Topic 4
Information Systems
Integration in the
Organisation
Information Systems &
Organisational Planning
Information system planning has to be performed after
all parties have agreed to redesign the organisation
using an information system.
Information system planning is a process using goals,
strategies, objectives and organisational information to
identify and select a system that will be developed and a
suitable time to develop it.
There are several steps to ensure the success of the
information system (IS) planning process.
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Steps for IS Planning
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Standardisation in Planning
Management should standardise its information
technology when it decides to adopt a certain
information technology resources for all its units.
Standardisation results in several benefits:
Cost savings
Efficient training
Efficient support
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Organisational Change
The restructuring of the organisation with an information
system will directly or indirectly affect the daily activities
of the organisation.
The changes brought by information technology have to
be realised so that the function and task for each party
will proceed smoothly with the use of information system.
This change is normally divided into four parts:
Automation
Rationale Procedure
Business Process Restructuring
Paradigm Shift 5
Information System Categories for
Different Levels of Management
Level of
Category Example
Management
Strategic
Strategic SIS – Strategic Information System
Management
Management EIS – Executive Information (Support) System
System
Tactical MIS – Management Information System
Mid-level
Management DSS – Decision Support System
Management
Support System OAS – Office Automation System
TPS – Transaction Processing System
Operations Operations
PCS – Process Control System
Management Support System
ECS – Enterprise Collaboration System
ES – Expert System
All three levels
Other types KMS – Knowledge Management System
of management
FIS – Functional Business System
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Management Information System
(MIS)
As mentioned in Topic 1, MIS is a system that has
information processing capabilities that include
collecting, processing, storing and disseminating data in
the form of information through analytical processing and
conveying information to whoever needs it.
The aim of MIS:
To develop a viable system to maximise the effective use of
latest data approaches to management practices.
To construct timely and accurate information (e.g. report) not
only to decide current and future operations, but also to identify
potential problems that need to be rectified.
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Input & Output of MIS
MIS consists of several collections of subsystems that
focus on certain functions or tasks, like Accounting MIS,
Marketing MIS and Manufacturing MIS.
The input for MIS is information produced from internal
data, which is obtained from the results of the
Transaction Processing System (TPS) and external data.
The output is a collection of reports:
Periodical Report
Requested Reports
Unexpected Reports
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Characteristics of MIS
Prepares reports using a permanent and uniform format.
Prepares reports in soft copy or hard copy forms.
Uses internal and external data or TPS information.
Enables the end user to produce report that he/she
requires.
Able to prepare information for the use of strategic and
tactical managers.
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Transaction Processing System
(TPS)
Every organisation performs business
transactions daily.
In order to perform these transactions more
effectively and efficiently, the TPS is introduced.
TPS main function: to collect all information
relating to the business transactions and to
process it as well as produce a relevant output.
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Objectives of TPS
Preparing the required information so that the organisational
operations can be implemented effectively and accurately.
Preparing accurate data for the strategic and tactical systems, for
example data for the MIS and DSS.
Ensuring the accuracy and reliability of the data and information.
Preparing reports and documents right on time.
Increasing the competitive advantage of the organisation.
…… and many others
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Methods or Processes of TPS
Batch Processing: all transactions are collected
into a batch for a certain period of time before
processing (allows time for updating).
Online Transaction Processing (OLTP): also
known as real-time processing and the
transaction is processed as soon as it occurs.
Hybrid System (Online Entry with Delayed
Processing): This process or method is a
combination of both the earlier methods.
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Activities of TPS
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