N F O R M A T I O N S Y S T E M S

A n i n f o r m a t i o n s y s t e m i s a MBA-207: MIS & ERP (2010) NEW SYLLABUS Module1: Role of MIS in Organizations Organization and Information Systems Information systems are implemented within an organization for the purpose of improving the effectiveness and efficiency of that organization. An information system is a computer system that provides management and other personnel within an organization with up-to-date information regarding the organization's performance; for example, current inventory and sales. It usually is linked to a computer network, which is created by joining different computers 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 business processes. These systems output information in a form that is useable at all levels of the organization: strategic, tactical, and operational. Systems that are specifically serving general, predictable management functions are sometimes called management information systems (MIS). A good example of an MIS report is 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 of the 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 and organizations. As an area of study, IS bridges the multi-disciplinary business field and the interdisciplinary computer science field that is evolving toward a new scientific discipline. An information systems discipline therefore is supported by the theoretical foundations of information and computations such that undergraduate students have unique opportunities to explore the academics of various business models as well as related algorithmic processes within a computer science discipline. Typically, information systems or the more common legacy information systems include people, procedures, data, software, and hardware (by degree) that are used to gather and analyze digital information. Specifically computer-based information systems are complementary networks of hardware/software that people and organizations use to collect, filter, process, create, & distribute data (computing). Computer Information System(s) (CIS) is often a track within the computer science field studying computers and algorithmic processes, including their principles, their software & hardware designs, their applications, and their impact on society. Overall, an IS discipline emphasizes functionality 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 the executive board with the Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operating 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 information security 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 PAGE-1

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organizations. The term information systems is also used to describe an organizational function that applies IS knowledge in industry, government agencies and not-for-profit organizations. Information Systems often refers to the interaction between algorithmic processes and technology. This interaction can occur within or across organizational boundaries. An information system is not only the technology an organization uses, but also the way in which the organizations interact with the technology and the way in which the technology works with the organizations business processes. Information systems are distinct from information technology (IT) in that an information system has an information technology 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 with Executive 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 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 networked enterprises. Information systems play a vital role in the e-business and e-commerce operations, enterprise collaboration and management, and strategic success of businesses that must operate in an inter-networked global environment. Thus, the field of information systems has become a major functional area of business administration. (1) Foundation concepts: fundamental behavior, technical, business, and managerial concepts 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, decision making, and strategic/competitive advantage; (4) Development-processes: how end users and IS specialists develop and implement business/IT solutions to problems and opportunities arising in business; and (5) Management challenges: how to effectively and ethically manage the IS function and IT resources to achieve top performance and business value in support of the business strategies of the enterprise. BY: SANJAY KU.PANDA, FACULTY IT & MANAGEMENT, ABA, BLS, MOB-+91 9437242702

Information Systems have a number of different areas of work:

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System Concepts A system is a group of interrelated components working toward the attainment of a common goal by accepting inputs and producing outputs in an organized transformation process. Feedback is data about the performance of a system. Control is the component that monitors and evaluates feedback and makes any necessary adjustments to the 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, and control activities that convert data resources into information products. Data are first collected and converted to a form that is suitable for processing (input). Then the data are manipulated and converted into information (processing), stored for future use (storage), or communicated to their ultimate user (output) according to correct processing procedures (control).IS Resources and Products - Hardware resources include machines and media used in information processing. Software resources include computerized instructions (programs) and instruction for people (procedures). People resources include information systems specialists and users. Data resources include alphanumeric, text, image, video, audio, and other forms of data. Network resources include communications media and network support. Information products produced by an information system can take a variety of forms, including paper reports, visual displays, multimedia documents, electronic messages, graphics images, and audio responses. WHY INFORMATION SYSTEMS ARE IMPORTANT An understanding of the effective and responsible use and management of information systems is important for managers and other business knowledge workers in todays global information society. Information systems and technologies have become a vital component of successful businesses and organizations. Information systems constitute an essential field of study 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 business information systems. Development. That developing ways to use information technology n business includes designing the basic components of information systems. Management. That managing information technology emphasizes the quality, strategic business value, and security of an organizations information systems. A system is a group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process. A system BY: SANJAY KU.PANDA, FACULTY IT & MANAGEMENT, ABA, BLS, MOB-+91 9437242702

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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 process to their ultimate destination. COMPONENTS OF AN INFORMATION SYSTEM An information system model expresses a fundamental conceptual framework for the major components and activities of information systems. An information system depends on the resources 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 can be applied to all types of information systems: People, hardware, software, data, and networks, are the five basic resources of information systems. People resources include end users and IS specialists, hardware resources consist of machines and media, software resources include both programs and procedures, data resources can include data and knowledge bases, and network resources include communications media and networks. Data resources are transformed by information processing activities into a variety of information products for end users. Information processing consists of input, processing, output, storage, and control activities. INFORMATION SYSTEM RESOURCES The basic IS model shows that an information system consists of five major resources: People resources Hardware resources Software resources Data resources Network resources People Resources: People are required for the operation of all information systems. These people resources include end users and IS specialists. IS Specialists are people who develop and operate information systems. They include system analysts, software developers, system operators, and other managerial, technical, and clerical IS personnel. Systems analysts design information systems based on the information requirements of end users. Software developers create computer programs based on the specifications of systems analysts. System operators monitor and operate large computer systems and networks. Hardware Resources: BY: SANJAY KU.PANDA, FACULTY IT & MANAGEMENT, ABA, BLS, MOB-+91 9437242702

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Hardware resources include all physical devices and materials used in information processing. 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 input of data and commands, a video screen or printer for output of information, and magnetic or optical 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 the operations of a computer system. Application softwareare programs that direct processing for a particular use of computers by 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 managed effectively to benefit all end users in an organization. The data resources of information systems are typically organized into: Databases - a collection of logically related records or files. A database consolidates many records previously stored in separate files so that a common pool of data records serves many applications. Knowledge Bases - which hold knowledge in a variety of forms such as facts and rules of inference about various subjects. Data versus Information. The word data is the plural of datum, though data is commonly used to represent both singular and plural forms. The terms data and information are often used interchangeably. However, you should make the following distinction: Data: - are raw facts or observations, typically about physical phenomena or business transactions. 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 context for an end user. Data is subjected to a value-added process (data processing or information processing) where: Its form is aggregated, manipulated, and organized. Its content is analyzed and evaluated It is placed in a proper context for a human user Telecommunications networks like the Internet, intranets, and extra-nets have become essential to the successful electronic business and commerce operations of all types of organizations and their computer-based information systems. Telecommunications networks consist of computers, communications processors, and other devices interconnected by communications media and controlled by communications software. BY: SANJAY KU.PANDA, FACULTY IT & MANAGEMENT, ABA, BLS, MOB-+91 9437242702

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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 the operation and use of a communications network). INFORMATION SYSTEM ACTIVITIES Information processing (or data processing) activities that occur in information system include the following: Input of data resources Processing of data into information Output of information products Storage of data resources Control of system performance Input of Data Resources: Data about business transactions and other events must be captured and prepared for processing 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 magnetic disk 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, thus converting them into information for end users. A continual process of correcting and updating activities must maintain quality of data stored in 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 information products 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 an organized 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, and storage 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 SYSTEMS As a business professional, you should be able to recognize the fundamental components of information systems you 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. BY: SANJAY KU.PANDA, FACULTY IT & MANAGEMENT, ABA, BLS, MOB-+91 9437242702

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THE FUNDAMENTAL ROLES OF IS APPLICATIONS IN BUSINESS Information systems perform three vital roles in any type of organization. That is, they support an organizations: Business processes and operations Decision making by employees and managers Strategies for competitive advantage The Major Roles of IS: Examples Three major roles of the business applications of information systems include: Support Business Processes involves dealing with information systems that support the business processes and operations in a business. Support Decision Making help decision makers to make better decisions and attempt to gain a competitive advantage. Support Competitive Advantage help decision makers to gain a strategic advantage over 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 the business 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 and suppliers. Promote enterprise collaboration among business teams and work-groups. e-business is defined as the use of Internet technologies to internet work and empower business processes, electronic commerce, and enterprise communication and collaboration within 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 and work-groups. An internet worked e-business enterprise depends on intranets, the Internet, extranets, and other networks to implement such systemsElectronic commerce is the buying and selling, and marketing and servicing of products, services, and information over a variety of 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 Business For 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 by managers. An important ingredient in developing competitive products and services that give an organization 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: BY: SANJAY KU.PANDA, FACULTY IT & MANAGEMENT, ABA, BLS, MOB-+91 9437242702

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Developing successful information system solutions to business problems is a major challenge for business managers and professionals today. As a business professional, you will be responsible for proposing or developing new or improved use of information systems for your company. Most computer-based information systems are conceived, designed, and implemented using some form of systematic development process. Several major activities must be accomplished and managed in a complete IS development cycle. Investigating the economic or technical feasibility of a proposed application. Acquiring and learning how to use the software required to implement the new system, and make improvements to maintain the business value of a system. Information technology and its uses in information systems have created interesting, highly paid, and challenging career opportunities. Employment opportunities in the field of information systems are excellent, as organizations continue to expand their use of information technology. Employment surveys continually forecast shortages of qualified information systems personnel in a variety of job categories. Job requirements in information systems are continually changing due to dynamic developments in business and information technology. A major functional area of business that is as important to business success as the functions of accounting, finance, operations management, marketing, and human resource management. An important contributor to operational efficiency, employee productivity and customer service 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 organization a 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 worked e-business enterprise.

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

The ITES and its influence ITES, Information Technology Enabled Service, is defined as outsourcing of processes that can be enabled with information technology and covers areas like finance, HR, administration, health care, telecommunication, manufacturing etc. Armed with technology and manpower, these services are provided from eenabled locations. In short, this Internet service provider aims in providing B2B ecommerce solutions. The growth of IT enabled Services (ITES) has opened windows for job opportunities, service offerings and foreign investments in India. Customer Interaction services including call centers. Back office operations/revenue accounting, data entry, data conversion including finance 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

 Support Centers Web site services Challenges 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 how information flows between levels of management. This structure depends entirely on the organization's objectives and the strategy chosen to achieve them. In a centralized structure, the decision making power is concentrated in the top layer of the management and tight control is exercised over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions have varying degrees of autonomy. Formal and informal framework of policies and rules, within which an organization arranges its lines of authority and communications, and allocates rights and duties. An

organization chart illustrates

The structure in a business will act as the backbone and support concerning decision making and other processes. Organizational structure provides the guidelines for the system of reporting that drives an organization, dividing it into areas or departments that are responsible for certain aspects of the organization's purpose; it shows the relationships 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. It defines how the company will function, what is expected of employees and the chain of command. The structure clarifies the areas of responsibility and the individuals that will work together. This allows for effective communication, decision making and sharing helpful information within departments. A well designed organizational structure can create a climate, or environment, that encourages employees to be supportive, cooperative and hard working. It also contributes to job satisfaction. By grouping people within their specific areas of expertise, it encourages teamwork and high levels of performance.

Data, information and its attributes Data refers to raw, unevaluated facts, figures, symbols, objects, events, etc. Data may be a collection of facts lying in storage, like a telephone directory or census records. Information is data that have been put into a meaningful and useful context and communicated to a recipient who uses it to make decisions. Information involves the communication and reception of intelligence or knowledge. An element of data may constitute information in a specific context, for example, when you want to 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 of data can be processed quickly through computers aiding in the conversion of data to information. Raw data enter the system and are transformed into the system's output, that is, information to support managers in their decision making. Data refers to the lowest abstract or a raw input which when processed or arranged makes meaningful output. It is the group or chunks which represent quantitative and qualitative attributes pertaining to variables. Information is usually the processed outcome of data. More specifically speaking, it is derived from data. Information is a concept and can be used in many domains. Information can be a mental stimulus, perception, representation, knowledge, or even an instruction. The examples of data can be facts, analysis, or statistics. In computer terms, symbols, characters, images, or numbers are data. These are the 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 can be exchanged with people. It can be about facts, things, concepts, or anything relevant to the topic concerned. The word information was derived from Latin. The verb from which it is derived is informare, 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 of mathematics and geometry, the terms data and given are very often used interchangeably. 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. A collection of these data which conveys some meaningful idea is information. It may 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. When data is collated or organized into something meaningful, it gains significance. This meaningful organization is information.

Data is often obtained as a result of recordings or observations. For example, the temperature of the days is data. When this data is to be collected, a system or person monitors the daily temperatures and records it. Finally when it is to be converted into meaningful information, the patterns in the temperatures are analyzed 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 to obtain information. Attributes (1) A characteristic. In a word processing application, an underlined word would be said to have the underline attribute. In database systems, a field can have various attributes. For example, if it contains numeric data, it has the numeric attribute. (2) In database management systems, the term attribute is sometimes used as a synonym for field. (3) In DOS systems, every file has a file attribute that indicate several properties of the file. For example, they indicate whether the file is readonly, 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 Central Groups Extension commissioner, joint commissioners, directors, joint directors, etc. of the directorate of extension, ministry of agriculture Types of Information Needed (1) Information on human resources, plans, and budgets for various extension services (2) Statewide monitoring and evaluation of activities completed

State

Director of agriculture, additional (1) District wide information on extension director, joint directors, etc. of the state programmes, activities, expenditures, etc department of agriculture (2) Research-extension linkages and coordination with other allied departments such as animal husbandry and horticulture District agricultural officers (DAOs) (1) Information on extension resources and constraints at subdivision and block levels (2) Training requirements of staff at subdivision and block levels (1) Field demonstration programmes, activities planned and implemented by subject-matter specialists (SMSs) (zone) at the block level (2) Technical programme and constraints identified at the block level (1) Performance of VEWs in terms of achievements in extension activities (2) Field-level problem of assessment of beneficiaries' response to various extension programmes

District

Subdivision Subdivisional agricultural officers

Block (county)

Agricultural extension officers

Information regarding these various attributes helps managers to make more enlightened decisions. Examples of ways that an extension organization uses information from a decision-making information system are as follows: Change in specific farm outputs (yields, practices) following selected extension activities Change in staff productivity following selected interventions (inservice training, better transport, etc) Comparison of relative costs and relative effectiveness of alternative extension delivery methods Analysis of economic returns to farmers who adopt recommended practices as compared to those who do not Types of Decisions and information Information Systems perform important operational and managerial support roles

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

INFORMATION TECHN
M AG EN AN EM T SU PPOR T SYSTEM S

Operations Support Systems Management Support Systems Operations Support Systems

Prespecified R eporting For M anagers M anagement Inform ation syste s m Interactive D ecision Support D ecision Support syste s m Inform ation Tailored For Executives E xecutive Inform ation syste s m

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

Support of Business operations

OPERA SUP SYS

of information products for internal and external use. However, they do not emphasize producing the specific information products that can best be used by managers. Further processing by management information systems is usually required. 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 databases Transaction Processing Systems (TPS) Focus on processing the data generated by business transactions and operations. Transaction processing systems record and process data resulting from business transactions (sales, purchases, inventory changes). TPS also produce a variety of information products for internal or external use (customer statements, employee paychecks,sales receipts etc.). TPS process transactions in two basic ways: Batch Processing - transactions data is accumulated over a period of time and processed periodically. Real-time (or online) processing - data is processed immediately after a transaction occurs. Process Control Systems (PCS) - Process control systems are systems, which make use of computers to control ongoing physical processes. These computers are designed to automatically make decisions, which adjust the physical production process. Examples include petroleum refineries and the assembly lines of automated factories. Enterprise Collaboration Systems - Enterprise collaboration systems are information systems that use a variety of information technologies to help people work together. Enterprise collaboration systems help of: Collaborate- to communicate ideas Share resources Co-ordinate our cooperative work efforts as members of the many formal and informal process and project teams The goal of enterprise collaboration systems is to use information technology to enhance the productivity and creativity of teams and work-groups in the modern business enterprise. Management Support Systems (MSS) - Management support systems focus on 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 a variety 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 management support systems. They provide managerial end users with information products

that support much of their day-to-day decision-making needs. MIS provide a variety of pre specified information (reports) and displays to management that can be used to help them make more effective, structured types of day-to-day decisions. Information products provided to managers include displays and reports that can be furnished: On demand Periodically, according to a predetermined schedule Whenever exceptional conditions occur Decision support systems provide managerial end users with information in an interactive session on an adhoc (as needed) basis. Managers generate the information they need for more unstructured types of decisions in an interactive, computer-based information system that uses decision models and specialized databases to assist the decision-making processes of managerial end users. Executive information systems provide top and middle management with immediate and easy access to selective information about key factors that are critical to accomplishing a firms strategic objectives. EIS are easy to operate and understand. Other Classifications of Information Systems: Several other categories of information systems that support either operations or management 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 nature and characteristics. An information system is a computer system that provides management and other personnel within an organization with up-to-date information regarding the organization's performance; for example, current inventory and sales. It usually is linked to a computer network, which is created by joining different computers 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 business processes. These systems output information in a form that is useable at all levels of the organization: strategic, tactical, and operational. Systems that are specifically geared toward serving general, predictable management functions are sometimes called management information systems (MIS). A good example of an MIS report is 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 of the MIS or information technology (IT) department within an organization. Information has a great impact on decision making, and hence its value is closely tied to the decisions that result from its use. For most information systems, particularly those supporting middle and top

management, the resulting decisions often relate to events that are not strictly defined and involve probabilities that cannot be quantified. The decision-making process often is obscure and the outcomes are scaled by multiple and incomparable dimensions. Information plays an important role in all four stages of the decision process. Classification of Management Information Systems There are various types of management information systems. Mason and Swanson (1981) describe four categories of management information systems: (1) databank information system, (2) predictive information system, (3) decisionmaking information system, and (4) decision-taking information system. The classification is based on the level of support that the information system provides in the process of decision making. MIS in Marketing. Marketing information systems support traditional and ecommerce processes and management of the marketing function. Major types of marketing information systems include interactive marketing at e-commerce websites, sales force automation, customer relationship management, sales management, product management, targeted marketing, advertising and promotion, and market research. Thus, marketing information systems assist marketing managers in electronic commerce product development and customer relationship decisions, as well as in planning advertising and sales promotion strategies and developing the e-commerce potential of new and present products, and new channels of distribution. MIS in Manufacturing. Computer-based manufacturing information systems help a company achieve computer integrated manufacturing (CIM), and thus simplify, automate, and integrate many of the activities needed to quickly produce high-quality products to meet changing customer demands. For example, computer-aided design using collaborative manufacturing networks helps engineers collaborate on the design of new products and processes. Then manufacturing resource planning systems help plan the types of resources needed in the production process. Finally, manufacturing execution systems monitor and control the manufacture of products on the factory floor through shop floor scheduling and control systems, controlling a physical process (process control), a machine tool (numerical control), or machines with some humanlike work capabilities (robotics). MIS in Human Resource Management. Human resource information systems support human resource management in organizations. They include information systems for staffing the organization, training and development, and compensation administration. HRM websites on the Internet or corporate intranets have become important tools for providing HR services to present and

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 systems include order processing, inventory control, accounts receivable, accounts payable, payroll, and general ledger systems. Information systems in finance support financial managers in decisions regarding the financing of a business and the allocation of financial resources within a business. Financial information systems include cash management, online investment management, capital budgeting, and financial forecasting and planning. Databank Information System. The responsibility of this information system is to observe, classify, and store any item of data which might be potentially useful to the decision maker. Examples of the kind of data that might be recorded in such 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 time involving data internal to the organization) is as follows: Number of extension staff by category and assigned to a particular village, region, or area Number of work hours devoted by staff to selected concerns for a particular village, region, or area Total extension salary costs and other expenses by village, region, or area Number of demonstrations conducted for selected farm technologies by 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 selected farm technologies by time period and region or area Characteristics of Information system The characteristics of good information are relevance, timeliness, accuracy, costeffectiveness, reliability, usability, exhaustiveness, and aggregation level.

Information is relevant if it leads to improved decision making. It might also be relevant if it reaffirms a previous decision. If it does not have anything to do with your problem, it is irrelevant. For example, information about the weather conditions in Paris in January is relevant if you are considering a visit to Paris in January. 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 an event in the field until its presentation to the user (decision maker). When this amount of time is very short, we describe the information system as a real-time system. Accuracy is measured by comparing the data to actual events. The importance of accurate data varies with the type of decisions that need to be made. Payroll information must be exact. Approximations simply will not suffice. However, a general estimate of how much staff time was devoted to a particular activity may be all that is needed.