UNIT III
MANAGEMENT INFORMATION SYSTEM
III BCOMCA
Unit III
Information Systems in Business and Management: Transaction Processing System:
Information Repeating and Executive Information System.
INFORMATION SYSTEMS IN BUSINESS AND MANAGEMENT
Introduction
There are many ways to use information system in business. The word information
system represents variety of information system like TSS, DSS, Information reporting etc.
The information support the business function such as accounting, finance, marketing, and
HRM
Marketing information system
Marketing information system is one of the most important information system. The
basic function of marketing is concerned with planning, promotion of existing products in the
existing markets and promoting new products in the new markets.
The major applications and objective of various sub-system in marketing information
system are
1. Sales promotion:- sales manager must plan, monitor and support the
performance of the sales people in their organization
2. Sales force automation:- Increased computer based information system
are providing the basis for sales force automation.
3. Advertising and promotion:- Marketing managers need information to
help them achieve sales objective at the lowest possible cost for
advertising and promotion
4. Product management:- Product managers need information to plan and
control the performance of specific product, product lines and brands
5. Sales forecasting:- sales forecasting can be grouped in to two.
 Short range forecasting:- Deals with the forecast of
sales up to a period on one year
 Long range forecast:- deals with forecast of sales more
into future.
6. Market research:- The market research information system provides
marketing intelligence to help managers make more effective marketing
decision.
7. Marketing management:- Marketing managers make use of information
system to develop short or long range plans outlining product sales, profit
and growth objectives
Human resource information system
HRIS functions involve the recruitment, placement, evaluation, compensation and
development of employees in an organization.
HRIS supports the following
1. Recruitment:- Recruits the people at the proper time to satisfy the organizational
needs
2. Placement:- It matches the available personnel with the requirement, hence the
effective use of labour is achieved.
3. Training and development:- The technology changes demands new skills, hence the
employees need to be trained in the advanced technological changes.
4. Compensation:- The pay and other values for the satisfactions of individual .
5. Maintenance:- To control work standards, and to ensure that personnel policies and
procedures are achieved.
By Mr M. Suresh M.C.A., M.E (C.S.E)
Asst. Prof., DOC
NASC., NGI
Page 1
UNIT III
MANAGEMENT INFORMATION SYSTEM
III BCOMCA
Production/Manufacturing information system
This information system provides information on production/operation activities of an
organization and thus facilitates the decision making process of production managers of an
organization
The main decisions to be taken in manufacturing system are given below
1. Product design
2. Plant location and layout
3. Production planning and control
4. Quality control
By Mr M. Suresh M.C.A., M.E (C.S.E)
Asst. Prof., DOC
NASC., NGI
Page 2
UNIT III
MANAGEMENT INFORMATION SYSTEM
III BCOMCA
Inventory control system
Inventory refers to the stock of raw materials and finished products available in the
firm for production or sales.
An inventory control system ensures that the proper stock levels of each item are
maintained.
By Mr M. Suresh M.C.A., M.E (C.S.E)
Asst. Prof., DOC
NASC., NGI
Page 3
UNIT III
MANAGEMENT INFORMATION SYSTEM
III BCOMCA
Sales order processing systems
Sales order processing is an important information system that captures and processes
the customers’ orders and produce invoice for the customers.
Accounting information system
These are the oldest and most widely used information system in the business. They
record and report the business transactions and other economic events. The functions of AIS
includes the following
1. Order processing
2. Inventory control
3. Accounts receivable
4. Accounts payable
5. Payroll
6. General ledger
Financial information system
Financial information system is a subsystem of organizations management
information system. Financial information system support the financial managers in decision
concerning
1. The financing of a business
2. The allocation and control of financial resources within an business
Payroll system
Payroll system receives and maintains data from employee time card and other work
records. They produce pay checks and other documents such as earning statement, payroll
reports, labour analysis report etc.
TRANSACTION PROCESSING SYSTEM
Transaction processing system is a computerised system that performs and records the
daily routine transactions necessary to conduct the business.
Examples or TPS are sales order processing, shipping, client information etc.
Transactions
Transactions are the events that occurs as a part of doing business such as sales,
purchase, deposits, withdrawals, refunds and payments.
Transaction processing cycle
By Mr M. Suresh M.C.A., M.E (C.S.E)
Asst. Prof., DOC
NASC., NGI
Page 4
UNIT III
MANAGEMENT INFORMATION SYSTEM
III BCOMCA
The TPS captures and processes data describing business transactions. Then they
update organizational files and databases and produce a variety of information products for
internal and external use
The five stages in TPS cycle are
1. Data entry
2. Transaction processing
3. File and database maintenance
4. Document and report generation
5. Inquiry processing
Data entry:- The first step of data processing cycle is the capture of business data.
Transaction processing:- Here the actual process of processing the transaction takes place.
There are two types of transaction processing. They are
1 Batch Processing
2 Online processing
Database maintenance:- the organization’s database must be maintained by the TPS so that
they are always correct and up-to-date.
TPS update the corporate database of the organization to reflect changes resulting
from day-to-day activities.
Document and report generation:- TPS produces a variety of documents and reports.
Examples of TPS documents includes purchase orders, pay checks, slaes recipts etc.
Inquiry processing:- Many TPS allow the public to use internet, intranets, extranets and we
browsers or database management system query languages to make inquires and receive
responses.
Types of TPS
There are two types of TPS. They are
1 Batch processing
2 online/real time processing
By Mr M. Suresh M.C.A., M.E (C.S.E)
Asst. Prof., DOC
NASC., NGI
Page 5
UNIT III
MANAGEMENT INFORMATION SYSTEM
III BCOMCA
1 Batch processing:- Here the data are accumulated over a period of time and processed
periodically.
2 Online / real time processing: - Here the data are processed immediately the transaction
occurs.
TPS Applications
 Order Processing
 Purchasing
 Accounts Receivables & Accounts Payables
 Receiving & Shipping
 Inventory on Hand
 Payroll
 General Ledgers
Two feature of TPS
1. Spans the boundary between the organization and its environments
2. Major producer of information for other types of systems
By Mr M. Suresh M.C.A., M.E (C.S.E)
Asst. Prof., DOC
NASC., NGI
Page 6
UNIT III
MANAGEMENT INFORMATION SYSTEM
III BCOMCA
Role of TPS in a business
A Transaction Processing Model
By Mr M. Suresh M.C.A., M.E (C.S.E)
Asst. Prof., DOC
NASC., NGI
Page 7
UNIT III
MANAGEMENT INFORMATION SYSTEM
III BCOMCA
INFORMATION REPEATING AND EXECUTIVE INFORMATION SYSTEM
Executive information systems are information systems that combine many if the
features of the management information system and decision support system.
They were first developed with the focus of meeting the information needs of the top
management.
Most popular alternative names of executive information system are executive support
system, enterprise information system and management support system.
Components of EIS
The components of an EIS are
1. Hardware
2. Software
3. Network
4. Data resources
Executive workstations in an EIS are typically networked to mainframe for the access
of EIS software. The EIS package works with the database management and
telecommunication software to provide easy access.
Characteristics of EIS
 Are suitable for individual executive users
 Extract, filter, compress and track critical data
 Provide online status access, trend analysis, exception reporting.
 Access and integrate a broad range of internal and external data
 Are user friendly and require minimal or no training to use
 Are directly used by executives without intermediaries
 Present graphical, tabular and textual information
EIS Operational Success Factors
 Deliver timely information
 Improve efficiency
 Provide accurate information
 Provide relevant information
 Ease of use
 Provide access to the status of the organization
 Provide improved communications
By Mr M. Suresh M.C.A., M.E (C.S.E)
Asst. Prof., DOC
NASC., NGI
Page 8
UNIT III
MANAGEMENT INFORMATION SYSTEM
III BCOMCA
Most Popular EIS Uses
– Decision making (by providing data)
– Scheduling (to set agendas and schedule meetings)
– Email and electronic briefing (to browse data and monitor
situations)
EIS/ESS and DSS
Executive information sources
Information is collected from two major sources
1. Internal
2. External
External sources
 on-line databases
 newspapers
 industry newsletters
 government reports
 other personal contacts
Internal sources
• Financial
• accounting
• personnel
• other internal reports
By Mr M. Suresh M.C.A., M.E (C.S.E)
Asst. Prof., DOC
NASC., NGI
Page 9