Course Code: 19MBA511B

Course Title: Management Information Systems

Course Leader:
Ms. Shilpa R.G.

Email: shilparg.ms.mc@msruas.ac.in

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Course Code: 19MBA511A

Course Title: Management Information Systems

Session 4: Business Systems

Course Leader:

Ms. Shilpa R.G.

shilparg.ms.mc@msruas.ac.in
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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Session Objectives

At the end of this session, student will be able to:

• Discuss the different types of information systems

• Discuss the changing environment and its impact on Business

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Session Contents

• Qualities of Information

• Activities in an Information System

• Management Challenges

• Contemporary approaches to IS

• Types of Information Systems

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Qualities of Information
• Accurate

• Complete

• Trustworthy

• Timely

• Up to date

• Relevant

• Brief

• Significance understandable

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Activities in an Information System

INPUT PROCESS OUTPUT

FEEDBACK

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Faculty
©M. S. of Management
Ramaiah andofCommerce
University Applied Sciences © Ramaiah University of Applied Sciences
 Management Challenges

• Design competitive and effective systems

• Understand system requirements of global business

environment

• Create information architecture that supports

organisation’s goal

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Management Challenges

• Determine business value of information systems

• Design systems people can control, understand and

use in a socially, ethically responsible manner

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Information Systems

ORGANIZATIONS TECHNOLOGY

INFORMATION
SYSTEMS

MANAGEMENT

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Contemporary approaches to IS
TECHNICAL APPROACHES

COMPUTER
OPERATIONS
SCIENCE
RESEARCH
MANAGEMENT
SCIENCE
MIS
SOCIOLOGY

PSYCHOLOGY POLITICAL SCIENCE

BEHAVIORAL APPROACHES
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 Examples of Information Systems

• An inventory control system

• An order entry system

• A production scheduling system

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Types of Information Systems

Systems from a functional perspective

• Sales and marketing systems

• Manufacturing and production systems
• Finance and accounting systems
• Human resources systems

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Faculty
©M. S. of Management
Ramaiah andofCommerce
University Applied Sciences © Ramaiah University of Applied Sciences
 Types of Information Systems

Systems from a constituency perspective

• Transaction processing systems

• Management information systems and decision-support
systems
• Executive support systems

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Faculty
©M. S. of Management
Ramaiah andofCommerce
University Applied Sciences © Ramaiah University of Applied Sciences
 Sales and Marketing Systems

Major functions of systems:

• Sales management, market research, promotion, pricing,

new products

Major application systems:

• Sales order info system, market research system, pricing

system

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Sales and Marketing Systems

SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

ORDER PROCESSING ENTER, PROCESS, TRACK ORDERS OPERATIONAL

MARKET ANALYSIS IDENTIFY CUSTOMERS & MARKETS KNOWLEDGE

PRICING ANALYSIS DETERMINE PRICES MANAGEMENT

SALES TRENDS PREPARE 5-YEAR FORECASTS STRATEGIC

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Manufacturing and Production Systems

Major functions of systems:

• Scheduling, purchasing, shipping, receiving, engineering,

operations

Major application systems:

• Materials resource planning systems, purchase order

control systems, engineering systems, quality control
systems
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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Manufacturing and Production Systems

SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

MACHINE CONTROL CONTROL ACTIONS OF EQUIPMENT OPERATIONAL

COMPUTER-AIDED-DESIGN DESIGN NEW PRODUCTS KNOWLEDGE

PRODUCTION PLANNING DECIDE NUMBER, SCHEDULE OF PRODUCTS MANAGEMENT

FACILITIES LOCATION DECIDE WHERE TO LOCATE FACILITIES STRATEGIC

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Overview of Inventory Systems

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Financing and Accounting Systems

Major functions of systems:

• Budgeting, general ledger, billing, cost accounting

Major application systems:

• General ledger, accounts receivable, accounts

payable, budgeting, funds management systems

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Financing and Accounting Systems

SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

ACCOUNTS RECEIVABLE TRACK MONEY OWED TO FIRM OPERATIONAL

PORTFOLIO ANALYSIS DESIGN FIRM'S INVESTMENTS KNOWLEDGE

BUDGETING PREPARE SHORT TERM BUDGETS MANAGEMENT

PROFIT PLANNING PLAN LONG-TERM PROFITS STRATEGIC

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 Human Resource Systems

Major functions of systems:

• Store personnel records, benefits, compensation,
labor relations, training

• They identify manpower requirements for meeting

long-term business plans

Major application systems:

Payroll, employee records, benefit systems, career

path systems, personnel training systems 21
Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Human Resource Systems

SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

TRAINING & DEVELOPMENT TRACK TRAINING, SKILLS, APPRAISALS OPERATIONAL

CAREER PATHING DESIGN EMPLOYEE CAREER PATHS KNOWLEDGE

COMPENSATION ANALYSIS MONITOR WAGES, SALARIES, BENEFITS MANAGEMENT

HUMAN RESOURCES PLANNING PLAN LONG-TERM LABOR FORCE NEEDS STRATEGIC

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Human Resource Systems

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Business Systems

• Understanding business concepts, terminology and culture

• A system which is capable of performing business functions

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Major types of Business Systems

• Transaction Processing Systems (TPS)

• Office Automation Systems (OAS)

• Knowledge Work Systems (KWS)

• Decision-Support Systems (DSS)

• Management Information Systems (MIS)

• Executive Support Systems (ESS)

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Faculty
©M. S. of Management
Ramaiah andofCommerce
University Applied Sciences © Ramaiah University of Applied Sciences
 Major types of Business Systems

• Operational-level systems
 Support operational managers by monitoring the day-to-day’s
elementary activities and transactions of the organisation. e.g.
TPS

• Knowledge-level systems
 Support knowledge and data workers in designing products,
distributing information, and dealing with paperwork in an
organisation. e.g. KWS, OAS

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Faculty
©M. S. of Management
Ramaiah andofCommerce
University Applied Sciences © Ramaiah University of Applied Sciences
 Major types of Business Systems

• Management-level systems
 Support the monitoring, controlling, decision-making, and
administrative activities of middle managers. e.g. MIS, DSS

• Strategic-level systems
 Support long-range planning activities of senior management. e.g.
ESS

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Faculty
©M. S. of Management
Ramaiah andofCommerce
University Applied Sciences © Ramaiah University of Applied Sciences
 Interrelationships among Systems

ESS

MIS DSS

KWS
TPS
OAS
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Faculty
©M. S. of Management
Ramaiah andofCommerce
University Applied Sciences © Ramaiah University of Applied Sciences
 Relationship of Systems to one another

• In contemporary digital firms, the different types of systems

are closely linked to one another. This is the ideal.

• In traditional firms these systems tend to be isolated from

one another, and information does not flow seamlessly from
one end of the organization to the other.

• Efficiency and business value tend to suffer greatly in these

traditional firms

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Faculty
©M. S. of Management
Ramaiah andofCommerce
University Applied Sciences © Ramaiah University of Applied Sciences
 Summary
• Business Systems is a system which is capable of performing
business functions

• Efficiency and business value tend to suffer greatly in traditional

firms

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences