Management Information Systems

1. Management Information Systems The Strategic Role of Information System Delivered by: TasawarJaved Lecture 2

2. Key System Applications in the Organization • Operational level systems • Info that monitor the elementary activities & transactions of the organizations • Knowledge level systems • IS that support knowledge and data workers in an organizations • Management level systems • IS that support the monitoring, control, DM & Admin activities • Strategic level systems • IS that support the long range planning activities of senior management

3. The Evolution in Computer Applications • Transaction Processing Systems • Management Information Systems • Virtual Office Systems • Decision Support Systems • Enterprise Resource Planning Systems

4. Transaction Processing Systems • The first computer based systems were called Electronic Data Processing systems. • Later came to know as Accounting Information System. • To day the term • TPS (Transaction Processing System) is common. • These systems share a common bond in that they process data that reflect the activities of the firm. • Collection of people, procedure, software, database, devices • Records completed business transactions • How it works??? Figure

5. TPS • Operation level systems • Sales and marketing • Order tracking, Order processing • Manufacturing • Machine control, plant schedule, Material Movement Control • Finance • Securities trading, Cash Management • Accounting • Payroll, Accounts payables & receivable • Human resource • Compensation, T&D, Employee record keeping

6. Transaction Processing Systems

7. Transaction Processing Systems Employees data (all depts) Govt Docs To General Ledger: wages & Salaries Payroll Master File Payroll System Management reports Employee Checque Online queries:

8. Transaction Processing Systems

9. Transaction Processing SystemsA Model Environment Management E N V I R O N M E N T E N V I R O N M E N T E N V I R O N M E N T Data processing Software Database Transaction processing System Input physical resource Transform Output physical resource Environment

10. Transaction Processing Systems • Explanation • The Input, Transformation & Output elements of physical system of the firm are at bottom • Data are gathered from throughout the physical system and the environment and entered into the database • Data processing software transforms the data into information for the firm’s management and for individuals and organizations in the firm’s environment • Information is processed data that is meaningful, it usually tells users something that they did not already know

11. Transaction Processing Systems • TPS will exhibit following characteristics • Rapid processing • TPS systems are designed to process transactions virtually instantly to ensure that customer data is available to the processes that require it. • Reliability • TPS systems are therefore designed to incorporate comprehensive safeguards and disaster recovery systems. • Standardisation • Transactions must be processed in the same way each time to maximise efficiency. • Controlled access • Restricted access to the system ensures that employees who lack the skills and ability to control it cannot influence the transaction process.

12. The Evolution in Computer Applications • Virtual Office Systems • Decision Support Systems • Enterprise Resource Planning Systems

13. Virtual Office Systems • 1964; IBM introduced an Electric Typewriter with a magnetic-tape capability • It was capable of storing the typed data on magnetic tape and retrieve the material when needed • The application was called Word processing • This was start of office automation, which is the use of electronics to facilitate communication • In addition: e-mail, voice mail, electronic calendaring, audio conferencing, videoconferencing, computer conferencing and facsimile (FAX) transmission • Today, these applications account for a major portion of a firm’s use of the computer as a communications vehicle

14. Virtual Office Systems • Personal productivity systems • Use this technology to self-manage and support managers eg • To maintain calendar & address book that contain mailing ID, e-mail address, phone numbers • PDA (personal Digital Assistants) Technology: • Has not burdened managers with clerical tasks • To remove unnecessary obstructions to communicate between managers & others • Has made managers more efficient • Rapid communication (made—check---send)

15. Virtual Office Systems • Ability of the office automation applications to be performed anywhere gave birth to the concept a Virtual office; • The performance of office activities independent of a particular physical location. For example, managers can engage in a videoconference without all gathering at the same physical location. Virtual office system have made managers more available to customers and to others with in the firm.

16. Managers as IS users • First users of computer output were clerical employees in the accounting area. • When firm embraced the MIS concept, emphasis shifted from data to info and from clerical employees to problem solvers. • Managers are individuals, their info needs vary widely. • Some useful framework have been developed that make it possible to address the role of info in problem solving • High-quality info system cant be developed unless info systems professionals and managers understood the managerial framework upon which modern organizations are based

17. Where managers are found • Management level • Top • Middle & lower Strategic planning level Management control level Operational control level • Business Areas • Marketing • Manufacturing • Finance • HR • IS services

18. What managers Do? • Management functions: • French management theorist Henri Fayol • Five major Management Functions • Plan • Organize to meet the plan • Staff their organization (resources) • Direct them to execute plan • Control resources • Managerial Role: • Henry Mintzberg gave detailed story about it and presented 10 managerial roles such as; …………………………..

19. The Future of IT • Future of IT will be driven by reduced cost and increased power of both computers and communication. Power is measured in processing speed, storage capacity, and the variety of input and output devices. • Cell phones have browser, email, photo capability and editing features, wireless keyboards • These advances indicate that in the future computing will be low cost, small in size, & mobile connected. To take advantage of that managers must learn to incorporate IS into decision making

20. Thank you!!! • Q&A