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Semester 3: Information Systems for Business
Introduction to information system-The management, structure and activities- Information needs and sources-Types of management decisions and information need. System classification Elements of system, input, output, process and feedback.
Introduction to information system
Management of Information Systems
Management of information systems involves coordinating technology, people, and processes. It is essential for effective decision-making and operational efficiency. Managers use these systems to track performance, allocate resources, and manage information flow.
Structure of Information Systems
The structure of information systems includes the hardware, software, data, procedures, and people involved in processing and managing information. Understanding this structure helps in designing systems that meet organizational needs.
Activities in Information Systems
Activities in information systems involve data collection, processing, storage, and dissemination. These activities are critical for ensuring that information is accurate, timely, and relevant for decision-making.
Information Needs and Sources
Information needs vary across different levels of management and roles. Sources of information can be internal (within the organization) or external (market research, industry reports). Identifying accurate sources is vital for acquiring useful information.
Types of Management Decisions
Management decisions range from strategic to operational levels. Strategic decisions require long-term data and forecasts, while operational decisions rely on day-to-day data processing and information.
Types of Information Needs
Different types of information needs include strategic, tactical, operational, and transactional information, each serving distinct managerial purposes and timeframes.
System Classification
Information systems can be classified by their use and the level of management they support. Common classifications include Transaction Processing Systems, Management Information Systems, Decision Support Systems, and Executive Information Systems.
Elements of a System
Every information system comprises key elements: input (data collection), output (information dissemination), process (data processing), and feedback (system evaluation and adjustment). These elements ensure systems function efficiently and effectively.
Input, Output, Process, and Feedback
Input refers to the raw data fed into the system, output indicates the information produced, process describes how the data is transformed into information, and feedback helps in assessing system performance and making improvements.
Transaction Processing information system, Office Automation System OAS - Knowledge workers SystemKWS MIS Information system for managers, Intelligence information system Decision support system-Executive information systems.
Transaction Processing Systems and Information Systems for Business
Transaction Processing System (TPS)
Transaction Processing Systems handle day-to-day transaction data. They ensure accuracy, consistency, and reliability. Examples include order processing systems, payroll systems, and accounting systems.
Office Automation Systems (OAS)
OAS supports a range of office functions such as document management, email, scheduling, and collaboration. They enhance productivity by automating routine tasks.
Knowledge Worker Systems (KWS)
KWS cater to knowledge workers who analyze and utilize knowledge-based information. They provide tools and capabilities for research, data analysis, and decision-making.
Management Information Systems (MIS)
MIS provide managers with comprehensive reports and summaries from data collected by TPS. They assist in operational planning, control, and decision-making.
Intelligent Information Systems
These systems utilize artificial intelligence and machine learning to process data and provide insights. They facilitate advanced decision-making through predictive analytics.
Decision Support Systems (DSS)
DSS help in decision-making by analyzing data. They support unstructured and semi-structured decisions using models, data analysis tools, and simulations.
Executive Information Systems (EIS)
EIS provide top executives with easy access to internal and external information relevant to their strategic goals. They typically feature dashboards and visual analytics for quick insights.
Functional Management Information System Production Operations Information system, Marketing Information Systems, Accounting Information system, Financial Information system, Human resource Information system.
Functional Management Information Systems
Production Operations Information System
Focuses on managing production processes. It includes planning, scheduling, and controlling manufacturing operations. Key components include inventory management, quality control, and work order management.
Marketing Information Systems
Supports marketing decision-making by providing data on market trends, customer preferences, and competitive analysis. It aids in campaign management, sales forecasting, and customer relationship management.
Accounting Information System
Facilitates the collection, storage, and processing of financial data. Key functions include tracking accounts payable and receivable, managing payroll, and preparing financial statements.
Financial Information System
Analyzes financial data to support an organization's financial management. It helps in budgeting, forecasting, and financial reporting to ensure effective decision-making based on financial performance.
Human Resource Information System
Manages employee data and HR processes. Key functions include recruitment, training management, performance evaluation, and benefits administration.
System Analysis and Design The work of a system analyst- SDLC-System design AGILE Model Waterfall Model Spiral Model Iterative and Incremental Model - RAD Model - Requirement analysis-Data flow diagram, relationship diagram, design- Implementation-Evaluation and maintenance of MIS, Database System Overview of Database- Competition and International trade, Oligopoly and International trade.
System Analysis and Design
System analysts evaluate business needs and work on improving systems. They gather requirements and design solutions to enhance operational efficiency.
System Development Life Cycle outlines the phases of software development: planning, analysis, design, implementation, and maintenance.
AGILE focuses on iterative development and flexibility, allowing incremental releases with ongoing stakeholder involvement.
Waterfall model is a linear approach to software development with defined stages. Each phase must be completed before moving to the next.
Spiral model combines iterative nature with systematic risk assessment, emphasizing refining and improving at each cycle.
This model involves developing the system in small, manageable sections, allowing for gradual enhancement and updates.
Rapid Application Development emphasizes quick prototyping and user feedback, speeding up the development process.
Requirement analysis is crucial for understanding what the system needs to accomplish. Techniques include interviews, surveys, and document analysis.
DFDs illustrate how data moves within the system, helping identify system inputs and outputs.
Relationship diagrams depict how different entities in the system interrelate, clarifying interactions and dependencies.
Implementation involves coding and deploying the system while ensuring that it meets the specified requirements.
Post-implementation evaluation assesses system performance and identifies areas for maintenance and upgrades. Ongoing maintenance ensures the system remains functional and relevant.
Management Information Systems facilitate decision-making processes. Understanding databases, data structures, and integrity is vital for optimal performance.
Exploring the impacts of competition in international trade, particularly in oligopolistic markets, reveals strategies for business growth and market positioning.
Enterprise Resource Planning ERP System, Benefits of the ERP, ERP how different from conventional packages , Need for ERP , ERP components , Selection of ERP Package, ERP implementation, Customer Relationship management. Organisation Types, Decision Making, Data information, Characteristics Classification of information, Cost value of information, various channels of information and MIS Information system audit and control E-Governance.
Enterprise Resource Planning ERP System
Introduction to ERP
Enterprise Resource Planning systems are integrated software solutions used to manage core business processes across different departments in an organization.
Benefits of ERP
ERP systems streamline processes, improve data accuracy, enhance decision-making, increase efficiency, provide real-time insights, and support compliance.
Differences between ERP and Conventional Packages
ERP systems offer a more holistic approach by integrating various functions such as finance, HR, and supply chain, while conventional packages typically focus on individual functions.
Need for ERP
Organizations face challenges like data silos, inefficient processes, and the need for real-time information; ERP systems address these challenges effectively.
ERP Components
Key components include modules for finance, human resources, manufacturing, supply chain management, customer relationship management, and project management.
Selection of ERP Package
Crucial factors for selection are the alignment of ERP features with business needs, scalability, vendor support, cost, and user-friendliness.
ERP Implementation
Successful implementation requires clear goals, a detailed project plan, stakeholder involvement, change management, training, and ongoing support.
Customer Relationship Management in ERP
CRM modules within ERP enhance customer interaction, improve service delivery, and provide a consolidated view of customer data.
Organizations Types
Different types of organizations may adopt ERP systems based on size, industry, and specific operational needs, influencing system selection.
Decision Making
ERP systems facilitate informed decision-making by providing timely and accurate data analytics to managers and stakeholders.
Data Information
Data collected through ERP systems is vital for creating reports, trends analysis, and strategic planning.
Characteristics and Classification of Information
Information characteristics include accuracy, relevance, timeliness, and completeness; classification includes operational, tactical, and strategic levels.
Cost Value of Information
The cost value of information considers both the financial costs of data collection and management as well as the economic value derived from informed decision-making.
Various Channels of Information
Channels include internal databases, external sources, online platforms, and social media, allowing organizations to gather diverse insights.
Management Information Systems MIS
MIS involves the use of information systems to analyze business data for better decision-making, planning, and operational control.
Information System Audit and Control
Audits ensure the integrity, confidentiality, and availability of information within ERP systems, safeguarding organizational data and processes.
E-Governance
E-Governance involves using information technology in public sector management, facilitating transparency, efficiency, and citizen engagement.
