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    Systems approach

    Module 1

    Part II

    Faculty:

    Anita venaik

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    Level of Systems in anorganization

    Operational Level

    Management Level

    Strategic Level

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    Kind of

    Information

    System

    Strategic Level

    Management level

    Operational Level

    Senior Managers

    Middle Managers

    Operational

    Managers

    Sales &

    Marketing Manufacturing Finance Accounting HR

    Groups

    Served

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    Major Types of Information Systems used in

    organizations

    Transaction Processing System

    Management Information Systems

    Decision Support Systems

    Executive Support Systems Intelligent system

    Data mining and visualization system

    Office automation system

    Knowledge management system

    GIS

    ERP Systems

    CRM system and SCM Systems

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    Transaction Processing System

    (TPS)

    Serves operational level of the organization

    Transactions,Events

    Sorting,

    Listing,

    Merging,

    Updating

    Detailed

    reports,Lists,

    summaries

    Users: Operational Personnel, supervisors

    EXAMPLE: GROCERY STORE CHECKOUT CASH REGISTER WITH CONNECTION TONETWORK, POS,ATM

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    Management Information Systems

    ( MIS) Serves the management level of the organization

    Summary

    Transaction data,

    High volume data

    Routine reports,

    Low level analysis

    Summary andException

    reports

    Users: Middle managers

    EXAMPLE: Inventory management & planning system

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    Decision support system (DSS)

    Serves the management level of the organization

    Low volume data,Analytic model

    Interactive,

    Simulations,

    Analysis

    Special reports,

    Decision analysis,

    Responses to queries

    Users: Professionals, Staff managers

    Example: TREND ANALYSIS, DEMAND FORCASTING

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    Executive Support System (ESS)

    Serves the Strategic level of the organization

    Aggregate data,external,

    Internal

    Graphics,Simulations,

    Interactive

    Users: Senior Managers

    News retrieval and stock update information system

    Projections,

    Response

    s to

    Queries

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    Relationship of Systems

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    Enterprise systems: TPS &ERP:

    Transaction: Any business related exchange , such as payment to employees,

    Sales to customers, and payment to suppliers.

    TPS: A TPS is an organized collection of people, procedures , software

    Databases and devices used to record completed business transactions.

    Enterprise system: Help the organizations to perform and integrate important

    tasks such as paying employees and suppliers , controlling inventory,

    sending out invoices and order supplies`

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    Management Information Systems in

    Perspective

    A management information system (MIS) provides

    managers with information that supports effective

    decision making and provides feedback on dailyoperations

    The use of MISs spans all levels of management

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    Management Information Systems in

    Perspective (continued)

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    A management information system (MIS) provides

    managers with information that supports effective

    decision making and provides feedback on dailyoperations

    The use of MISs spans all levels of management

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    Inputs to a Management Information

    System

    Internal data sources

    TPSs and ERP systems and related databases; data

    warehouses and data marts; specific functional areas

    throughout the firm External data sources

    Customers, suppliers, competitors, and stockholders,

    whose data is not already captured by the TPS; the

    Internet; extranets

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    Outputs of a Management Information

    System

    Scheduled report: produced periodically, or on a

    schedule

    Key-indicator report: summary of the previous

    days critical activities Demand report: developed to give certain

    information at someones request

    Exception report: automatically produced when a

    situation is unusual or requires management action

    Drill-down report: provides increasingly detailed

    data about a situation

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    Human Resource Management

    Information Systems

    Human resource MIS: concerned with activities

    related to employees and potential employees of an

    organization

    Needs and planning assessments Recruiting

    Training and skills development

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    Human Resource Management

    Information Systems (continued)

    Scheduling and assignment

    Employee benefits

    Outplacement

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    Human Resource Management

    Information Systems (continued)

    Overview of a Human Resource MIS

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    A Comparison of DSS and MIS

    Comparison of DSSs and MISs

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    A Comparison of DSS and MIS

    (continued)

    Comparison of DSSs and MISs (continued)

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    Group Support Systems

    Group support system (GSS)

    Consists of most elements in a DSS, plus software to

    provide effective support in group decision making

    Also called group decision support system orcomputerized collaborative work system

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    Executive Support Systems

    Executive support system (ESS): specialized DSS

    that includes all hardware, software, data,

    procedures, and people used to assist senior-level

    executives within the organization

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    Executive Support Systems in

    Perspective

    Tailored to individual executives

    Easy to use

    Drill-down capable Support the need for external data

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    Executive Support Systems in

    Perspective (continued)

    Can help when uncertainty is high

    Future-oriented

    Linked to value-added processes

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    Summary

    The decision-making phase of the problem-solving

    process includes three stages: intelligence, design,

    and choice

    A management information system (MIS) providesmanagers with information that supports effective

    decision making and provides feedback on daily

    operations

    A financial MIS provides financial information to allfinancial managers within an organization

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    Summary (continued)

    The manufacturing MIS subsystems and outputs

    monitor and control the flow of materials, products,

    and services through the organization

    A marketing MIS supports managerial activities inproduct development, distribution, pricing decisions,

    and promotional effectiveness

    A human resource MIS is concerned with activities

    related to employees and potential employees of anorganization

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    Summary (continued)

    A DSS is an organized collection of people,

    procedures, software, databases, and devices used

    to support decision making and problem solving

    A group support system (GSS) consists of mostelements in a DSS, plus software to provide

    effective support in group decision making

    An executive support system (ESS) is a specialized

    DSS that includes all hardware, software, data,procedures, and people used to assist senior-level

    executives within the organization