1. INFORMATION-Concepts module-1
Information is a resource like materials and money.
Information is vital for survival of busi.firm
INFORMATION is
Processed data
It has a form
It is meaningful to the recipient
It has a “surprise” value and
It is useful in current or prospective decisions or actions

2. Difference between Data & Info.
Dependent to users
Independent of user
Finished form
Row form
properly arranged, organized
Disorganized & disintegrated
refers to those which are needed
Refers to details about any event
Information
Data
Eg- Data all the contents in the web
Information those we are interested in

3. Transformation of data into info.
DATA STORAGE
INFORMATION
DATA
PROCESSING
Data consists of facts and figures that are relatively meaningless to the user.
(e.g., number of hours worked by an employee)
Information is processed data or meaningful data.
(e.g., multiplying the hours worked by the hourly rate to get each employee’s gross earnings)

4. Steps in data processing
Identifying the data
Designing forms
Entering data
Validation
Storage
Processing the data
Generating reports

5. Identifying the data
Accuracy of information depends on accurate data input
Locate data sources for information
Accurate, adequate, relevant data must be used as input

6. Designing forms Design form for data entry
The forms are linked to database so that it becomes very easy to enter data in to the system

7. Entering data Actual data must be keyed in to the form
Data entry personal will do this job
Work has to be done very carefully to avoid any incorrect data

8. Validation
Certain validation process may be built in to the code so that input form do not accept any incorrect data

9. Storage
Store the data in appropriate database to facilitate easy retrieval of data
Should take care of security

10. Processing the data
Retrieve the appropriate data for information required & process it
The operations to be performed depends on the nature f the data & the information required

11. Generating the report
Each user may want the information in a particular format
Applications must be developed to generate report for users
Reports must be presented in a form of print out, on screen display etc

12. Features of information
It adds to a representation
It corrects or confirm previous information
It has surprise element or new value
It reduce uncertainty
It has value in decision making
It is reusable

13. Dimensions of information
Information has many dimensions of interest to the information system people
Economic dimension
Business dimension
Technical dimension

14. Economic dimension
It include both the cost of information and its benefits from use

15. Business dimension
The characteristics of information required by managers at different level of hierarchy are different
The characteristics of information for top management are in strictly contrast with those of operating level management
The characteristics of information for the middle management lie somewhere between two

16. Technical dimension
It depends on the quality & reliability of technology used for data processing & information communication
Also concerned with the database
The technical consideration of database are its capacity , response time security validity etc

17. Types of Information
Based on who uses it & what impact its used produce in the organization
Strategic information
Tactical information
Operational information
Based on the source of information
External
Internal
Based on its flow within an organization
Horizontal
vertical

18. Strategic information
Required for long term planning by the top managers
Eg: Information about the population changes, natural resources, new technologies

19. Tactical information
Required for short term planning by the middle level managers
Eg: sales analysis & forecasts, cash flow projections

20. Operational information
Relates to very short period that may be a few hours to a few weeks
It may be about current stock levels of inventory, work schedule for the next shift etc

21. Internal vs. external information
Information generated through the internal sources of the organization is called internal information
E.g various information flows through out the organization
Information generated through outside sources of organization is called external information
E.g. govt reports, industry surveys, market researches, competitor information etc…

22. Horizontal & vertical
Information flowing up or down the organization hierarchy is called vertical information
Eg: orders, decisions from higher level and reports originating from the lower level
When information flows peer to peer at the same level , then it is called horizontal or lateral
Eg: information flows between marketing managers, finance managers etc

23. OPERATIONAL MANAGEMENT OPERATIONAL MANAGEMENT OPERATIONAL MANAGEMENT
EXTERNAL
LOW
TOP MGMT
TOP MGMT
TOP MGMT
MIDDLE MANAGEMENT
MIDDLE MANAGEMENT
MIDDLE MANAGEMENT
SOURCE OF INFORMATION
STRUCTURE OF INFORMATION
OPERATIONAL MANAGEMENT
OPERATIONAL MANAGEMENT
OPERATIONAL MANAGEMENT
INTERNAL
HIGH

24. Features/ qualities of information
Timeliness
Accuracy
Relevance
Adequacy
Completeness
Explicitness

25. Timeliness
Information must reach the recipient within the prescribed time frame(at the right time).
“Information delayed is information denied”
Delays affects the decision –making process adversely
Accuracy
Information must be free from errors and clear in its meaning.
Accuracy means information is free from bias.
Wrong information may result into wrong decisions in the business.

26. Relevance Adequacy Completeness
Information is said to be relevant if it answers specifically for the recipient what, why, where, when, who etc……
Information served should be capable of satisfying all the needs of the recipient to take appropriate decisions
Adequacy
The information should be of sufficient quantity covering all the related aspect of the situation or event.
Completeness
The information should be complete and should all the needs

27. Explicitness
Information is said to be good quality if it does not require further analysis by the recipient for decision-making.
It help the managers to use the information readily without wasting their time by re-analyzing it for decision –making

28. INFORMATION OVERLOAD
Human capacity to accept inputs from environment is limited.
Information overload is a state when user is presented too much information in front
It will be impossible to find out which information is relevant to the problem context
Overload causes a barrier to understanding the information presented and confuses the user

29. Information overload is avoided using the following techniques
Overload affects adversely, the decision-making process and it may lead to wrong decisions.
Information overload is avoided using the following techniques
Summarizing
Filtering
Message routing
Message Inference

30. Summarizing
Summarizing is a technique that reduces the amount of data without changing/loosing the essential of the original information.
E.g. summary reports (monthly sales reports of a product, annual financial statement)
The information is get summarized as they move up in the organizational levels
The level of summarization is dependent on the organizational level of the decision-maker
E.g.
the top level (president) may need only the total sales of a product.
But the area sales manager need sales by each sales representative
Summarization helps to reduce the amount of information that is reaching the users of the organization

31. Message Routing
Routing the message to only those users who require them for some action or decision
The information is reported to the needed individuals or functional departments only
E.g. the information regarding the purchase order is given to only those departments (production, distribution, billing etc..) which take direct actions to the order

32. Filtering
Filtering is the process of truncating the information content, by deleting the irrelevant part of it.
TOP LEVEL
FILTERED
MIDDLE LEVEL
FILTERED
LOWER LEVEL
ACTIONS
EVENTS
COMPLAINTS

33. Information Systems An Information System (IS)
collects, stores and processes data
to provide useful, accurate and timely
information – typically within the
context of an organization.
Info web: IS case study

34. Information Systems Support
Strategic Planning (long-range goals)
Tactical Planning (short-range goals)
Operational Planning (day-to-day activities)

35. IS Major Functions
Help people in organizations make decisions in response to problems
Decision-making process has 4 phases
Recognize a problem
Devise/analyze possible solutions or actions to solve the problem
Select an action or a solution
Implement the solution

36. Information Systems Can Collect
Internal Information
External Information

37. Components of IS

38. IS Categories Office Automation System Transaction Processing System
Decision Support System
Executive Information System
Expert System
Neural Network System

39. Office Automation System
OAS
Office Automation System
Computerizes routine office tasks
Word processing
Spreadsheets
Scheduling
Database
Uses LANs, intranets and the Internet

40. Transaction Processing System
TPS
Transaction Processing System
Transaction is an exchange of goods, services or funds
Collect
Process
Store
Display
Modify
Cancel
Online Transaction Processing (OLTP)
CD screentour: transaction processing system

41. Decision Support System
DSS
Decision Support System
Directly manipulates data
Analyzes external data
Generates statistical projections
Creates data models of various scenarios
CD screentour: DSS
Info web: DSS

42. Executive Information System
EIS
Executive Information System
A type of DSS
For senior managers
For strategic management activities
Setting policies
Planning
Preparing budgets

43. Expert System ES Also called Knowledge-Based System
Analyzes data and produces a recommendation based on the knowledge of a specialist
CD screentour: expert system
Info web: expert system and neural network

44. Management Information System (MIS)
An MIS provides managers with information and support for effective decision making, and provides feedback on daily operations.
MIS provides information to the users in the form of reports
Output, or reports, are usually generated through accumulation of transaction processing data.
MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization.

45. Management Information System
MIS
Management Information System
Creates reports managers can use
to make routine business decisions
Scheduled reports
Key-indicator reports
Exception reports
Ad hoc (demand) reports
Drill-down reports
CD screentour: MIS

46. Definition of MIS A management information system is
MIS is a man-machine system that produces information for use in managerial problem-solving and decision-making.
A management information system is
An integrated user-machine system
For providing information
To support the operations, management, analysis, and decision-making functions
The system utilizes
Computer hardware and software
Manual procedures
Models for analysis, planning, control, and decision making, and
A database
Gorden B. Davis

47. Other Definitions…….
MIS is a system for producing and delivering timely information that will support management in accomplishing its specific task in enterprise
(Robert & George)
MIS is an information system that facilitates management by producing structured, summarized reports on regular basis
(john & Garg)
MIS can also be called as Information Reporting system that provides reports to support management decision-making
(James A O’Brien)

48. Outputs of a Management Information System
Scheduled Reports
Produced periodically, or on a schedule (daily, weekly, monthly).

49. Key-Indicator Report
Summarizes the previous day’s critical activities and typically available at the beginning of each day.

50. Demand Report Gives certain information at a manager’s request.
Exception Report
Automatically produced when a situation is unusual or requires management action.

51. Drill Down Reports
Provide detailed data about a situation.

52. Framework / Model of MIS
Environment
Organizational problem solvers
Report writing
software
Mathematical
Models
Environment
Environment
Database
DATA
MIS
INFO.
Environment

53. Components of MIS Data to be arranged Classify, sort,
summarize, calculate
Information/ report
Inputs
Sales in units by each sales man over a period
Estimated sales in units of competitor
Economic conditions an trends
Outputs
Sales by product
Sales by salesman
Sales by region
Sales by trend analysis
Sales forecasts