INFORMATION SYSTEMS

IN AN ENTERPRISE

BY:-
SNEHA JOSHI
SONAL SEWAK
RAVI PRAKASH SINGH
TANVI SETH
SHADAB HUSSAINI
 INTRODUCTION I
N
P
U
T
 WHAT IS INFORMATION

PROCESS
O
 WHAT IS SYSTEM U
T
P
U
T

An Example of a system
 Types of system
 OPEN SYSTEM: regularly exchanges feedback with
its external environment

 CLOSED SYSTEM: it is an isolated system

 DETERMINISTIC SYSTEM: the output can easily be

predicted

 PROBABLISTIC SYSTEM: the chance of getting the

desired output
 INFORMATION SYSTEM
 AN INTEGRATED SET OF COMPONENTS
FOR COLLECTING, STORING,
PROCESSING, AND COMMUNICATING 
INFORMATION
 COMPONENTS OF
INFORMATION SYSTEM
 COMPUTER HARDWARE

 COMPUTER SOFTWARE

 DATABASES

 TELECOMMUNICATION SYSTEMS

 HUMAN RESOURCES AND PROCEDURES

COMPONENTS OF INFORMATION SYSTEM

SOFTWARE HARDWARE

INFORMATION
SYSTEM
DATA RESOURCES PEOPLE

NETWORKS
 Information system is required
to avoid…
 LOSS OF DATA DUE TO ACCIDENTS, DELIBERATE
INTERVENTION, ETC.
 LOSS OF CONFIDENTIALITY DUE TO INSECURE
ACCESS TO INFORMATION
 HIGH COST OF RECOVERY IN CASE OF
BREAKDOWNS
 BUSINESS INTERRUPTION
 LOSS OF INFORMATION INTEGRITY
 Levels of Management

Upper or Top or Strategic Management STRATEGIC

Middle or Tactical Management TACTICAL

Lower level Management OPERATIONAL

 TYPES OF INFORMATION
SYSTEMS
 TRANSACTION PROCESS SYSTEM (TPS)

 EXECUTIVE SUPPORT SYSTEM (ESS)

 DECISION SUPPORT SYSTEM (DSS)

 MANAGEMENT INFORMATION SYSTEM (MIS)

 KNOWLEDGE WORK SYSTEM (KWS)

 OFFICE AUTOMATION SYSTEM (OAS)

 TRANSACTION PROCESS
SYSTEM
 Transaction Processing is information processing that is
divided into individual, indivisible operations, called
transactions. Each transaction must succeed or fail as a
complete unit; it cannot remain in an intermediate state.

 A Transaction Processing System (TPS) is a type of

information system that collects, stores, modifies and
retrieves the data transactions of an enterprise. they serve
the organization’s operational level.
 TRANSACTION PROCESS
SYSTEM
 The transaction-processing system ensures that either all
operations in a transaction are completed without error, or
none of them are.
 If some of the operations are completed but errors occur when
the others are attempted, the transaction-processing system
“rolls back” all of the operations of the transaction (including
the successful ones)
 If all operations of a transaction are completed successfully,
the transaction is “committed” by the system, and all changes
to the database are made permanent; the transaction cannot be
rolled back once this is done
 FEATURES OF TPS
 Systems capable of transaction processing must pass
tests for atomicity, consistency, isolation and durability,
otherwise known as the ACID test .

In addition should have following features:

 Rapid Processing
 Reliability
 Standardization
 Controlled Access
 TYPES OF TPS
 Batch Processing  Real Time Processing

Batch processing is a In many circumstances the

resource-saving transaction primary factor is speed. For
type that stores data for example, when a bank
processing at pre-defined customer withdraws a sum
times. Batch processing is of money from his or her
useful for enterprises that account it is vital that the
need to process large transaction be processed
amounts of data using and the account balance
limited resources. updated as soon as
possible, allowing both the
bank and customer to keep
track of funds.
 TYPES OF INFORMATION SYSTEMS
KIND OF SYSTEM GROUPS SERVED
STRATEGIC LEVEL SENIOR
MANAGERS

MANAGEMENT LEVEL MIDDLE

MANAGERS

KNOWLEDGE LEVEL KNOWLEDGE &

DATA WORKERS

OPERATIONAL OPERATIONAL
LEVEL MANAGERS
SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN
MARKETING RESOURCES
 KNOWLEDGE WORK
SYSTEMS (KWS)
 Supports TECHNICAL STAFF

 KNOWLEDGE LEVEL
› INPUTS: DESIGN
› PROCESSING: MODELLING
› OUTPUT: DESIGN & GRAPHICS

 EX: Engineering Work Station , medical diagnosis , oil

exploration
 OFFICE AUTOMATION
SYSTEMS (OAS)
 Supports OFFICE WORKERS EX: Clerks , Accountants ,
Secretaries .
 Used in PAPER LESS OFFICE
 Use of INTEGRATED SOFTWARES EX: Ms-office
 Makes BRIGHT & CHEERFUL WORKSPACE
 Helps in EXCHANGE OF DATA EX: Mails , Voice mail ,
Videoconferencing.
 EX: PRESENTATION GRAPHICS

EX: United Services Automobile Association(U.S.)

 MANAGEMENT INFORMATION
SYSTEMS (MIS)

MANAGEMENT LEVEL

 INPUTS: HIGH VOLUME DATA

 PROCESSING: SIMPLE MODELS

 OUTPUTS: SUMMARY REPORTS

 EXAMPLE: ANNUAL BUDGETING

 MANAGEMENT INFORMATION
SYSTEMS (MIS)

 STRUCTURED & SEMI-STRUCTURED DECISION

 Based On Past & Present Data

 Helps In Taking Structured and Semi Structured

Decisions

 EX: WALL MART & OTHER RETAILERS

 TPS DATA FOR MIS APPLICATION

TPS MIS
Order Processing SALES
DATA
System

ORDER FILE UNIT

PRODUCT
Materials Resource COST MIS REPORTS
Planning System
PRODUCT
CHANGE
PRODUCTION MASTER FILE
DATA
General Ledger
EXPENSE MANAGERS
System DATA

ACCOUNTING FILES MIS FILES

DECISION SUPPORT SYSTEMS (DSS)

 SUPPORTS MANAGEMENT LEVEL

 INPUTS: LOW VOLUME DATA

 PROCESSING: INTERACTIVE

 OUTPUTS: DECISION ANALYSIS

 USERS: PROFESSIONALS, STAFF

 EXAMPLE: CONTRACT COST ANALYSIS

 DECISION SUPPORT SYSTEMS (DSS)

 FLEXIBLE, ADAPTABLE, QUICK

 USER CONTROLS INPUTS/OUTPUTS

 NO PROFESSIONAL PROGRAMMING

 SUPPORTS DECISION PROCESS

 EXECUTIVE SUPPORT
SYSTEMS (ESS)
 SUPPORTS SENIOR MANAGERS

 INPUT : Aggregate Data

 PROCESSING : Interactive

 OUTPUTS : Projections

 USERS : Senior Managers

 EX : 5 YEARS OPERATING PLAN

INTERRELATIONSHIPS
AMONG SYSTEMS
ESS

MIS DSS

KWS
TPS
OAS
 SYSTEMS FROM A
FUNCTIONAL PERSPECTIVE
 SALES & MARKETING SYSTEMS

 MANUFACTURING & PRODUCTION SYSTEMS

 FINANCE & ACCOUNTING SYSTEMS

 HUMAN RESOURCES SYSTEMS

 SALES & MARKETING
INFORMATION SYSTEM
SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

ORDER PROCESSING ENTER, PROCESS, TRACK ORDERS OPERATIONAL

MARKET ANALYSIS IDENTIFY CUSTOMERS & MARKETS KNOWLEDGE

PRICING ANALYSIS DETERMINE PRICES MANAGEMENT

SALES TRENDS PREPARE 5-YEAR FORECASTS STRATEGIC

MANUFACTURING
INFORMATION SYSTEM
SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

MACHINE CONTROL CONTROL ACTIONS OF EQUIPMENT OPERATIONAL

COMPUTER-AIDED-DESIGN DESIGN NEW PRODUCTS KNOWLEDGE

PRODUCTION PLANNING DECIDE NUMBER, SCHEDULE OF PRODUCTS MANAGEMENT

FACILITIES LOCATION DECIDE WHERE TO LOCATE FACILITIES STRATEGIC

 FINANCE & ACCOUNTING
INFORMATION SYSTEM
SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

ACCOUNTS RECEIVABLE TRACK MONEY OWED TO FIRM OPERATIONAL

PORTFOLIO ANALYSIS DESIGN FIRM'S INVESTMENTS KNOWLEDGE

BUDGETING PREPARE SHORT TERM BUDGETS MANAGEMENT

PROFIT PLANNING PLAN LONG-TERM PROFITS STRATEGIC

HUMAN RESOURCES
INFORMATION SYSTEM
SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

TRAINING & DEVELOPMENT TRACK TRAINING, SKILLS, APPRAISALS OPERATIONAL

CAREER PATHING DESIGN EMPLOYEE CAREER PATHS KNOWLEDGE

COMPENSATION ANALYSIS MONITOR WAGES, SALARIES, BENEFITS MANAGEMENT

HUMAN RESOURCES PLANNING PLAN LONG-TERM LABOR FORCE NEEDS STRATEGIC

 What is Business Process
 A business process or business method is a collection
of related, structured activities or tasks that produce a
specific service or product (which serves a particular
goal) for a particular customer or a group of customers.
 Some examples of the business processes are
 Production.
 Finance.
 Human resource.
 EXAMPLES OF BUSINESS
PROCESSES
 MANUFACTURING & PRODUCTION: Assembling
product, checking quality, producing bills of materials

 MARKETING & SALES: Identifying customers,

creating customer awareness, selling
 EXAMPLES OF BUSINESS
PROCESSES. (Contd.)
 FINANCE & ACCOUNTING: Budgeting, arranging
finance, maintaining debt – equity ratio, and making
long term financial plans.

 HUMAN RESOURCE: Manpower planning,

recruiting, selection, T&D, PMS.
 SUPPLY-CHAIN
MANAGEMENT
SUPPLIER Procurement
Order
Processing

Planning Production

INTERNE
T/ DISTRIBUTOR
CUSTOMER INTRANE
T
Shipping

Finance Inventory

LOGISTICS
 HOW INFORMATION SYSTEMS
FACILITATES SUPPLY CHAIN
MANAGEMENT
BY DECIDING AS TO
 What to produce
 Where to store
 How to move
 Radically communicate orders
 Track order status
 Check inventory status
 Plan production based on the actual demand
 Share information about the product or services
 TRADITIONAL VIEW OF
SYSTEMS
 WITHIN THE BUSINESS: There are functions, each
having its uses of information systems

 OUTSIDE THE ORGANIZATION’S

BOUNDARIES: There are customers and vendors

FUNCTIONS TEND TO WORK IN ISOLATION

 ENTERPRISE SYSTEM
Manufacturing

Business Processes
Vendors Customers
Enterprise-wide
Business Process

Human
Resources Finance

Sales &
Marketing
 BENEFITS OF ENTERPRISE
SYSTEMS
 FIRM STRUCTURE & ORGANIZATION: One
organization
 MANAGEMENT: Firm wide knowledge-based
management processes
 TECHNOLOGY: Unified platform
 BUSINESS: More efficient operations & customer-
driven business processes
 CHALLENGES OF
ENTERPRISE SYSTEMS
 Daunting implementation

 High up front costs & future benefits

 Inflexibility

 Hard to realize strategic value

 INDUSTRIAL NETWORKS

LINK FIRMS INTO INDUSTRY-WIDE

SYSTEM

 HORIZONTAL: Link firms in same industry,

including competitors

 VERTICAL: Link firm with suppliers in same

industry
Thank you!