Management Information

System

MBA 632
Chapter One
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 Definition ….
• The term information system usually refers to a
computer-based system, one that is designed to
support the operations, management, and decision
functions of an organization.
• Information systems in organizations thus provide
information support for decision makers.
• Information systems encompass transaction processing
systems, management information systems, decision
support systems, and strategic information systems.
• MIS is a comprehensive and coordinated set of
information subsystems which are rationally integrated
and which transform data into information in a variety
of ways to support operations, management, and
decision-making functions in an organization.
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 Why is information system?
• Three powerful worldwide changes have altered the
environment of business.
• The first change is the emergence and strengthening of
the global economy.
• The second change is the transformation of industrial
economies and societies into knowledge- and
information-based service economies.
• The third is the transformation of the business
enterprise.
• Management Information System is used to generate
timely, accurate and organized information for the
manager and other users. This information is used to
make decision, solve problems, supervise activities and
monitor process.
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 Importance of MIS
1. Improved Decision-Making:
• MIS provides timely, accurate, and relevant information, enabling managers
to make informed decisions.
• It facilitates access to historical data, trends, and patterns, which can be used
to forecast future outcomes.
• By providing a comprehensive view of the organization's operations, MIS
enables managers to identify problems and opportunities more effectively.
2. Enhanced Operational Efficiency:
• MIS automates routine tasks and processes, reducing manual effort and
errors.
• It streamlines workflows and improves communication, leading to increased
productivity.
• By providing real-time information on inventory levels, production schedules,
and sales performance, MIS helps optimize operations and resource
allocation.
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 Importance ….
3. Facilitated Planning and Control:
• MIS provides the data and tools necessary for effective
planning and control.
• It enables managers to set targets, monitor performance, and
identify deviations from plans.
• By providing feedback on the effectiveness of various
initiatives, MIS helps organizations learn and adapt.
4. Improved Communication and Coordination:
• MIS facilitates communication and collaboration among
different departments and individuals within the organization.
• It provides a centralized platform for sharing information and
knowledge.
• By improving information flow, MIS helps break down silos
and fosters a more integrated approach to management.
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 Importance ….
5. Competitive Advantage:
• Organizations that effectively utilize MIS can gain a competitive
advantage by making better decisions, operating more efficiently,
and responding more quickly to market changes.
• MIS can support the development of new products and services,
improve customer service, and enhance overall competitiveness.
6. Customer Satisfaction:
• By providing timely and accurate information to customers, MIS can
help improve customer service and satisfaction.
• It can support online ordering, tracking, and customer support
systems, enhancing the overall customer experience.
7. Cost Reduction:
• By automating processes, reducing errors, and improving efficiency,
MIS can help organizations reduce costs.
• It can also help optimize resource allocation and minimize waste. 6
 Subsystems of MIS
• A system is a set of components (subsystems)
that operate together to achieve certain
objectives.
• An information system is a specific type of
system in general.
• The objectives of a system are realized in its
outputs.
• In particular, the objective of an information
system is to provide the appropriate outputs
to the members of the organization.
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 Subsystems …..
• Information systems consist of the following general
components:
1. Hardware- A computer contains many electric,
electronic, and mechanical components known as
hardware.
• Multiple computer systems: microcomputers,
minicomputers, mainframes, together with their
peripherals.
• Computer system components are: a central
processor(s), memory hierarchy, input and output
devices.
• Computer processor: The central processor carries out
the instructions of a program, translated into a simple
form.

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 Subsystems …..
• Memories: Included in a computer system form a hierarchy.
They range from the fast electronic units, such as the main
memory, to the slower secondary storage devices such as
magnetic disks.
2. Software- Computer software falls into two classes:
systems software and applications software.
• Systems Software: Manage the resources of the computer
system and simplifies programming. An operating system is
the principal system software.
• It manages all the resources of a computer system and
provides an interface through which the system's user can
deploy these resources.
• Application Software: Are programs that directly assist end
users in doing their work. They are purchased as ready-to-
use packages. Applications software directly assists end
users in doing their work.
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 Subsystems …..
3. Databases- Databases are organized collections of
interrelated data used by applications software.
Databases are managed by systems software known as
database management systems (DBMS) and shared by
multiple applications.
4. Telecommunications- Telecommunications are the
means of electronic transmission of information over
distances.
Today, computer systems are usually interconnected into
telecommunications networks.
Various network configurations are possible, depending
upon an organization's need.
These include: Local area networks (LAN), Metropolitan
area networks (MAN) and Wide area networks (WAN)

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 Subsystems …..
5. Human Resources- Professional information
systems personnel include development and
maintenance managers, systems analysts,
programmers, and operators, often with highly
specialized skills and end users.
6. Procedures- Procedures are the policies and
methods to be followed in using, operating, and
maintaining an information system.
Specifications for the use, operation, and
maintenance of information systems, collected in
help facilities, user manuals, operator manuals, and
similar documents, frequently delivered in an
electronic form.
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 Characteristics of System
• A system does not exist in a volume rather than it
exists and functions in an environment containing
other system.
• A large system may have more than one small system
called sub system and the large system is its
environment.
• Several systems may share the same environment.
Some of these systems may be connected to one
another by mean of share boundary or interface.
• A system may be open system that is a system that
interacts with other system in its environment.
• A system has the ability to change itself or the
environment in order to survive as an adaptive system.
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 Characteristics ….
Example:
Organization such as business and government
agencies are good examples of the system in
society, which is their environment, society contains
a multitude of such systems, including individuals
and their social, political and economic institutions.
Organizations themselves consist of many
subsystem, such as department, division, and other
work groups.
Organizations are open system, because they
interface and interact with other systems in the
environment.

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 Types of Information System
There are two types of Information System of Information
System can be classified in to two types.
1. Operation Support System.
2. Management Support System.
1. Operation Support System:
• An Information System that collects, process and stores data
generated by the operations systems of an organization and
produces data and information for input in to management
information system or the control of an operations system.
• These system produce a variety of information products for
internal and external use.
• The role of Operation Support System in the business firms is
to efficiently process business transactions, control industrial
process, support enterprise communication and collaboration
and update corporate database.
• There are three types of Operation Support Systems.
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 Types of MIS ….
A. Transaction Processing System: This system is
used to store and process day-to-day business
activities.
• Automated Teller Machine (ATM) is an example of
Transaction Processing System (TPS).
• This system processes data faster reduce clerical
costs and improves customer service.
• Transaction processing system process
transaction in two ways.
– Batch Processing: In this data of transactions is
accumulated over a period of time and process
periodically.
– Real Time Processing: In this data are processed
immediately after a transaction occurs.
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 Types of MIS ….
B. Process Control System: Process control system monitor and
control physical process.
• Example: A petroleum refinery uses electronic sensors linked
to computers to continually monitor chemical process and
make instant (real time) adjustments that control refinery
process.
C. Office Automation System: Office Automation Systems
collect, process, store and transmit information in the form
electronic office communications.
• The Office Automation System enhances office
communication and productivity.
• Example: Word Processing, Spread Sheet, Database,
Presentation, E-Mail, Web Browser and Personal Information
Management.
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 Types of MIS ….
2. Management Support System:
• An Information System that provides information
to support managerial decision making.
• Management Support System providing
information and support for management
decision-making by all types of manager and
business professionals.
• More specifically, several major types of
Information Systems are needed to support a
variety of managerial end user responsibility.
• Many types of Information Systems are required
to support managerial end users responsibilities.
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 Types of MIS ….
Their major categories are:
A. Management Information System (MIS):
MIS is used to generate timely, accurate and
organized information for the manager and other
users.
• This information is used to make decision, solve
problems, supervise activities and monitor process.
• It provides useful information for the management to
make important decision about the organization.
• MIS creates three types of information.
– Detailed report: It contains only transaction.
– Summery Report: It consolidates data to review it quickly
and easily. It normally contains totals, tables and graph.
– Exception Report: It identifies data out side of a normal
condition. This condition is called exception criteria.
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 Types of MIS ….
B. Decision Support System (DSS): Decision Support
System is used to analyze data and make decision.
• Different manager require different types of information.
• DSS provides information for different type of users
according to their needs.
• Imagine you're the manager of a retail clothing store. You
need to decide which products to put on sale next week.
• A Decision Support System could analyze sales data,
customer demographics, and current inventory levels to
provide you with a report.
• This report might suggest putting winter coats on sale
based on low inventory and high demand, while
recommending you hold off on discounting new spring
arrivals.
• This information helps you make a better decision than
just guessing.
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 Types of MIS ….
C. Executive Information System (EIS): The goal of
computer-based Executive Information System is to
provide top and middle management with immediate and
easy access to selective information.
• It supports the strategic information needs of executive
management.
• Executive Information System provides critical
information in easy-to-use displays to executive and
managers.
• An EIS might show a company's CEO a dashboard with
real-time financial data, including a graph of quarterly
sales figures, a chart comparing actual expenses to the
budget, and key performance indicators (KPIs) like
profit margins and market share.
• All of this is summarized visually for quick, strategic
decision-making.
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 Information and Its Role in Business
• Information systems capture data from the
organization (internal data) and its environment
(external data).
• They store the database items over an extensive
period of time.
• When specific information is needed, the
appropriate data items are manipulated as
necessary, and the user receives the resulting
information.
• Depending on the type of information system,
the information output may take the form a
query response, decision outcome, expert-system
advice, transaction document, or a report.

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 Supporting Managers with Information
Systems
A variety of information systems support
managers as they play their interpersonal,
informational, and decisional roles.
The three management-oriented types of
systems (management reporting systems,
decision support systems, and executive
information systems) provide different kinds of
support to the three levels of management:
Operational, Tactical and Strategic

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 Supporting Managers ….
1. Operational Information System: At the operational
level the primary concern is to collect, validate, and
record transactional data describing the acquisition or
disbursement of corporate resources.
Operational level information systems often have the
following characteristics.
– Repetitiveness
– Predictability
– Emphasis on the past
– Detailed nature
– Internal origin
– Structured form
– Great
– accuracy
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 Supporting Managers ….
2. Tactical Information Systems: Tactical
systems provide middle-level managers with the
information they need to monitor and control
operations and to allocate their resources more
effectively.
Tactical information systems have the following
features.
• Periodic nature
• Unexpected findings
• Comparative nature
• Summary form
• Both internal and external sources
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 Supporting Managers ….
3. Strategic Information Systems: Strategic
planning level information systems are designed to
provide top management with information that
assists them in making long range planning
decisions for the organization;
Strategic information systems often have the
following characteristics:
• Unexpected Information
• Summary form
• External data
• Unstructured format
• subjectivity

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 Supporting Managers ….

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 What Managers Do and How Information
Systems Can Help?
Managers perform four core functions to ensure an
organization achieves its goals.
• Planning: This involves setting clear goals and outlining
the steps needed to achieve them within a specific
timeframe.
– Example: A marketing manager uses a project management
system to create a campaign timeline, assign tasks to team
members, and set deadlines for content creation and social
media outreach.
• Organizing: This function is about establishing a
structure and staffing it with the right people to perform
business activities effectively.
– Example: A human resources manager uses an HR
information system to create and post job descriptions, track
applicants, and manage employee records and roles within
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 What Managers Do and ….
• Leading: This is the process of motivating and directing
people in the organization to contribute to its goals.
• Example: A sales director uses a CRM (Customer
Relationship Management) system to track team
performance, identify top performers, and provide
targeted coaching and motivation based on real-time
sales data.
• Controlling: This involves measuring performance
against objectives and taking corrective action when
necessary to stay on track.
• Example: A finance manager uses a business
intelligence dashboard to monitor monthly budget
expenses against projections. If they see a department is
over budget, they can quickly investigate the cause and
adjust future spending plans.
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 What Managers Do and ….
• Henry Mintzberg classified managerial
activities into three key roles, and
Management Information Systems (MIS)
support managers in each of these.
• Interpersonal Roles: These involve interacting
with and leading people, both inside and
outside the organization.
– How MIS helps: An MIS, like a company intranet or
a communication platform, helps managers act as
figureheads and liaisons by providing a central
place for announcements and internal
communications.
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 What Managers Do and ….
• Informational Roles: This involves gathering,
processing, and disseminating information.
– How MIS helps: An MIS, such as a sales dashboard,
helps managers act as monitors and disseminators
by providing real-time data on sales trends, market
share, and key performance indicators (KPIs).
• Decisional Roles: This is about making decisions
and solving problems.
– How MIS helps: An MIS, like a financial modeling
tool, helps managers act as entrepreneurs and
resource allocators by providing the data needed to
make informed decisions about new investments,
budget allocations, and problem-solving strategies.
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 Information Systems and Managerial End
Users
• In managerial information system we can categorize
people in to two main categories, these are
Information specialists and End users
1. Information Specialists
Information specialists are employees who have full time
responsibility for developing and maintaining computer
based systems.
There are five main categories of information specialists,
these are:
• System Analysts: System analyst works with the users
in developing new systems and in improving existing
systems.
• Systems analysts are expert at defining problems and in
preparing written documentation on how the
computer will assist in solving the problems.
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 Information Systems and ….
• Database Administrators: Database administrators
work with systems analysts and users in establishing
the data communications network that ties together
widespread computing resource
• Network Specialists: Network specialists combine
expertise from the field of computing and
telecommunications
• Programmers: Programmers use the documentation
prepared by the systems analysts to code the
instructions that cause the computer to transform the
data in to information that is needed by the user.
• Operators: Operators operate the large-sale computing
equipment such as mainframe computer and
minicomputer.
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 Information Systems and ….
2. End-Users
• Managers are an end user who uses a product of
information specialists in order to make decisions in
different aspects.
• They use different types of information systems like:
– Decision support system,
– Transaction processing system,
– Executives information system,
– Marketing Information Systems,
– Office Automation Systems,
– School Information Management Systems,
– Enterprise Resource Planning,
– Supply chain management,
– Customer relationship management,
– Knowledge management system and other in their day to day
activity.
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 What Stimulated End-User computes /uses MIS?
• End user computing evolved because of the following
four main influences:
• An increase in computer literacy: During the early
1980s, the impact of good computer education
programs at both the college and pre college level
made it self felt.
• Management ranks, especially on the lower levels,
begin be filled with persons having good computer
knowledge.
• The information services backlog: Information
specialists have had more work than they can handle.
This situation became critical, when users began
making demand on information for additional systems
support. Information services could not responsible
enough, and backlogs built up of jobs waiting to go on
the computer.
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 What Stimulated…..
• Low-cost hardware: During this period, the
market become flooded with low-cost of
microcomputers. Users could obtain their own
hardware by placing an order at the local
computer store by telephone and making
payment from the petty cash fund.
• Prewritten software: Both hardware and
software firms produced software that would
perform basic accounting tasks as well as provide
information for decision-making. This prewritten
software offered enhanced support and ease of
use, and it enabled firms and individual users
with little or no computer expertise to implement
computer-based systems.
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 Contemporary Approaches to MIS
• Contemporary Approaches MIS acknowledges the complex interplay of
technical and social factors in the design, implementation, and use of
information systems within organizations.
• They move beyond purely technical perspectives and consider the human,
organizational, and societal dimensions. Here's a breakdown:
1. Socio-Technical Perspective:
• Core Idea: MIS are not just technological systems but also social systems.
Their success depends on the fit between technology and the people who
use it, the organizational structures, and the processes they support.
• Focus: Optimizing both the technical components (hardware, software) and
the social components (people, processes, organizational structure) to
achieve desired outcomes.
• Benefits: Leads to more effective and user-centered systems, better
alignment with business goals, and improved organizational performance.
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 Contemporary Approaches ….
2. Technical Approach:
• Core Idea: Focuses on the technical aspects of MIS, emphasizing mathematical
models, computer science principles, and the capabilities of the technology
itself.
• Focus: System efficiency, data management, algorithms, programming, and the
technical infrastructure.
• Benefits: Essential for building robust and reliable systems, optimizing
performance, and ensuring data integrity.
3. Behavioral Approach:
• Core Idea: Examines the human side of MIS, exploring how individuals interact
with technology and how systems impact behavior, attitudes, and job
satisfaction.
• Focus: User behavior, training, change management, communication, and the
social implications of information systems.
• Benefits: Helps to understand user needs, improve user adoption, and mitigate
potential negative impacts of technology on individuals and organizations.
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 Contemporary Approaches ….
4. Systems Approach:
• Core Idea: Views the organization as a system of interconnected parts, with
MIS playing a vital role in integrating and coordinating these parts.
• Focus: Understanding the flow of information within and between
departments, aligning MIS with overall organizational goals, and using
systems thinking to solve problems.
• Benefits: Promotes a holistic view of the organization, facilitates
communication and collaboration, and supports strategic decision-making.
5. Data-Driven Approach:
• Core Idea: Emphasizes the importance of data as a strategic asset and
utilizes data analytics to gain insights and improve decision-making.
• Focus: Data warehousing, data mining, business intelligence, and the use of
data visualization tools.
• Benefits: Enables organizations to identify trends, understand customer
behavior, and make informed decisions based on evidence rather than
intuition.
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 Contemporary Approaches ….
6. Design Thinking Approach:
• Core Idea: Applies design principles to the development of MIS,
focusing on user needs, prototyping, and iterative development.
• Focus: Creating user-centered systems that are intuitive, efficient,
and enjoyable to use.
• Benefits: Leads to higher user satisfaction, increased adoption rates,
and systems that are better aligned with user needs.
• It's important to note that these approaches are not mutually
exclusive. In practice, contemporary MIS often draw upon multiple
perspectives to address the complex challenges of designing,
implementing, and managing information systems in today's
organizations.
• The most effective MIS professionals are able to integrate these
approaches, understanding both the technical and social dimensions
of information systems and their impact on individuals,
organizations, and society
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 Solving Business Problems with Information
Systems
Problems in the Business World
• The business environment poses problems for all
companies, in various forms and different relative
severity.
• Successful business management is due in large part to
how well a company addresses the problems that
inevitably arise.
• Some business owners choose to not call them
problems but challenges instead, reflecting a view that
they are situations entrepreneurs should expect to be
confronted with in the normal course of business.
•

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 Solving Business Problems ….
What Are The Symptoms of Business Problems?
The symptoms of the problem are usually very
clear - one or more of:
• Few customers
• Low prices
• Losing money
• Unhappy workforce
• Frustrated entrepreneur

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 Solving Business Problems ….
Common Business Problems
• Business problems can be categorized in to two major
group, these are: Employees problems and
Organizational problems.
1. Employees Problem
• Confusion - You're not sure where the business is going
or what you should be doing - this indicates that the
key problem is that Vision is missing from your
business. When you clarify your vision, the confusion
will disappear.
• Anxiety - You are finding it very stressful working in
your business and you are not getting the enjoyment
you should - disappointing results and the clear
evidence of an undiagnosed business problem will
cause stress but it will be made worse if you are not
playing to your strengths.
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 Solving Business Problems ….
• Unmotivated- You have a direction but the problem is,
it doesn't stir you into action - this is because passion is
missing. You have chosen a business or a vision which
you thought would make you money but it doesn't
excite you.
• Frustration- Things are not happening as fast as you
want or as well as you want.
• Limited Success- Things are OK but the problem is you
never seem to get to take-off speed and build the
business you know you could. This is probably because
you haven't established strong relationships with
people and businesses who can help you while also
gaining from your success.

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 Solving Business Problems ….
• Sluggish Results- Again things are OK but
performance should be better. You have the
partners in place but still things aren't happening
because the underlying business problem is that
you lack powerful tactics. You have opportunities
to sell and up sell but you fail to take them.
• False Starts - Things start off well but then
problems start happening and you lose control. In
this situation, you will find that better action
plans, showing what will be done, when and by
who will lead to more concerted effort and longer
lasting success.
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 Solving Business Problems ….
2. Organizational Problem
• Global Competition- A major problem for
companies is competing against companies that
offer products or services for substantially lower
prices due to lower labor costs. In that case they
choose to do business with the company offering
the lowest cost. This can occur with service
companies as well.
• Data Security- External threats like data theft and
even the shutdown of entire systems by
computer hackers. Companies invest in firewalls
and other security features to protect their data
and systems.

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 Solving Business Problems ….
• Government Regulation- Companies face a
myriad of laws and regulations enacted by
state and federal governments. As the laws
become more complex, the problem of
remaining in full compliance with all the laws
becomes more difficult.
• Challenges of International Marketing-
International marketing poses its own set of
problems -- or challenges -- compared to
domestic marketing.

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 Solving Business Problems ….
• Uncertainty- Uncertainty leads to a short-term
focus. Companies are shying away from long-
term planning in favor of a shorter term focus,
with uncertainty as the excuse. The problem to
be solved, therefore, is to balance the need for a
more reactive, short-term focus with the need for
informed, long-term strategies.
• Globalization- Understanding foreign cultures is
essential to everything from the ability to
penetrate new markets with existing products
and services, to designing new products and
services for new customers, to recognizing
emergent, disruptive competitors that only
months earlier weren’t even known.
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 Solving Business Problems ….
• Innovation- It seems big companies are struggling with
innovation, and a better innovation process is at the
top of the agenda for most CEOs. But the idea of a
more innovative culture appears too frightening to
many. The problem to be solved is how to become
more innovative while still maintaining a sense of
control over the organization.
• Technology- The pace of technological improvement is
running at an exponentially increasing rate. While this
has been true for several decades, the pace today
makes capital investment in technology as much an
asset as a handicap because a competitor can wait for
the next-generation technology, which may only be a
year away, then use it to achieve an advantage.

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 Solving Business Problems ….
• Diversity- Diversity brings many challenges, as it makes
it far more likely that people do not agree, and the lack
of agreement makes execution very difficult. The
problem to be solved is to first define what diversity
really means in your company, then foster the
expansion of differing ideas and viewpoints while
ensuring cohesion and teamwork.
• Complexity- There’s no doubt that life and business
have gotten more complex, even as certain tasks and
activities have become easier due to information
technology. The pace of change is quickening. The
global economy is becoming still more connected,
creating a much larger and more diverse population of
customers and suppliers. Manufacturing and services
are increasingly targeted at smaller, specialized markets
due to the flexibility that IT provides in these areas.
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 Solving Business Problems ….
• Information Overload- It is said that the only true
constant is change, and in today’s world nothing is
changing more, or growing faster, than information.
The ability of companies, much less individuals, to
consume and make sense of the information that is
available (and necessary) to make good decisions is
becoming a nearly insurmountable challenge. The
problem to be solved is to deal with this mountain of
information with both technology and human know-
how, then to convert this information into valuable
knowledge.
• Supply Chains- Because of uncertainty in demand and
the need to stay lean, companies are carrying smaller
inventories than ever. At the same time, uncertainty in
supply, driven by wildly changing commodity prices, an
apparent increase in weather-related disruptions
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 Solving Business Problems ….
• Problem Solving- The lack of a sophisticated
problem-solving competency among today’s
business leaders is limiting their ability to
adequately deal with the first nine problems.
• This is why corporate managers tend to jump
from one fire to another, depending on which
one their executives are trying to put out, and
in many cases the fast-changing business
environment is what ignites these fires.

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 Systems approach to problem solving
• The systems approach to problem solving used a systems
orientation to define problems and opportunities and develop
solutions.
• Studying a problem and formulating a solution involve the following
interrelated activities:
1) Defining problems and opportunities: Problems and opportunities
are identified in the first step of the systems approach. A problem can
be defined as a basic condition that is causing undesirable results. An
opportunity is a basic condition that presents the potential for
desirable results. Symptoms must be separated from problems.
Symptoms are merely signals of an underlying cause or problem.
Example;
• Symptom: Sales of a company’s products are declining.
• Problem: Sales persons are losing orders because they cannot get
current information on product prices and availability.
• Opportunity: We could increase sales significantly if sales persons
could receive instant responses to requests for price quotations and
product availability.
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 Systems approach ….
2) Systems thinking: Systems thinking is to try to find systems,
subsystems, and components of systems in any situation your
are studying. This viewpoint ensures that important factors and
their interrelationships are considered.
This is also known as using a systems context, or having a
systemic view of a situation.
Example, the business organization or business process in which
a problem or opportunity arises could be viewed as a system of
input, processing, output, feedback, and control components.
Then to understand a problem and save it, you would determine
if these basic system functions are being properly performed.
Example;
The sales function of a business can be viewed as a system. You
could then ask: Is poor sales performance (output) caused by
inadequate selling effort (input), out-of-date sales procedures
(processing), incorrect sales information (feedback), or
inadequate sales management (control)?
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 Systems approach ….
3) Developing alternate solutions: There are usually
several different ways to solve any problem or pursue any
opportunity. Jumping immediately from problem
definition to a single solution is not a good idea.
It limits your options and robs you of the chance to
consider the advantages and disadvantages of several
alternatives. You also lose the chance to combine the best
points of several alternative solutions.
Where do alternative solutions come from/ experience is
good source. The solutions that have worked, or at least
been considered in the past, should be considered again.
Another good source of solutions is the advice of others,
including the recommendations of consultants and the
suggestions of expert systems.
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 Systems approach ….
4) Evaluating alternate solutions: Once alternative
solutions have been developed, they must be evaluated
so that the best solution can be identified. The goal of
evaluation is to determine how well each alternative
solution meets your business and personal requirements.
Example;
• If you were the sales manager of a company, you might
develop very specific requirements for solving the
sales-related information problems of your
salespeople. You would probably insist that any
computer-based solution for your sales force be very
reliable and easy to use.
• You might also require that any proposed solution have
low start-up costs, or have minimal operating costs
compared to present sales processing methods.
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 Systems approach ….
5) Selecting the best solution: Once all alternative
solutions have been evaluated, you can being the process
of selecting the best solution.
Alternative solutions can be compared to each other
because they have been evaluated using the same
criteria.
Example;
• Alternatives with a low accuracy evaluation (an
accuracy score less than 10), or a low overall evaluation
(an overall score less than 70) should be rejected.
• Therefore, alternative B for sales data entry is rejected,
and alternative A, the use of laptop computers by sales
reps, is selected.

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 Systems approach ….
6) Designing and implementing solution: Typically, design
specifications might describe the detailed characteristics and
capabilities of the people, hardware, software, and data
resources and information system activities needed by a new
system.
An implementation plan specifies the resources, activities, and
timing needed for proper implementation.
For example, the following items might be included in the design
specifications and implementation plan for a computer-based
sales support system:
• Types and sources of computer hardware, and software to be acquired for
the system.
• Operating procedures for the new system.
• Training for personnel.
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 Systems approach ….
7) Post implementation review: The final step of the
systems approach recognizes that an implemented
solution can fail to solve the problem for which it was
developed. The real world has a way of confounding even
the well-designed solutions.
Therefore, the results of implementing a solution should
be monitored and evaluated. This is called a post-
implemented. The focus of this step is to determine if the
implemented solution has indeed helped the firm and
selected subsystems meet their system objectives.
If not, the systems approach assumes you will cycle back
to a previous step and make another attempt to find a
workable solution.

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 Thank You!

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