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VK VK. Charlotte Heather. Uma Rani. Show More. Views Total views. Actions Shares. No notes for slide. Management Information System Full Notes 1. I am very thankful to my student Mr. Dibas Gaudel Asian College for his effort in typing this note so perfectly. For any confusion please go through the soft copy of your text book and also follow the chapter wise notes that I have given in the class room. I will provide you the newer version of the note once I change this initial version before your board exam.

For any questions: Feel free to contact me: Er. Catia helps to test manufacturability, converse engineering, and reusability. Conclusion The changes taking place at Toyota motor Corporation exemplify the transformation of business firm throughout the world as the re-build themselves as fully digital frames such digital frames use the internet and networking technology to make data flow easily among different parts of the organization and create electronic links with customers, suppliers, and other organizations.

All types of business both large and small are using information systems, network and internet technology to conduct more of their business electronically, achieving new levels of efficiency, competiveness and profitability. Chapter 1 Managing Digital Firm As a manager, you will need to know how information systems can make business more competitive, efficient and profitable.

Why Information System? Why information system? Why information system matter? How much does IT matter? Why IT now? Digital convergence and the changing business environment Four powerful worldwide changes had altered the business environment. The first change is emergence and strengthening of the global economy. The second change is transformation of industrial economies and societies information knowledge and information based services economies.

The third is the transformation of the business enterprise. The fourth is the emergence of the digital firm. Emergence of the Global Economy - The success of firms today and in future depends on their ability to operate globally.

To become competitive participants in international markets, firms need powerful information and communication systems. Transformation of Industrial Economies - The US, Japan, Germany and other major industrial power are transformed from industrial economies to knowledge and information based service economies, whereas manufacturing has been moving to low-wage countries.

Knowledge and information intense products such as computer games require a great deal of knowledge to produce. Transformation of Business Enterprise -The traditional business firm was and still is a hierarchical, centralized, structured arrangement of specialist that typically relied on a fixed set of standard operating procedures to deliver a product or services. The new style of business firm is a flattened less hierarchical , decentralized, flexible arrangements of generalist ho rely on nearly instant information to deliver specific markets or customers.

The new manager relies on information commitments and networks to establish goals rather than formal planning, a flexible arrangement of teams and individuals working in task forces, and a customer orientation to achieve co- ordination among employees.

The new manager appeals to the knowledge, learning and decision making of individual employees to ensure proper operation of the firm. Information technology makes this type of management possible. The digital firm can be defined along several dimensions.

Core business processes are accomplished through digital network spanning entire organization or linking multiple organizations. Business processes refers to the unique manner in which work is organized, coordinated and focused to produce a valuable product or services.

Developing a new product, generating and fulfilling an order or hiring an employee are examples of business processes and the way organizations accomplish their business processes can be a source of competitive strength. In a digital firm any piece of information required to support key business decisions is available at anytime and anywhere in the firm. Digital firms sense and respond to their environment far more rapidly than traditional firms.

Digital firms offer extraordinary opportunities for more global organization and management. For managers of digital firms, IT is not simply a useful hand but rather it is the core of business and a primary management tool. There are four major system that help define the digital firm:- i. Supply Chain Management System ii. Customer Relationship Management system iii. Enterprise System iv. Knowledge Management System These four systems represent the areas where corporations are digitally integrating their information flows and making major information system investment.

A few firms such as Cisco Systems or Dell Computer Corporation are close to becoming fully digital firms using the internet to drive every aspect of their business.

Supply Chain Management System Information system that automate the relationship between a supplier and customer and its supplies in order to optimize the planning, sourcing, manufacturing and delivery of products and services. Customer Relationship Management system Information systems for creating a coherent integrated view of all of the relationships a firm maintains with its customers. Enterprise System Integrated enterprises-wide information systems that coordinate key internal processes of the firms, integrated data from manufacturing and distribution finance, sales, and human resource.

Knowledge Management System System that supports the creation, capture, storage of knowledge in the firm and use by the firm expertise. An information system contains information about an organization and its surrounding environment. Three basic activities — input, processing, and output produce the information organization needs. Feedback is output returned to appropriate people or activities in the organization to evaluate and refine the input environment factors such as customers, suppliers, competitors, stock holders and regulatory agencies interact with the organization and its information.

Fig: Function of an Information System An information system contents information about an organization and its surrounding environment. A business Perspective on Information System Fig. From a business perspective Information System are part of a value adding activities for acquiring, transforming and distributing information that managers can use to improve decision making, enhance organizational performance and ultimately increase firm profitability and strategic position.

Integrating text with technology: New opportunities for learning See: www. All information systems can be described as organizational and management solutions to challenges posed by the environment that will help create value for the firm.

Technical Approach - It emphasis mathematically based models to study Information System, as well as the physical technology and formal capabilities of these systems. Behavioral Approach - It is concern with behavioral issues that arise in the development and long term maintenance of information system. Indeed information system technology is often the stimulus for a behavioral problem or issues.

Instead, it concentrates on attitudes, management and organizational policy and behavioral. The Challenges of Information System 1. The Strategic Business Challenge 2. The Globalization Challenge 3. The Information Architecture and Infrastructure Challenge 4. The Information System Investment Challenge 5. The Responsibility and Control Challenge 1.

The Strategic Business Challenge - Realizing the digital firm:- how can business use IT to become competitive, effective and digitally enabled? The Globalization Challenge - How can firms understand the business and system requirements of global economic environment?

The Information Architecture and Infrastructure Challenge - How can organizations develop an information architecture and information technology infrastructure that can support their goals when business conditions and technologies are changing so rapidly? The Information System Investment Challenge - How can organization determine the business value of information system? The Responsibility and Control Challenge - How can organizations ensure that their information systems are used in as ethically and socially and responsible manner?

Chapter 2 Management Information System Fig: Types of Information System Organizations can be divided into strategic, management, knowledge and operational levels and into five major functional areas- sales and marketing, manufacturing, finance, accounting, and human resource.

Information system serves each of these levels and functions. Relationship of systems to one another Fig: Interrelationships among systems The various types of systems in the organization have interdependencies. TPS are a major producer of information that is required by the other systems which, in turn, produce information for other systems. These different types of systems are only loosely coupled in most organizations.

Types of Information system 1. A TPS is a computerized system that performs and records the daily routine transactions necessary to conduct business. Examples are sales order entry, hotel reservation system, payroll, employee record keeping, etc. TPS are also measure producers of information for the other type of system. Knowledge work system aid knowledge workers whereas office systems primarily aid data workers.

Knowledge workers are people who hold formal university degrees and who are often members of Santosh Dhungana MIS Version 1. Their jobs consist primarily of creating new information and knowledge. Data workers typically have less formal advanced educational degrees and tend to process rather than create information.

They consist primarily of secretaries, book-keepers, filing clerks or managers whose jobs are principally to use and manipulate information. MIS It is the Information system at the management level of an organization that serve the functions of planning, controlling and decision making by providing routine summary and exception reports. Typically they are oriented almost exclusively to internal, not environmental or external events. MIS usually serve managers interest in weekly, monthly and yearly results not day to day activities.

DSS Decision Support System It is the information system at the organizations management level that combines data and sophisticated analytical models or data analysis tools to support semi-structured and unstructured decision making. DSS use internal information from TPS and MIS; they often bring in information from external sources such as current stock prices or product prices of competitors. DSS have more analytical power then other systems.

It is an interactive system in which user can change assumptions, ask new questions and include new data. ESS Executive Support System It is the information system at the organizations strategic level designed to address unstructured decision making through advanced graphic and communication.

ESS is designed to incorporate data about external events such as new tan laws and competitors. They filter, compares and track critical data, emphasizing the reduction of time and effort required to obtain information useful to executive. Sales are concerned with contacting customers, selling the products and services, taking orders and following up on sales. Sales and marketing information systems support these activities example System Description Organization level Order processing Enter, process and track orders.

Management level Sales trend forecasting Prepare 5-year sales forecast Strategic level 2. Manufacturing and production activities deal with the planning, development, and maintenance of production facilities; the establishment of production goals; the acquisition, storage, and availability of production materials; and the scheduling of equipment, facilities, materials, and labor required to fashion finished products. The finance function is also in charge of managing the capitalization of the firm.

In order to determine whether the firm is getting the best return on its investments, the finance function must obtain a considerable amount of information from sources external to the firm. System Description Organization level Account receivable Track money owned the firm Operational Level Portfolio Analysis Design the firms portfolio of investments Knowledge level Budgeting Prepare short term budgets Management level Profit planning Plan long term profits Strategic level 4.

Management level Human resource planning Plan the long term labor force needs of the organization. Enterprise Application System See book Fig traditional view of system In most organizations, separate systems built over a long period of time support discrete processes and discrete business function.

Generating and fulfilling an order is a multistep process involving activities performed by the sales, manufacturing and production, and accounting functions. Fig: Enterprise systems Enterprise systems can integrate the key business processes of an entire firm into a single software system that allows information to flow seamlessly throughout the organization. These systems may include transactions with customers and vendors.

These systems focus primarily on the internal processes but may include transactions with customers and vendors. Enterprise system provides a technology platforms where organization can integrated and coordinate their major internal business processes. They address the problem of organizational inefficiencies created by isolated islands of information, business processes and technology. A large organization typically has many different kind of information systems that support different functions, organizational levels and business processes.

Most of these systems are built around different functions; business units and business processes that do not talk to each other. Managers might have a hard time assembling the data they need for a comprehensive, overall picture of the organizations operations.

Enterprise systems, also known as Enterprise Resource Planning ERP systems solve the above mentioned problem by providing a single information system for organization- wide coordination of key business processes.

The enterprise system collects data from various key business and stores the data in a a single comprehensive data repository where they can be used by other parts of business. To learn more, view our Privacy Policy. Log In Sign Up. Download Free PDF. Introduction to Management Information System. Inemesit Gibson. Download PDF. A short summary of this paper. Inemesit Gibson B. If you continue browsing the site, you agree to the use of cookies on this website.

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