INFORMATION SYSTEM MANAGEMENT Meaning and Role of Information Systems As a consumer, you have instant access to millions of pieces

of data. With a few clicks of the mouse button, you can find anything from current stock prices and video clips of current movies. You can get product descriptions, pictures, and prices from thousands of companies across India and around the world. Trying to sell services and products? You can purchase demographic, economic, consumer buying pattern, and market-analysis data. Your firm will have internal financial, marketing, production, and employee data for past years. This tremendous amount of data provides opportunities to managers and consumers who know how to obtain it and analyze it to make better decisions. Today information systems are everywhere; from supermarkets to airline reservations, libraries and banking operations they have become part of our daily lives. The first step in learning how to apply information technology to solve problems is to get a broader picture of what is meant by the term information system. Computers are only one component of an information system. A computer information system (CIS) consists of related components like hardware, software, people, procedures, and collections of data. The goal of Information System is to enable managers to make better decisions by providing quality information. The term information technology (IT) represents the various types of hardware and software used in an information system, including computers and networking equipment. The physical equipment used in computing is called hardware. The set of instructions that controls the hardware is known as software. In the early days of computers, the people directly involved in are tended to be programmers, design analysts, and a few external users. Today, almost everyone in the firm is involved with the information system. Procedures are instructions that help people use the systems. They include items such as user manuals, documentation, and procedures to ensure that backups are made regularly. Databases are collections of related data that can be retrieved easily and processed by the computers. Quality is an important issue in business today, particularly as it relates to information systems. The quality of an information system is measured by its ability to provide exactly the information needed by managers in a timely manner. The information must be accurate and up-to-date. Users should be able to receive the information in a variety of formats: tables of data, graphs, summary statistics, or even pictures or sound: Framework for Business End Users The field of information systems encompassses many complex technologies, abstract behavioral concepts, and specialized applications in countless business and non business areas. Thus, you should concentrate your efforts in five areas of knowledge: Foundation Concepts: Fundamental behavioral and technical concepts Technology: Major concepts, developments, and Management issues in IT software, hardware, network, database mgmt etc Applications: Using emails for fast communication, internet, intranet, & extranet to gather the information, for operations and management. Development: How end users or information specialists develop information systems solutions to business problems using fundamental problem solving and development methodologies. Management: Effectively managing the resources and business strategies involved in using IT at end user, enterprise and global level of business.

Key Terms Used In Information System Data, Information, Knowledge, and Wisdom Let us consider the case of a retail store that is trying to increase sales. Some of the data available includes sales levels for the last 36 months, advertising expenses, and customer comments from surveys. By itself, this data may be interesting, but it must be organized and analyzed to be useful in making a decision. For example, a manager might use economic and marketing models to forecast patterns and determine relationships among various advertising expenses and sales. The resulting information (presented in equations, charts, and tables) would clarify relationships among the data and would be used to decide how to proceed It requires knowledge to determine how to analyze data and make decisions. Education and experience create knowledge in humans. A manager learns which data to collect, the proper models to apply, and ways to analyze results for making better decisions. In some cases, this knowledge can be transferred to specialized computer programs (expert systems). Wisdom is more difficult to define but represents the ability to learn from experience and adapt to changing conditions. In this example, wisdom would enable a manager to spot trends, identify potential problems, and develop new techniques to analyze the data. Characteristics of Information Now, let us discuss about the characteristics of good information Timeliness: Information must reach the user in a timely manner, just when it is needed; not too early, because by the time it is used it would be out-of-date; not too late because the user will not be able to incorporate it into his/her decision-making. Appropriateness: Information must be relevant to the person who is using it. It must be within the sphere of his/her activities so that it can be used to reduce uncertainty in his/her decision-making. Conciseness: Information should always contain the minimum amount of detail that is appropriate for the user. Too much detail causes information overload. Frequency: Frequency is related to timeliness. Too often the information presented is linked to the calendar (end of the week, beginning of the month); its frequency should be synchronized with the timing of the decision making of the user. Understandability: The format and presentation of information are very important. Some people prefer tabular information, whereas others may need it in a graphical form. Also the use of colors enhances the understandability of what is presented. Relevant: It pertains to the particular problem. What data is relevant depends on the decision-making model used. E.g. university admissions officials may choose to consider the results of some high-school test irrelevant, if they believe that it does not improve the chances of some applicant later becoming a successful student. Complete: All the relevant parts are included. E.g. marketing data about household incomes may lead to bad decisions, if not accompanied by consumption habits of the target population. Current: Decisions are often based on the latest information available Economical: The costs of gathering information should be justified by the overall benefits

What is a System? A system is a group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process. System will have the following basic interacting components (functions): 1. Input 2. Processing 3. Output 4. Feedback 5. Control What is an Information System? Now, it is time to see the real meaning and concept of Information Systems. Too often you hear someone say, "Oh yeah, I know how to use a computer. I can surf the Web with the best of them and I can play Solitaire for hours. I'm really good at computers." Okay. So that person can pound a keyboard, use a mouse at lightning speed, and has a list of favorite Web sites a mile long. But the real question is "Is that person information literate?" Just because you can pound the keyboard doesn't necessarily mean you can leverage the technology to your advantage or the advantage of your organization. An organization can gather and keep all the data on its customers that a hard drive can hold. You can get all the output reports that one desk can physically hold. You can have the fastest Internet connection created to date. But if the organization doesn't take advantage of customer data to create new opportunities, then all it has is useless information. If the output report doesn't tell the management that it has a serious problem on the factory floor, then all that's been accomplished is to kill a few more trees. If you don't know how to analyze the information from a Web site to take advantage of new sales leads, then what has you really done for yourself today? Most of us think only of hardware and software when we think of an Information System. There is another component of the triangle that should be considered, and that's the people side, or "persware." Think of it this way: We talk about the input, processing, output and feedback processes. Most important is the feedback process; unfortunately it's the one most often overlooked. Just as in the triangle above, the hardware (input and output) and the software (processing) receive the most attention. With those two alone, you have computer literacy. But if you don't use the "persware" side of the triangle to complete the feedback loop, you don't accomplish much. Add the "persware" angle with good feedback and you have the beginnings of information literacy. An information system differs from other kinds of systems in that its objective is to monitor/document the operations of some other system, which we can call a target system. An information system cannot exist without such a target system. For example, production activities would be the target system for a production scheduling system, human resources in the business operations would be the target system of a human resource information system, and so on. It is important to recognise that within a vending machine there is a component/sub-system that can be considered an information system. In some sense, every reactive system will have a subsystem that can be considered an information system whose objective is to monitor and control such a reactive system. Information Systems are more than computers. Using Information Systems effectively requires an understanding of the management, organization, and information technology for shaping the systems. Management Managers perceive business challenges in the environment; set the organizational strategy for responding, allocate human and financial resources to achieve the strategy and coordinate the work. Different levels of managers are: Senior Managers: make long-range strategic decisions about products and services to produce. Middle Managers: Carry out the programs and plans of Senior Managers Operational Managers: Responsible for monitoring the firms daily activities.

ORGANIZATION

TECHNOLOGY

INFORMA TION SYSTEMS

MANAGEMENT

INFORMATION SYSTEMS Organization The key elements of an organization are its people, structure, and operating procedures, politics, and culture. Major functions of an organization are: Function Sales and marketing Manufacturing Finance Accounting Human Resources Purpose Selling the organizations products and services Producing products and services Managing the organizations financial assets (cash, stocks, bonds, etc.) Maintaining the organizations financial records (receipts, paychecks, etc) accounting for flow of funds. Attracting, developing, and maintaining the organizations labor force; maintaining employee records.

An organization requires many different kinds of skills and people: Managers: Decision Makers Knowledge Workers: (Engineers, architects, or scientists) Design products of services. Data Workers: (Secretaries, Bookkeepers, and Clerks) Process the organizations paperwork. Production or Service Workers: (Machinists, Assemblers, or Packers) Produce the products or services of the organization. Technology Computer Based Information Systems (CBIS) utilize the following IT technologies:

Computer Hardware: Various physical equipments Computer Software: Preprogrammed instructions, system software, application software, etc.. Storage Technology: Using media for storage such as hard disk, tape drives, CD, DVD, etc.. Telecommunication Technology: Consists of both physical devices and software, links the various pieces of hardware and transfers data from one physical location to other. An End User Perspective of Information System Anyone who uses the information system or the information it produces is an end user. They are People of the organization Information System Specialist: System Analysts or Professional Computer Programmer. Managerial End User: Managers, Entrepreneur, or Managerial level Professional. The managerial end users use spread sheets, emails. It is desired today that every person in the organization must be able to use internet and emails, spreadsheets, database management packages, and the business software to support specific work activity. An Enterprise Perspective of Information Systems From an enterprise perspective, an information system us an organizational and management solutions, based on information technology to a challenge possessed by the environment. Today the success of any enterprise not only depends on the efficiency on minimizing costs, time, and use of information resources but also depends on the effectiveness of the information technology in supporting the organization business. The Information Systems function represents: A major functional area of business that is as important to business success as the functions of accounting, finance, operations management, marketing, and human resource management. An important contribution to operational efficiency, employee productivity and morale, and customer service and satisfaction. A major source of information and support needed to promote effective decision making by managers. An important ingredient in developing competitive products and services that give an organization a strategic advantage in the global marketplace. A major part of the resources of an enterprise and its cost of doing business, thus posing a major resource management challenges. A vital, dynamic, and challenging career opportunity for millions of men and women. Components of an IS In an organization, information systems consist of the following components. These components will formulate a system, which will help us to gather the required information for making decision in various levels of management. Data - Input that the system takes to produce information Hardware - Computer itself and its peripheral equipment: input, output, storage devices; includes data communication equipment Software - Sets of instructions that tell the computer how to input, process, output and store data Communication networks - Hardware and software specializing in transmission and reception of electronic data People - IS professionals and users who design, construct, operate and maintain IS Procedures - Rules to process data, e.g. priorities in running different applications, security measures, routines for malfunctioning IS, etc.

Information System Resources Every Information System is equipped with the following resources. The goals of information systems can be easily achieved by employing these resources to their optimum level by keeping in view that the purpose of using IS in an organization. People Resources o End users o IS specialists Hardware Resources o Machines o Media Software Resources o Program Operating Systems (OS) Examples: Windows, Unix, etc. Application Software Examples: Excel, Access, MS-Word, etc. Application software that makes people buy computers that can run the software. Example: email system. To use an email system (software), people buy computers. o Procedures: Operating instructions for the people who will use an information system. Examples: Instructions for filling out a paper form or using a software package. Data Resources: o Data vs. Information 1. Data: Raw facts, observations, business transactions Objective measurements of the attributes (characteristics) of entities (people, places, things, events, etc.) Attributes can be last name, first name, gender, etc. for an entity of "people." 2. Information: Data that have been converted into a meaningful and useful context for specific end users. Processed data placed in a context that gives it value for specific end users. 1. Its form is aggregated, manipulated, and organized. 2. Its content is analyzed and evaluated. 3. It is placed in a proper context for a human user. Network Resources: o Communications media o Communications processors o Network access & control software Role of information systems Information systems perform three vital roles in any type of organization: Support of business operations. Support of managerial decision making. Support of strategic competitive advantage. Types of Information Systems Transaction processing systems were among the earliest computerized systems. Their primary purpose is to record, process, validate, and store transactions that take place in the various functional areas of a business for future retrieval and use. A transaction processing system (TPS) is an information system that records company transactions (a transaction is defined as an exchange between two or more business entities).

Transaction processing systems (TPS) are cross-functional information systems that process data resulting from the occurrence of business transactions. Transactions are events that occur as part of doing business, such as sales, purchases, deposits, withdrawals, refunds, and payments. Transaction processing activities are needed to capture and process data, or the operations of a business would grind to a halt. 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, and the invoice amount. Types of Transactions Note that the transactions can be internal or external. When a department orders office supplies from the purchasing department, an internal transaction occurs, when a customer places an order for a product, an external transaction occurs. Internal Transactions: Those transactions, which are internal to the company and are related with the internal working of any organization. For example Recruitment Policy, Promotion Policy, Production policy etc External Transactions: Those transactions, which are external to the organization and are related with the external sources, are regarded as External Transaction. For example sales, purchase etc. Characteristics of Transaction Processing Systems 1. A TPS records internal and external transactions for a company. It is a repository of data that is frequently accessed by other systems 2. A TPS performs routine, repetitive tasks. It is mostly used by lower-level managers to make operational decisions 3. Transactions can be recorded in batch mode or online. In batch mode, the files are updated periodically; in online mode, each transaction is recorded as it occurs. 4. There are six steps in processing a transaction. They are data entry, data validation, data processing and revalidation, storage, - output generation, and query support. Features of TPS 1. A TPS supports different tasks by imposing a set of rules and guidelines that specify how to record, process, and store a given transaction. There are many uses of transaction processing systems in our everyday lives, such as when we make a purchase at retail store, deposit or withdraw money at a bank, or register for classes at a university. Almost all organizations, regardless of the industry in which they operate, have a manual or automated TPS 2. A TPS is the data lifeline for a company because it is the source of data for other information systems, such as MIS and DSS (Decision Support Systems). Hence, if the TPS shuts down, the consequences can be serious for the organization 3. A TPS is also the main link between the organization and external entities, such as customers, suppliers, distributors, and regulatory agencies 4. TPS exist for the various functional areas in an organization, such as finance, accounting, manufacturing, production, human resources, marketing quality control, engineering, and research and development. Process of Transaction Processing System The six steps in processing a transaction are: a. Data entry b. Data Capture

c. Data validation d. Processing and revalidation e. Storage f. Output generation g. Query support a. Data Entry To be processed, transaction data must first be entered into the system. There are a number of input devices for entering data, including the keyboard and the mouse. Documents generated at the point where a transaction occurs are called source documents and become input data for the system. For example, when a customer returns an item at a store, the sales receipt becomes the source document for the transaction "return item for refund". The use of automated methods of data entry is known as source data automation. Methods for Data Entry: Keyboard/video display terminals Optical character recognition (OCR) devices, such as optical scanning wands and grocery check- out scanners. Magnetic ink character recognition (MICR) devices, such as MICR reader/sorters used in banking for check Other technologies, including electronic mice, light pens, magnetic stripe cards, voice input, and tactile. Input also be used as input device depending upon the application requirement b. Data Capture We could capture transaction data as close as possible to the source that generates the data. Salespersons capture data that rarely changes by prerecording it on machine-readable media, or by storing it on the computer system. Tips for Data Capturing Captures data directly without the use of data media by optical scanning of bar codes printed on product packaging. It ensures the accuracy and reliability of data by comparing c. Data Validation There are two steps in validation: error detection and error correction, Error detection is performed by one set of control mechanism, and error correction is done by another. Some commonly used error detection procedures are checking the data for appropriate font (text, numbers, etc), checking for aberrations (abnormalities) (values that are too low or too high), and checking for missing data, invalid data, and inconsistent data. Missing data refers to fields that are missing a mandated data value. For example, if the number of hours worked by a part-time employee is missing on a payroll form; that is a missing-data error. Invalid data is data that is outside the range For example, if the number of hours worked by a part-time employee is 72 hours per week instead of the 1120 hours, then we have invalid data Inconsistent data means that the same data item assumes different values in different places without a valid reason. For example, if payroll records show that an employee worked 25 hours per day. d. Processing and Revalidation Once the accuracy and reliability of the data are validated, the data are ready for processing. There are two ways to process the transactions: online and batch mode Following methods are available for Data Processing:

 Online transaction processing (OLTP) is the almost instantaneous processing of data. The term online means that the input device is directly linked to the TPS and therefore the data are processed as soon as it is entered into the system. Input device may be at a remote location and be linked to the system by networks or by telecommunications systems. Some examples of online transaction processing are ATM transactions, student registration for classes, flight reservations. Batch Processing: Transactions are accumulated over time and processed identically. Batch processing may be done on a daily, weekly, or monthly basis or any other time period appropriate to the application. For example, a company may process the travel expenses of its employees on a monthly basis, whereas batch processing usually involves gathering source documents originated by business transactions, such as sales orders and invoices, into groups called batches. A transaction file contains information about a group of transactions that occurred in a given period of time. It is processed using techniques such as sorting, merging, and so on. Once the transaction file has been processed, the next step is to update the master file, which is permanent record of all transactions that have occurred. Each time the master file is updated with information from the transaction file, a new master file, including most current transaction data, is generated. e. Data Storage Processed data must be carefully and properly stored for future use. Data storage is a critical consideration-for many organizations because the value and usefulness of data diminish if data are not properly stored. The next step in the processing of a transaction is to output the results of the transaction to the decision maker. f. Output Generation Once data has been input, validated, processed, revalidated and stored, the output can be communicated to decision makers in two ways: Documents and reports Forms: screens or panels. Documents are a popular output method. They can be processed further, either to generate additional information or to present the same information in a different format. Some examples of documents are invoices, paychecks, purchase, invoices., sales receipts, and job orders What is the difference between documents and reports? A document is usually a record of one transaction, whereas a report is a summary of two or more transactions. For example, the manager of a retail store may receive an invoice (i.e., a document) from a supplier indicating the quantity and type of each item ordered and the total cost of the order. A report, on the other hand, may summarize all the invoices from a given supplier. Computer output need not always be presented in hard-copy form (such as reports, documents, and printouts), but can also appear on computer screens and panels. Such soft-copy presentations are known as forms g. Query Support The last step in processing a transaction is querying the system. Query facilities allow users to process data and information that may otherwise not be readily available. For example, a sales manager may query the system for the number of damaged items in a given store Many transaction-processing systems allow you to use the Internet, intranets, extranets, and web browsers or database management query languages to make inquiries and receive responses concerning the results of transaction processing activity. Typically, responses are displayed in a variety of pre-specified formats or screens. Examples of queries include:

 Checking on the status of a sales order Checking on the balance in an account Checking on the amount of stock in inventory Transaction processing systems are responsible for capturing, storing, and providing access to the basic data of the organization. The goal is to capture the transaction data as soon as possible. Common collection methods include Point-of sale services Process control Electronic data interchange Electronic commerce websites. An Information System is an organized combination of people, hardware, software, communication networks & data resources that collects, transforms & disseminates information in an organization. People have relied on information systems to communicate with each other using a variety of physical devices (Hardware), Information Processing Instructions & Procedures (Software), Communication Channels (Networks) & Store Data (Data Resources). Information Systems are conceptually classified into two categories: Operations Support System Management Support System OPERATION SUPPORT SYSTEM: Produce a variety of information products for internal & external use. They do not emphasize on producing specific information products that can best be used by managers. Its role is to efficiently process business transactions, control industrial processes, support enterprise communications & collaboration & update corporate databases. It is Classified into three categories: 1. Transaction Processing Systems Record & process data resulting from business transactions. Typical examples are information systems that process sales, purchases & inventory changes. The results of such processing are used to update customer, inventory & other organizational databases. These databases then provide the data resources that can be processed & used by Management Information System, Decision Support System & Executive Information System. Also produce A variety of information products for internal or external use. Process transactions in two basic ways: i. Batch Processing. In this, Transaction data is accumulated over a period of time & is processed periodically. ii. Relative (Online Processing). In this, data is processed immediately after a transaction occurs. E.g. Point of scale (POS) system at retail stores may use electronic cash register terminals to capture & transmit sales data over telecommunication links to regional computer centers for immediate (Real Time) or nightly (Batch) Processing.

2. Process Control System Operation support system also makes routine decisions that control operational processes. E.g. of automation automatic inventory reorder decisions & production control decisions. This includes a category of information systems called process control systems, in which decisions adjusting a physical production processes are automatically made by computers. E.g. A petroleum refiner uses electronic sensors linked to computer, to continually monitor chemical processes. The computers monitor a chemical process, capture & process data detected by sensors & make instant (Real Time) adjustments to appropriate refinery processes. 3. Enterprise Collaboration Systems are information systems that use a variety of information technologies to help people work together. Help us collaborate to communicate ideas, share resources & coordinate our cooperative work efforts as members of the many formal and informal process & project teams and other workgroups that are a vital part of todays organizations. Its goal is to use information technology to enhance the productivity and creativity of teams and workgroups in the modern business enterprise. Example: Many businesses form teams of engineers, marketing specialists, and other knowledge workers to develop new products or improve existing ones. They may form virtual teams of people from several departments and locations within a company and include outside consultants as team members. Such teams would make heavy use of Internet, corporate intranets and extranets and collaboration software known as groupware. They then could easily collaborate via electronic mail, discussion forums, data & videoconferencing & multimedia project Websites on the companys intranet. In this way, a product development team could efficiently communicate with each other and coordinate their work activities, and effectively collaborate in the development or improvement of products and services. An Information System is an organized combination of people, hardware, software, communication networks & data resources that collects, transforms & disseminates information in an organization. People have relied on information systems to communicate with each other using a variety of physical devices (Hardware), Information Processing Instructions & Procedures (Software), Communication Channels (Networks) & Store Data (Data Resources). Information Systems are broadly classified into two categories: Operations Support System Management Support System

INFORMATION SYSTEMS

Support of Business Operations

OPERATIONS SUPPORT SYSTEMS

MANAGEMENT SUPPORT SYSTEMS

Support of Managerial Decision Making

TRANSACTION PROCESSING SYSTEMS Processing Business PROCESS Transactions CONTROL SYSTEMS Control of Industrial Processes

ENTERPRISE COLLABORATION SYSTEMS Team and Workgroup Collaboration

MANAGEMENT EXECUTIVE INFORMATION INFORMATION SYSTEMS SYSTEMS Prespecified Information Reporting for DECISION Tailored for Managers SUPPORT Executives SYSTEMS Interactive Decision Support

OPERATION SUPPORT SYSTEM: An operational support system (OSS) is a set of programs that help a communications service provider monitor, control, analyze and manage a telephone or computer network. An OSS supports processes such as maintaining network inventory, provisioning services, configuring network components, and managing faults. Produce a variety of information products for internal & external use. They do not emphasize on producing specific information products that can best be used by managers. Its role is to efficiently process business transactions, control industrial processes, support enterprise communications & collaboration & update corporate databases.

There are four key elements of OSS:

Processes o the sequence of events Data o the information that is acted upon Applications o the components that implement processes to manage data Technology

how we implement the applications

Functions of an OSS may include the following components:

Order processing, accounting, billing and cost management Network inventory, service provision, design and assign Network discovery and reconciliation, trouble and fault management, capacity management Network elements, asset and equipment management, field service management

OSS can be classified into three categories: 4. Transaction Processing Systems Record & process data resulting from business transactions. Typical examples are information systems that process sales, purchases & inventory changes. The results of such processing are used to update customer, inventory & other organizational databases. These databases then provide the data resources that can be processed & used by Management Information System, Decision Support System & Executive Information System. Also produce a variety of information products for internal or external use. Process transactions in two basic ways: i. Batch Processing. In this, Transaction data is accumulated over a period of time & is processed periodically. ii. Relative (Online Processing). In this, data is processed immediately after a transaction occurs. E.g. Point of scale (POS) system at retail stores may use electronic cash register terminals to capture & transmit sales data over telecommunication links to regional computer centers for immediate (Real Time) or nightly (Batch) Processing. 5. Process Control System Operation support system also makes routine decisions that control operational processes. E.g. of automation are automatic inventory reorder decisions & production control decisions. A system consisting of a computer, process control equipment, and possibly a process interface system. It is a category of information systems, in which decisions adjusting a physical production processes are automatically made by computers. E.g. A petroleum refiner uses electronic sensors linked to computer, to continually monitor chemical processes. The computers monitor a chemical process, capture & process data detected by sensors & make instant (Real Time) adjustments to appropriate refinery processes. 6. Enterprise Collaboration Systems Abbreviated as ECS, Enterprise Collaboration Systems is a type of information system (IS).

ECS is a combination of groupware, tools, Internet, extranets and other networks needed to support enterprise-wide communications, such as the sharing of documents and knowledge to specific teams and individuals within the enterprise. ECS are information systems that use a variety of information technologies to help people work together. Some examples of enterprise communication tools include e-mail, videoconferencing, collaborative document sharing, project management tools and others. The objective of an ECS is to provide each user with the tools for managing communications, documents and other information that individuals need to manage their own tasks efficiently in their departments. Help us collaborate to communicate ideas, share resources & coordinate our cooperative work efforts as members of the many formal and informal process & project teams and other workgroups that are a vital part of todays organizations. It uses information technology to enhance the productivity and creativity of teams and workgroups in the modern business enterprise.

MANAGEMENT SUPPORT SYSTEMS (MSS) When information systems focus on providing information and support for effective decision making by managers, they are called Management Support System. MSS was introduced when the concept of MIS originated in the 1960s. MIS became buzzword of almost all attempts to relate computer technology and systems theory to data processing in organizations. MIS concept is recognized as vital to efficient and effective information systems in organizations for two reasons: 1. It emphasizes management orientation of information technology in business. A major goal of computer based information systems should be the support of management decisionmaking, not merely the processing of data generated by business operations. 2. It emphasizes that a system framework should be used for organizing information systems applications. Business applications of information technology viewed as interrelated and integrated computer-based information systems and not as independent data processing jobs. Several major types of information systems are needed to support a variety of managerial end user responsibilities: 1. Management Information Systems 2. Decision Support Systems 3. Executive Information Systems 1. Management Information Systems: The most common form of Management Support System Management Information Systems (MIS) is a general name for the academic discipline covering the application of people, technologies, and procedures collectively called information systems to solve business problems. e.g. Decision Support Systems, Expert systems, and Executive information systems. It provides information about business operations. It's also used to refer to the people who manage these systems. Provide managerial end users with information products that support much of their dayto-day decision making needs. Provide a variety of reports and displays to management.

Used broadly in a number of contexts and includes (but is not limited to): decision support systems, resource and people management applications, project management, and database retrieval applications. Content of these information products are specified in advance by managers so that they contain information that managers need. Receive information about internal operations from databases that have been updated by transaction processing systems. Obtain data about business environment from external sources. Information products provided to managers include displays and reports that can be furnished on demand, periodically according to a predetermined schedule, or whenever exceptional conditions occur. 2. Decision Support Systems: Are a natural progression from information reporting systems and transaction processing systems. Are interactive, computer based information systems that use decision models and specialized databases to assist the decision making processes of managerial end users. Provide managerial end users with information in an interactive session on an adhoc (as needed) basis. Provides managers with analytical modeling, simulation, data retrieval, and information presentation capabilities. Managers generate the information they need for more unstructured types of decisions in an interactive, simulation-based process. When using a decision support system, managers are simulating and exploring possible alternatives and receiving tentative information based on alternative sets of assumptions. So, managerial end users donot have to specify their information needs in advance. Decision Support Systems interactively help them find the information they need. 3. Executive Information Systems (EIS) Tailored to the strategic information needs of top management. Top executives get the information they need from many sources including letters, memos, periodicals, and reports produced manually as well as by computer systems. Other sources are meetings, telephone calls, and social activities Goal of computer based executive information systems is to provide top management with immediate and easy access to selective information about key factors that are critical to accomplishing a firms strategic objectives. So EIS are easy to operate and understand. Graphic displays are used extensively, & immediate access to internal and external databases is provided. EIS provide information about the current status and projected trends for key factors selected by top executives. EIS have become so popular in recent years that the use is spreading information ranks of middle management.