Você está na página 1de 8

BBA III SEMESTER

MANAGEMENT INFORMATION SYSTEM


Unit I
Systems Concepts

1.1 System A system is an orderly grouping of interdependent components linked together according to a plan to achieve a specific objective. The system can be studied with respect three basic implications. They are A system must be designed to achieve a predetermined objective. Interrelationships and interdependencies must exist among components. The objectives of the organization as a whole have a higher priority than the objectives of its subsystems. 1.2 Elements (or components) of a system Input Processor Outputs Control Feedback Environment Boundaries & Interfaces Input: Input involves capturing and assembling elements that enter into the system to be processed. A system feeds on input to produce output in the same way as raw material, human power to produce finished goods.

Processors: The processor is an element of a system that involves the actual transformation of input into output. It is the operational component of the system. Processor transforms the input into output according to the output specifications. Output : The important objective of the system is to produce output that has value to the user. The output must be generated with respect to the needs of the intended user. Output determines the type of input to be selected and type of process to be applied to transform input into desired output. Control: The control element guides the system It is the decision making subsystem that controls the pattern of activities governing input, processing and output

BBA III SEMESTER

MANAGEMENT INFORMATION SYSTEM The organizations Environment

Financial Institutions

Labour Unions Compare Output against Performance Standards

Customers

T h e C o m m u n i t y Action Management (Control)

Informational Feedback C o m p e t i t o r s

Informatio n Human Resources Facilities Energy Machines

Policy Decisions Transformation

Goods or Services

Standard of Performance Input it Processing Output Vendors Stock holders

Government

Fig 1. Elements of a System Feedback: Feedback measures output against a standard in some form of cybernetic procedure that includes communication and control. Feedback may be positive or negative, routine or informational. Environment: It is a super-system in which the system operates. It is the source of external elements that impinge (invade) on the system. Environment determines how the system should function. It consists of the competitors, customers, the community, vendors, financial institutions, etc. Boundaries & Interfaces: Boundaries define the scope of the system. Interfaces focus on how one component communicates with other component. If the interfaces are not well defined then the system components cannot obtain the objective of the system. 2

BBA III SEMESTER

MANAGEMENT INFORMATION SYSTEM

1.3 Characteristics of system Following are the characteristics that should be present in any system 1. Organization 2. Interaction 3. Interdependence 4. Integration 5. Central objective 1.Organization Organization implies structure and order. It is the arrangement of components that helps to achieve objectives of the system. In a business system, the hierarchical relationships starting with the president on top and leading downward to blue-collar workers represents the organization structure. Organization structure helps in portraying system-subsystem relationships, defines the authority structure, specifies the formal flow of communication and formalizes the chain of command. Interaction: Interaction refers to the manner in which each component functions with other components of the system. For example purchasing must interact with production, advertising with sales, and payroll with personnel. Interdependence: The components of the system need to depend on each other. The components are linked according to a plan and they need to coordinate with each other to achieve systems objective. In a system the output of one component may become an input to another component. Integration: Integration refers to the holism of system. Integration is concerned with how a system is linked together. Central Objective:: Each component of a system has its own functionality. All the components need to be integrated to realize systems objective.

BBA III SEMESTER

MANAGEMENT INFORMATION SYSTEM

1.4 Types of systems Systems are classified into different categories based on various perceptions. Conceptual & Empirical System Natural & Manufactured System Social, People-Machine and Machine Closed and Open System Adaptive and Non-adaptive System Deterministic and Probabilistic System Permanent and Temporary System Stationary or Non-stationary System Subsystem and Supersystem. Conceptual & Empirical systems : Conceptual system Conceptual systems are concerned with theoretical structure which may or may not have any counterpart in the real world. Conceptual systems appear in practical management affairs in the form of plans, accounting system structures and classifications of policies and procedures. Empirical systems Empirical systems are concrete operational systems made up of people, machines, energy, materials, etc. Empirical systems may sometimes be derived from conceptual systems.

Natural and Manaufactured systems Natural systems : Natural systems follow definite procedures. Natural system cannot be controlled or influenced easily. The entire ecology of life is a natural system. Water system, solar system Manaufactured systems : Manufactured systems are created by man for a particular purpose. Manufactured systems can be controlled or influenced. Social, People-Machine and Machine systems Social Systems which are purely made up of people are viewed as social systems. Business organizations, political party, government are some of the examples of Social systems. People-Machine Systems that are made up of people and machinery are referred as PeopleMachine systems. Management Information System using sophisticated technology is an example for People-Machine systems. Machine systems 4

BBA III SEMESTER

MANAGEMENT INFORMATION SYSTEM

Systems that are made up of purely machines are referred as Machine systems. Pure machine systems would have to obtain their own inputs and maintain themselves.

Closed and Open System : Closed System : Closed system is a system that does not interact with the external world. External environment changes do not affect the close system. Open system Open system is a system that interacts with the external world. They exchange information, material or energy with the environment so as improve its functionality. Adaptive and Non-adaptive System Adaptive System A system that reacts to its environment in such a way as to improve its functioning, achievement or probability of survival is called adaptive systems. Human system is an example of Adaptive systems. Non-adaptive System The system that cannot react or respond to its environment by themselves is called Non-adaptive systems. Deterministic and Probabilistic System Deterministic System : A deterministic system operates in a predictable manner. The interaction among the parts is known with certainty. Computer program is a deterministic system as it performs exactly according to a set of instructions. Probabilistic System The probabilistic system can be described in terms of people behavior, but a certain degree of error is always attached to the prediction of what the system will do. An inventory system is an example for probabilistic system. Permanent and Temporary System Permanent Systems that are built in such a way that their relative life span is long are referred as permanent systems. Temporary System Temporary systems are those which are designed to last for a specified time period and after that they are dissolved. A small group-research project in the laboratory is a temporary system.

Stationary or Non-stationary System Stationary System A stationary system is one whose properties and operations either do not vary significantly or else vary only in repetitive 5

BBA III SEMESTER

MANAGEMENT INFORMATION SYSTEM

cycles. High school system, Hospital system are examples of Stationary system. Non-stationary systems Human being, Research and Development Laboratory and an Advertising organization are examples of Non-stationary systems.

Subsystem and Supersystem.: Subsystem is a component of a system that exhibits the characteristics of a System.Production system is a subsystem of a Business system Supersystems denote any extremely large and complex system Human system is a supersystem of Digestive system,

1.5. System Approach The systems approach integrates the analytic and the synthetic method, encompassing

both holism and reductionism. Information system ought to be designed based on synergy of subsystems i.e human resource ,production, sales ,marketing , logistics, inventory control, accounting, customer care and service with interrelation amongst one another in order to achieve unified cohesive system which can o Optimize the net results of the operation of an organization o Monitor the operational business plans and strategies in the right earnest. o Restructure, reorient, redesign and reengineer the business processes if need arises. This approach facilitates in deciphering the bottle necks within the subsystems and provides management with a decision tool to eliminate the bottlenecks to revamp net unified system. Relevance of System Approach has emerged because of two reasons The increased complexity of business This complexity can be attributed to four causes The Technological Revolution Technology keep on changing at an accelerated pace. The managers of the business need to expose themselves new technologies in order to have a competitive edge. Research and development Product changes The Information Explosion The increased complexity of Management

The System approach to Problem Solving involves the following steps Define the problem Gather data describing data the problem Identify alternative solutions Evaluate these alternatives Select and implement the best alternative Follow up to determine the solution is working

BBA III SEMESTER

MANAGEMENT INFORMATION SYSTEM

The various elements of an organization function as a system because as in any other system the organization operates through the medium of information The important elements of an organization are Inputs(Manpower, Money, Machinery , Materials and Information). Outputs(Sales Orders, Employee performance, Quality product, etc.) Processing(Management Information System) Control (Plans, Programs, Policies, Strategies and Standards of performance) Data Versus Information Data It can be defined as a collection of raw facts about an entity Data is generally disorganized and disintegrated in the form Data cannot be understood easily. Information It can be defined as data that is processed in order to increases the knowledge of the user. Information is properly arranged, classified and organized. Information is understood easily and it increases the knowledge of the users. Classification of the Information The information can be classified in a number of ways to provide a better understanding. John Dearden of Harvard University classifies information in the following manner Action versus no-action information Recurring versus non-recurring information Internal versus external information Planning information Control information Knowledge information Organization information Database information Operational information Quality of information Quality of information refers to its fitness for use or its reliability The attributes of information that influence the quality of information are as follows Timelines Accuracy Relevance Adequacy Characteristics of Information system are 1. Management Oriented/Directed 2. Business Driven/Justified 3. Integrated 4. Common data flows 5. Heavy planning element 6. Subsystem concept 7. Flexibility and Ease of use 8. Database 9. Distributed systems 10. Information as a resource Levels of Management

BBA III SEMESTER


Value

MANAGEMENT INFORMATION SYSTEM

Operational control Management control Strategic planning of Information System The decision theory stipulates that the value of the information is the value of the change in the decision behavior resulted by the information, less the cost of obtaining the information.If the information does not cause any change in the decision behavior then the value of the additional information is zero.

Importance of information System An information system is an organized combination of people ,software, communications network and data resources that collects transforms and disseminate information in an organization An end user perspective: Information systems help the users in conducting day to day activities, decision making, controlling and monitoring etc. in an effective and efficient way. An enterprise perspective: Information technology provides the information a business needs for efficient operations, effective management and competitive advantage. A Global Society Perspective: In global information society, with a global economy that is increasingly dependent on the creation, management and distribution of information resources information system plays a vital role. Completeness Explicitness Exception-based Roles of Information system Support of business operations Support of managerial decision making Support of strategic competitive advantage

Components of Information system are People resources Hardware resources Software resources Data resources Network resources Major types of systems in organization are Strategic-level systems Management-level systems Knowledge-level systems Operational-level systems

Você também pode gostar