Bachelor of Information Technology Information Systems Technology IT
Bachelor of Information Technology Information Systems & Technology IT 1105 05. Business Information Systems 5. 2 Management Information Systems (MIS) – Part 4 Prabhajinie Jayabaalasundaram MBCS, MBA
IT 1105 Information Systems and Technology Last Lesson Functional Aspects of the MIS Human Resource Management Information Systems Manufacturing Management Information Systems
IT 1105 Information Systems and Technology Outline Other Management Information Systems Accounting MIS Geographic Information Systems Decision making and problem solving Programmed versus Non-programmed Decisions Optimization, Satisficing, and Heuristic Approaches The Benefits of Information and Decision Support Systems
IT 1105 Information Systems and Technology r Management Information Systems In addition to finance, manufacturing, marketing, and human resource MISs, some companies have other functional management information systems. For example, most successful companies have well-developed accounting functions and a supporting accounting MIS. Also they use geographic information systems for presenting data in a useful form.
IT 1105 Information Systems and Technology Accounting MISs In some cases, accounting works closely with financial management. An accounting MIS performs a number of important activities, providing aggregate information on accounts payables, accounts receivable, payroll, and many other applications. The organization's enterprise resource planning and transaction processing system captures accounting data, which is also used by most other functional information systems.
IT 1105 Information Systems and Technology Accounting MISs Some smaller companies hire outside accounting firms to assist them with their accounting functions. These outside companies produce reports for the firm using raw accounting data. In addition, many excellent integrated accounting programs are available for personal computers in small companies.
IT 1105 Information Systems and Technology Geographic Information Systems A geographic information system (GIS) is a computer system capable of assembling, storing and displaying geographically referenced information. It is possible to use GIS to analyze customer preferences and shopping patterns in various locations using GPS and location analysis from cell phone towers. In addition, a number of applications follow the location of people and places using GPS.
IT 1105 Information Systems and Technology nts to Note - Decision aking and Problem Solving Management information systems (MISs) provide useful summary reports to help solve structured and semi structured business problems. Decision support systems (DSS) offer the potential to assist in solving both semi-structured and unstructured problems.
IT 1105 Information Systems and Technology sion Making and Problem Solving In most cases, strategic planning and the overall goals of the organization set the course for decision making, helping employees and business units achieve their objectives and goals. Often, information systems also assist with problem solving, helping people make better decisions and save lives.
IT 1105 Information Systems and Technology n Making as a Component of Problem Solving Problem solving is a critical activity for any business organization. After identifying a problem, the process of solving the problem begins with decision making. A well-known model developed by Herbert Simon divides the decision making phase of the problem-solving process into three stages: intelligence, design and choice. This model was later incorporated by George Huber into an expanded model of the entire problem-solving process.
IT 1105 Information Systems and Technology n Making as a Component of Problem Solving In the design stage, you develop alternative solutions to the problem and evaluate their feasibility. High-frequency trading, also called flash trading, allows individuals and companies to make money by placing trades on very fast computers and high-speed telecommunications lines whenever prices fluctuate slightly during the trading day.
IT 1105 Information Systems and Technology n Making as a Component of Problem Solving The last stage of the decision-making phase, the choice stage, requires selecting a course of action. The choice stage would then conclude with selection. Various factors influence choice; the act of choosing is not as simple as it might first appear.
IT 1105 Information Systems and Technology n Making as a Component of Problem Solving Problem solving includes and goes beyond decision making. It also includes the implementation stage, when the solution is put into effect. The final stage of the problem-solving process is monitoring stage. In this stage decision makers evaluate the implementation to determine whether the anticipated results were achieved and to modify the process in the light of new information. Monitoring can involve feedback and adjustment.
IT 1105 Information Systems and Technology ecision making relates to Problem solving ? intelligence Decision Making design choice implementation monitoring Problem solving
IT 1105 Information Systems and Technology ammed versus Non-programmed Decisions In the choice stage, various factors influence the decision maker's selection of a solution. One factor is whether the decision can be programmed. Programmed decisions are made using a rule, procedure, or quantitative method. For example, to say that inventory should be ordered when inventory levels drop to 100 units is a programmed decision because it adheres to a rule. Programmed decisions are easy to computerize using traditional information systems. For example, you can easily program a computer to order more inventory when levels for a certain item reach
IT 1105 Information Systems and Technology ammed versus Non-programmed Decisions Management information systems can also reach programmed decisions by providing reports on problems that are routine and in which the relationships are well defined (in other words, they are structured problems). Non-programmed decisions deal with unusual or exceptional situations. In many cases, these decisions are difficult to quantify. Determining the appropriate training program for a new employee, deciding whether to develop a new type of product line are examples.
IT 1105 Information Systems and Technology ammed versus Non-programmed Decisions Today, decision support systems help solve many nonprogrammed decisions, in which the problem is not routine and rules and relationships are not well defined (unstructured or illstructured problems). These problems can include deciding the best location for a manufacturing plant or whether to rebuild a hospital that was severely damaged.
IT 1105 Information Systems and Technology Question Computer based information systems facilitate many activities in an organisation. The following statements are about these activities performed by different information systems. (i) In a retail store, a TPS can be used to facilitate the purchasing activity and produce the receipts to the customer. (ii) Although TPSs support operational level activities, competitive advantage cannot be gained by using these systems. (iii) MISs focus only on the top level management and do not support activities which support middle level management. Identify the incorrect statement(s). (a) Only (iii) (b) Only (ii) (c) Only (i) (d) All (e) Only (ii) and (iii)
IT 1105 Information Systems and Technology Answer Computer based information systems facilitate many activities in an organisation. The following statements are about these activities performed by different information systems. (i) In a retail store, a TPS can be used to facilitate the purchasing activity and produce the receipts to the customer. (ii) Although TPSs support operational level activities, competitive advantage cannot be gained by using these systems. (iii) MISs focus only on the top level management and do not support activities which support middle level management. Identify the incorrect statement(s). (a) Only (iii) (b) Only (ii) (c) Only (i) (d) All (e) Only (ii) and (iii)
IT 1105 Information Systems and Technology Question Identify the stages of decision Making a) Intelligence b) evaluation c) design d) implementation e) choice
IT 1105 Information Systems and Technology Answer Identify the stages of decision Making a) intelligence b) evaluation c) design d) implementation e) choice
IT 1105 Information Systems and Technology ation, Satisficing, and Heuristic Approaches In general, computerized decision support systems can either optimize or satisfice. An optimization model finds the best solution, usually the one that will best help the organization meet its goals. Optimization models use problem constraints. A limit on the number of available work hours in a manufacturing facility is an example of a problem constraint.
IT 1105 Information Systems and Technology ation, Satisficing, and Heuristic Approaches A satisficing model is one that finds a good-but not necessarily the best –solution to a problem. Satisficing is used when modeling the problem properly to get an optimal decision would be too difficult, complex, or costly. Satisficing normally does not look at all possible solutions but only at those likely to give good results. Heuristics, also known as "rules of thumb, " are commonly accepted guidelines or procedures that usually find a good solution.
IT 1105 Information Systems and Technology fits of Information and Decision Support Systems The benefits are a measure of increased performance of these systems versus the cost to deliver them. The plus sign (+) by the arrow from performance to benefits indicates that increased performance has a positive impact on benefits. The minus sign (-) from cost to benefits indicates that increased cost has a negative impact on benefits.
IT 1105 Information Systems and Technology fits of Information and Decision Support Systems The Benefits of Information and Decision Support Systems Positive impact Performance • Decision quality • Problem complexity Negative impact Cost • Hardware • Software • Database • Networks and Internet • Personnel • Procedures
IT 1105 Information Systems and Technology Question Problem solving includes the stages a) Intelligence b) evaluation c) design d) implementation e) choice
IT 1105 Information Systems and Technology Answer Problem solving includes the stages a) intelligence b) evaluation c) design d) implementation e) choice
IT 1105 Information Systems and Technology Question Which of the following Transaction Processing Systems (TPS) support different business functions such as Sales/Marketing, Finance/Accounting, Manufacturing and Human Resources in the correct order? (a) Pricing System, Material Resource Planning System, Payroll, General Ledger (b) Pricing System, General Ledger, Material Resource Planning System, Payroll (c) Material Resource Planning System, General Ledger, Pricing System, Payroll (d) Payroll, Material Resource Planning System, General Ledger, Pricing System (e) Payroll, Pricing System, Material Resource Planning System, General Ledger
IT 1105 Information Systems and Technology Answer Which of the following Transaction Processing Systems (TPS) support different business functions such as Sales/Marketing, Finance/Accounting, Manufacturing and Human Resources in the correct order? (a) Pricing System, Material Resource Planning System, Payroll, General Ledger (b) Pricing System, General Ledger, Material Resource Planning System, Payroll (c) Material Resource Planning System, General Ledger, Pricing System, Payroll (d) Payroll, Material Resource Planning System, General Ledger, Pricing System (e) Payroll, Pricing System, Material Resource Planning System, General Ledger
IT 1105 Information Systems and Technology Summary Other Management Information Systems Accounting MIS Geographic Information Systems Decision making and problem solving Programmed versus Non-programmed Decisions Optimization, Satisficing, and Heuristic Approaches The Benefits of Information and Decision Support Systems
Bachelor of Information Technology Information Systems & Technology IT 1105 05. Business Information Systems 5. 2 Management Information Systems (MIS) – Part 4 Prabhajinie Jayabaalasundaram MBCS, MBA
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