mis & erp module -1

8/6/2019 Mis & Erp Module -1

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MBA-207: MIS & ERP (2010) NEW SYLLABUS PAGE-1

Module1:Role of MIS in Organizations

Organization and Information Systems

Information systems are implemented within an organization for the purpose of improving theeffectiveness and efficiency of that organization. An information system is a computer systemthat provides management and other personnel within an organization with up-to-dateinformation regarding the organization's performance; for example, current inventory andsales. It usually is linked to a computer network, which is created by joining differentcomputers together in order to share data and resources. It is designed to capture, transmit,store, retrieve, manipulate, and or display information used in one or more businessprocesses. These systems output information in a form that is useable at all levels of theorganization: strategic, tactical, and operational.

Systems that are specifically serving general, predictable management functions aresometimes called management information systems (MIS). A good example of an MIS reportis the information that goes into an annual report created for the stockholders of a corporation(a scheduled report). The administration of an information system is typically the province ofthe MIS or information technology (IT) department within an organization.

Information Systems (IS) is an academic/professional discipline concerned with the strategic,managerial and operational activities involved in the gathering, processing, storing,distributing and use of information, and its associated technologies, in society andorganizations. As an area of study, IS bridges the multi-disciplinary business field and theinterdisciplinarycomputer science field that is evolving toward a new scientific discipline. Aninformation systems discipline therefore is supported by the theoretical foundations ofinformation and computationssuch that undergraduate students have unique opportunities to

explore the academics of various business models as well as related algorithmic processeswithin a computer science discipline. Typically, information systems or the more commonlegacy information systems include people, procedures, data, software, and hardware (bydegree) that are used to gather and analyze digital information. Specifically computer-basedinformation systems are complementary networks of hardware/software that people andorganizations use to collect, filter, process, create, & distribute data (computing). ComputerInformation System(s) (CIS) is often a track within the computer science field studyingcomputers and algorithmic processes, including their principles, their software & hardwaredesigns, their applications, and their impact on society. Overall, an IS discipline emphasizesfunctionality over design.

Information technologies are a very important resource available to executives. Many

companies have created a position of Chief Information Officer (CIO) that sits on theexecutive board with the Chief Executive Officer(CEO), Chief Financial Officer(CFO), ChiefOperating Officer(COO) and Chief Technical Officer(CTO).The CTO may also serve as CIO,and vice versa. The Chief Information Security Officer (CISO), who focuses on informationsecurity management.

Information Systems (IS) is a scientific field of study that addresses the range of strategic,managerial and operational activities involved in the gathering, processing, storing,distributing and use of information, and its associated technologies, in society and

BY: SANJAY KU.PANDA, FACULTY IT & MANAGEMENT, ABA, BLS, MOB-+91 9437242702

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http://wiki/Academichttp://wiki/Professionalhttp://wiki/Strategic_managementhttp://wiki/Managementhttp://wiki/Business_operationshttp://wiki/Data_processinghttp://wiki/Data_storagehttp://wiki/Data_administrationhttp://wiki/Informationhttp://wiki/Information_technologyhttp://wiki/Multidisciplinaryhttp://wiki/Businesshttp://wiki/Interdisciplinaryhttp://wiki/Computer_sciencehttp://wiki/Informationhttp://wiki/Computationshttp://wiki/Computationshttp://wiki/Algorithmichttp://wiki/Datahttp://wiki/Digitalhttp://wiki/Computerhttp://wiki/Data_(computing)http://wiki/Chief_information_officerhttp://wiki/Chief_executive_officerhttp://wiki/Chief_Financial_Officerhttp://wiki/Chief_Operating_Officerhttp://wiki/Chief_Operating_Officerhttp://wiki/Chief_Technical_Officerhttp://wiki/Chief_Information_Security_Officerhttp://wiki/Chief_Information_Security_Officerhttp://wiki/Academichttp://wiki/Professionalhttp://wiki/Strategic_managementhttp://wiki/Managementhttp://wiki/Business_operationshttp://wiki/Data_processinghttp://wiki/Data_storagehttp://wiki/Data_administrationhttp://wiki/Informationhttp://wiki/Information_technologyhttp://wiki/Multidisciplinaryhttp://wiki/Businesshttp://wiki/Interdisciplinaryhttp://wiki/Computer_sciencehttp://wiki/Informationhttp://wiki/Computationshttp://wiki/Algorithmichttp://wiki/Datahttp://wiki/Digitalhttp://wiki/Computerhttp://wiki/Data_(computing)http://wiki/Chief_information_officerhttp://wiki/Chief_executive_officerhttp://wiki/Chief_Financial_Officerhttp://wiki/Chief_Operating_Officerhttp://wiki/Chief_Operating_Officerhttp://wiki/Chief_Technical_Officerhttp://wiki/Chief_Information_Security_Officer


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organizations. The term information systems is also used to describe an organizationalfunction that applies IS knowledge in industry, government agencies and not-for-profitorganizations. Information Systems often refers to the interaction between algorithmicprocesses and technology. This interaction can occur within or across organizationalboundaries. An information system is not only the technology an organization uses, but alsothe way in which the organizations interact with the technology and the way in which the

technology works with the organizations business processes. Information systems aredistinct from information technology (IT) in that an information system has an informationtechnology component that interacts with the processes components.

The Information systems that usually Transaction processing systems at the bottom level,followed by Management information systems, Decision support systems and ending withExecutive information systems at the top.

Some examples of such systems are:

Data warehouses

Enterprise resource planning

Enterprise systems

Expert systems Geographic information system

Global information system

Office Automation

Information Systems have a number of different areas of work:

Information systems strategy

Information systems management

Information systems development

Information systems security

Information systems iteration

Management of information systems and technologies is important for managers,business professionals, and other knowledge workers in todays inter networkedenterprises. Information systems play a vital role in the e-business and e-commerceoperations, enterprise collaboration and management, and strategic success ofbusinesses that must operate in an inter-networked global environment. Thus, the fieldof information systems has become a major functional area of business administration.

(1) Foundation concepts: fundamental behavior, technical, business, and managerialconcepts like system components and functions, or competitive strategies;

(2) Information technologies: concepts, developments, or management issues regarding

hardware, software, data management, networks, and other technologies;

(3) Business applications: major uses of IT for business processes, operations, decisionmaking, and strategic/competitive advantage;

(4) Development-processes: how end users and IS specialists develop and implementbusiness/IT solutions to problems and opportunities arising in business; and

(5) Management challenges: how to effectively and ethically manage the IS function andIT resources to achieve top performance and business value in support of the businessstrategies of the enterprise.

http://wiki/Information_technologyhttp://wiki/Transaction_processing_systemshttp://wiki/Management_information_systemshttp://wiki/Decision_support_systemshttp://wiki/Executive_information_systemshttp://wiki/Data_warehouseshttp://wiki/Enterprise_resource_planninghttp://wiki/Enterprise_systemshttp://wiki/Expert_systemshttp://wiki/Geographic_information_systemhttp://wiki/Global_information_systemhttp://wiki/Office_Automationhttp://wiki/Information_technologyhttp://wiki/Transaction_processing_systemshttp://wiki/Management_information_systemshttp://wiki/Decision_support_systemshttp://wiki/Executive_information_systemshttp://wiki/Data_warehouseshttp://wiki/Enterprise_resource_planninghttp://wiki/Enterprise_systemshttp://wiki/Expert_systemshttp://wiki/Geographic_information_systemhttp://wiki/Global_information_systemhttp://wiki/Office_Automation


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System Concepts A system is a group of interrelated components working toward theattainment of a common goal by accepting inputs and producing outputs in an organizedtransformation process. Feedback is data about the performance of a system. Control is thecomponent that monitors and evaluates feedback and makes any necessary adjustments tothe input and processing components to ensure that proper output is produced.

An Information System Model An information system uses the resources of people,

hardware, software, data,and networks to perform input, processing, output, storage, andcontrol activities that convert data resources into information products. Data are first collectedand converted to a form that is suitable for processing (input). Then the data are manipulatedand converted into information (processing), stored for future use (storage), or communicatedto their ultimate user (output) according to correct processing procedures (control).ISResources and Products - Hardware resources include machines and media used ininformation processing. Software resources include computerized instructions (programs) andinstruction for people (procedures). People resources include information systems specialistsand users. Data resources include alphanumeric, text, image, video, audio, and other forms ofdata. Network resources include communications media and network support. Informationproducts produced by an information system can take a variety of forms, including paper

reports, visual displays, multimedia documents, electronic messages, graphics images, andaudio responses.

WHY INFORMATION SYSTEMS ARE IMPORTANT

An understanding of the effective and responsible use and management of informationsystems is important for managers and other business knowledge workers in todays globalinformation society. Information systems and technologies have become a vital component ofsuccessful businesses and organizations. Information systems constitute an essential field ofstudy in business administration and management, as they are considered a major functional

area in business operations.It emphasizes five areas of knowledge:

Foundation Concepts Information Technologies Business Applications Development Processes Management Challenges

System concepts are:

Technology. That computer networks are systems of information processing components

that uses a variety of hardware, software, data and telecommunication technologies. Applications. That electronic business and commerce involves interconnected businessinformation systems. Development. That developing ways to use information technology n business includesdesigning the basic components of information systems. Management. That managing information technology emphasizes the quality, strategicbusiness value, and security of an organizations information systems.A system is a group of interrelated components working together toward a common goal byaccepting inputs and producing outputs in an organized transformation process. A system



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has three basic interacting components or functions.These include: Input involves capturing and assembling elements that enter the system to be processed. Processing involves transformation processes that convert input into output. Output involves transferring elements that have been produced by a transformation processto their ultimate destination.

COMPONENTS OF AN INFORMATION SYSTEM

An information system model expresses a fundamental conceptual framework for the majorcomponents and activities of information systems. An information system depends on theresources of people, hardware, software,data, and networks to perform input, processing,output, storage, and control activities that convert data resources into information products.

The information systems model outlined in the text emphasizes four major concepts that canbe applied to all types of information systems: People, hardware, software, data, and networks, are the five basic resources of informationsystems.

People resources include end users and IS specialists, hardware resources consist ofmachines and media, software resources include both programs and procedures, dataresources can include data and knowledge bases, and network resources includecommunications media and networks.

Data resources are transformed by information processing activities into a variety ofinformation products for end users. Information processing consists of input, processing, output, storage, and control activities.

INFORMATION SYSTEM RESOURCESThe basic IS model shows that an information system consists of five major resources: People resources

Hardware resources Software resources Data resources Network resourcesPeople Resources:People are required for the operation of all information systems. These people resourcesinclude end users and IS specialists.

IS Specialists are people who develop and operate information systems. They includesystem analysts,software developers, system operators, and other managerial, technical, and clerical IS

personnel.

Systems analysts design information systems based on the information requirements of endusers.Software developers create computer programs based on the specifications of systemsanalysts.System operators monitor and operate large computer systems and networks.

Hardware Resources:



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Hardware resources include all physical devices and materials used in informationprocessing.Machines- physical devices (computers, peripherals, telecommunications networks, etc.)Media- all tangible objects on which data are recorded (paper, magnetic disks etc.)Examples of hardware in computer-based information systems are:

Computer Systems which consist of central processing units containing microprocessors,

and a variety of interconnected peripheral devices. Computer peripherals which are devices such as a keyboard or electronic mouse for inputof data and commands, a video screen or printer for output of information, and magnetic oroptical disks for storage of data resources.

Software Resources:Software resources include all sets of information processing instructions. Program - a set of instructions that causes a computer to perform a particular task. Procedures - set of instructions used by people to complete a task.Examples of software resources are:

System software such as an operating system program, that controls and supports theoperations of a computer system. Application softwareare programs that direct processing for a particular use of computersby end users. Proceduresare operating instructions for the people who will use an information system.Data Resources:Data constitutes a valuable organizational resource. Thus, data resources must be managedeffectively to benefit all end users in an organization. The data resources of informationsystems are typically organized into: Databases - a collection of logically related records or files. A database consolidates manyrecords previously stored in separate files so that a common pool of data records servesmany applications. Knowledge Bases - which hold knowledge in a variety of forms such as facts and rules ofinference about various subjects. Data versus Information. The word data is the plural ofdatum, though data is commonly used to represent both singular and plural forms. The termsdata and information are often used interchangeably. However, you should make the followingdistinction:Data: - are raw facts or observations, typically about physical phenomena or businesstransactions. More specifically, data are objective measurements of the attributes(characteristics) , such as people, places, things, and events.Information: - is processed data, which has been placed in a meaningful and useful contextfor an end user. Data is subjected to a value-added process (data processing or informationprocessing) where: Its form is aggregated, manipulated, and organized. Its content is analyzed and evaluatedIt is placed in a proper context for a human user

Telecommunications networks like the Internet, intranets, and extra-nets have becomeessential to the successful electronic business and commerce operations of all types oforganizations and their computer-based information systems. Telecommunications networksconsist of computers, communications processors, and other devices interconnected bycommunications media and controlled by communications software.



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Network resources include:

Communications media (twisted-pair wire, coaxial cable, fiber-optic cable, and microwave,cellular, and satellite wireless systems. Network support (people, hardware, software, and data resources that directly support theoperation and use of a communications network).

INFORMATION SYSTEM ACTIVITIESInformation processing (or data processing) activities that occur in information system includethe following:Input of data resourcesProcessing of data into informationOutput of information productsStorage of data resourcesControl of system performanceInput of Data Resources:Data about business transactions and other events must be captured and prepared forprocessing by the input activity. Input typically takes the form of data entry activities such as

recording and editing.Once entered, data may be transferred onto a machine-readable medium such as magneticdisk or type, until needed for processing.Processing of Data into Information:Data is typically subjected to processing activities such as calculating, comparing, sorting,classifying, and summarizing. These activities organize, analyze, and manipulate data, thusconverting them into information for end users.

A continual process of correcting and updating activities must maintain quality of data storedin an information system.Output of Information Products: Information in various forms is transmitted to end-users and made available to them in the

output activity. The goal of information systems is the production of appropriate informationproducts for end users.Storage of Data Resources:Storage is a basic system component of information systems. Storage is the information system activity in which data and information are retained in anorganized manner for later use.Control of System Performance:An important information system activity is the control of its performance.An information system should produce feedback about its input, processing, output, andstorage activities.Feedback must be monitored and evaluated to determine if the system is meeting

established performance standards.Feedback is used to make adjustments to system activities to correct deficiencies.RECOGNIZING INFORMATION SYSTEMSAs a business professional, you should be able to recognize the fundamental components ofinformation systemsyou encounter in the real world. This means that you should be able to identify:The people, hardware, software, data, and network resources they use. The types of information products they produce.



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THE FUNDAMENTAL ROLES OF IS APPLICATIONS IN BUSINESSInformation systems perform three vital roles in any type of organization. That is, they supportan organizations: Business processes and operations Decision making by employees and managers

Strategies for competitive advantageThe Major Roles of IS: ExamplesThree major roles of the business applications of information systems include: Support Business Processes involves dealing with information systems that support thebusiness processes and operations in a business. Support Decision Making help decision makers to make better decisions and attempt togain a competitiveadvantage. Support Competitive Advantage help decision makers to gain a strategic advantageover competitors requires innovative use of information technology.

Businesses are becoming e-business enterprises. The Internet and Internet-like networks

inside the enterprise (intranets), and between an enterprise and its trading partners(extranets) have become the primary information technology infrastructure that supports thebusiness operations of many companies. e-business enterprises rely on such technologies to:

Re-engineer and revitalize internal business processes. Implement electronic commerce systems among businesses and their customers andsuppliers. Promote enterprise collaboration among business teams and work-groups.e-business is defined as the use of Internet technologies to internet work and empowerbusiness processes, electronic commerce, and enterprise communication and collaborationwithin a company and with its customers, suppliers, and other business stakeholders.Enterprise collaboration systems involve the use of groupware tools to support

communication, coordination, and collaboration among the members of networked teams andwork-groups. An internet worked e-business enterprise depends on intranets, the Internet,extranets, and other networks to implement such systemsElectronic commerce is the buyingand selling, and marketing and servicing of products, services, and information over a varietyof computer networks. An internet worked e-business enterprise uses the Internet, intranets,extranets, and other networks to support every step of the commercial process.

Changing Environment and its impact on BusinessFor managerial end users, the information systems function represents: A major functional area of business that is important to a business success An important factor affecting operational efficiency, employee productivity and morale, and

customer service and satisfaction. A major source of information and support needed to promote effective decision making bymanagers. An important ingredient in developing competitive products and services that give anorganization a strategic advantage in the marketplace. A major part of the resources of an organization and its cost of doing business A vital, dynamic, and challenging career opportunity for many men and women.

Developing IS Solutions:



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Developing successful information system solutions to business problems is a majorchallenge for businessmanagers and professionals today. As a business professional, you will be responsible forproposing or developing new or improved use of information systems for your company.

Most computer-based information systems are conceived, designed, and implemented usingsome form of systematic development process.

Several major activities must be accomplished and managed in a complete IS developmentcycle.

Investigating the economic or technical feasibility of a proposed application. Acquiring and learning how to use the software required to implement the new system, andmakeimprovements to maintain the business value of a system. Information technology and its uses in information systems have created interesting, highlypaid, and challenging career opportunities. Employment opportunities in the field of information systems are excellent, as organizationscontinue to expand their use of information technology.

Employment surveys continually forecast shortages of qualified information systemspersonnel in a variety of job categories. Job requirements in information systems are continually changing due to dynamicdevelopments in business and information technology.

A major functional area of business that is as important to business success as the functionsof accounting, finance, operations management, marketing, and human resourcemanagement. An important contributor to operational efficiency, employee productivity and customerservice and satisfaction. A major source of information and support needed to promote effective decision making by

managers and business professionals. A vital ingredient in developing competitive products and services that gives an organizationa strategic advantage in the global marketplace. A dynamic, rewarding, and challenging career opportunity for millions of men and women. A key component of the resources, infrastructure, and capabilities of todays internet workede-business enterprise.



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The ITES and its influence

ITES, Information Technology Enabled Service, is defined as outsourcing ofprocesses that can be enabled with information technology and covers areas likefinance, HR, administration, health care, telecommunication, manufacturing etc.Armed with technology and manpower, these services are provided from e-enabled locations. In short, this Internet service provider aims in providing B2B e-commerce solutions.

The growth of IT enabled Services (ITES) has opened windows for jobopportunities, service offerings and foreign investments in India. CustomerInteraction services including call centers.

Back office operations/revenue accounting, data entry, data conversion includingfinance and accounting and HR services, transcription/translation services

Objectives of ITES

The main objectives of ITES are :

Enabling business strategy

Achieving an organization's business goals

ITES Services:

Medical Transcription

Document Processing

Data Entry and Processing

Data Warehousing IT Help Desk Services

Application Development

Enterprise Resource Planning

Telecommunication Services

Back office operations

Call Centers

Content Development / Animation

Data Processing

Engineering and Design

Geographic Information System Services Human Resource Services

Insurance sector

Legal Databases

Payroll

Remote Maintenance

Revenue Accounting


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Support Centers

Web site servicesChallenges in ITES

Qualified manpower

Quality manpower

Trained manpower Man power retention- biggest challenge

Advantages of ITES

Career growth development

Global reach, relation ship

Global standard of functioning

ITES Structure

The Organization: Structure

Organizational structure determines the manner and extent to which roles,power, and responsibilities are delegated, controlled, and coordinated, and howinformation flows between levels of management. This structure depends entirelyon the organization's objectives and the strategy chosen to achieve them. In acentralized structure, the decision making power is concentrated in the top layerof the management and tight control is exercised over departments and divisions.In a decentralized structure, the decision making power is distributed and thedepartments and divisions have varying degrees of autonomy. Formal andinformal framework of policies and rules, within which an organization arrangesits lines of authority and communications, and allocates rights and duties. An


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organization chart illustrates


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The structure in a business will act as the backbone and support concerning decisionmaking and other processes. Organizational structure provides the guidelines for thesystem of reporting that drives an organization, dividing it into areas or departmentsthat are responsible for certain aspects of the organization's purpose; it shows therelationships between areas and individuals needed to achieve more efficient

operations while attaining the goals of the organization.

The organizational structure should be put in place at the start of an organization. Itdefines how the company will function, what is expected of employees and the chain ofcommand.

The structure clarifies the areas of responsibility and the individuals that will work

together. This allows for effective communication, decision making and sharing helpfulinformation within departments.

A well designed organizational structure can create a climate, or environment, thatencourages employees to be supportive, cooperative and hard working. It alsocontributes to job satisfaction.

By grouping people within their specific areas of expertise, it encourages teamworkand high levels of performance.


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Data, information and its attributes

Data refers to raw, unevaluated facts, figures, symbols, objects, events, etc. Datamay be a collection of facts lying in storage, like a telephone directory or censusrecords.

Information is data that have been put into a meaningful and useful context andcommunicated to a recipient who uses it to make decisions. Information involvesthe communication and reception of intelligence or knowledge. An element ofdata may constitute information in a specific context, for example, when you wantto contact your friend, his or her telephone number is a piece of information;otherwise, it is just one element of data in the telephone directory.

Computers have made the processing function much easier. Large quantities ofdata can be processed quickly through computers aiding in the conversion ofdata to information. Raw data enter the system and are transformed into thesystem's output, that is, information to support managers in their decisionmaking.

Data refers to the lowest abstract or a raw input which when processed orarranged makes meaningful output. It is the group or chunks which representquantitative and qualitative attributes pertaining to variables. Information isusually the processed outcome of data. More specifically speaking, it is derivedfrom data. Information is a concept and can be used in many domains.

Information can be a mental stimulus, perception, representation, knowledge, oreven an instruction. The examples of data can be facts, analysis, or statistics. Incomputer terms, symbols, characters, images, or numbers are data. These arethe inputs for the system to give a meaningful interpretation. In other words, data

in a meaningful form is information.

Information can be explained as any kind of understanding or knowledge that canbe exchanged with people. It can be about facts, things, concepts, or anythingrelevant to the topic concerned.

The word information was derived from Latin. The verb from which it is derived isinformare, which means to instruct. It also means giving form to an idea or fact.Data is the plural of the Latin word datum. It can mean to give. In the realms ofmathematics and geometry, the terms data and given are very often usedinterchangeably. This is how the term was derived for use in computer area.

Data can be in the form of numbers, characters, symbols, or even pictures. Acollection of these data which conveys some meaningful idea is information. Itmay provide answers to questions like who, which, when, why, what, and how.

The raw input is data and it has no significance when it exists in that form. Whendata is collated or organized into something meaningful, it gains significance.This meaningful organization is information.


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Data is often obtained as a result of recordings or observations. For example, thetemperature of the days is data. When this data is to be collected, a system orperson monitors the daily temperatures and records it. Finally when it is to beconverted into meaningful information, the patterns in the temperatures areanalyzed and a conclusion about the temperature is arrived at. So information

obtained is a result of analysis, communication, or investigation.

Summary:

1. Data is the lowest level of knowledge and information is the second level.

2. Data by itself alone is not significant. Information is significant by itself.

3. Observations and recordings are done to obtain data, while analysis is done toobtain information.

Attributes

(1) A characteristic. In a word processing application, an underlined wordwould be said to have the underline attribute. In database systems, a fieldcan have various attributes. For example, if it contains numeric data, it hasthe numeric attribute.

(2) In database management systems, the term attribute is sometimesused as a synonym for field.

(3) In DOS systems, every file has a file attribute that indicate severalproperties of the file. For example, they indicate whether the file is read-only, whether it needs to be backed up, and whether it is visible or hidden.

(4) A language construct that programmers use to add additional information(i.e., metadata) to code elements (e.g., assemblies, modules, members,types, return values, and parameters) to extend their functionality

The level of people and their information needs

Levels Groups Types of Information Needed

Central Extension commissioner, jointcommissioners, directors, jointdirectors, etc. of the directorate ofextension, ministry of agriculture

(1) Information on human resources,plans, and budgets for various extensiservices(2) Statewide monitoring and evaluatioof activities completed


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State Director of agriculture, additionaldirector, joint directors, etc. of the statedepartment of agriculture

(1) District wide information on extensprogrammes, activities, expenditures, (2) Research-extension linkages andcoordination with other allieddepartments such as animal husbandr

and horticulture

District District agricultural officers (DAOs) (1) Information on extension resourcesand constraints at subdivision and bloclevels(2) Training requirements of staff atsubdivision and block levels

Subdivision Subdivisional agricultural officers (1) Field demonstration programmes,activities planned and implemented bysubject-matter specialists (SMSs) (zonat the block level(2) Technical programme and constraiidentified at the block level

Block(county)

Agricultural extension officers (1) Performance of VEWs in terms ofachievements in extension activities(2) Field-level problem of assessment beneficiaries' response to variousextension programmes

Information regarding these various attributes helps managers to make moreenlightened decisions. Examples of ways that an extension organization usesinformation from a decision-making information system are as follows:

Change in specific farm outputs (yields, practices) following selectedextension activities

Change in staff productivity following selected interventions (in-service training, better transport, etc)

Comparison of relative costs and relative effectiveness of alternativeextension delivery methods

Analysis of economic returns to farmers who adopt recommendedpractices as compared to those who do not

Types of Decisions and informationInformation Systems perform important operational and managerial support roles


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in businesses and other organizations. Therefore, several types of informationsystems can be classified conceptually as either:

INFORMATION TEC

Operations Support Systems Management Support SystemsOperations Support Systems

Information systems are needed to process data generated by and used inbusiness operations. Such operations support systems (OSS) produce a variety

MANAGEMENT

SUPPORT

SYSTEMS

Management

Informationsystems

Decision

Support

systems

Executive

Information

systems

Prespecified

Reporting

For

Managers

InteractiveDecision

Support

InformationTailored

ForExecutives


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of information products for internal and external use. However, they do notemphasize producing the specific information products that can best be used bymanagers. Further processing by management information systems is usuallyrequired. The role of a business firms operations support systems is to: Effectively process business transactions

Control industrial processes Support enterprise communications and collaboration Update corporate databasesTransaction Processing Systems (TPS)

Focus on processing the data generated by business transactions andoperations. Transaction processing systems record and process data resultingfrom business transactions (sales, purchases, inventory changes). TPS alsoproduce a variety of information products for internal or external use (customerstatements, employee paychecks,sales receipts etc.).

TPS process transactions in two basic ways:Batch Processing- transactions data is accumulated over a period of time and processedperiodically. Real-time (or online) processing - data is processed immediately after atransaction occurs.Process Control Systems (PCS) - Process control systems are systems, whichmake use of computers to control ongoing physical processes. These computersare designed to automatically make decisions, which adjust the physicalproduction process. Examples include petroleum refineries and the assemblylines of automated factories. Enterprise Collaboration Systems - Enterprisecollaboration systems are information systems that use a variety of informationtechnologies to help people work together. Enterprise collaboration systems helpof: Collaborate- to communicate ideas Share resources Co-ordinate our cooperative work efforts as members of the many formal andinformal process and project teams The goal of enterprise collaboration systemsis to use information technology to enhance the productivity and creativity ofteams and work-groups in the modern business enterprise.Management Support Systems (MSS) - Management support systems focuson providing information and support for effective decision making by managers.They support the decision-making needs of strategic (top) management, tactical(middle) management,and operating (supervisory) management. Conceptually,several major types of information systems support avariety of decision-making responsibilities: Management Information Systems (MIS) Decision Support Systems (DSS) Executive Information Systems (EIS)Management information systems are the most common form of managementsupport systems. They provide managerial end users with information products


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that support much of their day-to-day decision-making needs. MIS provide avariety of pre specified information (reports) and displays to management thatcan be used to help them make more effective, structured types of day-to-daydecisions. Information products provided to managers include displays andreports that can be furnished:

On demand Periodically, according to a predetermined schedule Whenever exceptional conditions occurDecision support systems provide managerial end users with information in aninteractive session on an adhoc (as needed) basis. Managers generate theinformation they need for more unstructured types of decisions in an interactive,computer-based information system that uses decision models and specializeddatabases to assist the decision-making processes of managerial end users.

Executive information systems provide top and middle management withimmediate and easy access to selective information about key factors that arecritical to accomplishing a firms strategic objectives. EIS are easy to operate andunderstand. Other Classifications of Information Systems:Several other categories of information systems that support either operations ormanagement applications include: Expert Systems Knowledge Management Systems Functional Business Information Systems Strategic Information Systems Cross-functional Information Systems

Information System, categorization of information on the basis of natureand characteristics.An information system is a computer system that provides management andother personnel within an organization with up-to-date information regarding theorganization's performance; for example, current inventory and sales. It usually islinked to a computer network, which is created by joining different computerstogether in order to share data and resources. It is designed to capture, transmit,store, retrieve, manipulate, and or display information used in one or morebusiness processes. These systems output information in a form that is useableat all levels of the organization: strategic, tactical, and operational.

Systems that are specifically geared toward serving general, predictablemanagement functions are sometimes called management information systems

(MIS). A good example of an MIS report is the information that goes into anannual report created for the stockholders of a corporation (a scheduled report).The administration of an information system is typically the province of the MIS orinformation technology (IT) department within an organization.

Information has a great impact on decision making, and hence its value is closelytied to the decisions that result from its use.

For most information systems, particularly those supporting middle and top


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management, the resulting decisions often relate to events that are not strictlydefined and involve probabilities that cannot be quantified. The decision-makingprocess often is obscure and the outcomes are scaled by multiple andincomparable dimensions. Information plays an important role in all four stagesof the decision process.

Classification of Management Information Systems

There are various types of management information systems. Mason andSwanson (1981) describe four categories of management information systems:(1) databank information system, (2) predictive information system, (3) decision-making information system, and (4) decision-taking information system. Theclassification is based on the level of support that the information systemprovides in the process of decision making.

MIS in Marketing. Marketing information systems support traditional and e-commerce processes and management of the marketing function. Major types ofmarketing information systems include interactive marketing at e-commercewebsites, sales force automation, customer relationship management, salesmanagement, product management, targeted marketing, advertising andpromotion, and market research. Thus, marketing information systems assistmarketing managers in electronic commerce product development and customerrelationship decisions, as well as in planning advertising and sales promotionstrategies and developing the e-commerce potential of new and presentproducts, and new channels of distribution.

MIS in Manufacturing. Computer-based manufacturing information systemshelp a company achieve computer integrated manufacturing (CIM), and thussimplify, automate, and integrate many of the activities needed to quickly producehigh-quality products to meet changing customer demands. For example,computer-aided design using collaborative manufacturing networks helpsengineers collaborate on the design of new products and processes. Thenmanufacturing resource planning systems help plan the types of resourcesneeded in the production process. Finally, manufacturing execution systemsmonitor and control the manufacture of products on the factory floor through shopfloor scheduling and control systems, controlling a physical process (processcontrol), a machine tool (numerical control), or machines with some humanlikework capabilities (robotics).

MIS in Human Resource Management. Human resource information systemssupport human resource management in organizations. They include informationsystems for staffing the organization, training and development, andcompensation administration. HRM websites on the Internet or corporateintranets have become important tools for providing HR services to present and


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prospective employees.

MIS in Accounting and Finance. Accounting information systems record, report,and analyze business transactions and events for the management of the

business enterprise. Examples of common accounting information systemsinclude order processing, inventory control, accounts receivable, accountspayable, payroll, and general ledger systems. Information systems in financesupport financial managers in decisions regarding the financing of a businessand the allocation of financial resources within a business. Financial informationsystems include cash management, online investment management, capitalbudgeting, and financial forecasting and planning.

Databank Information System. The responsibility of this information system isto observe, classify, and store any item of data which might be potentially usefulto the decision maker. Examples of the kind of data that might be recorded insuch a database for a given village, region, or area are as follows:

Number of farms Number of units of arable land (hectares, fedans, acres) Average farm size Amounts of selected farm inputs applied annually Production per year on a unit of land for selected crops

A second example of data that might be recorded in a database (this timeinvolving data internal to the organization) is as follows:

Number of extension staff by category and assigned to a particularvillage, region, or area

Number of work hours devoted by staff to selected concerns for aparticular village, region, or area

Total extension salary costs and other expenses by village, region, orarea

Number of demonstrations conducted for selected farm technologiesby village, region, or area

Number of on-farm trials conducted for selected farm technologies by

region or area

Number of radio, TV, and print media releases regarding selectedfarm technologies by time period and region or area

Characteristics of Information system

The characteristics of good information are relevance, timeliness, accuracy, cost-effectiveness, reliability, usability, exhaustiveness, and aggregation level.


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Information is relevant if it leads to improved decision making. It might also berelevant if it reaffirms a previous decision. If it does not have anything to do withyour problem, it is irrelevant. For example, information about the weatherconditions in Paris in January is relevant if you are considering a visit to Paris inJanuary. Otherwise, the information is not relevant.

Timeliness refers to the currency of the information presented to the users.Currency of data or information is the time gap between the occurrence of anevent in the field until its presentation to the user (decision maker). When thisamount of time is very short, we describe the information system as a real-timesystem.

Accuracy is measured by comparing the data to actualevents. The importance ofaccurate data varies with the type of decisions that need to be made. Payrollinformation must be exact. Approximations simply will not suffice. However, ageneral estimate of how much staff time was devoted to a particular activity maybe all that is needed.

mis & erp module -1

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