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MANAGEMENT
INFORMATION SYSTEM

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2 System

A system is an orderly grouping of interdependent

components linked together according to a
plan to achieve a specific objective.
The study of system concepts has three basic
implications:
1. A system must be designed to achieve a
predetermined objective.
2. Interrelationships and interdependence must exist
among the components.
3. The objectives of the organization as a whole have a
higher priority than the objectives of its subsystems.

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3 System
System is a set of elements or components that interact
with one another to achieve a common goal.
Everyone can interact with many systems during daily
activities. For Example
 Examination System
 Payroll system
 Manufacturing System
 Billing System
 Inventory system
 Decimal number system

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4 Characteristics of a system:
1. Organization:
It implies structure and order. It is the arrangement of
components that helps to achieve objectives.
2. Interaction:
It refers to the manner in which each component functions
with other components of the system.
3. Interdependence:
It means that parts of the organization or computer system
depend on one another. They
are coordinated and linked together according to a plan.
One subsystem depends on the
output of another subsystem for proper functioning.

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5 Characteristics of a system:

4. Integration:
It refers to the holism of systems. It is concerned with how a
system is tied together.
5. Central Objective:
A system should have a central objective. Objectives may
be real or stated. Although a
stated objective may be the real objective, it is not
uncommon for an organization to state
one objective and operate to achieve another. The
important point is that users must know
the central objective of a computer application early in the
analysis for a successful design and conversion

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 Elements of System
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A system has three basic elements.
 Input
 Input involves the gathering and capturing of raw data
 Processing
 Processing converts the raw data into useful outputs.
 Output
 It is the useful information usually in the form of
documents and reports.
 Two additional components of the system include
feedback and control.
 A system with feedback and control components is
sometimes called a cybernetic system.
 It means that system is self-monitoring and self-
regulating.

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7 Elements of System
 Feedback
 It is the data about the performance of a system.
 It is critical for the successful operation of a system.
 Control
 It involves monitoring and evaluating the feedback to
determine whether a system is working effectively to
achieve its goals.

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8 Information system
An information system is a collection of hardware,
software, data, people and procedures that work
together to produce quality information.
 Procedure is an instruction or set of instructions
followed by a user to accomplish an activity.
 For Example: A company’s procedures may require a
manager to fill out certain forms before a new
employee is added to the payroll system.
 In successful business information systems and
technologies are play important roll.
 They are considered a major functional area in
business operations by improve the decision making,
enhance organizational performance and help to
increase profitability.

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9 Information system
 An information system supports daily, short-term and
long-range activates of users in a company.

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 Advantages of information
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Systems
 IS preform calculations much faster than people.
 They help companies to learn more about the
purchase patterns and preferences of their
customers.
 They provide new efficiencies through improved
processes and services.
 They distribute information quickly to the
management for decision-making.

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11 Disadvantages of Information
Systems
 Information systems automate activities that were
previously performed by people. It may result in the
elimination of jobs.
 They allow organizations to collect personal details
that may violate the privacy.
 They are used in every aspect of everyday life and
organizations heavily rely on them. Any problem in he
information system may cause shutdown of business.

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 Role of information System in
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Business
 Support Business Process
 An information system supports different process and
operations in a business.
 For example: most retail stores now use computer based
information system.
 This system provides the facility to record customer
purchase, manage the inventory, Pay employees, buy
new products and evaluate sales trends etc.
 Support Decision Making
 An information system helps the decision makers to make
better decisions.
 It also supports the buyers and other to gain an
advantage over other retailers in the competition for
customers.

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 Role of information System in
13
Business
 Support Competitive Advantage
 An IS helps the decision makers to gain a strategic
advantage over competitors.
 It requires innovative application of information
technologies.
 For example: the management of a store can make
decision to install touch-screen kiosks in all stores in all
stores with links to their e-commerce website for online
shopping.
 This decision may attract new customers and build
customer loyalty.

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14 Information System Resources

It consist of five major resources

 People resource
 Hardware resources
 Software resources
 Data resources
 Network resources

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15
People Resources
People are required for the operation of all information
system. These resources include end users and IS
specialists.
 End Users
 These are the people who use an IS or the information
produced by the information system.
 They are also called users or clients.
 End users in business are called knowledge workers.
 They are the people who communicate and collaborate
with Teams of workgroups for creating, using and distributing
information.

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16
People Resources
 Information System Specialists
 IS specialists are the people who develop
and operate information systems.
 They include system analysts, system
operators and other managerial technical
and clerical personnel.
 System Analysts are the specialists who design
information systems according to the
requirements of the end users.
 Software Developers are the specialists who
create computer programs based on the
specifications of system analysts.
 System Operators are the specialists who
monitor and operate large computer systems
and networks.

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17 Hardware Resource
 Hardware resources include all physical devices and
materials used to process the information in an
information system.
 These resources include different machines and
media.
 Machines
 These are physical devices such as magnetic disks etc.
 Peripheral devices include keyboard, mouse and printer etc.

 Media
 Media include all tangible objects on which data are
recorded such as paper, magnetic disks.

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 Software Resource
18  It includes all set of instructions used for information
processing i.e Programs and procedures.
 Program
 Program is the set of instructions given to the computer
to perform a particular task.
 These includes all system software and Application
software.
 System software such as operating system are used to
control and support the operations of a computer.
 Application software are programs that direct
processing for a particular use of computers by end
users.
 Procedure
 It is set of operating instructions for the people who will
use the IS.
 Each user may follow different procedures to perform
different tasks

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 Data Resources
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 Data is a valuable resource of any organization.
 It must be managed effectively to benefit all end users in
an organization .
 The data resources of IS are specially organized into
database and knowledge base.
Databases
 It is collection of logically related records or files.
 A database stores data in an organized way.
 Different operations can be performed like adding, deleting,
modifying and searching records etc.
Knowledge Base
 KB stores knowledge in a variety of forms such as facts and
rules of inference about various subjects.

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 Network Resources
20  Telecommunications networks like the internet, intranets
and extranets have become essential for successful
operations of business and computer-based IS.
 These networks consist of computers and other devices
connected by communications software.
 Network resources are important component of all
information systems.
 The resources include communication media and network
support.
Communication media
 Communication media are used to transfer data from one
place to another.
 Different types of media include twisted-pair wire, coaxial
cable, fiber-optic cable. Micro wave, cellular and satellite
wireless systems.
Network Support
 It includes the people, hardware, software and resources
that directly support the operation and uses of a
communications network.

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 Internet vs Intranet vs Extranet
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22 Information System Activities

Do it your self !

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23 MAJOR ENTERPRISE APPLICATIONS

 Enterprise applications are specifically

designed for the sole purpose of
promoting the needs and objectives of
the organizations.
 Enterprise applications provide business-
oriented tools supporting electronic
commerce, communication and
collaboration, and web-enabled
business processes both within a
networked enterprise and with its
customers and business partners.


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 Services Provided by Enterprise
24 Applications
 Online shopping, billing and payment processing
 Interactive product catalogue
 Content management
 Customer relationship management
 Manufacturing and other business processes
integration
 IT services management
 Enterprise resource management
 Human resource management
 Business intelligence management
 Business collaboration and security
 Form automation

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25 Most Commonly Used Enterprise
Applications
 Management information system (MIS)
 Enterprise Resource Planning (ERP)
 Customer Relationship Management (CRM)
 Decision Support System (DSS)
 Knowledge Management Systems (KMS)
 Content Management System (CMS)
 Executive Support System (ESS)
 Business Intelligence System (BIS)
 Enterprise Application Integration (EAI)
 Business Continuity Planning (BCP)
 Supply Chain Management (SCM)
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