INFORMATION PROCESSING AND MANAGEMENT

CHAPTER – IV

Prepared
&
Presented By
Dr. A. SURESH KUMAR
Assistant Professor
Department of Management
Bule Hora University
 INFORMATION SYSTEMS AND
ORGANIZATIONAL FUNCTIONS OF A BUSINESS

MARKETING INFORMATION SYSTEMS

FINANCIAL INFORMATION SYSTEMS

MANUFACTURING INFORMATION SYSTEMS

HUMAN RESOURCE INFORMATION SYSTEMS

 MARKETING INFORMATION SYSTEMS

• Marketing Information systems support all the

managerial activities related to marketing
function such as –
• Product development,
• Distribution,
• Pricing decisions, and
• Promotional effectiveness, etc,.
 Databases of Manufacturing
Databases of
internal data external data DSS

Transaction Databases
Business processing of valid
Marketing
transactions systems transactions MIS Marketing
for each applications
TPS databases

Sales by customer

Sales by salesperson Manufacturing

Operational Sales by product ES
databases Pricing report
Total service calls
Customer satisfaction

Figure 9.9
ITEC 1010 Information and Organizations
The major marketing information sub systems are:
• The sales information system
– Sales support
– Sales analysis
– Customer analysis
• The market research and intelligence information system
– Customer research
– Market research
– Competitor intelligence
• Promotion and advertising information system
• New product development information system
• Sales forecasting information system
• Product planning information system
• Product pricing information system
• Expenditure control information system
 Sales Information System Market Research Intelligence
Information System

Sales Forecasting Information New Product Development Promotional and Advertising

System Information System Information System

Product Planning Information System

Product Pricing Information System

Product Inventory Information System Product Planning and Scheduling Cost Account Information System
Information System

The major information flows within the marketing information system

• The overall objectives of this integrated set of
marketing subsystems are to improve the
organizations ability to:
1. Identify and evaluate potentially profitable sales
opportunities.
2. React rapidly to changes in market condition.
3. Establish profit maximizing product prices.
4. Control marketing cost.
5. Deploy sales personnel most effectively.
6. Assist in allocating expenditure for advertising and
other forms of promotion.
 FINANCIAL INFORMATION SYSTEMS
• A financial information system (FIS) accumulates
and analyzes financial data used for optimal
financial planning and forecasting decisions and
outcomes.
• FIS is used in conjunction with a decision support
system, and it helps a firm attain its financial
objectives because they use a minimal amount of
resources relative to a predetermined margin of
safety.
• Financial data analysis may be conducted
through trend evaluations, ratio analyses and
financial planning modeling.
• Data outputs that are produced by FIS can
include –
– Operating and capital budgets,
– Working capital reports,
– Accounting reports and
– Cash flow forecasts.
• The management of financial information in an e-
commerce business is paramount in order to gain
maximum operating results in the shortest amount of
time.
• FIS can also yield huge amounts of data for daily
business operations.
• Financial markets traders and salespeople have the
greatest demand for FIS because they work in very
fast environments and their on-demand computing
systems must keep up with real-time activities in order
to allow these professionals to operate in real time.
• Ex: Share Broking companies.
• Financial information system is:
• Information system that tracks financial events and summarizes
information
• Supports adequate management reporting, policy decisions, fiduciary
responsibilities and preparation of auditable financial statements
• Should be designed with good relationships between software,
hardware, personnel, procedures, controls and data
• It collects accurate, timely, complete, reliable, consistent information
• It provides adequate management reporting
• Supports government-wide and agency policy decisions
• Supports budget preparation and execution
• Facilitates financial statement preparation
• Provides information for central agency budgeting, analysis and
government-wide reporting
• Provides complete audit trial to facilitate audits.
• The core of an FIS could be expected to include
the following modules and systems:
 General ledger
 Budgetary accounting
 Accounts payable
 Accounts receivable
• The non core or other modules are:
 Payroll system
 Budget development
 Procurement
 Project ledger
 Asset module
 Databases of Financial
Databases of
internal data external data
DSS

Business
transactions
Transaction Databases
processing of valid
Financial
systems transactions MIS Financial
for each applications
TPS databases

Business
transactions
Financial statements
Financial
Operational Uses and management ES
Internet or databases of funds
Extranet Financial statistics
for control

Business Customers,
transactions Suppliers
Figure 9.3
ITEC 1010 Information and Organizations
 MANUFACTURING INFORMATION SYSTEMS

• Manufacturing information system is an

information system that collects, processes and
stores data generated by the operations systems of
an organization.
• It produces data and information for input into
management information system for the control of
an information systems.
• It processes data generated to use in business
operations.
• There are a number of sub-systems which
support the main system manufacturing. These
are:
1. Materials requirement planning (MRP)
2. Just in Time (JIT)
3. CAD / CAM (Computer Assisted Design /
Computer Assisted Manufacturing)
4. Production scheduling information system, or
CIM (Computer Integrated Manufacturing)
can substitute all the above sub-systems.
• Just In Time (JIT):
• Just in Time (JIT) manufacturing is a broad philosophy of
continuous improvement that includes three major
categories of effort that are mutually supportive:
• People involvement (including team work, suppliers
involvement). It seeks to utilize more fully the creative
talents of employees, suppliers, sub-contractors and
others who may contribute to the company’s involvement.
• Total quality control (covers concepts of the immediate
customer i.e. who is the next person who uses or further
process the item or information, quality at the source,
quality as a culture not a program).
• JIT production (i.e. production of goods shortly before
they are needed to keep the inventories low).
• CAD / CAM:
• Designs from engineering are transformed by an
information system into instructions for machines and
robots. A design can be transformed from a drawing into
commands.
• Ex.: A drilling machine can drill a number of holes in
various locations or a hacksaw can cut material in certain
ways as per the commands. Similarly, robots can also be
directed.
• CIM:
• The above systems can be integrated and benefits could be
accrued. CIM is an attempt to bring the disparate
manufacturing information systems together into a single
system. CIM system can be dispensed with all the above
four systems.
• Inputs to the Manufacturing MIS:
• Strategic plan or corporate policies.
• The TPS:
 Order processing
 Inventory data
 Receiving and inspecting data
 Personnel data
 Production process
• External sources
• Manufacturing MIS Subsystems and Outputs:
 Design and engineering
 Master production scheduling
 Inventory control
 Manufacturing resource planning
 Just-in-time inventory and manufacturing
 Process control
 Computer-integrated manufacturing (CIM)
 Quality control and testing
 Databases of Manufacturing
Databases of
internal data external data DSS

Business
transactions
Transaction Databases
processing of valid
Manufacturing
systems transactions MIS Manufacturing
for each applications
TPS databases

Business Quality control reports

transactions
Process control reports Manufacturing
Operational ES
JIT reports
Internet or databases
MRP reports
Extranet
Production schedule
CAD output

Business Customers,
transactions Suppliers
Figure 9.6
ITEC 1010 Information and Organizations
 HUMAN RESOURCE INFORMATION SYSTEMS

• Human Resource Information System (HRIS) are

the information systems that support human
resource management activities such as
recruitment, selection and hiring, job placement,
performance appraisals, training and
development.
• Personnel management is to administrate
activities related to acquiring workers, preparing
them for work, overseeing their performance and
providing compensation, whereas human resource
management is an expansion of personnel
management to include strategic planning.
• HRM System
• The business function emphasizes
1) Planning to meet the personnel needs of the business,
2) Development of employees to their full potential and
3) Control of all personnel policies and programs.
• Employee skills inventory systems uses the employee skills data
from a personnel database to locate employees within a company
who have the skills required for assignments.
• Personnel record keeping system keeps track of additions, deletions
and other changes to the records in a personnel database.
• Personnel requirement forecasting system is to assure a business an
adequate supply of high quality human resources.
• Computer based training programs and appraisals of employee job
performance are available.
• It can also help to analyze the range and distribution of employee
compensation within a company.
• Personnel Administration Data Systems (PADS)
• Personnel administration data systems (PADS)
provide data needed to carry out the personnel
administration responsibilities of an employer.
• Payroll and personnel planning data systems are
closely related to PADS, all using the employee
master file. Not only accessing the file, but updating
of file is often organized on a coordinated basis.
• Data items in the employee file are updated by the
payroll system.
• Payroll provides the most effective way to capture
the new data for this updating activity.
• Three types of PADS
• Personnel status reporting systems (Files used are Employee file, Job
file).
• Personnel action systems (Files used are Employee file, Job file).
• Fringe benefit administration systems (Files used are Employee file,
Job file, Insurance claims file, Insurance accidents file).

• All the three data systems parallel the common administrative

responsibilities of the personnel department in large organizations.
• But, in some organizations, Fringe benefit systems may include a
variety of systems like:
• Group Insurance
• Pension
• Profit sharing
• Credit union
• Educational programs etc.
• There are several files, but all the three systems access the
employee file. The employee file should be accessible by
employee name, department, skill, category, sex, other
employee characteristics and the employee number (File key).
• Employee file:
• This file provides data relevant to many aspects of employee
supervision and administration as well as for workforce
planning. The data are grouped under the following headings.
• Identification data
• Performance data
• Benefit data
• Skill data
• Payroll data
• Termination data
• Job file:
• A job or position exists independent of the employees
filing it, authorized in a work force budget. It is usually
defined by a job description that covers qualification,
duties and responsibilities.
• The data items in this file are:
• Identification data
• Position description data
• Budget data
• Performance data
 Databases of Manufacturing
Databases of
internal data external data DSS

Transaction Databases Human

Business processing of valid Resource Human
transactions systems transactions resource
for each
MIS
applications
TPS databases

Benefit reports

Salary surveys Manufacturing

Operational Scheduling reports ES
databases Training test scores
Job applicant profiles
Needs and planning
reports

Figure 9.12
ITEC 1010 Information and Organizations