Types of mis

VARIOUS CLASS OF MIS

1. Level of MIS or Types of Management Information System Victoria Int’l College Dang 1

2. Because there are different interests, specialties, and levels in an organization, there are different kinds of information systems. No single system can provide all the information an organization needs. Following figure illustrates the decision structure and information requirements of different level of managers in organization. 2

3. In general, management information system can be divided into operations support system and management support system. 3

4. Operations Support Systems 4

5. Operations Support Systems Information systems that are used at lower level managers or operations level managers are known as operations support system. They support operational managers by keeping track of the elementary activities and transactions of the organization, such as sales, receipts, cash deposits, payroll, credit decisions, and the flow of materials in a factory. Operations support systems are basically concerned with efficiently process business transactions, control industrial processes, support enterprises collaboration, and update corporate database. The principal purpose of systems at this level is to answer routine questions and to track the flow of transactions through the organization . 5

6. Operations Support Systems However, they do not emphasize producing the specific information products that can be used by managers. Further processing by management information systems is usually required. Examples of operational-level systems include a system to record bank deposits from automatic teller machines or one that tracks the number of hours worked each day by employees on a factory floor . Systems that perform or support operational managers in carrying their daily or routine activities can be grouped in to transaction processing systems or office automation systems. 6

7. Operations Support Systems 7

8. Transaction Processing Systems (TPS) Transactions are events that occur as a part of doing business, such as sales, purchases, deposits, withdrawals, refunds, payments etc. Without information systems, recording and processing business transactions would consume much more time and resources in organization. TPS is used for this task in organization Computerized system that records, processes, validates and stores transactions that take place in various functional areas of business is known as TPS. TPS processes data resulting from the occurrence of business transactions. 8

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10. Transaction Processing Systems (TPS) The input of this system includes basic business transactions, such as customer orders, purchase orders, receipts, time records, invoices and customer payments. Transaction processing systems are often so central to a business that TPS failure for a few hours can lead to a firm’s demise and perhaps that of other firms linked to it. Managers need TPS to monitor the status of internal operations and the firm’s relations with the external environment. TPS are also major producers of information for the other types of systems. There are two fundamental types of TPS– batch processing , online processing . 10

11. Transaction Processing Systems (TPS) Batch processing TPS: Transaction processing system which accumulates the transactions for a certain period of time and then process them at same time is batch processing TPS. In batch processing system data are collected for a certain period- hours, days, weeks, months, and then those accumulated data are processed at a specified time. for example, a theater sells tickets for Friday 12pm movie show before 12 pm. All those sold tickets are checked and authenticated at gate between 11.30am to 12 pm i.e. just before the show. 11

12. Transaction Processing Systems (TPS) Online and Real time processing TPS: Online processing TPS is an interactive data processing system which involves a direct connection between TPS programs and operator. Online processing system which processes data immediately after it is feed in system is known as real time processing. Online processing is the milestone for any real-time processing TPS. As soon as a single transaction is entered into a computer systems, the program interacts with the user for that transaction. There is no time lag between data creation and it’s processing. When you withdraw money form your ATM card, as soon as you receive money form ATM machine, your account is debited. This is the example of real-time processing. 12

13. Office Automation system (OAS) Office automation system refers to the use of mechanical, electrical, and electronic devices to enhance communication in the workplace and increase the efficiency and productivity of knowledge workers and clerical workers. Office automation systems include: Word processing E-mail Voice mail Tele-conference Facsimile transmission or FAX Desktop publishing Multimedia system etc. 13

14. Management Support System 14

15. Management Support System When information system applications focus on providing information and support for effective decision making by mangers, they are called management support systems. Information system that generates reports containing information which are essential for middle and top level managers in making semi structured and unstructured decisions are known as management support system. Several major types of information systems support a variety of decision-making responsibilities: Management information systems, Decision support systems, executive support systems, expert systems etc.. 15

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17. Management Information Systems 17

18. Management Information System (MIS ) We define management information systems as the study of information systems in business and management. The term management information systems ( MIS) also designates a specific category of information systems serving management level functions. Management information systems (MIS) serve the management level of the organization, providing managers with reports and often online access to the organization’s current performance and historical records . Typically , MIS are oriented almost exclusively to internal, not environmental or external, events. MIS primarily serve the functions of planning, controlling, and decision making at the management level . 18 Management support system

19. Management support system Management information systems primarily seve the functions of planning, controlling and decision making at the middle level. MIS summarize and report on the company’s basic operations. The basic transaction data from TPS are compressed and are usually presented in long reports that are produced on a regular schedule. An MIS produces information that support many of the day to day decision making needs of managers and business professionals. Reports, displays, and responses produced by management information systems provide information that these decision makers have specified in advance as adequately meeting their information needs. 19 Management Information S ystem (MIS)

20. Management information system (MIS) Such predefined information products satisfy the information needs of decision makers at the operational and tactical levels of the organization who are faced with more structured types of decisions situations. Managers and other decision makers use an MIS to request information at their networked workstations that supports their decision making activities. 20 Management information system (MIS)

21. Management information system (MIS) 21

22. Management information system (MIS) Human resource information system, marketing information system, financial information system, sales information systems etc. are examples of MIS. Management information systems (MIS) require information on a periodic basis instead of on a daily recurring basis like those using a transaction processing system. The output of the MIS takes the form of periodic , exception, and demand reports and immediate response to inquiries . 22

23. Management information system outputs Management information systems provide a variety of information products to managers. Four major reporting alternatives are provided by such systems Periodic scheduled reports Exception reports Demand reports and responses Push reporting 23

24. Management information system outputs Periodic scheduled reports are traditional form of providing information to the managers on a regular basis. Generally the format of such schedule is pre-specified and information contents are also predefined. Monthly sales report, monthly income statement, financial statements are some of the examples of periodic scheduled reports. 24 Periodic scheduled reports

25. Management information system outputs Sometimes reports are produced only when exceptional conditions occurs. The report containing the information about exceptional conditions and the measures to correct them are exception reports. An exception report outlines any deviations form the expected output. Its main purpose is to draw the attention of middle management to any significant differences between actual performance and expected performance. 25 ii. Exception reports

26. Management information system outputs Through the use of online system managers can access the required information in real time. Managers use Web browsers, DBMS query languages, and report generators at pc stations to get immediate responses or find and obtain customized reports as a result of their request for the information they need. Thus managers do not have to wait for periodic reports to arrive as scheduled. 26 iii. Demand reports and responses

27. Management information system outputs Information is pushed to the managers. Various automated software push display customized reports that can be useful of managers at their work. 27 i v Push reporting

28. Decision support systems 28

29. Management support system Decision support systems are computer based information systems that provide interactive information support to managers and business professional during decision making process. DSS implies the use of computers to assist managers in their decision processes in semi-structured task; to support rather than replace managerial judgmental; to improve the effectiveness of decision making rather the efficiency. DSS uses analytical models, specialized databases, a decision maker’s own insights and judgements, and an interactive computer based modeling process to support semi structured business decisions. Decision-support systems are used for complex "what-if" questions that require internal and external data. Decisions at this management level are mostly semi structured so the information system must respond to the unique requirements of the executives . 29 Decision Support Systems (DSS)

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31. 31 TPS External Data DSS Database DSS Software DSS Models OLAP tools Data mining tools Qwertyuiop Asdfghjkl ;’ zxcvbnm

32. Management support system A DSS uses internal data but also combines it with external data to help analyze various decisions management must make. Analyzing complex, interactive decisions is the primary reason for a company to use a DSS. The sales and marketing management of company would use a DSS to answer a semi structured question such as: "What price should we charge for the product so that we can maximize our profits, minimize our costs, and still remain competitive?" Using a DSS, the manager in charge of the manufacturing division could determine the best answer to this semi structured question: "How does the change in the size and packaging of the product affect the other products we produce, not just in shipping, but also on the display shelf at the convenience store ?" 32 Decision Support Systems (DSS)

33. Components of DSS 33

34. Decision support system DSS rely on model bases as well as databases as vital system resources. 34 Components of (DSS)

35. Components of Decision support system 1. DSS Database: The DSS database is a collection of current or historical data from a number of applications or groups. It may be a small database residing on a PC that contains a subset of corporate data that has been downloaded and possibly combined with external data. Alternatively , the DSS database may be a massive data warehouse that is continuously updated by major corporate TPS (including enterprise systems and data generated by Web site transactions). The data in DSS databases are generally extracts or copies of production databases so that using the DSS does not interfere with critical operational systems . 35

36. Components of Decision support system 2. DSS Software: The DSS software system contains the software tools that are used for data analysis . It may contain various OLAP tools, data-mining tools, or a collection of mathematical and analytical models that easily can be made accessible to the DSS user. A model is an abstract representation that illustrates the components or relationships of a phenomenon . A model can be a physical model (such as a model airplane), a mathematical model (such as an equation), or a verbal model (such as a description of a procedure for writing an order). Each decision-support system is built for a specific set of purposes and makes different collections of models available depending on those purposes. . 36

37. Components of Decision support system DSS Software: cont ….. The most common models are linear programming model, multiple regression forecasting model, capital budgeting present value model, analytical models like what if analysis, sensitivity analysis, goal seeking analysis etc. 37

38. Components of Decision support system 3. User interface: The DSS user interface permits easy interaction between users of the system and the DSS software tools. A graphic, easy-to-use, flexible user interface supports the dialogue between the user and the DSS. 4. DSS users can be managers or employees with no patience for learning a complex tool, so the interface must be relatively intuitive. Many DSS today are being built with Web-based interfaces to take advantage of the Web’s ease of use, interactivity, and capabilities for personalization and customization. Building successful DSS requires a high level of user participation to make sure the system provides the information managers need. 38

39. Management support system Information system at the strategic level of an organization designated to address unstructured decision making through advanced graphics and communication is known as executive information system. EIS or ESS support the information need of top level executives. The primary goal of ESS is the display and delivery of information rather than the analysis or diagnosis of problems and solutions. It is computer based tools with features such of graphic, voice activated commands, and natural language interface that executives to quickly retrieve, navigate, summarize, analyze and disseminate information. 39 Executive support system or Executive information Systems

40. Management support system The executive support systems is the information systems for top level managers who take the responsibilities for making decision in unstructured market environment and derive the organization towards progress. EIS is generally online information systems, which connect executives with internal as well as external data. 40 Executive support system

41. Executive information systems 41 Characteristics

42. Executive information systems 42 Characteristics Easy to use: The systems are such that the executives are able to use easily without having special knowledge of technology, software, network etc. Drill Down: EIS provides broad aggregated information because executives are more concern with strategic level decisions. The systems enable executives to expand to a detail level when they need to understand additional data. The systems are very handy in providing or digging in depth detail information about any problem or topic. For example, sales of company might get a breakdown by product, by sales office, by period, by employee or any other category.

43. Executive information systems 43 Characteristics Context information: The executives are very curious to know data in comparison context. The financial data is looked against budget or against previous year etc. This comparison is meaningful and a long term strategy may be derived. Integration of Data: As executives are very sensitive to wards external environmental phenomenon. They are looking for such integrated data in the systems. EIS integrates internal and external data and presents the result to the executives’ terminal.

44. Executive information systems 44 Characteristics T imeliness: Circumstances are changing rapidly so executives need to respond them quickly. Information that is even a week old may often not useful to an executive. EIS therefore are capable to provide current data to executives. Key Performance Indicator: EIS can be set up to highlight a user’s key performance indicator as soon as they turned terminal on.