Lecture - 6
9/16/23
• Major Information System
Major Information System
• The major Information Systems are:
– Formal Information System – Informal Information System
– Computer Based Information System
Formal Information System
• It defines
– Very clear work-flow system, communication flow-down and the authority.
– The information flows in terms of policies, goals, strategies, rules and regulations from the top
level management to the bottom level of management
– The information also flows from the bottom level management to the top level in terms of
feedback, results of work done etc
Formal Information System
• There are three categories of information
– Strategic Information
– Managerial Information
– Operational Information
Formal Information System :Strategic Information
• It is first level i.e. Upper Level
• Relates to long–range planning policies that are of direct interest to upper management.
• Information such as population growth, trends in financial investment and human resources changes
• This type of information is achieved with
the aid of Decision Support System (DSS).
Formal Information System: Managerial Information
• It is second level i.e., Middle Level
• It is of direct use to middle management and
department heads for implementation and control.
• Examples are sales analysis, cash flow projection and annual financial statements.
• This information is of use in short – and intermediate -range planning – that is months rather than years.
• It is maintained with the aid of Management
Information Systems (MIS).
Formal Information System: Operational Information
• The third information level i.e., Lower Level
• It is a short-term, daily information used to
operate departments and enforce the day-to-day rules and regulations of the business.
• Examples are daily employee absent sheets, overdue purchase orders and current stocks available.
• Operational information is established by Data
Processing Systems (DPS).
Formal Information System
• The nature of the information and managerial levels is also related to the major types of decision making:
– Structured and – Unstructured
• In designing an information system, the analyst needs to determine
– type of information needed, – the level of the information, – how it is structured and
– in what format
Informal Information Systems
• It is an employee based system designed to meet personnel and vocational needs and help to solve work – related problems
• It is a useful system because it works within the framework of the business and it’s
stated policies.
• Employee cooperation and participation are
crucial in preventing sabotage and training users.
Computer Based Information System
• This relies on the computer for handling business applications.
• There are different levels of information required by people at different level:
– People at Lower Level needs detailed information which would allow them to carry out with their tasks.
– People at Higher Level needs summarized information which would allow them to assess the overall progress, goals etc.
• This system should ensure that people at lower level are not given access to all the data shown at the higher level.
• However, people at the higher level can drill down to the data at the lower when required.
