Thursday, March 16, 2023

Unit-1: Evolution of MIS

 Unit-1: Evolution of MIS 

Concepts, framework for understanding and designing MIS in an Organization. Organization and Information Systems: The Organization: Structure, Managers and activities, Data, information and its attributes, The level of people and their information needs, Types of Decisions and information, Information System, categorization of information on the basis of nature and characteristics. 

Framework for MIS Organization and Management 

Here, we are going to learn about the Framework for MIS Organization and Management

Submitted by IncludeHelp, on February 15, 2021 

Robert Anthony from the University of Chicago; in the year 1965 proposed a framework for the MIS system which mainly consists of three components. These components are Strategic Planning, Operational Control, and Management Control. The following figure is describing its basic structure and the connectivity of its key components – 



Strategic Planning 

Strategic planning is a method of focusing on improvements in the goals of the organization, the methods that are to be used to achieve these objectives; policies that are frame by management experts to control, organize, and use organizational

resources to reduce the cost and maximize profit. Overall, strategic planning helps in designing the strategies of the company, and is used in formulating policies to control the acquisition, handling of the business activities, and gets involved in reframe strategy whenever required. From a philosophical perspective, strategic planning must be design in such a way so that an organization may achieve its aim and objectives as well as can keep itself up to date on new developments through changes to the objectives, the financial aspects of the resources needed, and the guiding principles and policies to be followed in obtaining, using the organizational resources. 

Operational Control 

Operational control is a process of managing operational activities of an organization that are carried out to achieve optimal utilization of the resources and successful implementation of the operational activities in an organization like production, production, stock management, financial process, HRM, etc. To run it smoothly, matrices allow for pre-established processes and decision rules to be used, the constant assurance of effective acquisition and use of resources in the areas in which the results can be reasonably well understood, and operations are optimally organized and managed. For an instance – the directives set by our superiors are followed as per our ability and that the tasks we perform effectively and efficiently. These decisions at lower levels of the company have very little effect on the organization. There is a fixed timeline for decisions being taken, and there are certain "routines" that immediately proceed to complete the process. 

Management Control 

Management control is a process of assuring that resources are collected and used effectively and efficiently, resulting in the accomplishment of the organizational key objectives. In this process, an executive or superiors, or managers will use to assess the productivity of his/her department, identify the issues, formulate some new and innovative strategies, make some rules of control, set protocol, and evaluate the risk allocation of resources. This job is mainly taking care of the middle-level management of the company. At this level, managers must be taking advice from the strategic planning hierarchy and must be monitoring the organization's activities so that the strategic priorities can be set and accomplished efficiently and successfully. 

Relationship between Operations, Planning and Control 

The details given by an MIS helps the managers to make decisions that are not involved. An organization must conduct certain activities to prevent itself from running into serious causes. For example “in a production of any product, a common

process has to perform certain production activities" like a wholesaler has to obtain and dispatch goods, a municipal corporation has to provide water supply to its area of jurisdiction. In addition to its day-to-day activities, a company must also prepare for its potential closing operations. To predict trends, the company has to make a prompt decision about how much production of a particular product needs to make for the upcoming time. 

In an organization, the planning process and goals set out at the time of the planning process decides the scope of the organization’s operations. During the production process, it has to know whether a decision has to be taken to make corrections or revise on pre plans based on the tests. Interestingly, all that the wholesaler would do is correct the deviation or update the plans. It might be important to control organizational activities with effects to ensure companies' existence in the market. The following figure is illustrating the same - 



MIS is one that is concerned with planning and control. When running, we can benefit from having several systems for obtaining information. For example, the carmaker would have sensors installed in the car, programming a system on the shop floor for giving the workers their information about the task that is required on a specific batch of material. Along with the rate materials being pushed along route sheets, other materials are moving at different rates at any given moment. This system by itself contains only the necessary information to support operations. It does not have any high-level decision-making meaning. It is not part of his/her medical record. If, however, the system does include information on efficiency,

computer utilization, or rejection rates (anything which is relevant to business or productivity), then we can conclude that the system is a part of an MIS. 

The levels of management 

Organizations have several levels, each of which offers a different context. This could be categorized into several categories; multiple- categories of the levels (Senior, middle and lower). 



This organization is ruled by the top management, and they conduct strategic planning and the two lower levels provide processing of the information for their work. The middle management level is responsible for preparing the tactical management strategies and controls and needs to get information to execute the level. The junior level of the company is involved in day-to-day operational management, and they need knowledge for their working to be effective. 

● Decisions are being taken at all levels of the business. 

● Now and then, making an extraordinary and rare decision will change everyone's future. 

● Change IT offers new tools for managers to carry out business decisions. ● Receive the most concrete, up-to-date information and relay it as quickly as possible to those who need to be aware of it.

It does not provide some information explicitly but offers some capabilities to the user to evaluate the decision-making problem and produce some significant information, which can be used as a data sample of the decision problem. 

1.1 What Are Information Systems? 

An information system is an organized set of components for collecting, transmitting, and storing, and processing data in order to deliver information for action. It is important to stress that in business firms and other organizations, this information is necessary for both operations and management. Most information systems in today's organizations are built around the information technologies of computers and telecommunications. They are computer-based information systems. 

As we approach the twenty-first century, information technology emerges as the fundamental technology of business. It: 

a. Enables efficient operations of a small business or a large corporation b. Makes possible effective management 

c. Supports the search for competitive advantage in the marketplace 

d. Enables economic growth by moving to newer and more advanced technologies e. Enables the globalization of businesses and enables global competition As an individual, information systems literacy is necessary in order to: 

a. Perform your job as a manager or a professional 

b. Conduct a firm's activities 

c. Seek opportunities in the marketplace for the products of a firm or of a nation. 

Information systems literacy gives you the knowledge you need to apply information technology in a business setting to support your own work, the work of your team, and the operations of the organization at large in pursuit of its competitive goals. 

1-2 What Do Information Systems Do for Organizations? [Figure 1.1][Slide 1.4] Information systems in organizations include systems that: 

a. Support business operations of the firm

b. Support its management 

c. Assist general knowledge work (work with abstract information rather than with tangible materials). 

Information systems include: 

1. Transaction Processing Systems: Necessary for operational data processing. 

2. Management Reporting Systems: Capable of producing reports for specific time periods, designed for managers responsible for specific functions or processes in a firm. 

3. Decision Support Systems: Designed for the support of individual and collective decision making. 

4. Executive Information Systems: Support the long-term strategic view that senior executives and company boards need to take of the business. 

5. Professional Support Systems: Support performance of tasks specific to a given profession. 

6. Office Information Systems: Support and help coordinate knowledge work in an office environment by handling documents and messages in a variety of forms - text, data, image, and voice. 

Information systems of an organization can become connected to those of its suppliers, customers, and business partners, or to the providers of information about the external environment in which the firm operates. All of these are increasingly connected into interorganizational systems that help several firms share information in order to coordinate their work, collaborate on common projects, or sell and buy products and services. 

A strategic information system assists a firm in realizing its long-term competitive goals. 

The implementation of information systems in an organization should pay for themselves in business results. 

1. Enhanced competitive position (increased market shares or profits 2. Increased productivity (lower costs per unit of output. 

3. Improved quality of products or services leading to higher customer satisfaction. 4. Improved decision-making ability. 

5. Ability to respond faster to the demands of the marketplace. 

6. Enhanced ability to communicate and collaborate within the firm and with customers and suppliers. 

7. Enhanced goodwill of employees

1.3 The Enabling Technologies: Computers and Telecommunications 

Information systems today are largely computer-based. The principal information technologies related to computers and telecommunications. 

Computer: An electronic general-purpose information processor. 

Software: Programs that control the operation of a computer system (contrasted with hardware). 

Hardware: Physical devices employed in computer systems (contrasted with software). 

Telecommunications: Electronic transmission of information over distances; also, the means of this transmission. 

Computer Network: A system of computers and telecommunications 

Internet: A global network of networks that has become the worldwide information utility. 

World Wide Web: Collection of hyper-linked multimedia (text, photos, graphics, voice, moving images) databases stored in computers known as servers all over the world and accessible via the Internet. 

1.4 New Organizational Environment and New Ways to Work [Figure 1.3a/b][Slide 1.5 & 1.6] 

Traditional Organizational Structures: 

Traditional organizational structures, which still prevail today, were structured along functional or divisional lines. 

Functional Structure: People who perform similar activities are placed together in formal units and thus the organization is subdivided in accordance with the functions of the enterprise. 

Disadvantages of a functional structure include: 

a. Poor coordination of effort across functions - with many decisions referred up the corporate hierarchy 

b. Lack of clear responsibility for the overall product or service 

c. General slow down in innovation necessary to respond to the rapidly changing competitive environment of today. 

Divisional Structure: Company divisions are formed based on the groups of products or services they deliver, geographic regions they cover, or customer segments they serve. Figure 1.3(b) presents a company with a divisional structure. 

Advantages of a divisional structure include:

a. Greater flexibility in responding to the competitive demands of the marketplace. Disadvantages: 

a. They often suffer from duplicating resources and efforts across divisions and from less developed functional expertise. 

The traditional organizational structures are: 

a. Defined by clear and long-term assignment of roles to employees, clear lines of responsibility and command, clear setting of the boundaries of the firm against the environment. 

b. Stability is the hallmark. 

c. Multilayered organization charts define the long-lasting hierarchical structure of an organization. 

General drawbacks to the traditional organizational structure include: 

a. Relative permanence and rigidity of both functional and divisional structures often lead to a lack of coordination across the corporation's units and to units pursuing their own, as opposed to organizational goals. 

b. Multiple layers of management separate the line workers from the top managers 

c. Layers of middle managers carry information up the hierarchy and decisions down to the Atroops? The process is slow and distortions may result. 

Such organizations may be slow to respond to the needs of a highly dynamic marketplace - the objective often better served by virtual organizations. 

Virtual Organizations: [Figure 1.4a/b][Slide1.7 & 1.8] 

A virtual organization is an organization whose structure is to a large degree created by using information systems rather than following organizations charts. Figure 1.4a & 1.4b emphasize how the structures of the emerging virtual organizations are flexible and are 

created, to a large degree, with information systems. Thus, in a network organization, the core firm surrounds itself with long-term corporate partners, with each company contributing its core competencies. In a cluster organization, the principal work units are teams of varying purpose and lifetime, some of them including the employees of the firm's business partners. 

Network Organization: An organizational structure in which a firm becomes the core of an extended virtual organization that includes long-term corporate partners, supplying goods and services to the core firm. 

Core Competencies: A specific capability that distinguishes the firm and that is valued by the marketplace.

Outsourced: Contracting out some of the goods or services previously produced by the firm to specialized providers. In information services, the practice of contracting out the operation of a firm's data centers, telecommunications networks, or applications development to external vendors. 

Cluster Organization: Organizational structure in which the principal work units are the temporary and permanent teams of people who contribute their distinct knowledge and experience. 

Intranet: An internal corporate network that deploys the Internet facilities, primarily those of the World Wide Web. 

Telecommuting and Virtual Workplaces: 

Employees are working more and more frequently in virtual workplaces, outside of their company's premises, and are said to be telecommuting. Telecommuting may lead to: 

a. Higher productivity of the workers 

b. Employees take responsibility for their work and are often under less stress. c. Employees gain a sense of autonomy and control 

d. Private life improves and they can use time more effectively 

e. Corporate savings 

f. More even job distribution throughout a country or a region 

g. Enables employment to individualities with disabilities 

h. Reduction of the social costs of automobile traffic, congestion, and pollution Disadvantages: 

a. Not conducive to all type of jobs 

b. Lack of visibility for promotion 

c. Feelings of isolation 

d. Security and confidentiality of data are widely dispersed outside of the corporation premises. 

1.5 Capabilities of Information Systems: 

Information systems offer a set of capabilities that can be exploited to achieve business results. Drawing on these capabilities by implementing systems that suit specific business needs enables a firm to respond to the demands of its environment. The principal capabilities of information systems are:

1. Fast and accurate data processing, with large-capacity storage and rapid communication between sites. 

2. Instantaneous access to information. 

3. Means of coordination (brings parts of an organization, or several collaborating organizations, together in a common effort). 

4. Boundary spanning (systems through which an organization receives intelligence about its environment and provides computerized information for its customers, suppliers, and the public at large). 

5. Support for decision making. 

6. Supporting organizational memory and learning (means by which knowledge from the past exerts influence on present organizational activities. Increasingly, elements of the organizational memory are contained in the software and in the data and knowledge bases of the corporate information systems). 

7. Routinizing organizational practice. 

8. Differentiation of products and services. 

9. Modeling (a simplified representation of a real object or phenomenon that helps to understand or develop the modelled object). 

10. Automation (replacing human labor, for example, with information systems). 1-6 Business Process Redesign: 

A business process is a set of related tasks performed to achieve a defined work product. 

Business process redesign aims to rethink and streamline the firm's business processes in order to achieve specific business results. The radical redesign of major business processes, sometimes called business reengineering, aims at major gains in costs, quality, or time-to-market, and fundamentally changes the way organizations work. 

1-7 An Initial Look at the Human Side of Information Systems in Organizations and in Society 

Information systems do not benefit an organization or the society at large by simply being developed and installed. A system appropriate for the firm and its users has to be carefully identified and implemented from the sociotechnical perspective, seeking the technology that would best support the people in the organization. The sociotechnical perspective says that the purely technological approach to achieving higher productivity has to be balanced with the consideration of the social and human aspects of technology. Organizations should create workplaces that: 

1. Provide job satisfaction

2. Give employees an opportunity to contribute to the development of an information system they will work with 

3. Be motivated and trained to use the system. 

The information system itself must be: 

1. Designed to fit the needs of its users and the organization at large. 

2. Evolve as needs change in the organization. 

Organizational structure and MIS 

MIS has been described as a pyramidal structure, with four levels of information resources. The levels of information would depend upon the organizational structure. The top level supports strategic planning and policy making at the highest level of management. The second level of information resources aid tactical planning and decision making for management control. The third level supports day-to-day operations and control. The bottom level consists of information for transaction processing. It then follows that since decision making is specific to hierarchical levels in an organization, the information requirements at each level vary accordingly. 

Thus, MIS as a support system draws upon: 

· concepts of organization; 

· organizational theories, principles, structure, behaviour and processes such as communication, power and decision making; and 

· motivation and leadership behaviour. 

Davis and Olson (1984) analysed the implications of different characteristics of the organizational structure on the design of information systems (Table 1). 

Information requirements for MIS 

Assessing information needs 

A first step in designing and developing an MIS is to assess the information needs for decision making of management at different hierarchical levels, so that the requisite information can be made available in both timely and usable form to the people who need it. Such assessment of information needs is usually based on personality, positions, levels and functions of management. These determine the various levels of information requirements. 

Table 1 Organizational structural implications for information systems

Concept 

Implications for Information Systems

Hierarchy of authority 

A tall hierarchy with narrow span of control requires more formal control information at upper levels than a flat hierarchy with wide span of control.

Specialization 

Information system applications have to fit the specialization of the organization.

Formalization 

Information systems are a major method for increasing formalization.

Centralization 

Modification of basic model

Information systems can be designed to suit any level of centralization. 

Information systems can be designed to support product or service organizations, project organizations, lateral relations and matrix organizations.

Information model of organization

Organizational mechanisms reduce the need for information processing and communication. Vertical information systems are an alternative to lateral relations. Information systems are used to coordinate lateral activities.

Organizational 

culture

Organizational culture affects information requirements and system acceptance.

Organizational power 

Organizational power affects organizational behaviour during information system planning, resource allocation and implementation. Computer systems can be an instrument of organizational power through access to information.



Organizational 

growth

The information system may need to change at different stages of growth.

Goal displacement 

When identifying goals during requirements determination, care should be taken to avoid displaced goals.

Organizational 

learning

Suggests need for information system design for efficiency measures to promote single loop learning and effectiveness measures for double loop learning.

Project model of 

organizational 

change

Describes general concepts for managing change with information system projects.

Case for stable 

system 

Systems that 

promote 

organizational 

change

Establish control over frequency of information system changes. 

Reporting critical change variables, organizational change, or relationships, and use of multiple channels in a semi-confusing system may be useful for promoting responses to a changing environment.

Organizations as 

socio-technical 

systems

Provides approach to requirements determination and job design when both social and technical considerations are involved.



Information Vs Data 

Data can be described as unprocessed facts and figures. Plain collected data as raw facts cannot help in decision-making. However, data is the raw material that is organized, structured, and interpreted to create useful information systems.

Data is defined as 'groups of non-random symbols in the form of text, images, voice representing quantities, action and objects'. 

Information is interpreted data; created from organized, structured, and processed data in a particular context. 

According to Davis and Olson − 

"Information is a data that has been processed into a form that is meaningful to recipient and is of real or perceived value in the current or the prospective action or decision of recipient." 

Information, Knowledge and Business Intelligence Professor Ray R. Larson of the School of Information at the University of California, Berkeley, provides an Information Hierarchy, which is − 

Data − The raw material of information. 

Information − Data organized and presented by someone. 

Knowledge − Information read, heard, or seen, and understood. Wisdom − Distilled and integrated knowledge and understanding. 

Scott Andrews' explains Information Continuum as follows − 

Data − A Fact or a piece of information, or a series thereof. 

Information − Knowledge discerned from data. 

Business Intelligence − Information Management pertaining to an organization's policy or decision-making, particularly when tied to strategic or operational objectives.

Information is a vital resource for the success of any organization. Future of an organization lies in using and disseminating information wisely. Good quality information placed in right context in right time tells us about opportunities and problems well in advance. 

Good quality information − Quality is a value that would vary according to the users and uses of the information. 

According to Wang and Strong, following are the dimensions or elements of Information Quality − 

Intrinsic − Accuracy, Objectivity, Believability, Reputation 

Contextual − Relevancy, Value-Added, Timeliness, Completeness, Amount of information 

Representational − Interpretability, Format, Coherence, Compatibility Accessibility − Accessibility, Access security 

Various authors propose various lists of metrics for assessing the quality of information. Let us generate a list of the most essential characteristic features for information quality − 

Reliability − It should be verifiable and dependable. 

Timely − It must be current and it must reach the users well in time, so that important decisions can be made in time. 

Relevant − It should be current and valid information and it should reduce uncertainties. 

Accurate − It should be free of errors and mistakes, true, and not deceptive. 

Sufficient − It should be adequate in quantity, so that decisions can be made on its basis.

Unambiguous − It should be expressed in clear terms. In other words, in should be comprehensive. 

Complete − It should meet all the needs in the current context. Unbiased − It should be impartial, free from any bias. In other words, it should have integrity. 

Explicit − It should not need any further explanation. 

Comparable − It should be of uniform collection, analysis, content, and format. 

Reproducible − It could be used by documented methods on the same data set to achieve a consistent result. 

Top Management: They need information from the middle managers for following activities: 

To formulate strategy 

To make policies 

To make long term plans and objectives 

To take strategic decisions 

Top management gathered information from the external environment and after processing the give back. 

2. Middle Managers: For middle managers it is dynamic or two way process. They need information from the Top Management as well as First level managers. They need information for the following activities: 

To formulate operational plans

To make operational objectives 

To implement strategies 

To take operational decisions 

3. First Level Managers: They need information from the middle level managers for following activities: 

To implement operational plans and objectives 

To make short term plans 

To transact day to day business 

Decision Making Process 

Decision making is considered one of the most important tasks of management. The manager plays a crucial role in serving his/her decision, as the growth and failure of an organization are dependent on timely decisions taken. Each managerial decision like planning, organizing, staffing, and directing are all parts of decision making. 

A decision is a process that is consciously chosen from among a set of desired options to achieve the result. 

Types of Decision Making 

The managers or non-managers have to make decisions at some point to get their organizational goals done. These decisions are categorized further. The types of decision making in an organization are as follows: 

1. Programmed And Non-Programmed Decisions: 

Programmed decisions are routine and repetitive in nature. These decisions deal with common and frequently occurring problems in an organization such

as buying behaviour of consumers, sanctioning of different types of leave to employees, purchasing decisions, salary increment, etc. 

Non-programmed decisions are not routine or common in nature. These are related to exceptional situations in which guidelines or routine management is not set. For example, problems arising from a decline in market share, increasing competition in the business environment. The majority of the decisions taken by managers do fall in this non programmed category. 

2. Operational and Strategic Decisions: 

Operational decisions are just the normal functioning of the organization. These decisions do not require much time and take a shorter time as compared to other decisions taken. Ample of responsibilities are delegated to subordinates. The main decision is to create harmony in an organization and to see whether the management is proper or not. 

Strategic decisions include all present issues and problems. The main idea is to achieve better working conditions, better equipment, and efficient use of existing equipment, etc. These all fall under this category. Usually, strategic decisions are taken by top-level management. 

3. Organizational and Personal Decisions: 

If the decision is taken collectively keeping in mind the organizational goal, it is known as the organization goal, and if the manager takes any decision in the personal capacity (affecting his/her life). It is known as personal decisions. These decisions may sometimes affect the functioning of the organization as well. For example, if the employee has decided to leave the organization, it

may affect the organization. The authority of taking personal decisions cannot be delegated and is dependent on the individual itself. 

4. Major and Minor Decisions: 

These are classified as the type of decision-making in management where decision-related to purchase of new premises is a major decision. These are taken by top management whereas the purchase of stationery is a minor decision. Minor decisions can be taken by the superintendent. 

5. Individual and Group Decisions: 

When the decision is taken by an individual, it is categorized as an individual decision. Usually, routine decisions are taken by individuals within the policy framework of the organization. 

Group decisions are taken by a group of individuals in the form of a standing committee. Generally, important types of decisions in management are shifted to this committee. The main aim of a group decision is to involve the maximum number of individuals in the process of decision making. 

6. Tactical and Operational Decisions: 

Decisions that are pertaining to various policy matters in the organization are known as policy decisions. These are taken by top management and do have a long-term impact on the organization. For example, decisions regarding the location of the plant or volume of production. These are tactical decisions 

Operational decisions are all day-to-day decisions that need to be taken for the proper functioning and operation of the organization. These can be taken

by middle or lower-level managers. For example, the Calculation of bonuses given to each individual is an operational decision and is performed by middle or lower-level managers. 

These were the types of managerial decisions that are performed by top, middle and lower-level management in the organization to get things done in alignment and to achieve the organizational goal effectively and efficiently. Buying Decision Behavior 

There are other decisions pertaining which is to be looked at in an organization. One of them is buying decisions. Below will be discussed the types of buying decisions in an organization, also known as B2B buying. There are three types of decision making while going for B2B purchases. 

1. A New Task 

where a business buyer purchases for the first time and is introduced to the new product or service for the first time in his/her organization. 

2. The Modified Rebuy 

It is a business buying situation where the buyer wants to modify product or service specifications, price or terms, and conditions. 

3. Straight Rebuy 

In this situation, the buyer routinely reorders without any specifications or alterations needed.

These three situations highly determine B2B purchases. There are other factors as well which alters the type of buying decision behaviour. These are as follows: 

1. Awareness about brand competing in product group 

2. Decision criteria of customers 

3. Evaluation and decision is done on the choice of consumer 

Information System Definition 

"Information system is set of people, information technology, and business process in order to achieve a business objective." 

Information systems are a set of interconnected elements working together to collect, process, store, and distribute information to help coordination, visualization in an organization, analysis, and decision-making. 

The Information system can be defined as a collection of software, hardware, and telecommunications network that people develop and use to gather, create, and distribute useful data, mainly in organizational settings. 

In other words, an information system means a collection of interrelated components which work together to gather, process, store, and break down the information to help decision making. 

Dimensions of an information system 

There are various dimensions of an information system: 

1. Organizational dimension 

2. Management dimension 

3. Technology dimension 

Let's discuss the above dimensions in detail: 

1. Organizational Dimension

The information system is the organization's part. The ordinary operating procedure and culture of an organization would be embedded in the information system. This includes the following: 

Business processes 

Political interest groups 

Functional specialties 

Cultured 

2. Management Dimension 

In today's world, managers face business challenges. Information systems provide managers with the tools and information they have to plan, manage, monitor their work, make decisions, develop new goods and services, and make long-term tactical decisions. 

3. Technology Dimension 

Management makes use of technology to fulfill their duties. It contains- computer hardware and software, networking/telecom technology, and data management. It's one of the many strategies a manager can use to deal with changes. Organizational levels, processing, system goals, mode of data and type of support provided are used to classify information systems. 

Types of Information System 

The types of information systems are as follows: 

MIS classification is a broad concept; this article facilitates you to have a crystal clear understanding about the MIS classification. Here, we categories MIS into three main categories, these are, 

1. Classification as per Information Characteristics 

2. Classification as per Application 

3. Classification as per Business Function 

The below image is depicting about the classification with its sub categories,

1) Classification as per Information Characteristics 

Based on Anthony's brand of Management, information that is used in commerce trade for decision-making is generally categorized into three types: 

Strategic Information: Strategic information deals with an objective of a house with long-term policy decisions as well as checks provided these objectives are met up to their level or not. For example, acquiring the new plant, the new product, diversification of chain, etc, comes under strategic information. 

Tactical Information: Tactical information deals with the information needed to rule over business resources, like budgeting, bracket control, improvement level, stock level, productivity level, etc. 

Operational Information: Operational information deals with plant/business level information as well as is used to handle proper conduction of specific operational tasks as planned/intended. Various operators specific, machine-specific as well as shift particular jobs for quality authority checks come under this category. 

2) Classification as per Application 

Planned Information: This is the information used in business organizations maintaining specification norms and specifications. Everything is mentioned here. This information is used in the strategic, tactical, and operation planning of any activity. Examples of such information are time standards, design standards. 

Control Information: This information is termed for specific activities performed by the system in design to attain their objectives. This information might cost formal or informal. It is used for controlling attainment, line, and utilization of important processes in a system. When this information did make-up any deviation from the defining standards, the system should be imposing a decision or an action main to authority the information related to their objectives. 

Knowledge Information: cognition is defined as "information about information". Knowledge information is acquired through experience and learning and collected from archival data and research studies. 

Organizational Information: Organizational information deals with an organization's environment, where organizational objectives are met. Karl Weick's Organizational Information theory emphasizes that a company reduces its uncertainty by collecting, managing, and using this information

carefully. This information is used by everybody in the organization; examples of such information are employee and payroll information. 

Functional/Operational Information: This is operation-specific information where the organization assists to perform its functions of day-day transactions. Mainly preserves technical make-up, For example, daily schedules in a manufacturing plant that indicated the detailed assignment of jobs to machines or machines to operators. In a value-oriented business, it would constitute the duty roster of various personnel. This information is mostly internal to the organization. 

Database Information: Database information as we know that it is a collection of related data that is stored, retrieved, and managed to name databases. It stores large quantities of information that has multiple ownership and application. For example, the tangible substance that goes into the makeup of physical thing specification or supplier information is stored for multiple users. It is a type of software program. 

3) Classification as per Business Function 

Transaction Processing System: TPS processes transactions and produces reports. It refers to the automation of basic, repetitive processing that underpins business operations. It does not afford any information to the user for his/her decision-making. 

TPS uses data and produces data as proposed in the coming after or as a result of the diagram. 

Previously, TPS was invited as the administration Information System. Data processing was used by manual processes or with simple machines prior to the invention of computers. The TPS domain is located at the bottom of an organization's management hierarchy. 

Management Information System (MIS): As MIS is a well-known information system to organize the information, which processes data and converts it into meaningful information. A supervision information system uses TPS for its data inputs. The information generated by the information system may live used for sources of operations, strategic and long-range planning. Short-term planning, supervision control, and other managerial problem solving encompass processing in assist of a wide range of organizational functions & management processes. MIS is capable of providing analysis, planning & decision developing support. Marketing, manufacturing, human resources, finance, and accounting are some of the functional areas of a company. 

Decision Support System (DSS): A decision help system (DSS) is an information system a formal request to be considered for a position or to be allowed to do or have something. That assists decision-making. DSS be inclined with planning, analyzing alternatives, and trial and error search for the solution. The elements of the decision support system include a database & software. Finance, Production, and marketing are some of the main

application areas of DSS. 

Based on how information is processed, DSS can be distinguished from MIS. MIS processes data to restyle it into information. DSS processes information to support the decision creating process of a manager. 

Executive Support System (ESS): Executive Support System (ESS) is a reference of the management information system, which is a special kind of DSS; An ESS is specially tailored for the ownership of the chief executive of an association to support his decision-making. It includes various types of decision-making but it is more specific and adult-oriented. 

Office Automation Systems (OAS): Office automation is referenced to the application of computes and communication technology to office functions. Office automation systems are meant to improvements the productivity of frameworks at various levels of management by providing secretarial assistance and better communication facilities. 

Below mentioned are the two main classes to categories Office activities, namely 

a. Activities executed by clerical staff like clerks, secretaries, typist etc b. Activities performed by the executives (managers, engineers or other experienced like economist, researches etc.) 

● The major functional activities of OAS are - 

a. Typing 

b. Mailing 

c. Scheduling of meetings and conferences, 

d. Calendar keeping, and 

e. Retrieving documents 

● Below is a list of activities in the moment category (managerial category) a. Conferencing. 

b. Controlling output and producing information (messages, memos, reports, and so on). 

An individual who is employed in or trained for a job is referred to as a businessperson. Systems: These systems are one of the leading types of knowledge-based information systems. These systems are based on artificial intelligence, and are contemporary information systems. A business professional system is a strategic based information system that uses its strategic about a specific, complex application area to act as an expert. The main components of a professional system are: 

a. Knowledge Base 

b. Interface Engine 

c. User Interface


No comments:

Post a Comment