is very scarce. 2. Humans get tired from physical or mental workload. 3. Humans forget crucial details of a problem. 4. Humans are inconsistent in their day-to-day decisions. 5. Humans have limited working memory.

6. Humans are unable to comprehend large amounts of data quickly. 7. Humans are unable to retain large amounts of data in memory. 8. Humans are slow in recalling information stored in memory.

BENEFITS OF EXPERT SYSTEMS

1.

Increase the probability, frequency, and consistency of making gooddecisions. 2. Help distribute human expertise. 3. Facilitate real-time, low-cost expertlevel decisions by the nonexpert. 4. Enhance the utilization of most of the available data. 5. Permit objectivity by weighing evidence without bias and without regard for the users personal and emotional reactions.

 6.

Permit dynamism through modularity of structure. Free up the mind and time of the human expert to enable him or her to concentrate on more creative activities.

7.

8.

Encourage investigations into the subtle areas of a problem.

EXPERT SYSTEMS ARE FOR EVERYONE.

No matter which area of business one is engaged in, expert systems can fulfill the need for higher productivity and reliability of decisions. Everyone can find an application potential in the field of expert systems. Contrary to the belief that expert systems may pose a threat to job security, expert systems can actually help to create opportunities

APPLICATIONS OF EXPERT SYSTEMS

APPLICATIONS TEND TO CLUSTER INTO 6 MAJOR CLASSES :

Diagnosis and Troubleshooting of Devices and Systems of All Kinds This class comprises systems that deduce faults and suggest corrective actions for a malfunctioning device or process. There are probably more diagnostic applications of ES than any other type. Planning and Scheduling Systems that fall into this class analyze a set of one or more potentially complex and interacting goals in order to determine a set of actions to achieve those goals, and/or provide a detailed temporal ordering of those actions, taking into account personnel, materiel, and other constraints.

Configuration of Manufactured Objects from Subassemblies Configuration applications were pioneered by computer companies as a means of facilitating the manufacture of semicustom minicomputers The technique has found its way into use in many different industries, for example, modular home building, manufacturing, and other problems involving complex engineering design and manufacturing. Financial Decision Making The financial services industry has been a vigorous user of expert system techniques. Advisory programs have been created to assist bankers in determining whether to make loans to businesses and individuals. Insurance companies have used expert systems to assess the risk presented by the customer and to determine a price for the insurance. A typical application in the financial markets is in foreign exchange trading.

Knowledge Publishing The two most widely distributed expert systems in the world are in this category. The first is an advisor which counsels a user on appropriate grammatical usage in a text. The second is a tax advisor that accompanies a tax preparation program and advises the user on tax strategy, tactics, and individual tax policy. Process Monitoring and Control Systems falling in this class analyze real-time data from physical devices with the goal of noticing anomalies, predicting trends, and controlling for both optimality and failure correction. Examples of real-time systems that actively monitor processes can be found in the steel making and oil refining industries.

EXAMPLES OF EXPERT SYSTEMS

PUFF:Medical system for diagnosis of respiratory conditions PROSPECTOR:Used by geologists to identify sites for drilling or mining MYCIN:Medical system for diagnosing blood disorders. First used in 1979 DENDRAL: Used to identify the structure of chemical compounds. First used in 1965 LITHIAN: Gives advice to archaeologists examining stone tools

KNOWLEDGE MANAGEMENT SYSTEM

WHAT IS KNOWLEDGE?
WISDOM

KNOWLEDGE
INFORMATION DATA

2 TYPES OF KNOWLEDGE

EXPLICIT
KNOWLWDGE

TACTIC

KNOWLEDGE MANAGEMENT VALUE CHAIN

TYPES OF KNOWLEDGE MANAGEMENT SYSTEM

Enterprise Wide KMS Knowledge Management System Knowledge Work System Intelligent Techniques

ENTERPRISE WIDE KMS

Efforts to collect, store, distribute, and apply digital content and knowledge. 2 types of Enterprise Wide KMS Structured KMS Semi-structured KMS

1. 2.

KNOWLEDGE WORKS SYSTEM

1. 2.

Knowledge Workers and Knowledge Work Requirements of KWS Examples of KWS Computer Aided Design (CAD) Virtual Modelling Reality (VRML)

INTELLIGENT TECHNIQUES

Expert System Neural Networks

MANAGEMENT OPPORTUNITIES AND CHALLENGES

Opportunities Invisible competitive advantage Challenges Insufficient resources Insufficient validating mechanism Individual employees not rewarded

INFORMATION SYSTEM FOR COMPETITIVE ADVANTAGE

PORTERS COMPETITIVE FORCES MODEL

Way to understand competitive advantage

Five competitive forces shape fate to firm

1.Traditional competitors 2.New market entrants 3.Subsitute products and services 4.Customers 5.suppliers

PORTERS COMPETITIVE FORCES MODEL

INFORMATION SYSTEM STRATEGIES FOR DEALING WITH COMPETITIVE FORCES

Low cost leadership Focus on market niche Strengthen customer and supplier intimacy Product differentitation

THE BUSINESS VALUE CHAIN MODEL

Highlights specific activities in a business where competitive strategies can best be applied and where information systems are likely to have a strategic impact
Primary activities

Support activities
Benchmarking Best practices Synergies Enhancing core competencies

THE STRATEGIC ROLE OF INFORMATION SYSTEMS

By strategic we mean the long-term, farreaching role of IT systems in an organisation. Large organisations have a number of levels of organisation, each with different emphases and specialties. Consequently each has needs for different types of IT systems. Two main ways of dividing up an organisation are used in the diagram: Hierarchical levels Functional areas.

TYPES OF INFORMATION SYSTEM WITHIN AN ORGANISATION

Hierarchical Levels And Systems Strategic Management Knowledge Operational Each of these levels requires its own types of systems.

TYPES OF SYSTEM AT VARIOUS LEVELS:

Strategic-Level: Executive Support Systems (ESS): This category is used by senior managers, assisting them in strategic decision making by creating a general environment for communications and computing suitable for unstructured decision making. Management-Level: Decision-Support Systems (DSS): DSS assist managers in making semi-structured decisions, required for rapidly changing environments and where complete information about a situation is not available.

Management Information Systems (MIS) MIS is used for planning, decision-making and control at the management level. Knowledge Work Systems (KWS) KWS promote the development of new knowledge and also ensure that this new knowledge is properly integrated into the organisation. Knowledge workers are often highly qualified, with highly specialised skills.

Office Automation Systems (OAS): OAS perform specialised tasks, like scheduling, desktop publishing or document imaging. Operational-Level: Transaction Processing Systems (TPS): Basic business systems that are used in the operational environment of the organisation. These can include payroll systems, ordering systems and employee records systems. TPS enforces strict procedures for carrying out business processes.

Functional areas: Sales & Marketing Manufacturing Finance Accounting Human resources These functional areas exist at all four levels of the organisation, being represented from the operational-level up to the strategic-level.

INTEGRATING IT WITH BUSINESS STRATEGY One obvious effect of e-commerce has been a reassessment of both the process and content of respectively competitive strategy and IT strategy. In the e-commerce space, especially in pure play Internet businesses, both these strategy domains seem to be enacted as one, with an emphasis on strategy-making by teamwork and strategy implementation through rolling plans

Not only do we need to ensure we are developing IT applications and building IT infrastructures to support the current business strategy; we also should be re-examining how the business strategy should change because of the threats and opportunities presented by IT either in the way we do business or in the business positioning we choose. In other words, IT both shapes and supports business strategy.

COMPETING FOR TODAY

In the theory and practice of IT strategymaking, there are different, or perhaps complementary, views on how to align the applications development portfolio with business strategy. Most business strategies are framed in the current dynamics of competition, the result is essentially an applications development portfolio which meets todays needs, even if it implies a three year or more timeframe for implementation.

COMPETING FOR TOMORROW

The argument that IT can shape business strategy as well as support it has become more potent with the arrival of the Internet and e-commerce. Two claims are often made. First, potentially these new technologies can lead to firms repositioning themselves as industry boundaries change and value systems are reconfigured; and they can enable new ways of doing business by exploiting network structures and information richness. Second, because this is new territory, all the options are not yet known or understood; therefore elements of both imagination and learning by doing are required.