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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