unit 2(business information systems)

8/3/2019 UNIT 2(Business Information Systems)

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BUSINESS INFORMATION SYSTEM

COMPILED BY:MRS.N.SINGH

5/3/2012


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CONTENTSMAJOR TYPES OF SYSTEMS IN ORGANIZATIONS SYSTEMS FROM A FUNCTIONAL PERSPECTIVE ENTERPRISE APPLICATIONS ENTERPRISE SYSTEMS GROUP DECISION SUPPORT SYSTEMS (GDSS)


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MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Transaction Processing System (TPS)

Management Information System (MIS)

Decision Support System (DSS)

Executive Support System (ESS)

Office Automation Systems (OASs)

Business Expert Systems (BESs)


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It is also known as Data ProcessingSystem.

It is restricted to the lowest level ofmanagement hierarchy.

Transaction may be1) External (from customers, suppliers etc.)

2) Internal ( transferring work in processfrom one stage to the next, recordingdepreciation on equipment)


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MANAGEMENT INFORMATION SYSTEM(MIS)

INPUT PROCESSING OUTPUT

TPS DATA

INFORMATION

CONTD..


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MIS uses TPS as its input

Information generated may be used for controlof operations.

Strategic and long-range planning

Short-range planning

Management control

Other managerial problem solving


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The domain of MIS is management levelcontrol of management hierarchy.

MIS is more comprehensive as compared toTPS.

MIS is capable of providing analysis, planningand decision-making support.

As MIS is an integrated system, it caters to

information needs for managers in all functionalareas.


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Management Information System

The functional areas of a business may be

Marketing

Production

Human resource

Finance etc.


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Integration Approaches

The information system is an integrated system andthe integration is of following nature :

1. HierarchicalIn this integration, the operational control level

systems feed data to the management controllevel and to the strategic planning level.

2. Horizontal

This integration refers to integration ofinformation systems within a functional area.i.e. A product may pass through variousproduction processes in a production department.


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3. Cross-functional

This information system integrates differentfunction areas. i.e. A marketing informationsystem may transmit information regarding loss

of sales because of inventory shortage to theinventory control information system.

The Enterprise Resource Planning is an exampleof MIS.


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Enterprise Resource Planning

These systems integrate all the processes of the

business and help plan the resources of theorganization.

These systems help in focussing on production

capacities, logistic management and working outfinancial implications of each decision rather thanjust computing costs.

The basic philosophy of an ERP system is thatbusiness processes are to be integrated at alllevels and all the resources are to be treated ascommon resources that are to be used mostefficiently to satisfy its customers.


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Decision support system is tailored to specificmanagerial task or specific problem.

It is designed primarily to serve managementcontrol and strategic planning level managers.

Comprises of three components :DatabaseModel baseUser Interface


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DATABASE

USERINTERFACE

MODEL BASE

USER


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Database :

Contains master files (internal corporate data) anddata from external sources.

Model Base :

library of models to manipulate and analyze the datain the desired ways. This model might includeeconometric models to forecast demand by industryand simulate models of the corporation.

User Interface :The interface through which the user cancommunicate with the DSS.


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DSS can be differentiated from MIS in terms of its

processing capabilities. The MIS processes data toconvert it to information whereas DSS processesinformation to support the decision making processof a manager.

INFORMATIONFROM

MIS

DECISION (mostappropriatealternatives)

A1A2A3A4

ALTERNATIVE PROCESSING


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Executive Support System (ESS)

ESS is an extension of MIS which is a specialkind of DSS.

It is tailored for the use of chief executive of anorganization to support his/her decision-making.

It is comprehensive information system whichincludes various types of decision-support systems.


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OFFICE AUTOMATION SYSTEMS

Refers to the application of computer andcommunication technology to office functions.

Meant to improve the productivity of managers atvarious levels of management by providingsecretarial assistance and better communicationfacilities.

OASs process office transactions and support officeactivities at all levels of the organization.

Facilities offered by OASs word processing,electronic mail, data storage, data and voicecommunication etc.


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OASs Contd.

Office Activities

ClericalTyping Mailing Scheduling of meeting& conference Calendar keeping Retrieving documents

ExecutiveConference Production ofinformation (messages,memos, reports etc.) Controllingperformance


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Knowledge-based information systems (KBIs) Advanced ISs based on artificial intelligence

Artificial intelligence may be referred to as thecapability that makes computers displayintelligent, human-like behaviour, i.e. reasoning,drawing inferences, learning and problem-solving etc.

A BES is a knowledge-based information system that

uses its knowledge about a specific, complexapplication area to act as an expert. Thus, providingdecision support to managers in the form of advicefrom an expert in a specific problem area.


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RULES, FACTS LOGIC

USER INTERFACE

INFERENCE ENGINEKNOWLEDGE BASE

MAIN COMPONENTS OF AN EXPERT SYSTEM

B i E t S t (BES )


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Advantages:

The knowledge/capabilities of many experts can beused to build a single expert system.

Decision-making in critical times can be more

reliable, as these systems are not affected byemotional factors.

Multiple hypotheses can be considered

simultaneously

The main components of BESKnowledge-baseInference engineUser interface


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HIERARCHY OF INFORMATION SYSTEMS

TPS

MIS

DSS

ESS BES&O

AS

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