fms is lecture 3

7/30/2019 FMS is Lecture 3

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1

Basic Ideas

Problemsin business are undesirablesituations

To solve problems, managers must make

decisions to resolve the undesirablesituation

Decisions involve selecting a solution fromamong several alternatives.

Good decisions require information

Information systems produce information(among other things)


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Dataare defined as raw facts (dates, monetary amounts,names, addresses, account numbers, prices, etc.)

Informationis processed data put into some context.Contextual elements include things like relevance,completeness, accuracy, or timeliness).

Asystem is a set of components that work together to produce

a common goal (or goals)

An information systemis a set of components whose goal isto produce information that benefits an organization


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Characteristics of ManagementInformation

Needs to be new

Needs to be True

It is required to be about something

The transmission of Information is always through regular

communication channels

All rules of effective communication are relevant to Information

transmission


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The Organizational Pyramid


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Categories of Systems

Operational Level System:-Supports operational managers bykeeping track of elementary activitiesand transactions of the organization


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Management Level System :-Serves the monitoring , control,decision making and administrativeactivities of middle managers.

It provides periodic reports.

They focus on less structured

decisions

They often answer what if questions


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Strategic Level :- Helps seniormanagement tackle and addressstrategic issues and long term trends.

Their concern is matching changes inthe external environment with

existing organizational capability


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Characteristics of Informationat Different Managerial Levels

Different management levels havedifferent information needs

Information needed by differentmanagerial and operational levelsvaries in the time span covered

level of detail

Source

other characteristics over a broad spectrum


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Data Range

Amount of data from which information

is extracted

Time Span

How long a period the data covers

Level of Detail

Degree to which information is specific


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Source: Internal vs. External Internal data: collected within the organization

External data: collected from outside sources

Media, newsletters, government agencies, Internet

Structured and Unstructured Data Structured data: numbers and facts easily stored and

retrieved Unstructured data: drawn from meetings,

conversations, documents, presentations, etc.

Valuable in managerial decision making


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Information System


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Components of an IS include :


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Ways to Organize Information Systems

By the groups they serve

Operational level

Management level

Strategic level

By functional area

Sales and marketing

Manufacturing and production

Finance and accounting Human resources


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The Four Major Types of Information Systems


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TPS are the basic business systems thatserve the operational level of theorganization.

TPS is a computerized system thatperforms and record daily transactions

necessary to conduct business.

Ex: - Sales order entry , Hotel Reservation

Systems , Payroll

Transaction-Processing Systems (TPS)


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TPS

Entry point for recording data

Critically important to the functioning of the organization

mostly for predefined, structured tasks

usually has high volumes of input and output

provides data to systems which summarize the data intoinformation for the use of higher levels of management

needs to be fault-tolerant.


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Typical Applications of TPS


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Management Information System (MIS)

MIS serve the management level of the organization,providing managers with reports and online access to theorganizations current performance and historical records.

MIS are oriented almost exclusively to internal events

MIS serves the functions of planning, controlling, decision

making, or problem solving at the management level

Data collected by a TPS is usually the basis for an MIS


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MIS

MIS summarizes and reports on theCompanys operations.

Transaction data from TPS is compressed andpresented in the form of report

MIS serves managers primarily interested inweekly , monthly and yearly results.

MIS provides answers to routine questions

M I f i S (MIS)


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Management Information Systems (MIS)A sample MIS report


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MIS

MIS

MIS FILES

SALESDATA

UNITPRODUCTCOST

PRODUCTCHANGEDATA

EXPENSEDATA

MISREPORTS

MANAGERS

TPS

Order Processing

System

Materials Resource

Planning System

General LedgerSystem

ORDER FILE

PRODUCTION MASTER FILE

ACCOUNTING FILES


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Decision Support Systems (DSS)

DSS also serve the management level of theorganization.

It helps managers make decisions that are unique ,

rapidly changing and not easily specified in advance

They address problems where the procedure for arrivingat a solution may not be fully predefined in advance

It support more complex and nonroutine decision-making and problem-solving activities.

It uses information from TPS and MIS


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DSS

DSS has more analytical power thenother systems

They use a variety of models toanalyze data

They are interactive users canchange assumptions , ask newquestions and include new data


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DSS

For example a bank loan officer verifyingthe credit of a loan applicant

an engineering firm that has bids onseveral projects and wants to know if theycan be competitive with their costs.


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Provide timely, concise information aboutorganization to top managers

Senior managers use ESS

They address non routine decisions requiringjudgment , and insight.

Combination of MIS and DSS designed specificallyfor upper levels of management

Executive Support Systems (ESS)


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ESS

Employ most advanced graphicssoftware

Makes use of less analytical models

Ex:- What are the competitors doing?

In what business should we be ?


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Office Automation System

The term office automation refers to all tools andmethods that are applied to office activities which make itpossible to process written, visual, and sound data in acomputer-aided manner.

Office automation provide elements which make it possibleto simplify, improve, and automate the activities of acompany

It also includes the following activities: exchange of information

management of administrative documents

handling of numerical data

meeting planning and management of work schedules


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The backbone of office automation is aLAN, which allows users to transmitdata, mail and even voice across the

network.

All office functions, including dictation,

typing, filing, copying, fax, telephoneand record management operations,fall into this category.
http://en.wikipedia.org/wiki/LANhttp://en.wikipedia.org/wiki/LAN


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The term "office suite" refers to all softwareprograms which make it possible to meet officeneeds.

In particular, an office suite therefore includesthe following software programs:

word processing

a spreadsheet

a presentation tool

a database

a scheduler
http://en.kioskea.net/contents/tableur/tablintro.php3http://en.kioskea.net/contents/bdd/bddintro.php3http://en.kioskea.net/contents/bdd/bddintro.php3http://en.kioskea.net/contents/tableur/tablintro.php3


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Generally, there are three basicactivities of an office automationsystem:

data storage of information,

data exchange,

data management


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fms is lecture 3

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