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3.mis Chapter Three Computer Based Is

1. The document discusses various types of computer-based information systems including operational support systems like transaction processing systems and process control systems. 2. It also covers management support systems such as management information systems, decision support systems, executive information systems, and group decision support systems. 3. Examples of how different systems are used to support various business functions and decision making are provided.

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Endash Haile
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14 views

3.mis Chapter Three Computer Based Is

1. The document discusses various types of computer-based information systems including operational support systems like transaction processing systems and process control systems. 2. It also covers management support systems such as management information systems, decision support systems, executive information systems, and group decision support systems. 3. Examples of how different systems are used to support various business functions and decision making are provided.

Uploaded by

Endash Haile
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CHAPTER3

COMPUTER BASED INFORMATION


SYSTEM
OBJECTIVES

1. Describe the evolution of computer based


management information systems
2. Describe the relationship between functional
information systems
3. Discuss the operational support systems
4. Discuss the management Support Systems
5. Distinguish DSS and GDSS
6. Familiarise using excel applications in DSS
THE EVOLUTION OF INFORMATION SYSTEM
CLASSIFICATION OF IS BY OPERATIONAL AND MANAGERIAL ACTIVITIES
OPERATION SUPPORT SYSTEM

Types and functions of Operation Support Systems

1. Transaction Processing Systems: Efficiently


process business transactions; Update corporate
databases

2. Process Control systems: Control industrial


processes

3. Enterprise Collaboration Systems: Support


communications and collaboration
OPERATION SUPPORT SYSTEM...

1. Transaction Processing Systems (TPS)

 A computerized system that performs and records daily


routine transactions necessary to the conduct of the
business.
 Record and process data resulting from business
transactions .

 TPSs are information systems that process data resulting


from the occurrence of business transactions.
Example: payroll system; production instructions
OPERATION SUPPORT SYSTEM
Types of TPS

1. Batch Processing:
 transactions data is accumulated over time and
processed periodically
 Example: a bank processes all checks received in a batch
at night.

2. Online Processing:
 Data is processed immediately after a transaction
occurs.
 Example: a bank processes an ATM withdrawal
TPS....

3. Process Control Systems


 Monitor and control physical processes
 Example: a petroleum refinery use sensors to
monitor chemical processes

4. Enterprise Collaboration Systems


 Enhance team and work group communications
 Examples: e-mail, videoconferencing
Management Information System (MIS)

provides information for managing an


organization
Extract and summarize data from TPSs.
Allow managers to monitor & direct the organization
Provide accurate feedback
Provide pre-specified reports on a scheduled basis
Top managers make strategic decisions
Middle managers make tactical decisions
Line managers make operations decisions
Knowledge workers create and integrate knowledge
Clerical workers use and manipulate information
Decision support system (DSS)

 an interactive information system that provides information,


models, and data manipulation tools to help make decisions
in semi-structured and unstructured situations.

 Support analytical work.

 Simulation and Optimization.

 Simulation model –calculates the simulated outcome of


tentative decisions and assumptions.

 Optimization model –determine optimal decisions based on


criteria supplied by the user, mathematical search techniques,
and constraints.
DSS...

 Online analytical processing (OLAP): the use of


data analysis tools to explore large databases of
transaction data.

 Data mining: the use of analysis tools to find


patterns in large transaction databases
Executive information system (EIS)

 A highly interactive system that provides a flexible


access to information for monitoring results and
general business conditions.

 Use both internal and competitive information.

 User-friendly interface.
Expert Systems

Support professionals faced with complex


situations requiring expert knowledge in a well-
defined area.
 They represent human expertise also called
knowledge-based systems.

 Typically use if-then rules.

 Used as interactive advisors or as automated


tools
Office Automation Systems (OAS)

 Help people perform personal record keeping,


writing, and calculations efficiently.

 Main types of tools include:


1. Spreadsheet programs.

2. Text & image processing systems.

3. Personal database systems and note-taking


systems.
CROSS FUNCTIONAL IS

 Cross-functional information systems


 Systems that are combinations of several types of
information systems that provide support for operations and
management functions

1. Functional business systems


 Focus on operational and managerial applications of basic
business functions
 Examples: support accounting, finance or marketing

2. Strategic information systems


 Help to get a strategic advantage over competitors
CROSS FUNCTIONAL IS...

3. Knowledge Management Systems


 Support the creation, organization and
dissemination of business knowledge throughout
the company
 Example: Intranet access to best business
practices
EXAMPLES OF FUNCTIONAL SYSTEM

1. The Human Resource Management Information System


 personnel record keeping systems
 Workforce requirement planning and forecasts systems

2. Financial Management Information Systems


 Capital structure, dividend and investment decisions.

a)Cash & Securities Management Systems


b)Capital budgeting system

 Electronic spreadsheet packages and decision support


generators
MANGEMENT SUPPORT SYSTEM

They Provide information and support decision


making

1.Management Information Systems(MIS).


2.Decision Support Systems (DSS).
3. Executive Information Systems (EIS)
TYPES OF MGMT SUPPORT SYSTEM

1. Information reporting systems (MIS)

 provides managerial end user with information that supports the day-
to-day decision-making needs of a manager.

 Important for accountability and transparency

• Two types of reports

 Scheduled (periodic) report- For example, preparing monthly, quarterly


or annual performance and financial reports.

 special reports: can be Exception Report or on demand report.


TYPES OF MGMT SUPPORT SYSTEM
2. DSS
What is decision support system?

is an “interactive computer based information


system that uses decision models and specialised
databases to assist the decision making processes
of managerial end user”.
TYPES OF MGMT SUPPORT SYSTEM
 A DSS is a computer based system (an application program) capable of
analyzing an organizational (or business) data and then presents.

 it is a way that helps the user to make business decisions more


efficiently and effectively.

 It is basically an informational application which depends on the


information already input while answering to a given query.

 For example, a decision support system could provide:

1. Comparative sales figures for one week/month and the next.

2. Projected revenue figures based on new product sales assumptions.

3. Consequences of different decision alternatives, given past experience.


TYPES OF MGMT SUPPORT SYSTEM

 Elements of DSS

1. the database to provide data used in the


models,

2. the model base

3. The user interface


TYPES OF MGMT SUPPORT SYSTEM
EXAMPLE OF DSS MODEL
Optimization model: Example Linear Programming

• Example: Use excel to solve linear programming


problems
TYPES OF MGMT SUPPORT SYSTEM
 SOME APPLICATIONS OF DSS

 DSS applied in different sectors such as:-


Banks to assess customer profile.
Insurances to examine customer buying and fraud detection.
Corporations for investment evaluation. etc.

 Web-based DSS: provide information from multiple sources


and analytical tools to help potential customers select
product and services.

 CDSS: - System to support the decision making process of an


existing or potential customer.
TYPES OF MGMT SUPPORT SYSTEM
 GROUP DECISION SUPPORT SYSTEM

 is an interactive computer-based system to facilitate the solution to unstructured


problems by a group of decision makers working together as a group.

 The reasons for GDSS have been:


1. the increase in the number and the length of meetings,
2. the increased number of attendees, and
3. the geographical distance between participants.

 Three groups of people involved in the development of GDSS are:

1. Meeting facilitators,
2. organizational development professionals and
3. Information system specialists
TYPES OF MGMT SUPPORT SYSTEM
 Areas of improvements made as a result of GDSS
1. Improve preplanning session
2. Increased participation
3. Created open collaborative meeting atmosphere
4. Criticisms-free idea generation
5. Idea organization from diverse areas
6. Documentation of decisions
7. Access to external information
TYPES OF MGMT SUPPORT SYSTEM

 BARRIERS TO GDSS

 Complexity: GDSS can be configured in an almost infinite variety of


ways.

 Their Successes partially depend on:

 the effectiveness of the facilitator,


 the quality of the planning,
 the cooperation of the attendees,
 the appropriateness of tools selected for different types of meetings.

 can’t always help participants process the information effectively or


reach better decisions.
TYPES OF MGMT SUPPORT SYSTEM
 Specific GDSS software tools include the following:-
1. Electronic questionnaires.

2. Electronic brain storming tools.

3. Idea organizers.

4. Tools for voting or setting priorities.

5. Stakeholder identification and analysis tools


6. Group dictionary
TYPES OF MGMT SUPPORT SYSTEM

3. THE EXECUTIVE INFORMATION SYSTEM(EIS)


 EIS can be said MIS tailored to serve the strategic information need of
the top management.

 “The goal of EIS is to provide top management with immediate and easy
access to selective information about key factors that are critical to
accomplishing a firms strategic objective."

 Has the ability to drill down, moving from summary data to lower and
lower level of detail; e.g. OLAP (online analytical processing software).

 Today, the major challenge to integrate data from systems designed for
different purposes has been resolved using enterprise systems that
provide firm wide information
EIS...

 EIS helps the executive to have immediate access to internal and


external databases:

1. to monitor organizational performance.


2. To track activities of competitors
3. Spot problems
4. To scan the environment to identify opportunities and,
5. Forecast trends

 EIS are flexible, help to analyse, compare and highlight trends.

 Improves the span of management

 Enables top managers to centralise operational information.


THANK YOU

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