MIS UNITUNIT-1

Data

Definitions

Raw facts such as an employees name and number of hours worked in a week, inventory part numbers or sales orders. Information A collection of facts organized in such a way that they have additional value beyond the value of the facts themselves. Information Data $35,000 12 Units $12,000 J. Jones Western Region $100,000 100 Units 35 Units Data Processing Salesperson: J. Jones Sales Territory: Western Region Current Sales: 147 Units = $147,000

Definitions
Information Systems An information system(IS) is typically considered to be a set of interrelated elements or components that collect(input), manipulate(processes), and disseminate (output) data and information and provide a feedback mechanism to meet an objective.

Information Systems
Earlier applications

Airline Reservations Keeping records of transactions

Keeping records of Stock

IS Vs IT
INFORMATION TECHNOLOGY Hardware Software Databases Networks Other related components are used to build INFORMATION SYSTEMS

Payroll System

Inventory System

Marketing System

Customer Service System

Expanding Roles of IS
1. Data Processing: 1950s-1960s 2. Management Reporting: 1960s-1970s 3. Decision support: 1970s-1980s 4. Strategic and End User Support: 1980s-1990s 5. Global Internetworking: 1990s-2000s

Classification of IS
Information Systems

Operations Support System

Management Support System

Transaction processing systems

Process control systems

Office automation systems

Management information systems

Decision support systems

Executive information systems

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 2. Management Support Systems provide information and support needed for effective decision making by managers Major categories are i) Management Information System

ii) Decision Support Systems iii) Executive Information System

1. Operations Support System i) Transaction processing systems Process business exchanges Maintain records about the exchanges Handle routine, 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.

2. Management support systems provide information and support needed for effective decision making by managers Major categories are:

i)

Management information systems

 Routine information for routine decisions  Operational efficiency  Use transaction data as main input  Databases integrate MIS in different functional areas

ii) Decision Support System

Interactive support for non-routine decisions or problems

End-users are more involved in creating a DSS than an MIS

iii) Executive information systems provide critical information tailored to the information needs of executives

Other categories a) Expert systems b) End user computing systems c) Business information systems d) Strategic information systems a) Expert Systems are knowledge-based systems that provides expert advice and act as expert consultants to the users b) End user computing systems support the direct, hands on use of computers by end users for operational and managerial applications c) Business information systems support the operational and managerial applications of the basic business functions of a firm

d) Strategic information systems provide a firm which strategic products, services, and capabilities for competitive advantage

Exercise. Exercise. Match the type of information system with the organizational level where they are most commonly used: used:
 Transaction Processing Systems (TPS)  Management Information Systems (MIS)  Decision Support Systems (DSS)  Expert Systems (ES)

Top Managers Middle Managers First-Line Managers

Operatives

Types of Information Systems



Transaction Processing Systems (TPS)

Automate handling of data about business activities

(transactions)


Management Information Systems (MIS)

Converts raw data from transaction processing system

into meaningful form



Decision Support Systems (DSS)

Designed to help decision makers Provides interactive environment for decision making

Types of Information Systems and Systems Development



Expert Systems (ES)

Replicates decision making process Knowledge representation describes the way an

expert would approach the problem

Operations Support System

Operating Information System



In Business, the communication systems that are developed to make the basic operations of the company possible.

For Eg In a Manufacturing System, IS needed for planning & control of day-to-day activities. In Order processing System, forms must be setup to accept orders.

OIS for Order Processing System

Salesman prepares an order Information
Customer Master File

Salesman prepares an order Information

Inventory Master File

Operation Collects Orders Information Operation

Operation Calculate Orders

Operation Prepare & Mail Invoices Information Operation Issue work orders to prod. workers

Setup Accounts Receivable

Transaction Processing Systems

A transaction is an event that generates or modifies data that is eventually stored in an information system. A transaction processing system is a type of information system. TPSs collect, store, modify, and retrieve the transactions of an organization

Transaction Processing Systems

Eg Payroll TPS

Process Control Systems

Process control systems are systems, which make use of computers to control ongoing physical processes. These computers are designed to automatically make decisions, which adjust the physical production process.  Examples include petroleum refineries and the assembly lines of automated factories.


Enterprise Collaboration Systems

Enterprise collaboration systems are information systems that use a variety of Information technologies to help people work together. Enterprise collaboration systems help us
Collaborate- to communicate ideas  Share resources  Co-ordinate our cooperative work efforts as members of the many formal and informal process and project teams.  The goal of enterprise collaboration systems is to use information technology to enhance the productivity and creativity of teams and workgroups in the modern business enterprise.


ECS helps in improving team communication

Virtual meetings dont require everyone to be in the same place at the same time.
Conference calls Videoconferencing Email Discussion forums Team surveys

Use of ECS to manage content

There are three categories for sharing content. Your choice depends on the degree of control your team needs to complete their tasks.

How do businesses use collaboration systems for decision making?

Collaboration Needs for Decision Types

Management Support System



Management support systems focus on providing information and support for effective decision making by managers. They support the decision-making needs of strategic (top) management, tactical (middle) management, and operating (supervisory) management.

Management Information System

Management level  Inputs: High volume data  Processing: Simple models  Outputs: Summary reports  Users: Middle managers Example: Annual budgeting

Management Information System (MIS)

System Architecture: Management Information System

Management Information System

Creates reports managers can use to make routine business decisions

Scheduled reports  Key-indicator reports  Exception reports  Ad hoc (demand) reports


Outputs of a Management Information System

Scheduled Reports Produced periodically, or on a schedule (daily, weekly, monthly).

32

Key-Indicator Report Summarizes the previous days critical activities and typically available at the beginning of each day.

Demand Report Gives certain information at a managers request.

Exception Report
Automatically produced when a situation is unusual or requires management action.
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Decision Support System

It is a system that provides integrated tools, data, models & language to users that help them in the decision making process.  It supports and not replaces the managers decisions.  Used for semi-structured problems. Parts of analysis can be systemized but, decision makers insight is also needed.  Effective problem solving is interactive & enhanced by a dialog b/w user & system.


Decision Support System

DSS Database
Finance Data Accounting Data Sales/Mkg Data Employee Data

Model Base
Statistical Model Forecasting Model Operational Planning

DSS S/w System

Manage DSS D/b & Model Base

User Interface User

Executive Information System

An Executive Information System (EIS) is a system that provides information to the executives on the overall performance of the firm. The information can be accessed easily and can also provide varying levels of details. It usually consists of a PC networked to a central computer. The PC works as the executive workstation providing access to the executive database. Its also known as Executive Support System (ESS).

Executive Information System

Executive database EXECUTIVE WORKSTATION Personal Computer Information request Information display

Corporate Database Electronic Mailboxes Software library

Making Corporate Information available

Current news, explanations CENTRAL COMPUTER

External data & information

Cross-Functional Information System

`

Transcend boundary between sales, marketing, manufacturing, and research and development Group employees from different functional specialties to a complete piece of work

Example: Order Fulfillment Process

The Order Fulfillment Process

Artificial intelligence (AI) is the intelligence of machines and the branch of computer science that aims to create it. AI textbooks define the field as "the study and design of intelligent agents" where an intelligent agent is a system that perceives its environment and takes actions that maximize its chances of success.

Artificial Intelligence System

Natural Language Uses

Native Language Knowledge

Expert Uses Knowledge Applies Human Like Reasoning

Perception Uses Size, Shape, Image, Voice Applies Sensing Abilities for Reasoning

Applies Language Reasoning

AI Applications
Uses Human Information Processing Capability Uses Computer Intelligence for producing Human Like Capacity Robotics Applications Uses Human capabilities in speech recognition, Multi Sensory Interfacing Natural Interface Applications

AI Applications

Intelligent Agents Fuzzy Logic Learning System Expert System

Robot Systems for doing Human Jobs

VR Systems

Hardware or software emulating processing patterns of biological brain.

An artificial neural network (ANN), usually called neural network (NN), is a mathematical model or computational model that is inspired by the structure and/or functional aspects of biological neural networks. A neural network consists of an interconnected group of artificial neurons, and it processes information using a connectionist approach to computation. In most cases an ANN is an adaptive system that changes its structure based on external or internal information that flows through the network during the learning phase.

Fuzzy logic is a form of many-valued logic; it deals with reasoning that is approximate rather than fixed and exact. In contrast with traditional logic theory, where binary sets have two-valued logic: true or false, fuzzy logic variables may have a truth value that ranges in degree between 0 and 1. Fuzzy logic has been extended to handle the concept of partial truth, where the truth value may range between completely true and completely false.

Rule-based AI

For example, a simple temperature regulator that uses a fan might look like this: IF temperature IS very cold THEN stop fan IF temperature IS cold THEN turn down fan IF temperature IS normal THEN maintain level IF temperature IS hot THEN speed up fan

The typical architecture is often described as follows:

user
interface

inference engine

knowledge base

The inference engine and knowledge base are separated because:

the reasoning mechanism needs to be as stable as possible; the knowledge base must be able to grow and change, as knowledge is added;

The system holds a collection of general principles which can potentially be applied to any problem - these are stored in the knowledge base.

The system also holds a collection of specific details that apply to the current problem (including details of how the current reasoning process is progressing) - these are held in working memory.

Both these sorts of information are processed by the inference engine.

Virtual reality (VR) is a term that applies to computer-simulated environments that can simulate physical presence in places in the real world, as well as in imaginary worlds. Virtual reality can serve to new product design, helping as an ancillary tool for engineering in manufacturing processes, new product prototypes, and simulation.