Information Support Systems

TPS, MIS,DSS,KWS,OAS,ESS

Types of Information Systems

Transaction

Processing

Systems

Process

Control

Systems

Enterprise

Collaboration

Systems

Operations

Support

Systems

Management

Information

Systems

Decision

Support

Systems

Executive

Information

Systems

Management

Support

Systems

Information Systems

Operations Support Systems

• Role is to efficiently process business transactions, control industrial processes, support enterprise communications and collaboration, and update corporate databases

• Examples– Transaction Processing Systems – record and process data from

business transactions in one of two ways – batch process and real-time process

– Process Control Systems – monitor and control physical processes such as in petroleum refining

– Enterprise Collaboration Systems – enhance team and workgroup communications and productivity

Management Support Systems

• Focus on providing information and support for effective decision making by management

• Examples

– Management Information Systems – provide information in forms of reports and displays to managers and other professionals

– Decision Support Systems – gives direct computer support during the decision making process

– Executive Information Systems – provide critical information from a wide variety of internal and external sources in an easy to use displays

Other Classifications

• Expert Systems – provide expert advice for operational

chores like equipment diagnostics

• Knowledge Management Systems – support the

creation, organization, and distribution of business

knowledge to employees and managers

• Functional Information Systems – focus on operational

and managerial applications in support of basic business

functions such as accounting

• Cross Functional/Integrated Information Systems –

KNOWLEDGE LEVEL

• INPUTS: DESIGN SPECS

• PROCESSING: MODELLING

• OUTPUTS: DESIGNS, GRAPHICS

• USERS: TECHNICAL STAFF

EXAMPLE: ENGINEERING WORK

STATION

KNOWLEDGE WORK SYSTEMS

(KWS)

OFFICE AUTOMATION SYSTEMS

(OAS)

• TOWARD A “PAPERLESS” OFFICE

• REDESIGN OF WORK FLOW

• INTEGRATED SOFTWARE

• ERGONOMIC DESIGN

• BRIGHT, CHEERFUL WORK

SPACE

EXAMPLE: PRESENTATION GRAPHICS

Transaction Processing Systems

• Cross-functional information systems that process data resulting from the occurrence of business transactions

– Transactions – events that occur as part of doing business

• Sales

• Purchases

• Deposits

• Withdrawals

• Refunds

• Payments

Transaction Processing Systems (continued)

– Online transaction processing systems

• Real-time systems that capture and process

transactions immediately

– Adds value to product or service through superior

customer service

Transaction Processing Systems (continued)

• Transaction Processing Cycle– Data entry

• The capture of business data

– Transaction processing

• Two basic ways

– Batch processing where transaction data are accumulated &

processed periodically

– Real-time processing where data are processed immediately

after a transaction occurs

Transaction Processing Systems (continued)

– Database maintenance

• Corporate databases are updated to reflect the

day-to-day business transactions

– Document and report generation

• A variety of documents and reports are produced

Transaction Processing Systems (continued)

– Inquiry processing

• Inquiries and responses concerning the results of

transaction processing activity

Transaction Processing Systems (continued)

TYPICAL TPS APPLICATIONS

Sales & Marketing Systems

MAJOR FUNCTIONS OF SYSTEMS:

• Sales management, market research,

promotion, pricing, new products

MAJOR APPLICATION SYSTEMS:

• Sales order info system, market research

system, pricing system

*

TYPICAL TPS APPLICATIONSFinance & Accounting Systems

MAJOR FUNCTIONS OF SYSTEMS:

• Budgeting, general ledger, billing, cost

accounting

MAJOR APPLICATION SYSTEMS:

• General ledger, accounts receivable,

accounts payable, budgeting, funds

management systems

*

TYPICAL TPS APPLICATIONSHuman Resources Systems

MAJOR FUNCTIONS OF SYSTEMS:

• Personnel records, benefits,

compensation, labor relations, training

MAJOR APPLICATION SYSTEMS:

• Payroll, employee records, benefit

systems, career path systems,

personnel training systems

*

TYPICAL TPS APPLICATIONS

Other Types (e.g., University)

MAJOR FUNCTIONS OF SYSTEMS:

• Admissions, grade records, course

records, alumni

MAJOR APPLICATION SYSTEMS:

• Registration system, student transcript

system, curriculum class control

system, alumni benefactor system

*

Management Information Systems

Transaction

Processing Systems

(TPS)

– Support operation

– Management and

control

– Routine, normal

operations

Management

Information

Systems (MIS)

– Provide decision-

making support for

routine, structured

decisions

– Closely linked to and

fed by TPS

Management Information Systems

• Terminology Confusion

– MIS = the study of information

technology in business settings

– But, MIS is also term to refer to class

of systems used to support operational

and tactical decision making

Goals of an MIS

• Provide managers with information

• Regular, routine operations

• Control, organize and plan better

Typical Inputs and Outputs

• Inputs: Information from the TPS

• Outputs: hard and softcopy reports

– Scheduled reports

– On-demand reports

– Key-indicator (business fundamentals)

– Exception reports

Functional Perspectives of MIS

• Financial MIS

– Will integrate information from multiple

sources

– Functions

• Costing

• P&L reporting

• Auditing

• Funds management

Functional Perspectives of MIS

• Manufacturing

– Design and Engineering

– Master Production Scheduling

– Inventory Control

– Materials Planning

– Manufacturing and Process Control

– Quality Control

Functional Perspectives of MIS

• Marketing

– Market research

• Web-based market research

– Pricing

Functional Perspectives of MIS

• Transportation and Logistics

– Route and schedule optimization

• Human Resources

• Accounting

MANAGEMENT LEVEL

• INPUTS: HIGH VOLUME DATA

• PROCESSING: SIMPLE MODELS

• OUTPUTS: SUMMARY REPORTS

• USERS: MIDDLE MANAGERS

EXAMPLE: ANNUAL BUDGETING

MANAGEMENT INFORMATION

SYSTEMS (MIS)

• STRUCTURED & SEMI-STRUCTURED

DECISIONS

• REPORT CONTROL ORIENTED

• PAST & PRESENT DATA

• INTERNAL ORIENTATION

• LENGTHY DESIGN PROCESS

*

MANAGEMENT INFORMATION

SYSTEMS (MIS)

MIS

MIS FILES

SALES

DATA

UNIT

PRODUCT

COST

PRODUCT

CHANGE

DATA

EXPENSE

DATA

MISREPORTS

MANAGERS

TPS

Order Processing

System

Materials Resource

Planning System

General Ledger

System

ORDER FILE

PRODUCTION MASTER FILE

ACCOUNTING FILES

TPS DATA FOR MIS APPLICATIONS

Decision Support Systems

• Used for unstructured problems

• Characteristics

– Data from multiple sources internal and

external to organization

– Presentation flexibility

– Simulation and what-if capability

– Support for multiple decision approaches

– Statistical analysis

Components of a DSS

• Model management software

– Provides a variety of solution models

• Financial, statistical, graphical, project

management

• Dialogue Manager

– Allows user interaction with DSS

Group Decision Making

Systems

• Very interesting field

• How can information technology

improve how decisions are made by

groups?

Group Decision Making

Systems• Applications

– Where time is critical

– Where participants are geographically

dispersed

– Where authority obstructs communication

– Military

– Business

– Government

Group Decision Making

Systems• Common characteristics

– Meeting moderation/facilitation

– Signed and anonymous comments

– Structured deliberations

• Presentation period

• Comment period

• Automated collation of comments

• “Voting”

• Face-to-face and remote

MANAGEMENT LEVEL

• INPUTS: LOW VOLUME DATA

• PROCESSING: INTERACTIVE

• OUTPUTS: DECISION ANALYSIS

• USERS: PROFESSIONALS, STAFF

EXAMPLE: CONTRACT COST ANALYSIS

DECISION SUPPORT SYSTEMS

(DSS)

• FLEXIBLE, ADAPTABLE, QUICK

• USER CONTROLS INPUTS/OUTPUTS

• NO PROFESSIONAL PROGRAMMING

• SUPPORTS DECISION PROCESS

• SOPHISTICATED MODELING TOOLS

*

DECISION SUPPORT SYSTEMS

(DSS)

Executive Information Systems

• What information does a chief

executive of board member require?

Executive Information Systems

• High level with drill down

• Key business and industry data

• Structured and unstructured

information

– Structured: MTD orders

– Unstructured: Industry news feed

• Graphical

STRATEGIC LEVEL

• INPUTS: AGGREGATE DATA

• PROCESSING: INTERACTIVE

• OUTPUTS: PROJECTIONS

• USERS: SENIOR MANAGERS

EXAMPLE: 5 YEAR OPERATING PLAN

EXECUTIVE SUPPORT SYSTEMS

(ESS)

• TOP LEVEL MANAGEMENT

• DESIGNED TO THE INDIVIDUAL

• TIES CEO TO ALL LEVELS

• VERY EXPENSIVE TO KEEP UP

• EXTENSIVE SUPPORT STAFF

*

EXECUTIVE SUPPORT SYSTEMS

(ESS)

INTERRELATIONSHIPS AMONG SYSTEMS

ESS

TPSKWS

OAS

DSSMIS

SYSTEMS FROM A FUNCTIONAL

PERSPECTIVE

• SALES & MARKETING SYSTEMS

• MANUFACTURING & PRODUCTION

SYSTEMS

• FINANCE & ACCOUNTING SYSTEMS

• HUMAN RESOURCES SYSTEMS

*

SALES & MARKETING

INFORMATION SYSTEM

SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

ORDER PROCESSING ENTER, PROCESS, TRACK ORDERS OPERATIONAL

MARKET ANALYSIS IDENTIFY CUSTOMERS & MARKETS KNOWLEDGE

PRICING ANALYSIS DETERMINE PRICES MANAGEMENT

SALES TRENDS PREPARE 5-YEAR FORECASTS STRATEGIC

MANUFACTURING

INFORMATION SYSTEM

SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

MACHINE CONTROL CONTROL ACTIONS OF EQUIPMENT OPERATIONAL

COMPUTER-AIDED-DESIGN DESIGN NEW PRODUCTS KNOWLEDGE

PRODUCTION PLANNING DECIDE NUMBER, SCHEDULE OF PRODUCTS MANAGEMENT

FACILITIES LOCATION DECIDE WHERE TO LOCATE FACILITIES STRATEGIC

FINANCE & ACCOUNTING

INFORMATION SYSTEM

SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

ACCOUNTS RECEIVABLE TRACK MONEY OWED TO FIRM OPERATIONAL

PORTFOLIO ANALYSIS DESIGN FIRM'S INVESTMENTS KNOWLEDGE

BUDGETING PREPARE SHORT TERM BUDGETS MANAGEMENT

PROFIT PLANNING PLAN LONG-TERM PROFITS STRATEGIC

HUMAN RESOURCES

INFORMATION SYSTEM

SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

TRAINING & DEVELOPMENT TRACK TRAINING, SKILLS, APPRAISALS OPERATIONAL

CAREER PATHING DESIGN EMPLOYEE CAREER PATHS KNOWLEDGE

COMPENSATION ANALYSIS MONITOR WAGES, SALARIES, BENEFITS MANAGEMENT

HUMAN RESOURCES PLANNING PLAN LONG-TERM LABOR FORCE NEEDS STRATEGIC

EXAMPLES OF BUSINESS

PROCESSES

• MANUFACTURING & PRODUCTION:

Assembling product, checking quality,

producing bills of materials

• SALES & MARKETING: Identifying

customers, creating customer awareness,

selling

*

EXAMPLES OF BUSINESS

PROCESSES

• FINANCE & ACCOUNTING: Paying

creditors, creating financial statements,

managing cash accounts

• HUMAN RESOURCES: Hiring

employees, evaluating performance,

enrolling employees in benefits plans

*