System • A System is a collection of parts that work together to achieve a common goal.
Information System • An Information System as a broad , Generic class of systems that Create, Process and Disseminate information. • They are guided by a set of Policies, Principles, Procedures and Resources which helps in facilitating Organizational Decision Making.
Data • Data can be text, numbers, audio, video, images or any combination of these.
Information • When we process data and convert it into a form that is useful and meaningful to the decision maker, it becomes Information.
Characteristics of Information • Relevance • Timeliness • Accuracy • Correct Information Format. • Completeness • Accessibility
Converting Data Into Information • Collection • Classification • Sorting, Adding, Merging • Summarizing • Storing • Dissemination
Sources Of Data • Customer • Supplier • Functional Department. • Competitors • Distributors • Others
Need Of Information Systems ? • Meeting Global Challenges • Capturing Opportunities in Marketplace • Linking Departments whose functions are different • Enhancing Employee Productivity
Pyramid Structure – Information Need • Top Management- (Strategic Decisions) • Middle Management- (Tactical Decisions) • Lower Management-(Operational Decisions)
Top Management – Strategic Decisions They used to establish the Vision and the long term Goal of the organization. Their Decisions rely heavily on Intuition, Judgments, and Experience. Example- Predicting the impact on change in Global Economy.
Middle Management – Tactical Decisions They used to coordinate, Control, and Monitor Various activities and act as Liaison between Operational Managers and Top Management. Example – Assessing the impact of different marketing strategies on Product sales.
Lower Management – Operational Decisions They are responsible for the day to day Operations, activities and transactions of an Organization. Example – Inventory Control
Information Systems Support Personal Information Systems Work Group Information Systems Organization Wide Information Systems
Personal Information Systems These Supports the Information needs of individual decision makers for solving Structured, Semi Structured and Unstructured task. Example- To Analyze market trends over the next five years.
Work Group Information Systems Many important decisions in an Organization are made by a group of individuals. Example- Launching New Product requires team effort and free sharing of information among group members.
Organization Wide Information Systems Information Systems that provides comprehensive long term information about the entire organization Example- If a Customer wants to know the status of His Order ?
Front Office Information Systems Front-Office Information Systems support business functions that extend out to the organization’s customers (or constituents). • Marketing • Sales • Customer management
Back Office Information Systems Back-officeinformation systems support internal business operations of an organization, as well as reach out to suppliers (of materials, equipment, supplies, and services). • Human resources • Financial management • Manufacturing • Inventory control
Types Of Information Systems Transaction Processing System Management Information System Decision Support System Executive Support System Expert System Office Automation System Communication and Collaboration System
Transaction Processing System A Transaction Processing System (TPS) is an information system that captures and processes data about business transactions.
Management Information System A Management Information System (MIS) is an information system that provides for management-oriented reporting based on transaction processing and operations of the organization.
Decision Supports System A Decision Support System (DSS) is an information system that either helps to identify decision making opportunities or provides information to help make decisions.
Executive Supports System An Executive Information System (EIS) is an information system designed for top-level managers that integrates data from all over the organization into “at-a-glance” graphical indicators and controls.
Expert System An expert system is an information system that captures the expertise of workers and then simulates that expertise to the benefit of nonexperts. .
Office Automation System An Office Automation System is an information system that supports the wide range of business office activities that provide for improved work flow between workers.
Communication And Collaboration System A Communications And Collaboration system is an information system that enables more effective communications between workers, partners, customers, and suppliers to enhance their ability to collaborate.