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BMS 841: Management Information Systems Notes

Institution: Kenyatta University

Course: Master of Business Administration

Content Category: Lecture Notes

Posted By: Kipkiruikagawa

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Number of Pages: 102

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Summary

15. 2.1 INTRODUCTION
Organizations and individuals use different types of systems for different purposes. Here are some of the main types of information systems and their uses. The components of information systems: people, hardware, software, procedures and data. The main types of information systems are Office Automation Systems (OAS), Transaction Processing System (TPS), Management Information System (MIS), Decision Support System (DSS), Strategic Information System (SIS) and Expert Systems (ES)
2.1.1 OFFICE AUTOMATION SYSTEMS
The OAS provides for individuals with effective ways to process personal and organizational data, perform calculations, and create documents e.g. word processing, spreadsheets, file managers, personal calendars, and presentation packages. They are used for increasing personal productivity and reducing "paper warfare". OAS software tools are often integrated (e.g. Word processor can import a graph from a spreadsheet) and designed for easy operation.
The OAS can further be classified as communication systems and groupware systems. Communication systems: helps people work together by sharing information in many different forms; Teleconferencing (including audio-conferencing, computer conferencing, video-conferencing), electronic mail, voice mail, fax. Groupware system: helps teams work together by providing access to team data, structuring communication, and making it easier to schedule meetings. For sharing information, controlling work flows, communication/integration of work
2.1.2 TRANSACTION PROCESSING SYSTEM
A TPS collects and stores information about transactions, and controls some aspects of transactions. A transaction is an event of interest to the organization e.g. a sale at a store. A TPS is a basic business system often tied to other systems such as the inventory system which tracks stock supplies and triggers reordering when stocks get low; serves the most elementary day-to-day activities of an organization; supports the operational level of the business; supplies data for higher-level management decisions (e.g. MIS, SIS); is often critical to survival of the organization; mostly for predefined, structured tasks; can have strategic consequences (e.g. airline reservation system); usually has high volumes of input and output; provides data which is summarized into information by systems used by higher levels of management; need to be fault-tolerant. On-line transaction processing: A transaction processing mode in which transactions entered on-line are immediately processed by the CPU.
2.1.3 MANAGEMENT INFORMATION SYSTEM
Condenses and converts TPS data into information for monitoring performance and managing an organization. Transactions recorded in a TPS are analyzed and reported by an MIS. They have large quantities of input data and they produce summary reports as output. Used by middle managers. An example is an annual budgeting system
2.1.4 DECISION SUPPORT SYSTEM
Helps strategic management staff (often senior managers) make decisions by providing information, models, or analysis tools. For support of semi-structured and unstructured decisions (structured decisions can be automated). It is used for analytical work rather than general office support. They are flexible, adaptable and quick. The user controls inputs and outputs. They support the decision process and often are sophisticated modeling tools so managers can make simulations and predictions. Their inputs are aggregate data, and they produce projections. An example job for a DSS would be a 5 year operating plan.
2.1.5 STRATEGIC INFORMATION SYSTEMS
Strategic Information Systems (SIS) are used by executives who can view graphs and charts. They can click on "hotspots" and get much more detailed information. They can click through several layers to pin-point exactly the information they want. This prevents "information overload". It is crucial that the manager gets only the information he needs. It is important that the system is very easy to use.
2.1.6 EXPERT SYSTEMS
Expert systems imitate human experts in many different fields of expertise. Such systems contain rules (such as decision tables) that help human answer expert questions. Expert system is a computer program that uses artificial intelligence techniques to solve problems that ordinarily require a knowledgeable human. The method used to construct such systems, knowledge engineering, extracts a set of rules and data from an expert or experts through extensive questioning. This material is then organized in a format suitable for representation in a computer and a set of tools for inquiry, manipulation, and response is applied. While such systems do not often replace the human experts, they can serve as useful adjuncts or assistants. Expert systems are built with decision-making rules, and they can ask humans a series of questions to narrow down the correct answer. One early and influential expert system was MYCIN, a disease diagnosis system.
Expert systems are computer application programs that take the knowledge of one or more human experts in a field and computerize it so that it is readily available for use. The human experts do not need to be physically present to accomplish a specialized project or task. Expert systems are only designed to be “expert” in a very narrow and specific task or subject field. They contain the acquired expert knowledge and try to imitate the expert’s evaluation processes to offer a conclusion. An advantage of an expert system is that it may include the knowledge of many experts in one specific field.
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