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management information system module2

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management information system module2

  1. 1. MODULE 2 Business Information systems – Marketing Information Systems – Manufacturing Information Systems – Human Resource Information Systems , Financial Information Systems – Transaction Processing System(TPS).
  2. 2. Business Information systems
  3. 3. Business Information systems Business information systems (BIS) can be defined as systems integrating information technology, people and business.
  4. 4. Business Information systems  „A business information system is a group of interrelated components that work collectively to carry out input, processing, output, storage and control actions in order to convert data into information products that can be used to support forecasting, planning, control, coordin ation, decision making and operational activities in an organisation.‟
  5. 5. Resources that support BIS  People resources  Hardware resources  Software resources  Communications resources  Data resources
  6. 6. Business information systems as an organizational control mechanism
  7. 7. Marketing Information Systems
  8. 8. Marketing Information Systems  It is a management information system designed to support marketing decision making.  According to American Marketing Association”MKIS (MIS) is a set of procedures and methods for the regular, planned collection, analysis and presentation of information for use in marketing decisions”
  9. 9. Definition By Philip Kotler  'MKIS' is a planned system of collecting, processing, storing and disseminating data in the form of information needed to carry out the functions of management
  10. 10.  Marketing information consists of people, equipment and procedures to gather,sort,analyze,evaluate and distribute needed, timely and accurate information to marketing decision makers.
  11. 11. Marketing Information system supplies three types of information.  Recurrent Information  Monitoring Information  Requested Information
  12. 12. •Recurrent Information This is the data that an MIS supplies periodically about the market share of a specific product and customer‟s awareness of company‟s brands. The data may be supplied on weekly, monthly or yearly basis.
  13. 13. • Monitoring Information This is the data obtained from the regular scanning of certain sources. Marketing managers may need data related to competition or the industry. It is essential so that marketing managers can be alert and identify potential problems
  14. 14. • Requested Information This information is developed in response to some specific request by the marketing manager. Secondary data or primary data through survey research are collected in response to the specific request. The MIS supplies the requested information for decision making.
  15. 15. Marketing Information system External data Internal data Requested information Marketing Research division Marketing Information system Marketing Managers Division
  16. 16. Sources of Marketing Information . The MIS information inputs come from different sources, viz., both within and outside firms . Some of the commonly used internal sources of information are:  Sales Analysis- The marketing information system retrieves sales information and put them in usable and disaggregated form. It detects various marketing strengths and weaknesses. Computer assisted sales analysis uncovers significant details for management needs.
  17. 17. Cost Analysis-The cost analysis is possible with the effective accounting system. The classification and analysis of the cost of production, cost of distribution and selling may provide adequate information for the management purposes . Financial Records- The financial records & publications may provide adequate opportunities for management of sales & marketing activities .Many companies prepare periodical final statement to observe the balance of each item of financial records.
  18. 18. Importance of MKIS Why Information Is Needed Marketing Environment Strategic Planning Customer Needs Competition
  19. 19. Importance of marketing information system  Anticipation Of Customer Demand- Every marketer needs up-to-date knowledge about consumer needs and wants.  Systematic Approach-Expanding markets and competitive marketing environment require adequate market intelligence system.  Economic indicator-Marketers must have latest information on the changing trends of supply, demand and prices
  20. 20.  Significance of Analysing Competition- Marketer cannot survive without having information regarding nature , character and size of competition to be met.  Development of Technology-Marketers must have latest information regarding technological development.  Understanding the Consumer-Information system can establish proper two way flow of information and understanding between marketers and consumer.  Marketing Planning-Marketing plans and programmes are based upon information supplied by economic forecasts and market research.
  21. 21. Functions of MKIS Marketing Information Systems Interactive Marketing Sales Force Automation Customer Relationship Management Sales Management Market Research and Forecasting Advertising and Promotion Product Management
  22. 22. The components of a MKIS
  23. 23. Characteristics Of MKIS  Continuous process  Centralized system  Modern technology  Efficient operations  Feedback provider  Economical  Future-oriented
  24. 24. Advantages of MKIS 1. Organized data collection. 2. A broad perspective. 3. The storage of important data. 4. An avoidance of crises. 5. Coordinated marketing plans. 6. Speed in obtaining sufficient information to make decisions. 7. Data amassed and kept over several time periods. 8. The ability to do a cost-benefit analysis.
  25. 25. Disadvantages of MKIS  high initial time an labor costs  the initial complexity of setting up an information system.
  26. 26. Manufacturing Information Systems
  27. 27. Manufacturing Information Systems  A computer-based system that works in conjunction with other functional information systems to support the firm's management in solving problems that relate to manufacturing the firm's products.
  28. 28. Manufacturing Information Systems  The manufacturing function is concerned with the production of goods that the business sells.  Manufacturing information Manufacturing information provide services to support the manufacturing function.  Inventory control is often considered to be a manufacturing information system because manufacturing produces the goods for inventory.  Purchasing may also be a manufacturing information system in some businesses.
  29. 29. Manufacturing Information System  A model of a manufacturing information system Accoun ting informa tion system Industr ial engine ering subsyst emManufac turing intellige nce subsyste m Input subsyst ems Environ mental sources Interna l sources Data base Product ion subsyst em Output subsyst ems Invento ry subsyst em Quality subsyst em Cost subsyst em User Data Information
  30. 30. Receiving inspection Receiving area Raw-materials storeroom Shop floor area Shipping area Finished-goods storeroom Manufacturing Information System  Accounting Information System Terminal
  31. 31. Manufacturing Information System  Industrial Engineering Subsystem  IE‟s work involves the setting up of production standard and are compared to actual performance.  Manufacturing Intelligence Subsystem  Labor information  Supplier information Supplier input : Financial strength, past quality and delivery performance, and so on. Quality control input : Units rejected upon receipt, units rejected during production, reasons for rejection, etc. Customer service input : Units replaced or repaired because of defective parts, supplier spare parts availability, and so on.
  32. 32. Manufacturing Information System  Production Subsystem  Production flows  Bill of material  Production schedule  Inventory Subsystem  The importance of inventory level  Maintenance costs/carrying cost(spoilage, pilferage, obsolescence, taxes and insurance)  Purchasing costs  Economic order quantity (EOQ)  Economic manufacturing quantity (EMQ)
  33. 33. Manufacturing Information System  Quality Subsystem  Quality control inspectors  Total Quality Management  Company wide  Systematic  Scientific  Cost Subsystem  Preventive maintenance (PM)  Breakdown hours
  34. 34. Manufacturing Activities Supported by Information Systems
  35. 35. Benefits  Reduced waste, re-work and scrap  More accurate capture of cost- information (e.g. labor, scrap, downtime, and tooling)  Increased uptime  Reduced inventory, through the eradication of just-in-case inventory
  36. 36. Human Resource Information System
  37. 37. Human Resource Information System  “HRIS can be briefly defined as integrated systems used to gather, store and analyze information regarding an organization‟s human resources.”
  38. 38. Human Resource Information System  It is a software or online solution for the data entry, data tracking, and data information needs of the Human Resources, payroll management, and accounting functions within a business.  HRIS is designed to supply information required for effective management of human resources in an organisation.
  39. 39. Human Resource Information System is an organised method of providing information about human resource, their functioning, external factors relevant to managing human resource.
  40. 40. The basic objective of HR information system are : 1) To provide accurate information about human resource and their functioning and relevant environmental factors. 2) To provide relevant information . 3) To provide timely information.
  41. 41. Characteristics of hris  Management of all employee information.  Reporting and analysis of employee information.  Company-related documents such as employee handbooks, emergency evacuation procedures, and safety guidelines.  Benefits administration including enrollment, status changes, and personal information updating.  Complete integration with payroll and other company financial software and accounting systems.
  42. 42. Functions of HRIS
  43. 43. Benefits  Increased Efficiency – ◦ more transactions with fewer resources  Increased Effectiveness – ◦ more accurate information and simplification of processes  quality in HR decision making  improve employee and managerial productivity and effectiveness.
  44. 44. The HRIS Department’s responsibilities include:  Identification, planning, and implementation of HRIS changes and updates in order to meet the strategic needs of Human Resources  Project implementation to simplify time-consuming transactions through the automation of administrative tasks and departmental workflows, and foster a paperless and more efficient working environment  Production support activities such as technical data analysis, upgrade testing, and documentation of Human Resources processes  To ensure timely and accurate delivery of all required interfaces and/or reporting to University internal departments, State and Federal government agencies  To act as the liaison between IT/Consultant and functional end users to bridge the gap between technical and functional requirements of the Division of Human Resources and the information management systems in place  Merge the different parts of human resources, including payroll, labor productivity, and benefit management into a less capital-intensive system
  45. 45. Financial Information System
  46. 46. Financial Information System  A financial information system (FIS) accumulates and analyzes financial data used for optimal financial planning and forecasting decisions and outcomes.  A financial information system (FIS) is a business software system used to input and track financial and accounting data.  The system generates reports and alerts that assist managers in effectively running the business.
  47. 47. Objectives of FIS a. Decisions concerned with the financing of a business b. The allocation and control of financial resources within a business.
  48. 48. FIS includes.. Financial Information System Cash Management Investment Management Capital Budgeting Financial Planning
  49. 49. Transaction Processing Systems (TPS)
  50. 50. Transaction Processing System  A transaction processing system is a type of information system .  TPSs collect, store, modify, and retrieve the transactions of an organization.  A transaction is an event that generates or modifies data that is eventually stored in an information system.  E.g.:-order entry system, cheque processing systems, accounts receivable systems, payroll system and ticket reservation systems .  These system help any company to conduct operations and keep track of its activities .
  51. 51. Types of TPS:  Two types of TPS: ◦ Batch processing  A system whereby business transactions are accumulated over a period of time and prepared for processing as a single unit or batch ◦ On-line/real-time transaction processing  A system whereby each transaction is processed immediately, without the delay of accumulating transactions into a batch
  52. 52. Batch Schematic Data entry of accumulated transactions Input (batched) Output
  53. 53. On-line Schematic Output Terminal Terminal Terminal Terminal Terminal Terminal Immediate processing of each transaction
  54. 54. Objectives of TPS ◦ Process data generated by and about transactions ◦ Maintain a high degree of accuracy ◦ Ensure data and information integrity and accuracy ◦ Produce timely documents and reports ◦ Increase labour efficiency ◦ Help provide increased and enhanced service ◦ Help build and maintain customer loyalty ◦ Achieve competitive advantage
  55. 55. Simplified Overview of a Transaction Processing System Schematic
  56. 56. Data entry & input Processing Documents & reports Database Internally generated transactions: • shipped orders • purchase orders • employee time cards Externally generated transactions: • customer orders • vendor invoices • customer payments Database update: • customer orders • inventory • purchase orders • customers • suppliers Documents: • pick list • cheques to vendors • receiving notices • paycheques Operational reports: • finished product inventory status • raw materials; packing materials; spare parts; inventory status
  57. 57. Transaction Processing cycle:-  Transaction processing systems capture and process data describing business transactions. Then they update organizational files and databases and produce a variety of information products for internal and external use.  Transaction processing systems generally go through a five-stage cycle of  1) Data entry activities  2) Transaction processing activities  3) File and database processing  4) Document and report generation  5) Inquiry processing activities
  58. 58. TPS Characteristics:  They collect, store, modify and retrieve the transaction of an organisation.  Directly support business operations  Must be designed in conjunction with the organisation‟s procedures.  Main information processes: collecting and storage.
  59. 59. Data Input Data Processing Output Generation Data Storage A Transaction Processing Model
  60. 60. TPS Applications  Order Processing  Purchasing  Accounts Receivables & Accounts Payables  Receiving & Shipping  Inventory on Hand  Payroll  General Ledgers
  61. 61. End of 2nd Module References: “Introduction of Information Systems”- James A. O‟ Brien “Management Information System”- George M Marakas.. “Management Information System”- Post & Anderson