SUBS YSTEMS OF INFORMATION SYSTEM

SUBMITTED BY:

NAME SANA RIAZ

SECTION 1A

ROLL NO 86117

SUBMITTED TO:

PROFESSOR AYZED MIRZA

ASSIGNMENT 1

System

Example

He bought a new stereo system. The system consist of a motor and a

small component.

Information system -

System consisting of the network of all

communication channels used within an

organization.

A combination of hardware, software,

infrastructure and trained personnel

organized to facilitate planning, control,

coordination, and decision making in an

organization.

A system is a group of elements that

are integrated with the common purpose

of achieving objective

Management information system

Meaning of MIS :

M = Management = Practical Use of Power of Decision Making

I = Information = Useful Data

S = System = Technique of Use of Data for Business

Definition of MIS:

Management information system is that system

in which raw data is collected and analyze it.

After making it useful, it is used for decision

making of business.

SUB SYSTEMS OF MIS A Sub system is simply a system .This means that a system exist on more

than one level and can be composed of sub systems or element parts .

Following are the subsystems of MIS:

1. Transaction processing system

2. Management reporting system

3. Decision support system

4. Office information system

5. Integretted information system

EXAMPLE:

Let us look at a simple example of a business transaction. McDonald's, which

sells a large number of hamburgers every day, orders raw materials from its

suppliers. Each time the company places an order with a supplier, a transaction

occurs and a transaction system records relevant information, such as the

supplier's name, address, and credit rating, the kind and quantity of items

purchased,

TRANSACTION PROCESSING SYSTEM

A Transaction Processing System

(TPS) is a type of information system

that collects, stores, modifies and

retrieves the data transactions of an

organization.

MODES OF TRANSACTION PROCESSING SYSTEM

Transaction processing may be accomplished in one of two modes:

1. On-line mode

2. Batch mode

Characteristics of on-line transaction processing:

Each transaction is completely processed immediately upon entry. More costly

than batch processing.Database is always up to data. Require the use of fast secondary storage such as magnetic disks

Characteristics of batch transaction processing:

Cheaper than on-line processin. Easier to control than on-line processing. Database is constantly out of date. Batch processing is now being captured using disk files

Transaction Processing Activities 1. Data capture and validation

2. Transaction - dependent processing steps

3. Database maintenance

An informational scheme for the collection,

storage, retrieval and modification of

transactions made by an organization.

1. Date Capture

a. Direct data entry.

Transaction processing systems rely on electronic data interchange (EDI). By

replacing paper documents with formatted transaction data sent over

telecommunications networks, these systems provide for computer-to-computer communication without repeated data entry.

2. Data Validation

Typical validation tests include checking for missing data items, valid codes, and

valid values. More extensive validation may entail authorization of the transaction

based on the customer=s record and available inventory.

2. Processing Steps Dependent on the Transaction

and on Processing Mode

The following processing steps may be performed:

1. Classification

2. Sorting Transaction records are arranged

3. Data Retrieval

4. Calculation

5. Summarization

Database Maintenance

After transactions other than inquiries, system files or databases must be

updated. The data accumulated by TPSs thus serve as a source of detail for management oriented components of information systems.

Components of TPS

1. Input 3. Storage

2. Processing 4. Output

Features OF TPS

Good data placement

Short transactions

Real-time backup

Archiving of historical data

Good hardware configuration

Files used by TPS

In a TPS, there are 5 different types of files. The TPS uses the files to store and

organize its transaction data:

Master file: Contains information about an organization’s business situation.

Most transactions and databases are stored in the master file.

Transaction file: It is the collection of transaction records. It helps to

update the master file and also serves as audit trails and transaction

history.

Report file: Contains data that has been formatted for presentation to a

user.

Work file: Temporary files in the system used during the processing. Program file: Contains the instructions for the processing of data

The History of Management Reporting

In March 1995, the Management Reporting and Financial Operations Project was

created as a result of these recommendations. A major focus of the project has

been the implementation of the SAP R/3 financial system. The first phase of the

implementation was completed in September 1996 when SAP became the system of

record at MIT. At that time the central financial offices (CAO, Purchasing, OSP,

etc.) began to use the software. The second phase - now called Rollout98 - will be

completed when SAP has been distributed to all MIT departments, labs, centers

and offices, and users have been trained and given access full functionality of the

system

MANAGEMENT REPORTING SYSTEM

A management reporting system is essentially a

mechanism for monitoring the mission of an organization.

In a formal plan it is defined in terms of three distinct

streams.

a. The desired organization structure.

b. The time phased statement of organizational goals

c. The critical variables for success.

Characteristics of MRS

Characteristics of MRS include:

1. They are usually developed by information systems professionals, rather than by end users,

2. These systems are build for situations in which information requirements are reasonably well known and expected to remain relatively stable.

3. MRSs do not directly support the decision-making process as a search for

alternative solutions to problems and the selection of the solution to be

implemented.

4. MRSs are oriented toward reporting on the past and the present, rather than projecting the future.

5. MRSs generally have limited analytical capabilities.

6. MRSs largely report on internal company operations rather than spanning the company=s boundaries by reporting external information.

Functions OF MRS

Analyze data from virtually any perspective

Export reports in various formats including XLS and PDF

Run a group of reports in one step

Easily access extensive library of standard reports

Run reports based on a variety of analysis parameters

Run and profile reports to the Document Management System

(DMS) in one step

Design customized reports with built-in Report Designer Drill down reports for interactive analysis

Objectives and Goals

1.New administrative processes are simple and cost-effective.

2.Processes deliver timely, accurate, relevant, consistent, accessible management

information.

3.The new processes facilitate and improve management decisions.

4.The MIT community perceives real and tangible advantages of the new

processes

Reporting by Management Report Systems

.MRSs provide the following types of reports:

Periodic scheduled reports

These reports follow a predetermined format and are used for providing

information to managers on a regular basis. An example of a periodic scheduled

report is the daily sales report.

Exception reports

These reports are not generated on a regular basis but only in exceptional

situations. For example, a report on customers who have taken an overdraft would need to be prepared if defaulters are to be traced.

Demand reports and responses

These reports are alternatively termed as ad hoc reports. They are generated as

and when the manager requires them. Managers use queries and report generators for such reporting.

Management Function, Level, and Decision Type

It introduced the idea that a manager’s need for information -- quantity,

frequency, level of aggregation -- is affected by the manager’s position in

the organization and the type of decisions he or she makes. This part of the

chapter discusses four categories of planning and control decisions:

• strategic planning decisions made by top-level managers;

• tactical planning decisions made by middle managers to implement

strategic plans;

• management control decisions raise some concerns about

distinguishing between the manager and the unit he or she manages;

and

• operational control decisions which aim to assure that the organization

operates in accord with preestablished criteria.

Problem Structure

It should not be surprising that there are different types of problems. The

text discusses three elements or aspects of problems that determine

whether a problem can be regarded as structure or unstructured. These

elements are :

The data related to the situation;The procedures or decision rules

used in solving the problem and the objectives that the decision

maker has for solving the problem.

A. When all elements are known with certainty, the problem is structured.

B. Unstructured problems involve uncertainty on one or more of those

elements. When this is the case, the solution is not obvious. Judgement is

important.

DECISION SUPPORT SYSTEM

A Decision Support System (DSS) is a computerized

system that assists in corporate decision making,

with a decision being a choice between alternatives

based on the estimated values of those alternatives.

Supporting a decision means to assist people working

alone, or in a group, to gather intelligence, generate

alternatives and make choices

A Decision Support System (DSS) is a collection of

integrated software applications and hardware that

form the backbone of an organization’s decision

making process. Companies

Information systems that support your decision-

making activities. Decision Support Systems analyzes

business data and provide interactive information

support to managers and business professionals during

the decision-making process, from problem recognition

to implementing your decision.

For example, A medical decision making often involves making a diagnosis and selecting an

appropriate treatment. The closer we get to completely automating our lives, the

more crucially we depend upon these kinds of decision-making to be correct beyond

a shadow of a doubt! Imagine a wrong decision being made about a medical

diagnosis, or even in terms which we would encounter each and every day, decisions about money or our own wealth simply cannot be wrong!

COMPONENTS OF DSS

DSS components may be classified as:

1. Inputs: Factors, numbers, and characteristics to analyze

2. User Knowledge and Expertise: Inputs requiring manual analysis by the user

3. Outputs: Transformed data from which DSS "decisions" are generated 4. Decisions: Results generated by the DSS based on user criteria

TYPES OF DSS

There are a number of Decision Support Systems. These can be categorized into

five types:

Communication-driven DSS

Its purpose are to help conduct a meeting, or for users to collaborate.

Examples: chats and instant messaging software, online collaboration and

net-meeting systems.

Data-driven DSS

It is used to query a database or data warehouse to seek specific answers

for specific purposes.. Examples: computer-based databases that have a

query system to check

Document-driven DSS

. The purpose of such a DSS is to search web pages and find documents on a

specific set of keywords or search terms. The usual technology used to set

up such DSSs is via the web or a client/server system. Examples:

Knowledge-driven DSS: -. It is essentially used to provide management advice or to choose

products/services. For example computer of business .

Model-driven DSS

Model-driven DSSs are complex systems that help analyze decisions or

choose between different options. These are used by managers and staff

members of a business, or people who interact with the organization,

.CHARACTERISTICS OF DSS

Key DSS characteristics and capabilities are:

Supports decision makers in semi structured and unstructured problems.

Supports managers at all levels.

Supports individuals and groups.

Supports interdependent or sequential decisions.

Support intelligence, design, choice, and implementation.

Supports a variety of decision processes and styles.

Should be adaptable and flexible.

Should be interactive and easy to use.

Benefits exceed cost.

Complete control by decision-makers.

Easy modification to suit needs and changing environment. Supports modeling and analysis.

EXAMPLE

With an office information system, for example, a registration department might

post the class schedule on the Internet and e-mail students when the schedule is

updated. In a manual system, the registration department would photocopy the schedule and mail it to each student’s house.

PURPOSE OF OIS

The primary purpose of the Office of Information Systems (OIS) is to support

each VMH through automation by providing technical support and services in the

development and maintenance of computerized systems for the timely retrieval of

accurate information to enable effective planning, operation and monitoring of services rendered.

OFFICE INFORMATION SYSTEM

An advanced word processing system in Data

Preparation Division that processes and stores

large volumes of census documents.

An office information system, or OIS, is an

information system that uses hardware,

software and networks to enhance work flow

and facilitate communications among

employees.

OBJECTIVES OF OIS

The Office of Information Services (OIS) at each VMH shall ensure that:

a. All data in computerized systems is protected from unauthorized access

through the use of Role Based Access Permissions;

b. All Protected Healthcare Information (PHI) that is transmitted in

compliance with regulatory reporting is encrypted for transmission using

appropriate transport clients and network protocols;

c. All data is protected from loss through scheduled back-up procedures.

RESPONSIBILITIES OF OIS

1. OIS shall provide computing and information retrieval capabilities to the

VMH’s commensurate with their needs and mission, based on the priorities

established by the DMAVA-DVHS management and each VMH.

2. OIS is required to meet federal and state mandates for the reporting of

resident information.

3. OIS shall apply information systems technology with the goal of providing

improved record keeping and reporting capabilities.

4. OIS shall meet the information needs at each VMH through the

development and implementation of unique systems within specific

departments or integrated systems, which cross departments at the facility level.

PROCEDURES OF OIS In order to ensure that the policies and objectives of the Office of Information

Systems are met, and in compliance with the established policies of the DVHS, the

federal government (CMS) and the State government (DHSS), the following

guidelines will be followed:

a. Information Systems planning and development is coordinated within

the Office of Information Systems.

b. The Chief Information Officer (CIO) for DMAVA shall approve the

purchase of all computer hardware/software, with the concurrence of

the Office of Information Technology (OIT).

c. An inventory of all computer equipment and programs will be

maintained.

d. The facility OIS Director approves and coordinates all computer

related training, including the use of all outside consultants.

e. All facility employees authorized to use computers will do so in

compliance with the standards established by OIS for ensuring the

appropriate environment and security while maintaining the safety of

the hardware, software, and computer operator.

EXPERT SYSTEM

Artificial intelligence based system that converts the knowledge

of an expert in a specific subject into a software code. This code

can be merged with other such codes (based on the knowledge of

other experts) and used for answering questions (queries)

submitted through a computer/Expert systems .

An expert system is computer software that attempts to act like

a human expert on a particular subject area.

EXAMPLE

For example, there are expert systems that can diagnose human illnesses, make

financial forecasts, and schedule routes for delivery vehicles. Providing financial

advice - whether to invest in a business, etc. (the knowledge base would contain

data about the performance of financial markets and businesses in the past)

History of ES

Expert systems were introduced by researchers in the Stanford Heuristic

Programming Project, including the "father of expert systems" with the Dendral

and Macon systems. Principal contributors to the technology were Bruce Buchanan,

Edward Shortliffe, Randall Davis, William vanMell, Carl Scott and others at

Stanford. Expert systems were among the first truly successful forms of AI software.

How Do Expert Systems Work? An expert system is made up of three parts:

A user interface - This is the system that allows a non-expert user to query

(question) the expert system, and to receive advice. The user-interface is

designed to be a simple to use as possible.

A knowledge base - This is a collection of facts and rules. The knowledge

base is created from information provided by human experts

An inference engine - This acts rather like a search engine, examining the

knowledge base for information that matches the user's query

Generic Categories of Expert System Applications

The generic areas of ES applications where ES can be applied. Application areas

include classification, diagnosis, monitoring, process control, design, scheduling and planning, and generation of options.

o Classification - identify an object based on stated characteristics

o Diagnosis Systems - infer malfunction or disease from observable data

o Monitoring - compare data from a continually observed system to prescribe

behaviour

o Process Control - control a physical process based on monitoring

o Design - configure a system according to specifications

o Scheduling & Planning - develop or modify a plan of action o Generation of Options - generate alternative solutions to a problem

Benefits of Expert Systems

Some of the possible organizational benefits of expert systems are:

1. An Es can complete its part of the tasks much faster than a human expert.

2. The error rate of successful systems is low, sometimes much lower than the

human error rate for the same task.

3. ESs makes consistent recommendations

4. ESs is a convenient vehicle for bringing to the point of application difficult-to-

use sources of knowledge.

5. ESs can capture the scarce expertise of a uniquely qualified expert.

6. ESs can become a vehicle for building up organizational knowledge, as opposed to the knowledge of individuals in the organization.

Limitations of Expert Systems

No technology offers an easy and total solution. Large systems are costly and

require significant development time and computer resources. ESs also has their

limitations which include:

1. Limitations of the technology. Problems with knowledge acquisition. Operational

domains as the principal area of ES application. Maintaining human expertise in organizations