Management Information Systems The Strategic Role of Information System Delivered by: Tasawar Javed Lecture 2

Operational level systems – Info that monitor the elementary activities & transactions of the organizations Knowledge level systems – IS that support knowledge and data workers in an organizations Management level systems – IS that support the monitoring, control, DM & Admin activities Strategic level systems – IS that support the long range planning activities of senior management Key System Applications in the Organization

Transaction Processing Systems Management Information Systems Virtual Office Systems Decision Support Systems Enterprise Resource Planning Systems The Evolution in Computer Applications

Transaction Processing Systems The first computer based systems were called Electronic Data Processing systems. Later came to know as Accounting Information System. To day the term – TPS (Transaction Processing System) is common. These systems share a common bond in that they process data that reflect the activities of the firm. Collection of people, procedure, software, database, devices Records completed business transactions How it works??? Figure

Operation level systems – Sales and marketing Order tracking, Order processing – Manufacturing Machine control, plant schedule, Material Movement Control – Finance Securities trading, Cash Management – Accounting Payroll, Accounts payables & receivable – Human resource Compensation, T&D, Employee record keeping TPS

Transaction Processing Systems TypeInfo InputProcessingInfo OutputUsers TPSTransactions, Events Sorting, Listing, Merging, Updating Detailed reports, lists, summaries Operations personnel, supervisors

Transaction Processing Systems Payroll System Payroll Master File Management reports Online queries: Employees data (all depts) Employee Checque Govt Docs To General Ledger: wages & Salaries

Transaction Processing Systems Sales/ Mkt Systems Manufacturin g, production systems Finance/Acco unt systems HR SystemsOther types Major Functions of System Sales mgmt, MR, Promotion, Pricing, New products Scheduling, purchasing, shipping/rece iving, engineering, operations Budgeting, general ledger, billing, cost accounting, Personnel records, benefits, compensation s, labor relations, training Admissions, grade records, course records, alumni Major Application Systems Sales order IS, MR system, Pricing System Material Resource planning systems, purchase order control systems, engineering systems, QA systems General ledger, Account RA/PA; Budgeting, Funds Mgmt Systems Payroll, Employee Records, Benefit systems, Career path systems, personnel planning systems Registration system, student transcript system, curriculum class control system, alumni benefactor systems

Transaction Processing Systems A Model Management Output physical resourceInput physical resourceTransform Environment Data processing Software Database Transaction processing System Environment ENVIRONMENTENVIRONMENT ENVIRONMENTENVIRONMENT ENVIRONMENTENVIRONMENT

Explanation – The Input, Transformation & Output elements of physical system of the firm are at bottom – Data are gathered from throughout the physical system and the environment and entered into the database – Data processing software transforms the data into information for the firm’s management and for individuals and organizations in the firm’s environment – Information is processed data that is meaningful, it usually tells users something that they did not already know Transaction Processing Systems

TPS will exhibit following characteristics – Rapid processing TPS systems are designed to process transactions virtually instantly to ensure that customer data is available to the processes that require it. – Reliability TPS systems are therefore designed to incorporate comprehensive safeguards and disaster recovery systems. disaster recovery – Standardisation Transactions must be processed in the same way each time to maximise efficiency. – Controlled access Restricted access to the system ensures that employees who lack the skills and ability to control it cannot influence the transaction process. Transaction Processing Systems

Virtual Office Systems Decision Support Systems Enterprise Resource Planning Systems The Evolution in Computer Applications

Virtual Office Systems 1964; IBM introduced an Electric Typewriter with a magnetic- tape capability It was capable of storing the typed data on magnetic tape and retrieve the material when needed The application was called Word processing This was start of office automation, which is the use of electronics to facilitate communication In addition: , voice mail, electronic calendaring, audio conferencing, videoconferencing, computer conferencing and facsimile (FAX) transmission Today, these applications account for a major portion of a firm’s use of the computer as a communications vehicle

Personal productivity systems Use this technology to self-manage and support managers eg – To maintain calendar & address book that contain mailing ID, address, phone numbers – PDA (personal Digital Assistants) Technology: Has not burdened managers with clerical tasks To remove unnecessary obstructions to communicate between managers & others Has made managers more efficient Rapid communication (made—check---send) Virtual Office Systems

Ability of the office automation applications to be performed anywhere gave birth to the concept a Virtual office; The performance of office activities independent of a particular physical location. For example, managers can engage in a videoconference without all gathering at the same physical location. Virtual office system have made managers more available to customers and to others with in the firm. Virtual Office Systems

Managers as IS users – First users of computer output were clerical employees in the accounting area. – When firm embraced the MIS concept, emphasis shifted from data to info and from clerical employees to problem solvers. – Managers are individuals, their info needs vary widely. – Some useful framework have been developed that make it possible to address the role of info in problem solving – High-quality info system cant be developed unless info systems professionals and managers understood the managerial framework upon which modern organizations are based

Where managers are found Management level – Top – Middle & lower Strategic planning level Management control level Operational control level Business Areas – Marketing – Manufacturing – Finance – HR – IS services

What managers Do? Management functions: – French management theorist Henri Fayol – Five major Management Functions Plan Organize to meet the plan Staff their organization (resources) Direct them to execute plan Control resources Managerial Role: – Henry Mintzberg gave detailed story about it and presented 10 managerial roles such as; …………………………..

The Future of IT Future of IT will be driven by reduced cost and increased power of both computers and communication. Power is measured in processing speed, storage capacity, and the variety of input and output devices. Cell phones have browser, , photo capability and editing features, wireless keyboards These advances indicate that in the future computing will be low cost, small in size, & mobile connected. To take advantage of that managers must learn to incorporate IS into decision making

Thank you!!! Q&A