LECTURE-6

Lets remember What do mean by Objectives ? What about Nature of Objectives And Business Sub-System LECTURE-5 OBJECTIVE OF TODAY’S LECTURE Today we will discuss about several subjects of information and information system, that we will be become closely to build a computer based information for any kind of business environment.

THE MAINE POINTS OF TODAY’S LECTURE CAREGORIES OF INFORMATION INFORMATION SYSTEM AS A SYSTEM INFORMATION SYSTEM FOR OPERATIONAL CONTROL INFORMATION SYSTEMS FOR MANAGEMENT CONTROL INFORMATION SYSTEMS FOR STRATEGIC PLANNING INFORMATION NEEDED TO MANAGE THE BUSINESS BUSINESS INFORMATION SYSTEMS

CATEGORIES OF INFORMATION There are three main categories of business information,and these are related to the purpose for which the information is utilized. These categories also tend to relate to the levels of information described above. STRATEGIC INFORMATION:- This relates long-term planning policies and is therefore of most interest to top management TACTICAL INFORMATION:- This is of use in sort-term planning, i.e. months rather than year, and is of more interest at departmental level OPERATIONAL INFORMATION:- This applies to the short-term, perhaps hourly, running of a department.

INFORMATION SYSTEM AS A SYSTEM T he information system receives inputs of data and instructions, processes the data according to the instructions and outputs the results. The basic system model of input process and output is suitable in the simplest case of an information processing system in which all inputs come in at the same time, but this is rarely true. The information processing function frequently needs data collected and processed in a prior period Data storage is therefore added to the information system model, so that the processing activity has available both current data and data collected and stored previously Figure_ When data storage is added, the information processing function includes not only the transformation of data into information but also the storing of data for subsequent use This basic information model is useful in understanding not only the overall information processing system but also the individual information process applications. Ea application may be analyzed in terms of input, storage, process and output.

Data ProcessingInformation The basic information system model Data ProcessingInformation Data Storage The basic model with data storage Figure:-6.1:- Basic information Systems Model

Application subsystems Order entry and billing Payroll and personal Marketing management Inventory accounting and management Application subsystem makes use of functional subsystems Data base system Data communications Operating Systems Utility Software Hardware Etc. Figure:6.2:- Basic Information Systems Model

INFORMATION SYSTEMS FOR OPERATIONAL CONTROL Operational control is the process of ensuring that operational activities are carried out effectively and efficiently. Operational control makes use of pre-established procedures and decision rules. A large percentage of the decisions are programmable. The procedures to follow are generally quite stable. Processing support for operational control consists of figure.6.3 in the next slide Transaction processing Report processing Inquiry processing

Files Transaction processing Operational control reports (b) Control reports Transaction output Transactions Files Transaction processing (a) Transaction Inquiry response Operational report processing Inquiry Files (c) Inquiry Processing Figure:6.3:- Processing to support operational control.

INFORMATION SYSTEMS FOR MANAGEMENT CONTROL Management control information is required by managers of departments, profit centers, etc to measure performance, decide on control actions, formulate new decision rules to be applied by operational personnel, and allocate resources. Where summary information is needed, it must be processed so that trends may be observed, reasons for performance variances may be understood and solutions may be suggested. The control process requires the following types of information: (1)Planned performance (standard, expected, budgeted, etc.) (2)Variations from planned performance (3)Reasons for variances (4)Analysis of possible decisions or course of action

Processing Programs Data base Inquiry Processing Decision models Problem analysis model Variance reporting Planning/budget models Requests inquiries problems Etc Plans and budgets Scheduled reports, Special reports Analyses decision for review inquiry responses Other Budgets, standards, plans. etc Transaction based files Figure:6.4:- Management Control database and processing support

INFORMATION SYSTEMS FOR STRATEGIC PLANNING The purpose of strategic planning is to develop strategies by which an organization will be able to achieve its objectives. The time horizon for strategic planning tends to be fairly long, so that fundamental shifts in the organization may be made. For example: A department store chain may decide to diversify into the mail order business. A department store chain with stores in the central city may decide to change to discount type of operation in the suburbs. A company manufacturing industrial products may decide to diversify into consumer lines. (1)Outlook for the economy in the company's current and prospective areas of activity (2) Current and prospective political environment (3)Current capabilities and performance of the organization by market, country, (based on current policies) (4) Prospects for the industry in each country

INFORMATION NEEDE TO MANAGE THE BUSINESS The following are the attributes of information needed to manage the Business:- TASK:- The job, the function (selling, manufacturing, financing,etc) represents the purpose for which the information is reported. RESOURCES:- The objects or events reported upon are the resources (personnel, equipment, materials, money, etc.) that are being used or acquired NETWORKS:- Flows of information and resources representing a model of the organization. LEVEL:- Three levels representing the hierarchy of planning and control in the organization: strategic planning, management control, and operational control. ENVIRONMENT:- The environment in which the firm operates, including information needed to set goals and objectives, information concerning other external environment (suppliers, government, atc.) and other external planning premises.

BUSINESS INFORMATION SYSTEMS T he purpose of information systems, like any other systems in an organization, are to process input, maintain files of data about the organization, and produce information, reports, and other output. I nformation systems consists of subsystems, including hardware, software, 00and data storage for files and databases. The particular set of subsystems used-the specific equipment, programs, files, and procedures-constitutes an information systems applications. S cience information systems support other organization systems, analysts just study the organization system as a whole and then its information systems details. Often, organizational charts are used to describe how the organization’s components, such as divisions, departments, office, and people relate to one another. Although the charts may accurately show the formal relationships between the components, they do not tell how the business system operates, science there are many important details that cannot be shown on a chart.

CHARACTERISTICS OF INFORMATION and THE PROCESS OF CONVERTING DATA INTO INFORMATION All good information has the characteristics discussed below: Subjectivity:- Relevance:- Timeliness:- Accuracy:- Correct Information Format:- Completeness:- Accessibility” How is data converted into information ? The steps in this process may include the following: COLLECTION CLASSIFICATION SORTING, ADDING,MERGING,AND SO ON SUMMARIZING STORING RETRIEVAL DISSEMINATION

Sort processdisseminate Customer Suppliers Business Units Functional departments Competitors Others Data collection Classify RetrieveDuplicate Goals and mission store ACTION Decision maker-n Decision maket-2 Decision maker-1 Figure:-6.1:data are collected from different sources and processed using a series of steps

Problem-Solving Scenarios True problem situations, either real or anticipated, that require corrective action Opportunities to improve a situation despite the absence of complaints Directives to change a situation regardless of whether anyone has complained about the current situation

General Problem-Solving Approach 1. Identify the problem. 2. Analyze and understand the problem. 3. Identify solution requirements or expectations. 4. Identify alternative solutions and decide a course of action. 5. Design and implement the “best” solution. 6. Evaluate the results. If the problem is not solved, return to step 1 or 2 as appropriate.