A2 (SS2011-13) 1

PRESENTATION ON

MANAGEMENT INFORMATION SYSTEM

BY: -

AMIT KUMAR

THANUJA.A

NARESH

A2 (SS2011-13)

2

INFORMATION SYSTEM (IS)

Def:

An information system (IS) - or application landscape - is any combination of information technology and people's activities that support operations, management, and decision making.

The term information system is frequently used to refer to the interaction between people, processes, data, and technology.

It help to control the performance of business processes.

An information system is a work system whose activities are devoted to processing (capturing, transmitting, storing, retrieving, manipulating and displaying) information.

A2 (SS2011-13)

3

Conti……

An information system can also be considered a semi-formal language which supports human decision making and action.

It consists of computers, instructions, stored facts, people and procedures.

ISs can be categorized in four parts:

1) Management Information System (MIS)

2) Decision Support System (DSS)

3) Executive Information System (EIS)

4) Transaction Processing System (TPS)

A2 (SS2011-13)

4

Management Information System(MIS)

Def:

A management information system (MIS) provides information needed to manage organizations efficiently and effectively.

Management information systems involve three primary resources: people, technology, and information.

A2 (SS2011-13)

5

Conti…..

1 History 2 Terminology 3 Types 4 Advantages

A2 (SS2011-13)

6

History

Kenneth and Jane Laudon identify five eras of MIS evolution corresponding to five phases in the development of computing technology:

I. Mainframe and minicomputer computing (First era)

II. Personal computers (Second era)

III. Client/server networks (Third era)

IV. Enterprise computing (Fourth ear)

V. Cloud computing (Fifth era)

A2 (SS2011-13)

7

Terminology

The terms MIS, information system, ERP and, information technology management are often confused. Information systems and ERP are broader categories that include MIS. Information technology management concerns the operation and organization of information technology resources independent of their purpose.

A2 (SS2011-13)

8

Types

Most management information systems specialize in particular commercial and industrial sectors, aspects of the enterprise, or management substructure.

Accounting MIS Financial MIS Manufacturing MIS Marketing MIS Human Resource MIS

A2 (SS2011-13)

9

Advantages

The company is able to highlight their strength and weaknesses due to the presence of revenue reports, employee performance records etc.

Giving an overall picture of the company and acting as a communication and planning tool

The availability of the customer data and feedback can help the company to align their business processes according to the needs of the customers.

Information is considered to be an important asset for any company in the modern competitive world

A2 (SS2011-13)

10

Decision Support System (DSS)

Def:

Decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities.

Dss also include knowledge-based systems. A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from a combination of raw data, documents, personal knowledge, or business models to identify and solve problems and make decisions.

A2 (SS2011-13)

11

Content

History Taxonomies Components Classification Benefits

A2 (SS2011-13)

12

History

According to Keen (1978), the concept of decision support has evolved from two main areas of research

The theoretical studies of organizational decision making done at the Carnegie Institute of Technology during the late 1950s and early 1960s, and the technical work on interactive computer systems, mainly carried out at the Massachusetts Institute of Technology in the 1960s

DSS became an area of research of its own in the middle of the 1970s, before gaining in intensity during the 1980s.

In the middle and late 1980s, executive information systems (EIS), group decision support systems (GDSS), and organizational decision support systems (ODSS) evolved from the single user and model-oriented DSS.

A2 (SS2011-13)

13

Taxonomies

Using the relationship with the user as the criterion, Haettenschweiler differentiates in to three types

Passive Active Cooperative DSS

Passive: A passive DSS is a system that aids the process of decision making, but that cannot bring out explicit decision suggestions or

solutions

Active: An active DSS can bring out such decision suggestions or solutions.

Cooperative DSS : Allows the decision maker (or its advisor) to modify, complete, or refine the decision suggestions provided by the system, before sending them back to the system for validation.

A2 (SS2011-13)

14

Conti.….

Another taxonomy for DSS has been created by Daniel Power. communication-driven DSS, data-driven DSS document-driven DSS knowledge-driven DSS model-driven DSS. A communication-driven DSS :Supports more than one person working on a

shared task; examples include integrated tools like Microsoft's NetMeeting or Groove

A data-driven DSS or data-oriented DSS: Emphasizes access to and manipulation of a time series of internal company data and, sometimes, external data.

A2 (SS2011-13)

15

Conti.….

A document-driven DSS: It manages, retrieves, and manipulates unstructured information in a variety of electronic formats.

A knowledge-driven DSS :It provides specialized problem-solving expertise stored as facts, rules, procedures, or in similar structures.

A model-driven DSS: Emphasizes access to and manipulation of a statistical, financial, optimization, or simulation model.

A2 (SS2011-13)

16

Classification

A compound DSS is the most popular classification for a DSS

It is a hybrid system that includes two or more of the five basic structures described by Holsapple and Whinston.

DSS components may be classified as: Inputs: Factors, numbers, and characteristics to analyze User Knowledge and Expertise: Inputs requiring manual analysis by

the user Outputs: Transformed data from which DSS "decisions" are generated Decisions: Results generated by the DSS based on user criteria

A2 (SS2011-13)

17

Components

Three fundamental components of a DSS architecture are:

i. The database (or knowledge base)

ii. The model (i.e., the decision context and user criteria), and

iii. The user interface.

A2 (SS2011-13)

18

Benefits

Improves personal efficiency Speed up the process of decision making Increases organizational control Encourages exploration and discovery on the part of the decision maker Speeds up problem solving in an organization Facilitates interpersonal communication Promotes learning or training Generates new evidence in support of a decision Creates a competitive advantage over competition Reveals new approaches to thinking about the problem space Helps automate managerial processes

A2 (SS2011-13)

19

Transaction Processing System (TPS)

Def.

A transaction processing system is a type of information system. TPSs collect, store, modify, and retrieve the transactions of an organization. A transaction is an event that generates or modifies data that is eventually stored in an information system.

Transaction Processing is not limited to application programs. The journal file system provided with IBMs AIX Unix operating system employs similar techniques to maintain file system integrity, including a journal.

A2 (SS2011-13)

20

Contents

Types Features Components 4 ACID test properties: first definition Storing and retrieving

A2 (SS2011-13)

21

Types

i. Contrasted with batch processing: - Batch processing is a form of transaction processing. Batch processing involves processing several transactions at the same time, and the results of each transaction are not immediately available when the transaction is being entered; there is a time delay. Transactions are accumulated for a certain period (say for day) where updates are made especially after work. Online transaction processing is the form of transaction processing that processes data as it becomes available.

ii. Real-time and batch processing: -Each transaction in real-time processing is unique. It is not part of a group of transactions, even though those transactions are processed in the same manner.

Real-time processing requires the master file to be available more often for updating and reference than batch processing. The database is not

accessible all of the time for batch processing.

A2 (SS2011-13)

22

Features

i. Rapid response

ii. Reliability

iii. Inflexibility

iv. Controlled processing

A2 (SS2011-13)

23

Components

i. Input

ii. Processing

iii. Storage

iv. Output

A2 (SS2011-13)

24

ACID test properties: first definition

I. Atomicity: - A transaction’s changes to the state are atomic: either all happen or none happen. These changes include database changes, messages, and actions on transducers.

II. Consistency: -A transaction is a correct transformation of the state. The actions taken as a group do not violate any of the integrity constraints associated with the state. This requires that the transaction be a correct program

III. Isolation: -Even though transactions execute concurrently, it appears to each transaction T, that others executed either before T or after T, but not both

IV. Durability: -Once a transaction completes successfully (commits), its changes to the state survive failures.

V. Concurrency: -Once a transaction completes successfully (commits), its changes to the state survive failures.

A2 (SS2011-13)

25

Storing and retrieving

Databases and files: - A database is a collection of data neatly organized, which stores the accounting and operational records in the database. Databases are always protective of their delicate data, so they usually have a restricted view of certain data

Data warehouse: - A data warehouse is a database that collects information from different sources. When it's gathered in real-time transactions it can be used for analysis efficiently if it's stored in a data warehouse. It provides data that are consolidated, subject-oriented, historical and read-only

Backup procedures: - Since business organizations have become very dependent on TPSs, a breakdown in their TPS may stop the business' regular routines and thus stopping its operation for a certain amount of time. In order to prevent data loss and minimize disruptions when a TPS breaks down a well-designed backup and recovery procedure is put into use. The recovery process can rebuild the system when it goes down.

A2 (SS2011-13)

26

Conti…..

Types of back-up procedures: -

i. Grandfather-father-son: - This procedure refers to at least three generations of backup master files. thus, the most recent backup is the son, the oldest backup is the grandfather. It's commonly used for a batch transaction processing system with a magnetic tape.

ii. Partial backups: - This only occurs when parts of the master file are backed up. The master file is usually backed up to magnetic tape at regular times, this could be daily, weekly or monthly. Completed transactions since the last backup are stored separately and are called journals, or journal files. The master file can be recreated from the journal files on the backup tape if the system is to fail.

A2 (SS2011-13)

27

THANK YOU