Systems approach Module 1 Part II

Faculty: Anita venaik

Level of Systems in an organization

Operational Level Management Level Strategic Level

Kind of Information System

Strategic Level

Groups Served

Senior Managers
Middle Managers

Management level

Operational Level

Operational Managers
Accounting HR

Sales & Marketing Manufacturing Finance

Major Types of Information Systems used in organizations

Transaction Processing System Management Information Systems Decision Support Systems Executive Support Systems Intelligent system Data mining and visualization system Office automation system Knowledge management system GIS ERP Systems CRM system and SCM Systems

Transaction Processing System (TPS)

Serves operational level of the organization

Transactions, Events

Sorting, Listing, Merging, Updating

Detailed reports, Lists, summaries

Users: Operational Personnel, supervisors

EXAMPLE: GROCERY STORE CHECKOUT CASH REGISTER WITH CONNECTION TONETWORK, POS,ATM

Management Information Systems ( MIS)

Serves the management level of the organization

Summary Transaction data, High volume data

Routine reports, Low level analysis

Summary and Exception reports

Users: Middle managers

EXAMPLE: Inventory management & planning system

Decision support system (DSS)

Serves the management level of the organization

Low volume data, Analytic model

Interactive, Simulations, Analysis

Special reports, Decision analysis, Responses to queries

Users: Professionals, Staff managers

Example: TREND ANALYSIS, DEMAND FORCASTING

Executive Support System (ESS)

Serves the Strategic level of the organization

Aggregate data, external, Internal

Graphics, Simulations, Interactive

Projection s, Response s to Queries

Users: Senior Managers News retrieval and stock update information system

Relationship of Systems

Enterprise systems: TPS &ERP: Transaction: Any business related exchange , such as payment to employees, Sales to customers, and payment to suppliers. TPS: A TPS is an organized collection of people, procedures , software

Databases and devices used to record completed business transactions. Enterprise system: Help the organizations to perform and integrate important tasks such as paying employees and suppliers , controlling inventory, sending out invoices and order supplies`

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Management Information Systems in Perspective

A management information system (MIS) provides managers with information that supports effective decision making and provides feedback on daily operations The use of MISs spans all levels of management

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Management Information Systems in Perspective (continued)

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 A management information system (MIS) provides managers with information that supports effective decision making and provides feedback on daily operations The use of MISs spans all levels of management

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Inputs to a Management Information System

Internal data sources
TPSs and ERP systems and related databases; data warehouses and data marts; specific functional areas throughout the firm

External data sources

Customers, suppliers, competitors, and stockholders, whose data is not already captured by the TPS; the Internet; extranets

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Outputs of a Management Information System

Scheduled report: produced periodically, or on a schedule Key-indicator report: summary of the previous days critical activities Demand report: developed to give certain information at someones request Exception report: automatically produced when a situation is unusual or requires management action Drill-down report: provides increasingly detailed data about a situation
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Human Resource Management Information Systems

Human resource MIS: concerned with activities related to employees and potential employees of an organization Needs and planning assessments Recruiting Training and skills development

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Human Resource Management Information Systems (continued)

Scheduling and assignment Employee benefits Outplacement

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Human Resource Management Information Systems (continued)

Overview of a Human Resource MIS

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Other Management Information Systems

Accounting MIS: provides aggregate information on accounts payable, accounts receivable, payroll, and many other applications Geographic information system (GIS): capable of assembling, storing, manipulating, and displaying geographic information

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A Comparison of DSS and MIS

Comparison of DSSs and MISs

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A Comparison of DSS and MIS (continued)

Comparison of DSSs and MISs (continued)

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Group Support Systems

Group support system (GSS)
Consists of most elements in a DSS, plus software to provide effective support in group decision making Also called group decision support system or computerized collaborative work system

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Executive Support Systems

Executive support system (ESS): specialized DSS that includes all hardware, software, data, procedures, and people used to assist senior-level executives within the organization

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Executive Support Systems in Perspective

Tailored to individual executives Easy to use Drill-down capable Support the need for external data

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Executive Support Systems in Perspective (continued)

Can help when uncertainty is high Future-oriented Linked to value-added processes

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Summary
The decision-making phase of the problem-solving process includes three stages: intelligence, design, and choice A management information system (MIS) provides managers with information that supports effective decision making and provides feedback on daily operations A financial MIS provides financial information to all financial managers within an organization

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Summary (continued)
The manufacturing MIS subsystems and outputs monitor and control the flow of materials, products, and services through the organization A marketing MIS supports managerial activities in product development, distribution, pricing decisions, and promotional effectiveness A human resource MIS is concerned with activities related to employees and potential employees of an organization

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Summary (continued)
A DSS is an organized collection of people, procedures, software, databases, and devices used to support decision making and problem solving A group support system (GSS) consists of most elements in a DSS, plus software to provide effective support in group decision making An executive support system (ESS) is a specialized DSS that includes all hardware, software, data, procedures, and people used to assist senior-level executives within the organization
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