MODULE - 2

SYLLABUS
 Business Information System
 Marketing Information System
 Manufacturing info System
 Human resource info system
 Accounting info system
 Financial info system
 Transaction Processing System.
Business Information System
Business information systems represent a

system of controls and processes which a

business uses to analyze information needed
to effectively manage their business . These
controls and procedures can include
accounting systems.
DEFINITION
“A Business Information System is a group of
interrelated components that work collectively to
carryout input, storage , and control actions in
order to convert data into information product that
can be used to support forecasting , planning ,
control , coordination and operational activities in
an organization.”
Objectives of BIS
 The use of information systems facilitates better
decision making in the company.
 Management is able to review all the present practices
and norms and formulate new ones for the future.
 Information systems are used across all realms and
functions of the business.
 Management is able to better control its people and
processes and attain organizational goals.
Advantages of BIS

 Make people easy to do their work

 Real time uploading can be possible

 Improvement of quality care of organization

 Help the user to store large amount of information.

 It has made possible for business to be open 24 *7 all

over the globe.
 The creation of new and interesting jobs.
Disadvantages

 High cost of implementation(software and people)

 Security Issues

 Unemployment & lack of job security

Marketing Information System
It is a management information system designed to support
marketing decision making;
 According to Philip Kotler;

“Marketing information system is a planned

system of collecting , processing , storing and
disseminating data in the form of information
needed to carryout the functions of
management.”
MKIS

Data External & Market

Market Research
Internal Intelligence
Division
Division

Market
Top Market Strategy Managers
Management & Decision Division
Features
Continues system
Basic objective
Computer based system:
Future-oriented :
Used by all levels
Sources
Collects marketing information
Helps in decision making
Components of MKIS

1. Internal Record

2. Marketing Intelligence system

3. Marketing Research system

4. Marketing Decision Support system

Importance of MKIS
 Anticipation of customers

 Complexity of Marketing

 Economic indication

 Technology development

 Market planning

 Understanding the customer

 It improves the work efficiency of marketing

 Recognize trends & changes by analyzing the market.

1. Anticipation Of Customer Demand
- Every marketer needs up-to-date knowledge about
consumer needs and wants.
[Link] of Marketing:
Modern marketing process has become much more
complex and elaborate. Ever-expanding markets and
multinational marketing activities require adequate
market intelligence service and organized information
system.
3. Economic indicator
Marketers must have latest information on the
changing trends of supply, demand and prices
4. Significance of Analyzing Competition
Marketer cannot survive without having information
regarding nature , character and size of competition to be
met.
5. Development of Technology
Marketers must have latest information regarding
technological development.
6. Understanding the Customer
Information system can establish proper two way flow of
information and understanding between marketers and
customer.
[Link] Planning
Marketing plans and programmers are based upon
information supplied by economic forecasts and market
research.
 Marketing Information
System

Sales face
Interactive Sales
automation CRM
marketing Management

Market Research Advertising & Product

& Forecasting Promotion Management
Sources of Marketing Information;

Sources of marketing information system

are internal company data. These are data
that is generated and stored within the
company, for example data from
accounting, sales, activities of sales
personnel, supplies, financial liabilities
and solvency customers
Sources of Marketing Information;

1. Sales analysis
2. Cost Analysis

3. Financial records
1. Sales Analysis-
The marketing information system retrieves sales
information and put them in usable and
disaggregated form. It detects various marketing
strengths and weaknesses. Computer assisted sales
analysis uncovers significant details for management
needs.
2)Cost Analysis-

The cost analysis is possible with the effective

accounting system. The classification and analysis of
the cost of production, cost of distribution and selling
may provide adequate information for the
management purposes .
3. Financial Records-

The financial records & publications may provide

adequate opportunities for management of sales &
marketing activities .Many companies prepare
periodical final statement to observe the balance of
each item of
Types of Information

1) Recurrent Information

Recurrent information is information that's
provided on a periodic and routine basis. This would
include sales data, market trend and
share information, customer surveys, advertising
campaigns and advertising expenditures. ...
2) Monitoring Information
This is the data obtained from the regular scanning of
certain sources. Marketing managers may need data
related to competition or the industry. It is essential so
that marketing managers can be alert and identify
potential problems
3) Requested Information
This information is developed in response to some
specific request by the marketing manager. Secondary
data or primary data through survey research are
collected in response to the specific request. The MIS
supplies the requested information for decision
making.
Advantages
 Organized data collection

 A broad Perspective

 The storage of important data

 Avoid crisis

 Co ordinate marketing plans

 Analysis and planning

 Control
Disadvantages –  Maintenance, complexity and setting
up a MIS are one of the major hindrances to Marketing
information systems.
Manufacturing Information System
What is MIS?
Manufacturing Information Systems are powerful
software platforms capable of tracking the progress of
raw materials into finished goods. Modern
management information systems are generally
computerized and are designed to collect and present
the data which managers need in order to plan and
direct operations within the company.
 The manufacturing function is concerned with the production of
goods that the business sells.
 Manufacturing information provide services to support the
manufacturing function.
 Inventory control is often considered to be a manufacturing
information system because manufacturing produces the goods for
inventory.
 Purchasing may also be a manufacturing information system in some
businesses.
 The marketing function of a business is responsible for selling goods and
services.
Accounting Information System:
It is a structure that a business uses to collect, store,
manage, process , retrieve and report its financial data
so that it can be used by accountant, managers, chief
financial officers, auditors and regulatory and tax
agencies
Industrial Engineering Subsystem

IE‟s work involves the setting up of production standard

and are compared to actual performance.

 Manufacturing Intelligence Subsystem

 Supplier input : Financial strength, past quality and delivery
performance, and .
 Quality control input : Units rejected upon receipt, units
rejected during production, reasons for rejection, etc.
 Customer service input : Units replaced or repaired because
of defective parts, supplier spare parts availability, and so on.
Production Subsystem (Output Systems)
o Production flows

o Bill of material

o Production schedule

Inventory Subsystem
o The importance of inventory level

o Maintenance costs/carrying cost(spoilage, pilferage,

obsolescence, taxes and insurance)

o Purchasing costs

o Economic order quantity (EOQ)

o Economic manufacturing quantity (EMQ)

Quality Subsystem
o Quality control inspectors

o Total Quality Management

o Company wide

o Systematic

o Scientific

Cost Subsystem
o Preventive maintenance (PM)

o Breakdown hours
Benefits of Manufacturing Information
system
 Reduced costs, waste, and re-work

 Audit preparation

 Assessment of correct order priority

 Making and measuring parts

 Managing suppliers

 Moving inventory from one workstation to another

 Increasing total output

 Scheduling and rescheduling equipment

Human Resource Information System

A Human Resources Information System

(HRIS) is a software or online solution that is

used for data entry, data tracking and the
data information requirements of an
organization's human resources (HR)
management
It is a software or online solution for the data entry,

data tracking, and data information needs of the

Human Resources, payroll management, and
accounting functions within a business.
HRIS is designed to supply information required

for effective management of human resources in an

organization
An efficient HRIS provides:

Administration of all staff data

Reporting and evaluation of staff data
Company-related records, including staff handbooks,
disaster evacuation methods and security
recommendations
Rewards management, such as enrollment, status
modifications and updating of personal data
Comprehensive integration with payroll, in addition to
other accounting systems and financial software
Applicant monitoring and resume administration
An efficient HRIS helps an organization track:

Paid time off (PTO) and attendance

Pay scale history
Positions and pay grades
Overall performance development strategies
Coaching obtained
Disciplinary actions
Personal staff data
Key staff succession plans
Identification of prospective staff
Applicant administration, including interview process and
selection
 The basic objective of HR information system are :

computerized HRIS is designed to achieve the following objectives:

 The objectives of a human resources information system software
are to collect data and make it easily accessible. HRIS typically
collects and manages employee data: names, addresses, Social
Security numbers or equivalent identifiers, visa information and
records on dependents. HRIS also has functions for managing
recruiting, applicant tracking, attendance, time management,
performance appraisals and benefits.
 To provide accurate information about human resource and their
functioning and relevant environmental factors.
 To offer data security and personal privacy .
Characteristics of HRIS
 Management of all employee information.

 Reporting and analysis of employee information.

 Company-related documents such as employee handbooks,

emergency evacuation procedures, and safety guidelines.
 Benefits administration including enrollment, status
changes, and personal information updating.
 Complete integration with payroll and other company
financial software and accounting systems.
 Applicant tracking and resume management
FUNCTIONS/SUBSYSTEMS of
HRIS
Scope & Application of HRIS

A central HRIS can help with payroll and other basic but

essential HR processes
 Recruitment
Sourcing new talent and completing the recruitment
process of interviews and paperwork is one of the most
time consuming and expensive processes in HR but it’s also
one of the most important. An 
HRIS system that has a focus on recruitment can help you
connect to thousands of job boards, quickly post brand-
consistent job listings, track a candidate’s progress and
much more.
Learning Training & Development

Training and learning opportunities are vital for your

business and your employees.
Job evaluation

Job evaluation is the process to assess the relative value

of a job in an organization by comparing it with other
jobs within the organization and with job market
outside. It attempts to make a methodical comparison
between jobs to assess their relative worth for the
purpose of establishing a rational pay structure..
What Are the Disadvantages?

There are, of course, some disadvantages to using an HRIS.

Security. Security is one of the biggest worries. Systems must be
designed to prevent unauthorized access to sensitive and confidential
data and also the unintended publication of such information. This
typically required many “compartments” and many levels of authority
for access, all of which have to be monitored and maintained.
Cost. Then there is the cost factor. Especially for smaller companies,
this can pose a problem. With any system, there are acquisition costs
and maintenance costs. SaaS (software as a service) systems are
somewhat easier to handle from a cost standpoint since they are
cloud-based and don’t require as much initial outlay.
Staffing. With larger installations, there’s probably the cost of hiring
an IT specialist to manage the system
Uses of HRIS:
Personnel Administration:
It encompasses personal information of an employee.
These may include name, address, date of birth,
marital status, and the date of joining the
organization. These information describe the
employee.
Salary Administration:
One of the functions of HRIS is to provide a report
containing information like present salary, benefits,
last pay increase and proposed increase in future.
Leave/Absence Increase:
HRIS is also used to control leave/absence of employees. This is done by
maintaining a leave history of each employee. Every employee can be
issued an identity card writing every employee’s token number coded on
it. Employee’s entry and exit from the organization should be recorded
on the identity card. This reduces chances for malpractice or oversight in
calculating wages for each employee.
Medical History:
The HRIS is also used to maintain occupational health data required for
industrial safety purposes, accident monitoring, and so on.
Recruitment:
Recruitment forms the most essential function of HRM. HRIS helps in
the recruitment process in a big way by recording the details of activities
involved in employee recruitment. These may include cost and method
of recruitment and time taken to fill the positions level wise,
Financial Information System
Definition

1.A financial information system (FIS) is a business software

system used to input and track financial and accounting data.
2.A financial information system is an organized approach to
collecting and interpreting information, which is usually
computerized
The system generates reports and alerts that assist

managers in effectively running the business

This system can be used in many ways, including
the following:
Ensure that there are sufficient funds on hand to pay for
obligations as they come due for payment
Put excess funds to use in appropriate and reasonably liquid
investments
Locate the bottleneck areas within the business
Determine the maximum amount of funds that can safely be
distributed to investors in the form of dividends
Determine the maximum debt load that the organization can
sustain
Determine which customers, products, product lines and
subsidiaries are the most and least profitable
Objectives of FIS

a. Decisions concerned with the financing of a

business
b. The allocation and control of financial resources
within a business.
FIS includes;

 cash Management
 Investment Management

Capital Budgeting

Financial Planning
Transaction Processing System (TPS)
A transaction processing system is a type of
information system . TPSs collect, store, modify, and
retrieve the transactions of an organization. A
transaction is an event that generates or modifies
data that is eventually stored in an information
system. E.g.:-order entry system, cheque processing
systems, accounts receivable systems, payroll system
and ticket reservation systems .These system help
any company to conduct operations and keep track
of its activities .
Two types of TPS:

 Batch processing
A system whereby business transactions are accumulated
over a period of time and prepared for processing as a
single unit or batch
 On-line/real-time transaction processing

A system whereby each transaction is processed

immediately, without the delay of accumulating
transactions into a batch
Who Uses Transaction Processing Systems?
Transaction processing systems are used to record day
to day business transactions of the organization. They
are used by users at the operational management level.
Objectives of TPS
Process data generated by and about transactions

 Maintain a high degree of accuracy

Ensure data and information integrity and accuracy

Produce timely documents and reports

Increase labor efficiency

Help provide increased and enhanced service

Help build and maintain customer loyalty

Achieve competitive advantage

Transaction Processing cycle:-

Transaction processing systems capture and process data

describing business transactions. Then they update

organizational files and databases and produce a variety
of information products for internal and external use.
Transaction processing systems generally go through a

five-stage cycle of
1) Data entry activities
2) Transaction processing activities
3) File and database processing
4) Document and report generation
5) Inquiry processing activities
TPS Characteristics:

 They collect, store, modify and retrieve the transaction

of an organization.

Directly support business operations

Must be designed in conjunction with the organization's

procedures.

Main information processes: collecting and storage

Components of Transaction Processing System

Below are some of the components involved in a TPS:

Inputs: These are source documents gotten from
transactions which serve as inputs into the computer’s
accounting system examples are invoices, and
customer orders.
Processing: This requires the breaking down of
information provided by the inputs.
Storage: This is saved information in TPS memory, it
may be in the form of ledgers.
Output: Any generated record may serve as the output
Functions of Transaction Processing System
Transaction Processing Systems can execute input, output,
storage, and processing functions.
Input functions: This includes the securing of data on the
source document, entering of input data in the system and also
validate data.
Output functions: This includes the production of the report
of the transaction via monitor or paper, examples are exception
reports, detail reports, and summary reports.
Storage functions: This is the process by which data is stored.
It entails the storage of information, accessing, sorting, and
updating stored data.
Processing functions: This entails the transformation of data,
it includes calculation, computation, and apt result.
Applications of TPS
Order Processing

Purchasing

Accounts Receivables & Accounts Payables

Receiving & Shipping Inventory on Hand

Payroll

General Ledgers
Accounting Information System
An accounting information system (AIS) is the

collection, storage and processing of financial

and accounting data used by internal users to
report information to investors, creditors and tax
authorities.
 BASIC FUNCTIONS PERFORMED AIS.

1 .efficient and effective collection and storage of data concerning an

organization’s financial activities, including getting the transaction data from
source documents, recording the transactions in journals, and posting data
from journals to ledgers

2. The second function of an AIS is to supply information useful for making

decisions, including producing managerial reports and financial statements..

3. To provide adequate internal controls: 

 Ensure that the information produced by the system is reliable.
 Ensure that business activities are performed efficiently and in accordance with

management’s objectives.
 Safeguard organizational assets.
Parts of an Accounting Information System
An accounting information system typically has six basic parts:
People who use the system, including accountants, managers,
and business analysts
Procedure and instructions are the ways that data are
collected, stored, retrieved, and processed
Data including all the information that goes into an AIS
Software consists of computer programs used for processing
data
Information technology infrastructure includes all the
hardware used to operate the AIS
Internal controls are the security measures used to protect
data
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