The main roles of information systems are Support of its business processes and operations

Support of decision making by its managers

Support of its strategies for competitive advantage

These roles are implemented by many different types of information systems.

Classification of information systems

HistoryIn 1960 – transaction processing systems

(record keeping, accounting and Electronic data processing (EDP) applications)

Then MIS was born to provide reports to managers which is used for decision making.

In 1970 – decision support systems came as the existing IS were not able to meet the decision making needs of management.

Then executive information systems came which provide an easy way to give critical information to top executives.

Then expert systems and knowledge based systems came

Then came strategic information systems (IT an integral part)

Classification of information systems (based on type of operations)

Support of business operations

Support of managerial decision making

Classification of information systems based on people who use the system

Workers

Middle Managers

Senior Managers

Executives

Op.Level

Knowledge Level

Management Level

Strategic Level

Operations Support systemsThey process data generated by, and used in

business operations.The different operation support systems are

Transaction Processing systems (TPS)Process control systems (PCS)Enterprise Collaboration Systems (ECS)

Transaction processing systemsThey record and process data resulting

from business transactions, update operational databases and produce business documents.

Transaction Processing Systems ("TPS") are designed to process routine transactions efficiently and accurately .

The different types of TPS used in business are :Billing systems to send invoices to customers .Systems to calculate the weekly and monthly

payroll and tax payments .Production and purchasing systems to

calculate raw material requirements.Stock control systems to process all

movements into, within and out of the business.

Data Input Data Processing Output Generation

Data Storage

A Transaction Processing ModelA Transaction Processing Model

Process Control Systems

They monitor and control physical processes.

In process control systems, decisions regarding the adjustment of physical process are automatically made by computers.

For example petroleum refiner uses electronic sensors linked to computers to continually monitor chemical processes and make instant adjustments that control the refinery process.

Enterprise collaboration systems (Office Automation systems)They use a variety of information

technologies to help people work together.They help to communicate ideas, share

resources and co-ordinate work as a team.These information systems are used to

enhance productivity and creativity of teams in modern business.

In a business, if people work as a team and the team include outside consultants also as members, then they require heavy use of internet, intranet and extranets and collaboration software known as groupware.

The team can efficiently communicate and co-ordinate their activities via electronic mail, discussion forums, videoconferencing and multimedia project websites.

Internet, Intranet & Extranet

Internet The Internet is the worldwide, publicly

accessible system of interconnected computer networks that transmit data

It is a network for publicIntranet

An intranet is a network that is used by a single organization, such as a corporation or school, and is only accessible by authorized users.

The purpose of an intranet is to share information within the organizations private network

ExtranetThe Extranet is an extended intranet i.e.. a

portion of an organization's Intranet that is made accessible to authorized outside users without full access to an entire organization's intranet.

GroupwareGroupware refers to programs

that help people work together collectively while located remotely from each other.

Programs that enable real time collaboration are called synchronous groupware.

Groupware services can include the sharing of calendars, collective writing, e-mail handling, shared database access, electronic meetings with each person able to see and display information to others, and other activities.

Groupware becomes an integrated information system when it solves real business problems effectively and efficiently around a business process. 

Groupware can allow both geographically dispersed team members and a company's on-site workers to collaborate with each other through the use of computer networking technologies (i.e., via the Internet or over an internal network/intranet). 

Groupware ExamplesThere are many examples of commonly used

GroupWare. Both AOL and Microsoft have instant messaging programs for computer-to-computer communication. These programs allow two persons or a group to talk to each other.

Wikis are another GroupWare device that allow collaborative work. Wikis allow users to make changes and edits to another person’s work

OFFICE AUTOMATION SYSTEMS(OAS)

OFFICE AUTOMATION SYSTEMS(OAS)Office Automation refers to the varied

computer machinery and software used to digitally create, collect, store, manipulate, and relay office information needed for accomplishing basic office tasks

Office automation helps in automating existing office procedures.

The backbone of office automation is a LAN, which allows users to transmit data, mail and even voice across the network.

The basic activities of an office automation system are data storage, electronic transfer, and the management of electronic business information comprise. 

• Office automation systems (OAS) is a type of IS that helps in automating office tasks.

• OAS could also be considered as computer-based information system that collects, process, store and transmit electronic message, document and other form of communication among individual, work group and organizations. 

• Examples - word processing, electronic mail, desktop publishing, telecommunication and document image processing.

FUNCTIONS OF OFFICE AUTOMATION SYSTEMS

1). Electronic publishing 2). Electronic communication

3). Electronic collaboration

4). Image processing and 5).Office management

1). Electronic Publishing Electronic publishing systems include word processing and desktop publishing. Word processing software, (e.g., Microsoft Word, Excel) allows users to create, edit, view, store, and print documents such as letters, memos, reports etc. Desktop publishing software (e.g., Adobe Pagemaker, Corel VENTURA, Microsoft Publisher) enables users to integrate text, images, photographs, and graphics to produce high-quality printable output. Desktop publishing software is used on a microcomputer with a mouse, scanner, and printer to create professional-looking publications. These may be newsletters, brochures, magazines, or books.

2). Electronic Communication

Electronic communication systems includeElectronic mail (e-mail), Facsimile (fax), Voice mail Desktop videoconferencing

Electronic Mail E-mail is software that allows users, via

their computer keyboards, to create, send, and receive messages and files from anywhere in the world.

The message header consists of the following fields:

From: The e-mail address, and optionally, the name of the sender

To: The e-mail address[es], and optionally, name[s] of the message's recipient[s]

Subject: A brief summary of the contents of the message

Date: The local time and date when the message was written

Cc: Carbon Copy

Bcc: Blind Carbon Copy

Facsimile (fax)

A facsimile or facsimile transmission machine (FAX) scans a document containing both text and graphics and sends it as electronic signals over ordinary telephone lines to a receiving fax machine.

Voice Mail

Voice mail is a sophisticated telephone answering machine. It digitizes incoming voice messages and stores them on disk. When the recipient is ready to listen, the message is converted from its digitized version back to audio, or sound.

Desktop VideoconferencingIn this Images of a computer user from the desktop

computer are captured and sent across the network to the other computers and to users that are participating in the conference. This type of videoconferencing simulates face-to-face meetings of individuals.

3) Electronic Collaboration Electronic collaboration is made possible through electronic meeting and collaborative work systems and teleconferencing. Electronic meeting and collaborative work systems allow teams of co-workers to use networks of microcomputers to share information, update schedules and plans, and cooperate on projects regardless of geographical distance.

4) Image ProcessingImaging systems convert text, drawings, and

photographs into digital form that can be stored in a computer system. This digital form can be manipulated, stored, printed, or sent to another computer. Companies use imaging systems for a variety of documents such as insurance forms, medical records, dental records, and mortgage applications.

5). Office Management Office management systems include electronic office accessories, electronic scheduling, and task management. These systems provide an electronic means of organizing people, projects, and data. Business dates, appointments, notes, and client contact information can be created, edited, stored, and retrieved. Additionally, automatic reminders about crucial dates and appointments can be programmed. Computerized systems that automate these office functions can dramatically increase productivity and improve communication within an organization.

Management support systemsThe information systems which focuses on

providing information and support for effective decision making by managers are called management support systems.

This began when the concept of MIS came.

Major types of information systems which supports a variety of decision making responsibilities are :Management information systemsDecision support systemsExecutive Information Systems

Management Information systemsThey provide managerial end users with

information that supports day-to-day decision making needs of managers and business professionals.

MIS provide a variety of reports and displays to management.

Such predefined information products satisfy the information needs of decision makers.

These systems retrieve information about the internal operations of an organization from databases that have been updated by transaction processing systems.

Example

For example sales managers may use their networked computers and web browsers to get instant details about the sales of their products and access their corporate intranet for daily sales reports that evaluate sales made by each person.

MIS Reporting Alternatives

Periodic scheduled reports – it uses predefined format to provide information to managers at regular basis. Eg. Monthly financial statements

Exception Reports – these reports are produced only when some exceptional conditions occur. Eg. Credit managers will be given the reports of only those customers who exceed their credit limits.

Demand Reports & Responses – these kinds of information is available only when the manager demands it.Eg. Reports which are generated when the manager request.

Push reporting – here information is pushed to managers networked workstations.Eg. Broadcasting reports to managers PC using corporate intranet.

Components and activities of MIS

Internet, intranet

Managers -> PC ---------> MIS (types) <----> Databases

extranet, other networks

Decision Support SystemsComputer systems that provide users with

support to analyze complex information and help to make decisions are called decision support systems (DSSs).

Decision Support systems are computer based information systems that provide interactive information support to managers and business professionals during decision making process.

A DSS does not make decisions; rather it is a powerful tool that is used to support decision-making.

Decision support systems use Analytical modelsSpecialized databasesDecision makers own insights and

judgmentsComputer based modeling process to

support making of decisionsDecision support systems generally

help human beings solve complex problems.This system helps the management to

develop ‘what if analysis’, so that different scenarios can be developed for decision making.

Its main role is to access data from a data repository and then pass that data through a model, so that the management can take decisions using ‘what if analysis’ and scenario building or by doing predictive analysis to get some solution for a business issue.

This system is very costly to build and requires advanced analytical tools.

DSS is required when the management has to take decisions on unstructured and semi-structured problems(problems is not clear with ambiguity).

DSS provides the user with a lot of alternatives for the problem and can choose the best fit solution from that.

The interactive nature of this system helps the user to have control over the decision making process.

The system only works on data and provides alternatives to the user and also suggests the best possible solution.

According to Gorry Scott Morton, DSS ‘couple the intellectual resources of individuals with the capabilities of the computer to improve the quality of decisions’

Comparison

Transaction processing system focus on processing data generated by business operations

MIS focus on providing managers with pre-specified information in a predefined format or fixed format

DSS provide managerial end users with information in an interactive session on an ad hoc (as needed) basis. DSS include model building and model-based reasoning capabilities.

Decision support systems do not have the problem-solving competence of expert systems.

Decision Support System Components

DSS database: A collection of data from a number of applications or groups

DSS software system: Contains the software tools that are used for analyzing the data, including OLAP tools, data mining tools, or a collection of mathematical or analytical models

User interface: Controls the interaction between the users of the system and the DSS software tools

Applications of DSS

Over the years DSSs have gained popularity in such areas as business management, finance, medicine and health care, the military, environmental policy etc.

DSS programs assist credit card company employees in allowing or disallowing certain charges, and advise bank officers regarding loans and mortgage approvals.

Example of DSS

GIS( Geographical Information System)-uses geographic databases to construct and display maps and other graphic displays that support decisions affecting geographic distribution of people and other resources.

Customer decision-support systems (CDSS)- Web-based DSS have become especially popular and it is a computer based decision support system used by managers with the help of a web browser. Consumer decision support systems (CDSSs) help online users make purchasing decisions in ecommerce Web sites.

Geographical information Systems

CDSS-Customer Decision Support System

Executive Information Systems

A computer-based system that serves the information needs of top executives.

Board of directors

President

Function areavice presidents

Function areamanagers

Executive Information System (EIS)

AN EXECUTIVE INFORMATION SYSTEM (EIS) IS A TYPE OF MANAGEMENT INFORMATION SYSTEM INTENDED TO FACILITATE AND SUPPORT THE INFORMATION AND DECISION-MAKING NEEDS OF SENIOR EXECUTIVES.

ITS MAIN FOCUS WAS ON MEETING THE STRATEGIC INFORMATION NEEDS OF TOP MANAGEMENT.

THE MAIN GOAL OF THE EIS SYSTEM WAS TO PROVIDE AN IMMEDIATE AND AN EASY ACCESS TO THE CRITICAL INFORMATION IN AN ORGANIZATION TO THE TOP EXECUTIVES.

MOST OF EIS USE GRAPHICAL USER INTERFACE AND GRAPHICS DISPLAYS THAT CAN BE CUSTOMIZED ACCORDING TO THE NEEDS OF TOP EXECUTIVES.

IT IS COMMONLY CONSIDERED AS A SPECIALIZED FORM OF DECISION SUPPORT SYSTEM (DSS).

THEY OFFER STRONG REPORTING AND DRILL-DOWN CAPABILITIES.

EIS provide critical information from a wide variety of internal and external sources in easy-to-use displays to executives and managers.

For example top executives may use touch screen terminals to instantly view text and graphics displays that highlight key areas of organizational and competitive performance.

EIS are IS that combine many of the features of MIS and DSSs.

It is also called Enterprise Information Systems(EIS) or Executive Support Systems.

In general, EIS are enterprise-wide DSS that help top-level executives analyze, compare, and highlight trends in important variables so that they can monitor performance and identify opportunities and problems.

Executive Information Systems◦Meet critical information needs of top executives Very limited time Need to monitor and identify problematic trends Need external as well as internal information

◦Rapid access to critical data needed to executives◦Very easy user interface◦Highly graphical◦Drill-Down Capabilities◦Often connected with online information services ◦Incorporates email

CHARACTERISTICS OF EIS

Main components of EIS are• Hardware• Software• User interface• People• Telecommunication

COMPONENTS OF EIS

The basic computer hardware components of EIS are :

Input data-entry devices - These devices allow the executive to enter, verify, and update data immediately .

The central processing unit (CPU) - it is the kernel as it controls the other computer system components. 

Data storage files - The executive can use this part to save useful business information and to search historical business information easily.

Output devices - This device refers to the visual output device or printer

COMPONENTS OF EIS - Hardware

The basic computer Software components of EIS are :

Text base software - The most common form of text are probably documents. 

Database – They help executives to access both internal and external data.

Graphic base - Graphics can turn volumes of text and statistics into visual information for executives. Model base. The EIS models contain routine and special statistical, financial, and other quantitative analysis

COMPONENTS OF EIS - Software

An EIS needs to be efficient to retrieve relevant data for decision makers, so the user interface is very important.

Several types of interfaces can be available to the EIS structure, such as scheduled reports, questions/answers, menu driven, input/output etc.

It is crucial that the interface must fit the decision maker’s decision-making style.

The ideal interface for an EIS would be simple to use and highly flexible, providing consistent performance, reflecting the executive’s world, and containing help information.

COMPONENTS OF EIS – User Interface

Telecommunications within an EIS can accelerate the need for access to distributed data.

COMPONENTS OF EIS – Telecommunication

 During an EIS’s development project and the system’s subsequent usage, people are the main element that determines the success of the system.

COMPONENTS OF EIS – People