management information system

Introduction to Information Technology: Your Digital World

© 2013 The McGraw-Hill Companies, Inc. All rights reserved.Using Information Technology, 10e © 2013 The McGraw-Hill Companies, Inc. All rights reserved.Using Information Technology, 10e

ManagementInformation System


© 2013 The McGraw-Hill Companies, Inc. All rights reserved.Using Information Technology, 10e

Presentation Topics & Sequence

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Part :1 Danial Akhtar

a. Various Departments

b. R & D, Production, Marketing, Accounting, Human Resources and Information Systems

c. Tasks Of Departments

d. Traditional Level of Managers

Part :2 Muhammad Saqiba. Types of Information System

(1) Unstructured

(2) Semi structured

(3) Structured



Presentation Topics & SequencePart 3: Tahira Naz

a. Computer Based Information System

(1) Transaction Processing Systems

(2) Management Information Systems

Part 4: Khalid Raza

a. Computer Based Information System

(3) Decision Support Systems Biography

(4) Executive Support Systems

(5) Office Automation Systems

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Presentation Topics & SequencePart 5: Wajahat Hussain

a. System Development

(1) Explanation and the Purpose of a System

(2) Getting the Project going and the Six Phases of Systems Analysis & Design

(3) The First Phase: Conduct a Preliminary Investigation

(4) The Second Phase: Do an Analysis of the System

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Presentation Topics & SequencePart 6: Mehraaj Batool

a. System Development

(1) The Third Phase: Design the System Biography

(2) The Fourth Phase: Develop the system

Part 7: Rahat Khattak

(5) The Fifth Phase: Implement the System

(4) The Sixth Phase: Maintain the System

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Part 1:Departments, Management Levels & Their Tasks

By Danial Akhtar

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Departments1. Various Departments. Depending on the services

or product they provide, most organizations have departments that perform six functions: research and development (R&D), production for operations, marketing and sales, accounting and finance, human resource (personnel), and information system (IS).a. Research & Development: It conducts basic research, relating

discoveries to the organization’s current or new products.

b. Production (Operations): The production department makes the product or provides the service. Raw Material to Finished Goods. In many cases, this department uses CAD / CAM software and workstations, as well as robotics.

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Departmentsc. Marketing and Sales: The marketing department

oversees advertising, promotion, and sales. The people in this department plan, price, advertise, promote, package, and distribute the services or goods to customers or clients.

d. Accounting and finance: The accounting and finance department handles all financial matters. It handles cash management, pay bills and taxes etc.

e. Human Resources: The human resources, or personnel, department finds and hires people and administers sick leave and retirement matters. It is also concerned with compensation levels, professional development, employee relations, and government regulations.

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Traditional Levels of Management

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f. Information systems (IS): The IS department manages the organization’s computer based systems and plans for and purchases new ones.

2. Traditional Levels of Management: Large organizations often have a CEO (chief executive officer) in charge of all departments. Within each of the departments, there are traditionally three levels of management – top , middle, and lower level(supervisory).

These levels are reflected in the organization chart. “An organization chart is a schematic drawing showing the hierarchy of formal relationships among an organization’s employees”.



Traditional Levels of Managementa. Top Managers – Strategic Decision: The chief executive

officer or president is the very top manager. However, for our purposes, top management refers to the vice presidents, one of whom heads each department. They Are Concerned with:

long-range, or strategic, planning and decisions. Companies Goals & Objectives How To achieve them

b. Middle Managers – Tactical Decisions: Middle-level managers make tactical decisions to implement the strategic goals of the organization. Examples of middle managers are plant manager, division manager, sales manager, branch manager, and director of personnel.

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Traditional Levels of Managementc. Lower (supervisory) Managers – Operational Decisions:

Supervisory managers make operational decisions – predictable decisions that can be made by following well-defined sets of routine procedures. An example of a supervisory manager is a warehouse manager in charge of inventory restocking.

3. Nexus to above, very few people are at the top management and many people at the bottom which resembles a pyramid. In this case most of the power is concentrated at the top. However, this hierarchical pyramid oriented structure is changing in our computers and communication based era. The pyramid is flattering somewhat owing to increased participation of all the employees via computer enabled program.

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An Organization Chart, Management Levels and Responsibilities

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CEO

Vice President

R&D

Vice President

Production

Vice Pres Marketing &

Sales

Vice President

Accounting & Finance

Director Personnel /

Payroll

Director of Finance

Director of Accounting

Manager of Account

Receivable

Manager of Account Payable

Manager of Reports

Vice President

Human Resources

Information Systems



Part 2 : Types of Information

By Muhammad Saqib

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1. Characteristics of Information:To make the appropriate decision – strategic,

tactical, and operational – the different levels of managers need the right kind of information: structured, semi structured, and unstructured. In general, all information to support intelligent decision making at all three levels must be:- Correct (accurate) and verifiable (checkable). Complete, including all relevant data, yet concise, including only

relevant data. Cost effective, meaning efficiently obtained, yet understandable. Timely meaning time sensitive, based on historical, current or

future information needs. Accessible, meaning quickly and easily obtainable.

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2.Properties of Information:

• The information with distinctive features plays a pivotal role in the growth and progress in any organization.

a. Level of summarization.

b. Degree of accuracy.

c. Timeliness.

• These properties will be different for structured and unstructured information. Whether structured or unstructured information is more appropriate depends on the level of management and the type of decision making required.

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3. Types Of Information:There are three types of Information:

a. Structured information:

It is detailed Information

Current and not subjective

Concerned with past events

it records a narrow range of facts

covers an organization’s internal activities

It is used for lower level management.16



3. Types Of Information: (Contnd..b. Unstructured information.

It is summarized,

less current, and highly subjective,

concerned with future events,

it records a broad range of facts,

any covers activities outside as well as inside and organization,

It is used for top level management who are responsible for

strategic planning.

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3. Types Of Information: (Contnd...c. Semi structured

information: It includes some structured

information and some unstructured information,

It is used for middle level management who are responsible for tactical planning of an organization and they include directors accounts, finance and personnel etc.

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http://www.transportscotland.gov.uk/strategy-and-research/publications-and-consultations/j9061-08.htm



Decision based Management level and Responsibility:

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Appointment Management Level Responsibility Decision base

Vice Presidents of departments

Top Management Responsible for Strategic Planning

Unstructured decisions

Director Accounting Finance & Personnel

Middle Management Responsible for Tactical Planning

Semi- Structured Decisions

Managers accounts, Plants

Lower Management Responsible for Operational Planning

Structured Decisions



Part 3 Computers – Based Information Systems

By Tahira Naz

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Computers – Based Information Systems

The purpose of a computer-based information system is to provide managers (and various categories of employees) with the appropriate kind of information to help them make decision.

It is used to collect and analyze data from all departments and is designed to provide and organization’s management with up to date information at any time.

There are several types of computers based information systems, which serve different levels of management:

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a. For Lower and Middle Managers: Transaction processing system (TPS)

b. For Middle Managers: Management information systems (MISs) Decision support system (DSSs), including online analytical

processing (OLAP).

c. For Top Managers: Executive support systems (ESSs)

d. For all Levels, including no management: Office automation systems (OASs) Expert systems (ESs) Cooperative work systems (using

groupware)




a. Transaction Processing Systems:

In most organizations, particularly business organizations,

most of what goes on consists largely of transactions. A

transaction is a recorded event having to do with routine

business activities.

And

“A transaction processing system (TPS) is a computer-

based information system that keeps track of the

transactions needed to conduct business”. 23




b. Management Information Systems:

“A management information system (MIS)

(pronounced “em-eye-ess”) is a computer-based

information system that uses data recorded by Transaction

Processing Systems (TPS) as input into programs that

produce routine reports as output”.

It is For Middle Managers

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Part 4: Computers – Based Information Systems

By Khalid Raza

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c. Decision Support System:

“A decision support system (DSS) is a computer-

based information system that provides a flexible tool

analysis and helps managers focus on the future”. It

gathers and presents data from a wide range of sources in a

way that can be interpreted by humans.

It is also For Middle Managers

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d. Executive Support Systems:

“An executive support system (ESS) is an easy-to-use DSS made especially for top managers, it specifically supports strategic decision making”. An ESS is also called an executive information system (EIS). It draws on data not only from systems internal to the organization but also from those outside, such as news services or market-research databases. It is For top mangers

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e. Office Automation Systems, Expert Systems, and Cooperative Systems:i. Office Automation System: Office automation

system (OASs), also called office information system (OISs), combine various technologies to reduce the manual labor required in operating an efficient office environment and to increase productivity.

ii. Expert systems: An expert system, or knowledge-based system, is a set of interactive computer programs that helps users solve problems that would otherwise require the assistance of a human expert.

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iii.Cooperative systems: Organizations that have networks can use groupware to enable cooperative work by groups of people. Such systems are often called computer-supported cooperative work (CSCW). Through the shared use of databases, software, videoconferencing, email intranets, organization forms and reports, and so on, many people can work together from different locations to manage information.

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Part 5: Systems Development & the Life Cycle of a Software Project

By Wajahat Hussain

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• Purpose of a System

A system is a collection of related components that

interact to perform a task in order to accomplish a

goal

A computer-based system consists of hardware,

software, people, procedures, and data, as well as

communications setups

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• How It Starts, Who’s InvolvedUsers: The new system must ALWAYS be developed in

consultation with the people who will be using the completed system

Management: Managers within an organization should be consulted about the system, because they control the budget and resources

Technical staff: The Information Systems or IT staff must be involved, because they will have to execute the project or work with the people who do

Systems Analyst: Information specialist who performs systems analysis, design, and implementation 32



Six Phases of Systems Analysis and Design

Systems analysis and design is a six-phase

problem-solving procedure for examining an

information systems and improving it

The systems development life cycle (SDLC)

is the particular step-by-step process

followed during systems analysis and design.

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• Systems Development Life Cycle (Six Phases):

1. Preliminary investigation

2. Systems analysis

3. Systems design

4. Systems development

5. Systems implementation

6. Systems maintenance 34



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SDLC



SDLC Phase 1: Conduct a Preliminary Investigation

i. Conduct a preliminary analysis

ii. Propose alternative solutions

Interview people within the organization

Study what competitors are doing

Decide to leave the system as is, improve it, or develop a new system

iii. Describe costs and benefits

iv. Submit a preliminary plan with recommendations

This should be a written report

Get management approvals for next phase 36



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SDLC Phase 1



SDLC Phase 2: Analyze the System

i. Gather data

Interview employees and managers

Develop, distribute, analyze questionnaires

Review current written documents

Observe people and processes at work

ii. Analyze the data

Use modeling tools, such as CASE tools

Create a data flow diagram to show how data flows through the

system 38



Phase 2: Analyze the System (continued)iii. Write a report

Document how the current system works

Document problems with the current system

Describe the requirements for the new system

Recommend what to do next

Get management approval to proceed

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SDLC Phase 2



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Data Flow Diagram



Part 6: Systems Development Life Cycle(Phase 3 and Phase 4)

By Mehraaj Batool

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SDLC Phase 3: Design the Systemi. Do a preliminary design

A preliminary design describes the general functional capabilities of a

proposed information system. It reviews the system requirements and

then considers major components of the system

ii. Do a detail design, showing: Output requirements

Input requirements

Storage requirements

Processing requirements

System controls

Backup

iii. Write a report and get approval for next phase 43



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SDLC Phase 3



SDLC Phase 4: Develop the Systemi. Develop or acquire the software

Make-or-buy decision

If creating own system, programming (coding must be done)

ii. Acquire or upgrade the hardware

iii. Test the system

Unit testing: performance of system’s individual parts tested

System testing: parts are linked and tested to see if they work

together properly; real data may be used

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SDLC Phase 4



Part 7: System Development life cycle(Phase 5 and Phase 6)

By Rahat Khattak

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Phase 5: Implement the Systemi. Choose a strategy to convert to the new system

Direct implementation: quit the old and start using the new

Parallel implementation: use both the old and the new side by side, until the new system has been proved reliable

Phased implementation: phase in parts of new in gradually as parts of old are phased out

Pilot implementation: have the new system tried out by a few users

ii. Train the users 48



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SDLC Phase 5



SDLC Phase 6: Maintain & Update the System

i. Perform system audits and periodic evaluations

ii. Make changes to the system based on new conditions

iii. Finalize documentation

• Note that documentation should have been continuously

maintained during the entire SDLC

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SDLC Phase 6



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